Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
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 | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,173,020 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 61,107 | $ 72,918 |
Short-term investments | 8,178 | 30,644 |
Total cash and cash equivalents | 69,285 | 103,562 |
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale, at fair value | 946,853 | 1,154,457 |
Securities held to maturity (fair values of $139,358 and $136,904) | 131,467 | 131,652 |
Federal Home Loan Bank stock and other restricted securities | 61,277 | 71,018 |
Total securities | 1,153,746 | 1,371,316 |
Loans held for sale | 20,471 | 13,191 |
Commercial real estate | 2,327,044 | 2,059,767 |
Commercial and industrial loans | 994,874 | 1,048,263 |
Residential mortgages | 1,818,111 | 1,815,035 |
Consumer loans | 906,975 | 802,171 |
Total loans | 6,047,004 | 5,725,236 |
Less: Allowance for loan losses | (43,105) | (39,308) |
Net loans | 6,003,899 | 5,685,928 |
Premises and equipment, net | 85,794 | 88,072 |
Other real estate owned | 80 | 1,725 |
Goodwill | 339,975 | 323,943 |
Other intangible assets | 8,308 | 10,664 |
Cash surrender value of bank-owned life insurance policies | 127,880 | 125,233 |
Deferred tax assets, net | 34,616 | 42,526 |
Other assets | 87,107 | 64,926 |
Total assets | 7,931,161 | 7,831,086 |
Liabilities | ||
Demand deposits | 1,113,733 | 1,081,860 |
NOW deposits | 476,189 | 510,807 |
Money market deposits | 1,469,075 | 1,408,107 |
Savings deposits | 607,868 | 601,761 |
Time deposits | 2,082,889 | 1,986,600 |
Total deposits | 5,749,754 | 5,589,135 |
Short-term debt | 939,800 | 1,071,200 |
Long-term Federal Home Loan Bank advances | 109,114 | 103,135 |
Subordinated borrowings | 89,116 | 88,983 |
Total borrowings | 1,138,030 | 1,263,318 |
Other liabilities | 110,784 | 91,444 |
Total liabilities | 6,998,568 | 6,943,897 |
Shareholders’ equity | ||
Common stock ($.01 par value; 50,000,000 shares authorized and 32,321,962 shares issued and 31,121,676 shares outstanding in 2016; 32,321,962 shares issued and 30,973,986 shares outstanding in 2015) | 322 | 322 |
Additional paid-in capital | 747,844 | 742,619 |
Unearned compensation | (6,991) | (6,997) |
Retained earnings | 213,453 | 183,885 |
Accumulated other comprehensive income | 8,411 | (3,305) |
Treasury stock, at cost (1,200,286 shares in 2016 and 1,179,045 shares in 2015) | (30,446) | (29,335) |
Total shareholders’ equity | 932,593 | 887,189 |
Total liabilities and Shareholders’ equity | $ 7,931,161 | $ 7,831,086 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 139,358 | $ 136,904 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 32,321,962 | 32,321,962 |
Common stock, shares outstanding (in shares) | 31,121,676 | 30,973,986 |
Treasury stock (in shares) | 1,200,286 | 1,179,045 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income | ||||
Loans | $ 61,571 | $ 56,343 | $ 179,716 | $ 152,292 |
Securities and other | 8,940 | 9,109 | 28,289 | 26,314 |
Total interest and dividend income | 70,511 | 65,452 | 208,005 | 178,606 |
Interest expense | ||||
Deposits | 7,790 | 6,046 | 22,327 | 16,287 |
Borrowings | 4,750 | 2,435 | 12,569 | 7,218 |
Total interest expense | 12,540 | 8,481 | 34,896 | 23,505 |
Net interest income | 57,971 | 56,971 | 173,109 | 155,101 |
Non-interest income | ||||
Loan related income | 5,102 | 1,537 | 11,046 | 5,603 |
Mortgage banking income | 1,862 | 693 | 4,018 | 3,492 |
Deposit related fees | 6,278 | 6,549 | 18,678 | 18,668 |
Insurance commissions and fees | 2,601 | 2,544 | 8,154 | 7,997 |
Wealth management fees | 2,269 | 2,376 | 7,006 | 7,376 |
Total fee income | 18,112 | 13,699 | 48,902 | 43,136 |
Other, net | 188 | (1,050) | (440) | (3,563) |
Gain on sale of securities, net | 78 | 49 | 101 | 2,467 |
Gain on branch sales, net | 563 | 0 | 563 | 0 |
Total non-interest income | 18,941 | 12,698 | 49,126 | 42,040 |
Total net revenue | 76,912 | 69,669 | 222,235 | 197,141 |
Provision for loan losses | 4,734 | 4,240 | 13,262 | 12,295 |
Non-interest expense | ||||
Compensation and benefits | 26,119 | 25,237 | 76,497 | 71,551 |
Occupancy and equipment | 6,650 | 6,827 | 19,900 | 21,178 |
Technology and communications | 4,902 | 4,645 | 14,573 | 12,328 |
Marketing and promotion | 671 | 781 | 2,081 | 2,294 |
Professional services | 1,744 | 1,053 | 4,533 | 3,700 |
FDIC premiums and assessments | 1,208 | 1,157 | 3,644 | 3,429 |
Other real estate owned and foreclosures | 46 | 298 | 702 | 800 |
Amortization of intangible assets | 749 | 887 | 2,355 | 2,722 |
Acquisition, restructuring and conversion related expenses | 2,170 | 3,361 | 3,828 | 16,493 |
Other | 4,585 | 5,132 | 14,099 | 14,056 |
Total non-interest expense | 48,844 | 49,378 | 142,212 | 148,551 |
Income before income taxes | 23,334 | 16,051 | 66,761 | 36,295 |
Income tax expense | 6,953 | 1,350 | 18,422 | 2,791 |
Net income | $ 16,381 | $ 14,701 | $ 48,339 | $ 33,504 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.49 | $ 1.58 | $ 1.21 |
Diluted (in dollars per share) | $ 0.53 | $ 0.49 | $ 1.57 | $ 1.20 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 30,621 | 29,893 | 30,584 | 27,685 |
Diluted (in shares) | 30,811 | 30,069 | 30,757 | 27,847 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 16,381 | $ 14,701 | $ 48,339 | $ 33,504 |
Other comprehensive income, before tax: | ||||
Changes in unrealized gain on securities available-for-sale | (5,654) | 8,207 | 21,639 | 1,474 |
Changes in unrealized loss on derivative hedges | 2,730 | (4,369) | (2,660) | (7,486) |
Changes in unrealized loss on pension | 0 | 65 | 0 | (1,402) |
Income taxes related to other comprehensive income: | ||||
Changes in unrealized gain on securities available-for-sale | 2,218 | (3,186) | (8,330) | (692) |
Changes in unrealized loss on derivative hedges | (1,096) | 1,761 | 1,067 | 3,017 |
Changes in unrealized loss on pension | 0 | (26) | 0 | 565 |
Total other comprehensive (loss) income | (1,802) | 2,452 | 11,716 | (4,524) |
Total comprehensive income | $ 14,579 | $ 17,153 | $ 60,055 | $ 28,980 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Hampden Bancorp Inc | Firestone Financial Corp. | 44 Business Capital | Common stock | Common stockHampden Bancorp Inc | Common stockFirestone Financial Corp. | Common stock44 Business Capital | Additional paid-in capital | Additional paid-in capitalHampden Bancorp Inc | Additional paid-in capitalFirestone Financial Corp. | Unearned compensation | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Treasury stock44 Business Capital | |
Balance (in shares) at Dec. 31, 2014 | 25,183,000 | ||||||||||||||||
Balance at Beginning of Period at Dec. 31, 2014 | $ 709,287 | $ 265 | $ 585,289 | $ (6,147) | $ 156,446 | $ 6,579 | $ (33,145) | ||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 33,504 | 33,504 | |||||||||||||||
Other comprehensive loss | (4,524) | (4,524) | |||||||||||||||
Total comprehensive income | 28,980 | ||||||||||||||||
Acquisition of 44 Business Capital (in shares) | 4,186,000 | 1,442,000 | |||||||||||||||
Acquisition of 44 Business Capital | $ 42 | $ 15 | $ 114,562 | $ 42,092 | |||||||||||||
Cash dividends declared | (16,016) | (16,016) | |||||||||||||||
Treasury stock purchased (in shares) | 0 | ||||||||||||||||
Treasury stock purchased | 0 | 0 | |||||||||||||||
Forfeited shares (in shares) | (19,000) | ||||||||||||||||
Forfeited shares | 0 | 42 | 479 | (521) | |||||||||||||
Exercise of stock options (in shares) | 11,000 | ||||||||||||||||
Exercise of stock options | 116 | (165) | 281 | ||||||||||||||
Restricted stock grants (in shares) | 182,000 | ||||||||||||||||
Restricted stock grants | 0 | 316 | (4,804) | 4,488 | |||||||||||||
Stock-based compensation | 3,378 | 0 | 3,378 | ||||||||||||||
Net tax benefit related to stock-based compensation | 26 | 26 | |||||||||||||||
Other, net (in shares) | (36,000) | ||||||||||||||||
Other, net | (914) | 7 | (921) | ||||||||||||||
Balance (in shares) at Sep. 30, 2015 | 30,949,000 | ||||||||||||||||
Balance at End of Period at Sep. 30, 2015 | 881,568 | $ 322 | 742,334 | (7,094) | 173,769 | 2,055 | (29,818) | ||||||||||
Balance (in shares) at Dec. 31, 2014 | 25,183,000 | ||||||||||||||||
Balance at Beginning of Period at Dec. 31, 2014 | 709,287 | $ 265 | 585,289 | (6,147) | 156,446 | 6,579 | (33,145) | ||||||||||
Comprehensive income: | |||||||||||||||||
Acquisition of 44 Business Capital | $ 114,604 | $ 42,107 | |||||||||||||||
Balance (in shares) at Dec. 31, 2015 | 30,974,000 | ||||||||||||||||
Balance at End of Period at Dec. 31, 2015 | 887,189 | $ 322 | 742,619 | (6,997) | 183,885 | (3,305) | (29,335) | ||||||||||
Balance at Beginning of Period at Jun. 30, 2015 | (397) | ||||||||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 14,701 | ||||||||||||||||
Other comprehensive loss | 2,452 | ||||||||||||||||
Total comprehensive income | 17,153 | ||||||||||||||||
Balance (in shares) at Sep. 30, 2015 | 30,949,000 | ||||||||||||||||
Balance at End of Period at Sep. 30, 2015 | 881,568 | $ 322 | 742,334 | (7,094) | 173,769 | 2,055 | (29,818) | ||||||||||
Balance (in shares) at Dec. 31, 2015 | 30,974,000 | ||||||||||||||||
Balance at Beginning of Period at Dec. 31, 2015 | 887,189 | $ 322 | 742,619 | (6,997) | 183,885 | (3,305) | (29,335) | ||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 48,339 | 48,339 | |||||||||||||||
Other comprehensive loss | 11,716 | 11,716 | |||||||||||||||
Total comprehensive income | 60,055 | ||||||||||||||||
Acquisition of 44 Business Capital (in shares) | 45,000 | ||||||||||||||||
Acquisition of 44 Business Capital | $ 1,217 | $ 1,217 | |||||||||||||||
Cash dividends declared | $ (18,675) | (18,675) | |||||||||||||||
Treasury stock purchased (in shares) | (168,931) | ||||||||||||||||
Treasury stock purchased | [1] | $ 0 | 4,632 | (4,632) | |||||||||||||
Forfeited shares (in shares) | (63,000) | ||||||||||||||||
Forfeited shares | 0 | 106 | 1,592 | (1,698) | |||||||||||||
Exercise of stock options (in shares) | 9,000 | ||||||||||||||||
Exercise of stock options | 142 | (96) | 238 | ||||||||||||||
Restricted stock grants (in shares) | 185,000 | ||||||||||||||||
Restricted stock grants | 0 | 504 | (5,052) | 4,548 | |||||||||||||
Stock-based compensation | 3,466 | 3,466 | |||||||||||||||
Net tax benefit related to stock-based compensation | (1) | (1) | |||||||||||||||
Other, net (in shares) | (28,000) | ||||||||||||||||
Other, net | (800) | (16) | (784) | ||||||||||||||
Balance (in shares) at Sep. 30, 2016 | 31,122,000 | ||||||||||||||||
Balance at End of Period at Sep. 30, 2016 | 932,593 | $ 322 | 747,844 | (6,991) | 213,453 | 8,411 | (30,446) | ||||||||||
Balance at Beginning of Period at Jun. 30, 2016 | 10,213 | ||||||||||||||||
Comprehensive income: | |||||||||||||||||
Net income | 16,381 | ||||||||||||||||
Other comprehensive loss | (1,802) | ||||||||||||||||
Total comprehensive income | 14,579 | ||||||||||||||||
Balance (in shares) at Sep. 30, 2016 | 31,122,000 | ||||||||||||||||
Balance at End of Period at Sep. 30, 2016 | $ 932,593 | $ 322 | $ 747,844 | $ (6,991) | $ 213,453 | $ 8,411 | $ (30,446) | ||||||||||
[1] | Treasury stock adjustment represents the extinguishment of 168,931 shares of Berkshire Hills Bancorp stock held by the Company's subsidiary. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Treasury stock purchased (in shares) | 168,931 | |
Cash dividends declared (in dollars per share) | $ 0.60 | $ 0.57 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 48,339 | $ 33,504 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 13,262 | 12,295 |
Net amortization of securities | 3,476 | 2,282 |
Change in unamortized net loan costs and premiums | (3,825) | (716) |
Premises and equipment depreciation and amortization expense | 6,226 | 6,443 |
Stock-based compensation expense | 3,466 | 3,377 |
Accretion of purchase accounting entries, net | (7,266) | (6,383) |
Amortization of other intangibles | 2,355 | 2,722 |
Write down of other real estate owned | 395 | 480 |
Excess tax loss from stock-based payment arrangements | (105) | (26) |
Income from cash surrender value of bank-owned life insurance policies | (2,905) | (2,401) |
Gain on sales of securities, net | (101) | (2,467) |
Net (increase) in loans held for sale | (7,280) | (5,060) |
Loss on disposition of assets | 32 | 2,208 |
Loss on sale of real estate | 62 | 240 |
Amortization of interest in tax-advantaged projects | 4,454 | 8,577 |
Net change in other | (1,089) | (4,236) |
Net cash provided by operating activities | 59,496 | 50,839 |
Cash flows from investing activities: | ||
Net decrease in trading security | 446 | 424 |
Proceeds from sales of securities available for sale | 283,755 | 24,389 |
Proceeds from maturities, calls and prepayments of securities available for sale | 128,566 | 143,489 |
Purchases of securities available for sale | (186,392) | (236,601) |
Proceeds from maturities, calls and prepayments of securities held to maturity | 5,946 | 6,889 |
Purchases of securities held to maturity | (5,969) | (62,074) |
Net change in loans | (284,440) | (327,813) |
Purchases of bank owned life insurance | 0 | 554 |
Proceeds from surrender of bank-owned life insurance | 258 | 0 |
Proceeds from sale of Federal Home Loan Bank stock | 18,544 | 306 |
Purchase of Federal Home Loan Bank stock | (8,803) | (10,706) |
Net investment in limited partnership tax credits | (5,189) | (2,500) |
Proceeds from the sale of premises and equipment | 226 | 1,932 |
Purchase of premises and equipment, net | (4,314) | (3,961) |
Acquisitions, net of cash (paid) acquired | (55,542) | 74,324 |
Proceeds from sale of other real estate | 1,483 | 1,705 |
Net cash used in investing activities | (111,425) | (389,643) |
Cash flows from financing activities: | ||
Net increase in deposits | 161,114 | 393,762 |
Proceeds from Federal Home Loan Bank advances and other borrowings | 7,264,120 | 6,441,300 |
Repayments of Federal Home Loan Bank advances and other borrowings | (7,389,048) | (6,458,567) |
Exercise of stock options | 141 | 116 |
Excess tax loss from stock-based payment arrangements | 0 | 26 |
Common stock cash dividends paid | (18,675) | (16,016) |
Net cash provided by financing activities | 17,652 | 360,621 |
Net change in cash and cash equivalents | (34,277) | 21,817 |
Cash and cash equivalents at beginning of year | 103,562 | 71,754 |
Cash and cash equivalents at end of year | 69,285 | 93,571 |
Supplemental cash flow information: | ||
Interest paid on deposits | 21,954 | 15,833 |
Interest paid on borrowed funds | 12,166 | 7,069 |
Income taxes paid, net | 10,995 | 1,125 |
Acquisition of non-cash assets and liabilities: | ||
Assets acquired | 56,976 | 948,796 |
Liabilities assumed | (109) | (762,261) |
Other non-cash changes: | ||
Other net comprehensive income (loss) | 11,716 | (4,524) |
Real estate owned acquired in settlement of loans | $ 295 | $ 2,747 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts, and Berkshire Insurance Group, Inc. (“Berkshire Insurance Group” or “BIG”). These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. 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, 2015. In management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Recently Adopted Accounting Principles Effective January 1, 2016, the following new accounting guidance was adopted by the Company: • ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis; • ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs; • ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement; and • ASU No. 2015-16, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement - Period Adjustments. The adoption of these accounting standards did not have a material impact on the Company's financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvement to Employee Share-Based Payment Accounting”. This ASU contains targeted amendments to the accounting for shared based payment transactions, including income tax consequences for awards, classification of awards as either equity or liabilities, and classification of activity on the statement of cash flows. Specifically, some of the requirements under the amendments include: (1) excess tax benefits and/or tax deficiencies, determined as the difference between compensation cost recognized for financial reporting purposes and the deduction for tax, be recognized in the income statement as income tax expense or benefit in the period in which they occur, removing historical equity treatment; (2) excess tax benefits are no longer separately classified as a financing activity but rather should be classified with other income tax cash flows as an operating activity on the statement of cash flows; (3) cash paid by an employer when withholding shares for tax withholding purposes should be classified as a financing activity. Additionally, regarding forfeitures, this guidance permits a company to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016. The Company adopted ASU No. 2016-09 in April 2016 and the adoption of this accounting standard did not have a material impact on the Company's consolidated financial statements. The Company chose a modified retrospective approach and a policy election to account for forfeitures when they occur. This change resulted in a cumulative adjustment immaterial to all periods presented. 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 August 2015, Accounting Standards Update No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”) was issued and delayed the effective date of ASU 2014-09 to annual and interim periods in fiscal years 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. In March, April and May 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” respectfully. The updates are not intended to change the core principles of the standard; however, they attempt to clarify important aspects of the guidance and improve its operability. The amendments have the same effective date and transition requirements as the new revenue standard. 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 the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to: i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The guidance also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument specific credit risk. The Company is currently evaluating the impact of the new standard on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. The new pronouncement improves the transparency and comparability of financial reporting around leasing transactions and more closely aligns accounting for leases with the recently issued International Financial Reporting Standard. The pronouncement affects all entities that are participants to leasing agreements. From a lessee accounting perspective, the ASU requires a lessee to recognize assets and liabilities on the balance sheet for operating leases and changes many key definitions, including the definition of a lease. The ASU includes a short-term lease exception for leases with a term of twelve months or less, in which a lessee can make an accounting policy election not to recognize lease assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases, using classification criteria that are substantially similar to the previous guidance. For lessees, the recognition, measurement, and presentation of expenses and cash flows arising from a lease have not significantly changed from previous GAAP. From a lessor accounting perspective, the guidance is largely unchanged, except for targeted improvements to align with new terminology under lessee accounting and with the updated revenue recognition guidance in Topic 606. For sale-leaseback transactions, for a sale to occur the transfer must meet the sale criteria under the new revenue standard, ASC 606. Entities will not be required to reassess transactions previously accounted under then existing guidance. Additionally, the ASU includes additional quantitative and qualitative disclosures required by lessees and lessors to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply as well as transition guidance specific to nonstandard leasing transactions. The Company is currently evaluating the provisions of ASU No. 2016-02 to determine the potential impact the new standard will have on the Company's consolidated financial statements. In March 2016 , the FASB issued ASU No. 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” This ASU clarifies that changes in the counterparty to a derivative instrument designated as a hedg e does not alone require it to be de-designated and therefore discontinue the application of hedge accounting. Companies are still required to evaluate whether it is probable that a counterparty will perform under the contract as part of the ongoing effectiveness assessment for hedge accounting. The new guidance is effective for annual periods beginning after December 15, 2016 and entities may adopt on a prospective or modified retrospective basis. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, “Contingent Put and Call Options in Debt Instruments” clarifying the assessment of whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to the economic characteristics and risks of their debt hosts, a criteria in assessing whether to bifurcate an embedded derivative. The new pronouncement clarifies the exercise contingency and the event triggering the contingency does not need to be evaluated in the clearly and closely analysis relative to interest rates or credit risks. Rather, the call or put would be evaluated as a derivative regardless of the exercise contingency. Further, if an entity is no longer required to bifurcate a put or call option per the new guidance, the entity has a one-time option to irrevocably elect to measure that debt instrument in its entirety at fair value with changes in fair value recognized in earnings. ASU No. 2016-06 is effective for annual periods beginning after December 15, 2016 and early adoption is permitted. The ASU should be applied using the modified retrospective basis to existing instruments as of the beginning of the annual period of adoption. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07 “Simplifying the Transition to the Equity Method of Accounting” which eliminates the requirement to retroactively adjust an investment that becomes subject to the equity method of accounting as a result of an increase ownership interest or degree of influence. Alternatively, an investor entity adds the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopts the equity method of accounting prospectively as of the qualifying date; no retroactive adjustment is required. Additionally, ASU No. 2016-07 specifies that when an available-for-sale equity security becomes qualified for the equity method of accounting, a company should recognize the unrealized holding gain or loss in accumulated other comprehensive income through earnings at the date the investment becomes qualified for use of the equity method. This guidance is effective for all entities for annual periods beginning after December 15, 2016, with early adoption permitted on a prospective basis. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments. The ASU requires companies to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Forward-looking information will now be used in credit loss estimates. The ASU requires enhanced disclosures to provide better understanding surrounding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a company’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Most debt instruments will require a cumulative-effect adjustment to retained earnings on the statement of financial position as of the beginning of the first reporting period in which the guidance is adopted (modified retrospective approach). However, there is instrument-specific transition guidance. ASU No. 2016-13 is effective for interim and annual periods beginning after December 15, 2019. Early application will be permitted for interim and annual periods beginning after December 15, 2018. The Company is evaluating the provisions of ASU No. 2016-13, and will closely monitor developments and additional guidance to determine the potential impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” Current GAAP is unclear or does not include specific guidance on how to classify certain transactions in the statement of cash flows. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for interim and annual periods beginning after December 15, 2017. Early application will be permitted provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendment related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU No. 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. |
ACQUISITION
ACQUISITION | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION 44 Business Capital On April 29, 2016, the Bank acquired and assumed the business model, certain assets, and certain liabilities of 44 Business Capital, along with certain loans and other assets of Parke Bank’s (“Parke”) SBA 7(a) loan program operations. 44 Business Capital was a joint venture of Parke ( 51% ) and a management group ( 49% ), 44 Amigos LLC, located in Blue Bell, Pennsylvania. 44 Business Capital was engaged in originating, servicing, and selling SBA loans using Parke’s SBA PLP preferred lender license. The transaction includes acquiring assets, key people, systems, and processes necessary for a market participant to run operations as a business. In accordance with ASC 805-10-55, the transaction was recorded as a business combination, resulting in acquisition accounting in which all assets acquired and liabilities are assumed at fair value. The loans acquired by the Bank were the unguaranteed portions of SBA loans of which $35.6 million were recorded as commercial real estate and $1.2 million were recorded as commercial & industrial. Servicing rights on a notional loan balance of $148 million were also acquired. The Company expects the acquisition to expand its SBA lending program on a super-regional and national basis with the intent of selling many of these loans on the secondary market. It expands and diversifies the Company's fee revenue sources. Additionally, the acquisition of 44 Business Capital expands the Company’s product lines, creates cross-selling opportunities, and adds niche lending to its portfolio. 44 Business Capital will operate as a direct small business lending department reporting up through the Company’s established specialty lending division. The following table provides a summary of the assets acquired and liabilities assumed and the associated fair value adjustments as recorded by the Company at acquisition: (in thousands) As Acquired Fair Value Adjustments As Recorded at Acquisition Consideration paid: Company common stock issued to certain 44 Business Capital shareholders (44,840 shares) $ 1,217 Cash paid to 44 Business Capital shareholders and Parke 55,649 Total consideration paid $ 56,866 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: Cash and short-term investments $ 107 $ — $ 107 Loans 42,627 (5,777 ) (a) 36,850 Premises and equipment 69 (36 ) (b) $ 33 Other assets 3,076 639 (c) 3,715 Other liabilities (108 ) — $ (108 ) Total identifiable net assets $ 45,771 $ (5,174 ) $ 40,597 Goodwill $ 16,269 Explanation of Certain Fair Value Adjustments (a) 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 $6.3 million and have a fair value $2.6 million . Non-impaired loans accounted for under ASC 310-10 had a book value of $36.4 million and have a fair value of $34.3 million . ASC 310-30 loans have a $708 thousand fair value adjustment discount that is accretable in earnings over an average estimated six -year life using the effective yield as determined on the date of acquisition. The effective yield is periodically adjusted for changes in expected cash flows. ASC 310-10 loans have a $2.1 million fair value adjustment discount that is amortized into income over the remaining term of the loans using the effective interest method. (b) The fair value of the equipment was assumed to approximate the net carrying value based on overall condition and age. The adjustment represents the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The recorded amount will be depreciated over the remaining estimated economic lives of the assets. (c) The adjustment represents the fair value write up of book value of the loan servicing right asset to its estimated fair value based on current interest rates and expected cash flows, which includes an estimate of cost of service and conditional prepayment rates applied to the underlying unpaid loan pool balance over the remaining life of the loans. The balance includes accrued interest of $221 thousand . 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. 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 29, 2016 is, as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 6,265 Contractual cash flows not expected to be collected (nonaccretable discount) (3,000 ) Expected cash flows at acquisition 3,265 Interest component of expected cash flows (accretable discount) (708 ) Fair value of acquired loans $ 2,557 Capitalized goodwill, which is not amortized for book purposes, was assigned to the Company. Direct acquisition and integration costs of the 44 Business Capital acquisition were expensed as incurred, and totaled $164 thousand during the nine months ending September 30, 2016 and $124 thousand for the same period of 2015. These costs totaled $66 thousand for the three months ended September 30, 2016 and $124 thousand for the same period of 2015. Pro Forma Information (unaudited) The following table presents selected unaudited pro forma financial information reflecting the acquisition of 44 Business Capital assuming the acquisition was completed as of January 1, 2015. The unaudited pro forma financial information includes adjustments for scheduled amortization and accretion of fair value adjustments recorded at the acquisitions. These adjustments would have been different if they had been recorded on January 1, 2015, 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 44 Business Capital 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 45 thousand shares issued as a result of the 44 Business Capital acquisition. The unaudited pro forma information is based on the actual financial statements of Berkshire and 44 Business Capital for the periods shown until the date of acquisition, at which time 44 Business Capital operations became included in Berkshire’s financial statements. For the period from the date of acquisition through September 30, 2016, 44 Business Capital's net revenue was $2.8 million and net income was $593 thousand which includes $164 thousand of acquisition expenses. The unaudited pro forma information, for the nine months ended September 30, 2016 and 2015, set forth below reflects adjustments related to amortization and accretion of purchase accounting fair value adjustments and an estimated tax rate of 40 percent . Direct acquisition expenses incurred by the Company during 2016, as noted above, are reversed for the purposes of this unaudited pro forma information. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing or anticipated cost-savings that could occur as a result of the acquisition. Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Nine Months Ended September 30, 2016 2015 Net interest income $ 173,421 $ 156,812 Non-interest income 51,279 46,196 Net income 49,170 35,567 Pro forma earnings per share: Basic $ 1.61 $ 1.28 Diluted $ 1.60 $ 1.28 |
TRADING SECURITY
TRADING SECURITY | 9 Months Ended |
Sep. 30, 2016 | |
Trading Securities [Abstract] | |
TRADING SECURITY | TRADING SECURITY The Company holds a tax advantaged economic development bond accounted for at fair value. The security had an amortized cost of $11.5 million and $12.0 million , and a fair value of $14.1 million and $14.2 million , at September 30, 2016 and December 31, 2015 , respectively. As discussed further in Note 12 - 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 September 30, 2016 |
SECURITIES AVAILABLE FOR SALE A
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 114,866 $ 6,357 $ (97 ) $ 121,126 Agency collateralized mortgage obligations 530,548 11,567 (118 ) 541,997 Agency mortgage-backed securities 103,261 1,463 (54 ) 104,670 Agency commercial mortgage-backed securities 61,673 627 — 62,300 Corporate bonds 46,869 359 (706 ) 46,522 Trust preferred securities 11,584 275 (58 ) 11,801 Other bonds and obligations 3,158 42 — 3,200 Total debt securities 871,959 20,690 (1,033 ) 891,616 Marketable equity securities 47,825 9,148 (1,736 ) 55,237 Total securities available for sale 919,784 29,838 (2,769 ) 946,853 Securities held to maturity Municipal bonds and obligations 95,457 5,708 — 101,165 Agency collateralized mortgage obligations 66 7 — 73 Tax advantaged economic development bonds 35,619 2,176 — 37,795 Other bonds and obligations 325 — — 325 Total securities held to maturity 131,467 7,891 — 139,358 Total $ 1,051,251 $ 37,729 $ (2,769 ) $ 1,086,211 December 31, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 99,922 $ 4,763 $ (124 ) $ 104,561 Agency collateralized mortgage obligations 833,633 4,957 (5,554 ) 833,036 Agency mortgage-backed securities 127,274 542 (987 ) 126,829 Agency commercial mortgage-backed securities — — — — Corporate bonds 42,849 — (1,826 ) 41,023 Trust preferred securities 11,719 182 (1 ) 11,900 Other bonds and obligations 3,175 — (34 ) 3,141 Total debt securities 1,118,572 10,444 (8,526 ) 1,120,490 Marketable equity securities 30,522 5,331 (1,886 ) 33,967 Total securities available for sale 1,149,094 15,775 (10,412 ) 1,154,457 Securities held to maturity Municipal bonds and obligations 94,642 3,359 (34 ) 97,967 Agency collateralized mortgage obligations 68 3 — 71 Tax advantaged economic development bonds 36,613 1,924 — 38,537 Other bonds and obligations 329 — — 329 Total securities held to maturity 131,652 5,286 (34 ) 136,904 Total $ 1,280,746 $ 21,061 $ (10,446 ) $ 1,291,361 The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities, segregated by contractual maturity at September 30, 2016 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 $ — $ — $ 2,580 $ 2,589 Over 1 year to 5 years 4,894 4,984 16,906 17,920 Over 5 years to 10 years 32,920 33,643 13,853 14,444 Over 10 years 138,663 144,022 98,062 104,332 Total bonds and obligations 176,477 182,649 131,401 139,285 Marketable equity securities 47,825 55,237 — — Mortgage-backed securities 695,482 708,967 66 73 Total $ 919,784 $ 946,853 $ 131,467 $ 139,358 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 September 30, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 97 $ 12,160 $ — $ — $ 97 $ 12,160 Agency collateralized mortgage obligations 118 43,710 — — 118 43,710 Agency mortgage-backed securities 30 12,901 24 1,349 54 14,250 Corporate bonds — — 706 19,998 706 19,998 Trust preferred securities — — 58 1,200 58 1,200 Total debt securities 245 68,771 788 22,547 1,033 91,318 Marketable equity securities 494 9,899 1,242 6,939 1,736 16,838 Total securities available for sale 739 78,670 2,030 29,486 2,769 108,156 Total $ 739 $ 78,670 $ 2,030 $ 29,486 $ 2,769 $ 108,156 December 31, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 9 $ 1,587 $ 115 $ 3,400 $ 124 $ 4,987 Agency collateralized mortgage obligations 2,958 304,907 2,596 136,988 5,554 441,895 Agency mortgage-backed securities 306 34,543 681 35,522 987 70,065 Corporate bonds 30 6,934 1,796 21,587 1,826 28,521 Trust preferred securities 1 1,269 — — 1 1,269 Other bonds and obligations — 108 34 3,032 34 3,140 Total debt securities 3,304 349,348 5,222 200,529 8,526 549,877 Marketable equity securities 534 2,908 1,352 5,729 1,886 8,637 Total securities available for sale 3,838 352,256 6,574 206,258 10,412 558,514 Securities held to maturity Tax advantaged economic development bonds — — 34 2,143 34 2,143 Total securities held to maturity — — 34 2,143 34 2,143 Total $ 3,838 $ 352,256 $ 6,608 $ 208,401 $ 10,446 $ 560,657 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 September 30, 2016 , 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 September 30, 2016 : AFS municipal bonds and obligations At September 30, 2016, 7 of the total 127 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.8% 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 collateralized mortgage obligations At September 30, 2016 , 6 out of the total 112 securities in the Company’s portfolios of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.3% 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 collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS mortgage-backed securities At September 30, 2016 , 13 out of the total 87 securities in the Company’s portfolios of AFS residential mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 0.4% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and 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 September 30, 2016 , 2 out of 9 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 3.4% 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. At September 30, 2016 , $637.9 thousand of the total unrealized losses was attributable to a $17.5 million investment. The Company evaluated this security, with a Level 2 fair value of $16.9 million , for potential other-than-temporary impairment (“OTTI”) at September 30, 2016 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 September 30, 2016 1 out of the 3 securities in the Company’s portfolio of AFS trust preferred securities were in an unrealized loss position. Aggregate unrealized losses represented 4.6% of the amortized cost of these securities in an unrealized loss position. The Company’s evaluation of the present value of expected cash flows on these securities supports its conclusions about the recoverability of these securities’ amortized cost basis. These securities are 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. 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 September 30, 2016 , 10 out of the total 28 securities in the Company’s portfolio of marketable equity securities were in an unrealized loss position. The unrealized loss represented 9.4% 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 September 30, 2016 . 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 | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
LOANS | LOANS The Company’s loan portfolio is segregated into the following segments: commercial real estate, commercial and industrial, residential mortgage, and consumer. 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. Residential mortgage loans include classes for 1-4 family owner occupied and construction loans. 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 Parke Bank, Firestone Financial Corp., 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: September 30, 2016 December 31, 2015 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 221,749 $ 19,850 $ 241,599 $ 210,196 $ 43,474 $ 253,670 Single and multi-family 271,844 40,696 312,540 214,823 36,783 251,606 Other commercial real estate 1,438,726 334,179 1,772,905 1,209,008 345,483 1,554,491 Total commercial real estate 1,932,319 394,725 2,327,044 1,634,027 425,740 2,059,767 Commercial and industrial loans: Asset based lending 327,100 — 327,100 331,253 — 331,253 Other commercial and industrial loans 520,769 147,005 667,774 495,979 221,031 717,010 Total commercial and industrial loans 847,869 147,005 994,874 827,232 221,031 1,048,263 Total commercial loans 2,780,188 541,730 3,321,918 2,461,259 646,771 3,108,030 Residential mortgages: 1-4 family 1,513,122 287,574 1,800,696 1,454,233 332,747 1,786,980 Construction 16,600 815 17,415 26,704 1,351 28,055 Total residential mortgages 1,529,722 288,389 1,818,111 1,480,937 334,098 1,815,035 Consumer loans: Home equity 323,642 46,258 369,900 307,159 53,446 360,605 Auto and other 435,618 101,457 537,075 311,328 130,238 441,566 Total consumer loans 759,260 147,715 906,975 618,487 183,684 802,171 Total loans $ 5,069,170 $ 977,834 $ 6,047,004 $ 4,560,683 $ 1,164,553 $ 5,725,236 The carrying amount of the acquired loans at September 30, 2016 totaled $978 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 $15.1 million (and a note balance of $29.9 million). These loans are evaluated for impairment through the periodic reforecasting of expected cash flows. Loans considered not impaired at acquisition date had a carrying amount of $962.7 million . At December 31, 2015, acquired loans maintained a carrying value of $1.2 billion and purchased credit-impaired loans totaled $21.4 million (note balance of $40.2 million). Loans considered not impaired at acquisition date had a carrying amount of $1.1 billion . 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 September 30, (In thousands) 2016 2015 Balance at beginning of period $ 6,213 $ 6,540 Acquisitions — 684 Reclassification from nonaccretable difference for loans with improved cash flows 688 1,214 Accretion (2,298 ) (967 ) Balance at end of period $ 4,603 $ 7,471 Nine Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of period $ 6,925 $ 2,541 Acquisitions 708 4,862 Reclassification from nonaccretable difference for loans with improved cash flows 2,106 2,950 Reclassification to TDR (185 ) — Accretion (4,951 ) (2,882 ) Balance at end of period $ 4,603 $ 7,471 The following is a summary of past due loans at September 30, 2016 and December 31, 2015: Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > September 30, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 221,749 $ 221,749 $ — Single and multi-family 573 — 351 924 270,920 271,844 — Other commercial real estate 568 473 7,240 8,281 1,430,445 1,438,726 2,292 Total 1,141 473 7,591 9,205 1,923,114 1,932,319 2,292 Commercial and industrial loans: Asset based lending — — — — 327,100 327,100 — Other commercial and industrial loans 1,304 181 5,270 6,755 514,014 520,769 503 Total 1,304 181 5,270 6,755 841,114 847,869 503 Residential mortgages: 1-4 family 1,446 1,602 3,411 6,459 1,506,663 1,513,122 944 Construction — — 45 45 16,555 16,600 — Total 1,446 1,602 3,456 6,504 1,523,218 1,529,722 944 Consumer loans: Home equity 154 5 1,732 1,891 321,751 323,642 150 Auto and other 1,774 405 530 2,709 432,909 435,618 — Total 1,928 410 2,262 4,600 754,660 759,260 150 Total $ 5,819 $ 2,666 $ 18,579 $ 27,064 $ 5,042,106 $ 5,069,170 $ 3,889 Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2015 Commercial real estate: Construction $ — $ — $ 58 $ 58 $ 210,138 $ 210,196 $ — Single and multi-family 65 160 70 295 214,528 214,823 — Other commercial real estate 1,523 831 3,286 5,640 1,203,368 1,209,008 — Total 1,588 991 3,414 5,993 1,628,034 1,634,027 — Commercial and industrial loans: Asset based lending — — — — 331,253 331,253 — Other commercial and industrial loans 1,202 1,105 7,770 10,077 485,902 495,979 146 Total 1,202 1,105 7,770 10,077 817,155 827,232 146 Residential mortgages: 1-4 family 3,537 857 4,304 8,698 1,445,535 1,454,233 2,006 Construction — — — — 26,704 26,704 — Total 3,537 857 4,304 8,698 1,472,239 1,480,937 2,006 Consumer loans: Home equity 563 20 1,658 2,241 304,918 307,159 61 Auto and other 1,230 132 610 1,972 309,356 311,328 59 Total 1,793 152 2,268 4,213 614,274 618,487 120 Total $ 8,120 $ 3,105 $ 17,756 $ 28,981 $ 4,531,702 $ 4,560,683 $ 2,272 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > September 30, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 1,082 $ 19,850 $ — Single and multi-family 1,086 — — 1,086 1,169 40,696 — Other commercial real estate 431 — 996 1,427 9,580 334,179 — Total 1,517 — 996 2,513 11,831 394,725 — Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,190 177 1,947 3,314 1,852 147,005 — Total 1,190 177 1,947 3,314 1,852 147,005 — Residential mortgages: 1-4 family 764 441 1,951 3,156 1,337 287,574 89 Construction — — — — — 815 — Total 764 441 1,951 3,156 1,337 288,389 89 Consumer loans: Home equity — 489 784 1,273 7 46,258 257 Auto and other 340 842 818 2,000 96 101,457 176 Total 340 1,331 1,602 3,273 103 147,715 433 Total $ 3,811 $ 1,949 $ 6,496 $ 12,256 $ 15,123 $ 977,834 $ 522 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > December 31, 2015 Commercial real estate: — Construction $ — $ — $ — $ — $ 1,298 $ 43,474 $ — Single and multi-family — 176 227 403 1,380 36,783 127 Other commercial real estate 547 43 1,368 1,958 13,087 345,483 — Total 547 219 1,595 2,361 15,765 425,740 127 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,214 505 1,420 3,139 2,775 221,031 785 Total 1,214 505 1,420 3,139 2,775 221,031 785 Residential mortgages: 1-4 family 2,580 311 1,880 4,771 2,572 332,747 212 Construction — — — — — 1,351 — Total 2,580 311 1,880 4,771 2,572 334,098 212 Consumer loans: Home equity 82 277 837 1,196 118 53,446 111 Auto and other 1,491 145 1,081 2,717 132 130,238 187 Total 1,573 422 1,918 3,913 250 183,684 298 Total $ 5,914 $ 1,457 $ 6,813 $ 14,184 $ 21,362 $ 1,164,553 $ 1,422 The following is summary information pertaining to non-accrual loans at September 30, 2016 and December 31, 2015 September 30, 2016 December 31, 2015 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ 59 $ — $ 59 Single and multi-family 351 — 351 70 100 170 Other commercial real estate 4,948 996 5,944 3,285 1,368 4,653 Total 5,299 996 6,295 3,414 1,468 4,882 Commercial and industrial loans: Other commercial and industrial loans 4,767 1,695 6,462 7,624 597 8,221 Total 4,767 1,695 6,462 7,624 597 8,221 Residential mortgages: 1-4 family 2,467 1,862 4,329 2,298 1,668 3,966 Construction 45 — 45 — — — Total 2,512 1,862 4,374 2,298 1,668 3,966 Consumer loans: Home equity 1,582 526 2,108 1,597 727 2,324 Auto and other 530 643 1,173 551 893 1,444 Total 2,112 1,169 3,281 2,148 1,620 3,768 Total non-accrual loans $ 14,690 $ 5,722 $ 20,412 $ 15,484 $ 5,353 $ 20,837 _______________________________________ (1) At quarter end September 30, 2016 , acquired credit impaired loans accounted for $252 thousand of non-accrual loans that are not presented in the above table. (2) At December 31, 2015, acquired credit impaired loans accounted for $39 thousand of non-accrual loans that are not presented in the above table. Loans evaluated for impairment as of September 30, 2016 and December 31, 2015 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total September 30, 2016 Loans receivable: Balance at end of period Individually evaluated for impairment $ 14,058 $ 3,955 $ 3,045 $ 1,483 $ 22,541 Collectively evaluated 1,918,261 843,914 1,526,677 757,777 5,046,629 Total $ 1,932,319 $ 847,869 $ 1,529,722 $ 759,260 $ 5,069,170 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2015 Loans receivable: Balance at end of year Individually evaluated for impairment $ 11,560 $ 7,191 $ 2,812 $ 1,810 $ 23,373 Collectively evaluated for impairment 1,622,467 820,041 1,478,125 616,677 4,537,310 Total $ 1,634,027 $ 827,232 $ 1,480,937 $ 618,487 $ 4,560,683 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total September 30, 2016 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 4,190 $ 1,144 $ 315 $ 415 $ 6,064 Purchased credit-impaired loans 11,831 1,852 1,337 103 15,123 Collectively evaluated 378,704 144,009 286,737 147,197 956,647 Total $ 394,725 $ 147,005 $ 288,389 $ 147,715 $ 977,834 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2015 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,749 $ — $ 570 $ 487 $ 4,806 Purchased credit-impaired loans 15,765 2,775 2,572 250 21,362 Collectively evaluated for impairment 406,226 218,256 330,956 182,947 1,138,385 Total $ 425,740 $ 221,031 $ 334,098 $ 183,684 $ 1,164,553 The following is a summary of impaired loans at September 30, 2016 and December 31, 2015: Business Activities Loans September 30, 2016 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 3,593 3,593 — Other commercial and industrial loans 218 218 — Residential mortgages - 1-4 family 2,367 2,367 — Consumer - home equity 380 380 — Consumer - other 3 3 — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 10,275 10,465 190 Other commercial and industrial loans 3,543 3,737 194 Residential mortgages - 1-4 family 589 678 89 Consumer - home equity 841 999 158 Consumer - other 94 101 7 Total Commercial real estate $ 13,868 $ 14,058 $ 190 Commercial and industrial loans 3,761 3,955 194 Residential mortgages 2,956 3,045 89 Consumer 1,318 1,483 165 Total impaired loans $ 21,903 $ 22,541 $ 638 Business Activities Loans December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ 2,000 $ 2,000 $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 4,613 4,613 — Other commercial and industrial loans 5,828 5,828 — Residential mortgages - 1-4 family 1,181 1,181 — Consumer - home equity 702 702 — Consumer - other 1 1 — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 4,798 4,947 149 Other commercial and industrial loans 1,341 1,362 21 Residential mortgages - 1-4 family 1,479 1,632 153 Consumer - home equity 903 999 96 Consumer - other 101 108 7 Total Commercial real estate $ 11,411 $ 11,560 $ 149 Commercial and industrial loans 7,169 7,190 21 Residential mortgages 2,660 2,813 153 Consumer 1,707 1,810 103 Total impaired loans $ 22,947 $ 23,373 $ 426 Acquired Loans September 30, 2016 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 632 632 — Other commercial and industrial loans — — — Residential mortgages - 1-4 family 211 211 — Consumer - home equity — — — Consumer - other — — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily 891 930 39 Other commercial real estate loans 1,963 2,628 665 Other commercial and industrial loans 1,023 1,144 121 Residential mortgages - 1-4 family 92 104 12 Consumer - home equity 280 415 135 Consumer - other — — — Total Commercial real estate $ 3,486 $ 4,190 $ 704 Commercial and industrial loans 1,023 1,144 121 Residential mortgages 303 315 12 Consumer 280 415 135 Total impaired loans $ 5,092 $ 6,064 $ 972 Acquired Loans December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 1,722 $ 1,722 $ — Residential mortgages - 1-4 family 274 274 — Consumer - home equity 117 117 — Consumer - other 177 177 — With an allowance recorded: Commercial real estate - single and multifamily $ 638 $ 655 $ 17 Other commercial real estate loans 1,964 2,032 68 Residential mortgages - 1-4 family 266 296 30 Consumer - home equity 167 192 25 Total Other commercial real estate loans $ 4,324 $ 4,409 $ 85 Other commercial and industrial loans — — — Residential mortgages 540 570 30 Consumer 461 486 25 Total impaired loans $ 5,325 $ 5,465 $ 140 The following is a summary of the average recorded investment and interest income recognized on impaired loans as of September 30, 2016 and 2015: Business Activities Loans Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ 2,326 $ 1 Commercial real estate - single and multifamily 48 1 80 — Other commercial real estate loans 2,624 111 9,787 157 Other commercial and industrial loans 805 26 234 7 Residential mortgages - 1-4 family 2,309 51 1,264 32 Consumer - home equity 693 5 155 6 Consumer - other 1 — — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — Commercial real estate - single and multifamily — — — — Other commercial real estate loans 10,266 351 7,725 199 Other commercial and industrial loans 4,609 154 3,610 103 Residential mortgages - 1-4 family 684 21 1,795 60 Consumer - home equity 999 26 248 — Consumer - other 104 3 113 3 Total Commercial real estate $ 12,938 $ 463 $ 19,918 $ 357 Commercial and industrial loans 5,414 180 3,844 110 Residential mortgages 2,993 72 3,059 92 Consumer loans 1,797 34 516 9 Total impaired loans $ 23,142 $ 749 $ 27,337 $ 568 Acquired Loans Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ 593 $ 60 Commercial real estate - single and multifamily — — 169 — Other commercial real estate loans 546 20 1,824 5 Other commercial and industrial loans 191 1 42 3 Residential mortgages - 1-4 family 321 9 423 — Consumer - home equity — — 39 — Consumer - other 140 1 — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — Commercial real estate - single and multifamily 942 37 2,878 82 Other commercial real estate loans 2,606 127 1,266 77 Other commercial and industrial loans 404 10 — — Residential mortgages - 1-4 family 117 4 409 13 Consumer - home equity 356 13 309 11 Consumer - other — — 19 4 Total Other commercial real estate loans $ 4,094 $ 184 $ 6,730 $ 224 Commercial and industrial loans 595 11 42 3 Residential mortgages 438 13 832 13 Consumer loans 496 14 367 15 Total impaired loans $ 5,623 $ 222 $ 7,971 $ 255 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 nine months ended September 30, 2016 and for the three and nine months ended September 30, 2015 , 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 nine months ended September 30, 2016 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the three and nine months ending September 30, 2015 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended September 30, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial - Other 2 $ 404 $ 404 Residential - 1-4 Family 2 5 5 Total 4 $ 409 $ 409 Nine Months Ended September 30, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 2 $ 1,049 $ 1,049 Commercial and industrial - Other 4 555 555 Residential - 1-4 Family 2 5 5 Consumer - Home Equity 1 117 117 Total 9 $ 1,726 $ 1,726 Three Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 2 307 307 Total 2 $ 307 $ 307 Nine Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 2,000 $ 2,000 Commercial - Single and multifamily 2 307 307 Commercial - Other 2 1,694 1,694 Commercial and industrial - Other 5 8,192 8,192 Total 10 12,193 12,193 The following tables disclose the recorded investments and numbers of modifications for TDRs for the prior year where a concession has been made, that then defaulted in the respective reporting period. For the three and nine months ended September 30, 2016 , there were no loans that were restructured that had subsequently defaulted during the period. Modifications that Subsequently Defaulted Three Months Ended September 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial and industrial- Other 2 $ 5,742 Modifications that Subsequently Defaulted Nine Months Ended September 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 649 Commercial and industrial - Other 2 $ 5,742 The following table presents the Company’s TDR activity for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of the period $ 22,122 $ 25,716 Principal payments (932 ) (1,538 ) TDR status change (1) — — Other reductions/increases (2) — (69 ) Newly identified TDRs 409 307 Balance at end of the period $ 21,599 $ 24,416 Nine Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of the period $ 22,048 $ 16,714 Principal payments (2,041 ) (2,629 ) TDR status change (1) 2,236 — Other reductions/increases (2) (2,370 ) (1,862 ) Newly identified TDRs 1,726 12,193 Balance at end of the period $ 21,599 $ 24,416 _________________________________ (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 September 30, 2016 , the Company maintained foreclosed residential real estate property with a fair value of $80 thousand . Additionally, residential mortgage loans collateralized by real estate property that are in the process of foreclosure as of September 30, 2016 and December 31, 2015 totaled $6.3 million and $7.5 million , respectively. As of December 31, 2015, foreclosed residential real estate property totaled $675 thousand . |
LOAN LOSS ALLOWANCE
LOAN LOSS ALLOWANCE | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
LOAN LOSS ALLOWANCE | LOAN LOSS ALLOWANCE Activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 was as follows: At or for the three months ended September 30, 2016 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 16,895 $ 8,296 $ 7,526 $ 4,769 $ (362 ) $ 37,124 Charged-off loans — 1,599 253 434 — 2,286 Recoveries on charged-off loans 114 37 96 61 — 308 Provision/(releases) for loan losses 507 1,776 37 904 251 3,475 Balance at end of period $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 Individually evaluated for impairment 190 194 89 165 — 638 Collectively evaluated 17,326 8,316 7,317 5,135 (111 ) 37,983 Total $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 At or for the nine months ended September 30, 2016 Business Activities Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 14,508 $ 7,317 $ 7,566 $ 4,956 $ 227 $ 34,574 Charged-off loans 1,578 4,145 1,340 1,175 — 8,238 Recoveries on charged-off loans 242 114 101 183 — 640 Provision/(releases) for loan losses 4,344 5,224 1,079 1,336 (338 ) 11,645 Balance at end of period $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 Individually evaluated for impairment 190 194 89 165 — 638 Collectively evaluated 17,326 8,316 7,317 5,135 (111 ) 37,983 Total $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 At or for the three months ended September 30, 2015 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 12,967 $ 9,166 $ 6,471 $ 4,914 $ (292 ) $ 33,226 Charged-off loans 1,329 916 316 353 — 2,914 Recoveries on charged-off loans — 6 28 86 — 120 Provision/(releases) for loan losses 2,623 (223 ) 1,187 281 263 4,131 Balance at end of period $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 Individually evaluated for impairment 410 1,032 248 38 — 1,728 Collectively evaluated 13,851 7,001 7,122 4,890 (29 ) 32,835 Total $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 At or for the nine months ended September 30, 2015 Business Activities Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 14,690 $ 5,206 $ 6,836 $ 5,928 $ 135 $ 32,795 Charged-off loans 5,751 1,288 762 815 — 8,616 Recoveries on charged-off loans 146 160 141 213 — 660 Provision/(releases) for loan losses 5,176 3,955 1,155 (398 ) (164 ) 9,724 Balance at end of period $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 Individually evaluated for impairment 410 1,032 248 38 — 1,728 Collectively evaluated 13,851 7,001 7,122 4,890 (29 ) 32,835 Total $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 At or for the three months ended September 30, 2016 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 2,140 $ 776 $ 881 $ 476 $ — $ 4,273 Charged-off loans 662 84 332 77 — 1,155 Recoveries on charged-off loans — 37 37 33 — 107 Provision for loan losses 907 210 111 31 — 1,259 Balance at end of period $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 Individually evaluated for impairment 704 121 12 135 — 972 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,681 818 685 328 — 3,512 Total $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 At or for the nine months ended September 30, 2016 Acquired Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 1,903 $ 1,330 $ 976 $ 525 $ — $ 4,734 Charged-off loans 788 359 696 457 — 2,300 Recoveries on charged-off loans — 213 141 79 — 433 Provision for loan losses 1,270 (245 ) 276 316 — 1,617 Balance at end of period $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 Individually evaluated for impairment 704 121 12 135 — 972 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,681 818 685 328 — 3,512 Total $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 At or for the three months ended September 30, 2015 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 1,786 $ 973 $ 808 $ 404 $ — $ 3,971 Charged-off loans 38 318 66 206 — 628 Recoveries on charged-off loans 23 130 1 11 — 165 Provision for loan losses (252 ) (133 ) 182 312 — 109 Balance at end of period $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 Individually evaluated for impairment 199 — 48 71 — 318 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,320 652 877 450 — 3,299 Total $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 At or for the nine months ended September 30, 2015 Acquired Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 790 $ 1,093 $ 615 $ 369 $ — $ 2,867 Charged-off loans 625 654 441 814 — 2,534 Recoveries on charged-off loans 418 186 42 67 — 713 Provision for loan losses 936 27 709 899 — 2,571 Balance at end of period $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 Individually evaluated for impairment 199 — 48 71 — 318 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,320 652 877 450 — 3,299 Total $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 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. For commercial credits, 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, the Company's 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 ratings system is similar to loans originated through business activities. The Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450-20 ( Loss Contingencies ) 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 September 30, 2016 the allowance for loan losses related to acquired loans under ASC 310-30 and ASC 310-20 was $4.5 million using the above mentioned criteria. The following tables present the Company’s loans by risk rating at September 30, 2016 and December 31, 2015: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 221,749 $ 208,138 $ 269,342 $ 212,900 $ 1,378,353 $ 1,155,770 $ 1,869,444 $ 1,576,808 Special mention — — 348 — 21,533 3,449 21,881 3,449 Substandard — 2,058 2,154 1,923 38,803 49,716 40,957 53,697 Doubtful — — — — 37 73 37 73 Total $ 221,749 $ 210,196 $ 271,844 $ 214,823 $ 1,438,726 $ 1,209,008 $ 1,932,319 $ 1,634,027 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 327,100 $ 331,253 $ 499,953 $ 455,710 $ 827,053 $ 786,963 Special mention — — 484 24,578 484 24,578 Substandard — — 20,332 15,691 20,332 15,691 Total $ 327,100 $ 331,253 $ 520,769 $ 495,979 $ 847,869 $ 827,232 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 1,508,109 $ 1,449,073 $ 16,555 $ 26,704 $ 1,524,664 $ 1,475,777 Special mention 1,602 857 — — 1,602 857 Substandard 3,411 4,303 45 — 3,456 4,303 Total $ 1,513,122 $ 1,454,233 $ 16,600 $ 26,704 $ 1,529,722 $ 1,480,937 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 322,060 $ 305,562 $ 435,088 $ 310,777 $ 757,148 $ 616,339 Nonperforming 1,582 1,597 530 551 2,112 2,148 Total $ 323,642 $ 307,159 $ 435,618 $ 311,328 $ 759,260 $ 618,487 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 18,768 $ 42,176 $ 35,812 $ 32,796 $ 317,894 $ 324,614 $ 372,474 $ 399,586 Special mention — — — 655 1,630 352 1,630 1,007 Substandard 1,082 1,298 4,884 3,332 14,655 20,517 20,621 25,147 Total $ 19,850 $ 43,474 $ 40,696 $ 36,783 $ 334,179 $ 345,483 $ 394,725 $ 425,740 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ — $ — $ 141,843 $ 212,825 $ 141,843 $ 212,825 Special mention — — 180 487 180 487 Substandard — — 4,813 7,719 4,813 7,719 Doubtful — — 169 — 169 — Total $ — $ — $ 147,005 $ 221,031 $ 147,005 $ 221,031 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 285,167 $ 329,375 $ 815 $ 1,351 $ 285,982 $ 330,726 Special mention 441 311 — — 441 311 Substandard 1,966 3,061 — — 1,966 3,061 Total $ 287,574 $ 332,747 $ 815 $ 1,351 $ 288,389 $ 334,098 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 45,732 $ 52,719 $ 100,814 $ 129,345 $ 146,546 $ 182,064 Nonperforming 526 727 643 893 1,169 1,620 Total $ 46,258 $ 53,446 $ 101,457 $ 130,238 $ 147,715 $ 183,684 The following table summarizes information about total loans rated Special Mention or lower as of September 30, 2016 and December 31, 2015. 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. September 30, 2016 December 31, 2015 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 14,690 $ 5,974 $ 20,664 $ 15,484 $ 5,391 $ 20,875 Substandard Accruing 52,352 23,223 75,575 60,549 32,560 93,109 Total Classified 67,042 29,197 96,239 76,033 37,951 113,984 Special Mention 24,378 3,583 27,961 29,036 2,259 31,295 Total Criticized $ 91,420 $ 32,780 $ 124,200 $ 105,069 $ 40,210 $ 145,279 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) September 30, December 31, Time less than $100,000 $ 535,655 $ 545,819 Time $100,000 or more 1,547,234 1,440,781 Total time deposits $ 2,082,889 $ 1,986,600 Included in time deposits are brokered deposits of $810.0 million and $784.1 million at September 30, 2016 and December 31, 2015 , respectively. Included in the deposit balances contained on the balance sheet are reciprocal deposits of $102.4 million and $101.5 million at September 30, 2016 and December 31, 2015 , respectively. |
BORROWED FUNDS
BORROWED FUNDS | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at September 30, 2016 and December 31, 2015 are summarized, as follows: September 30, 2016 December 31, 2015 Weighted Weighted Average Average (dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLBB $ 924,800 0.55 % $ 1,071,200 0.43 % Other Borrowings 15,000 2.17 — — Total short-term borrowings: 939,800 0.58 1,071,200 0.43 Long-term borrowings: Advances from the FHLBB 109,114 1.61 103,135 1.89 Subordinated borrowings 73,652 7.00 73,519 7.00 Junior subordinated borrowings 15,464 2.67 15,464 2.23 Total long-term borrowings: 198,230 3.69 192,118 3.88 Total $ 1,138,030 1.12 % $ 1,263,318 0.96 % 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 September 30, 2016 and December 31, 2015 . 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 took place for the periods ended September 30, 2016 and December 31, 2015 . Long-term FHLBB advances consist of advances with an original maturity of more than one year. The advances outstanding at September 30, 2016 include callable advances totaling $11.0 million , and amortizing advances totaling $1.2 million . The advances outstanding at December 31, 2015 include callable advances totaling $11.0 million , and amortizing advances totaling $1.2 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 September 30, 2016 is as follows: September 30, 2016 Weighted Average (in thousands, except rates) Principal Rate Fixed rate advances maturing: 2016 $ 835,308 0.54 % 2017 183,154 1.08 2018 1,018 2.62 2019 — — 2020 and beyond 14,434 2.41 Total FHLBB advances $ 1,033,914 0.66 % The Company does not have variable-rate FHLBB advances for the periods ended September 30, 2016 and December 31, 2015 . 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 5.113% . The subordinated note includes reduction to the note principal balance of $737 thousand and $829 thousand for unamortized debt issuance costs as of September 30, 2016 and December 31 2015, respectively. 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 2.67% and 2.23% at September 30, 2016 and December 31, 2015 , 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 shareholders 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. |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL RATIOS AND STOCKHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows: September 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 11.5 % 10.0 % 11.9 % 10.0 % Common equity tier 1 capital to risk weighted assets 9.5 6.5 9.8 6.5 Tier 1 capital to risk weighted assets 9.6 8.0 9.9 8.0 Tier 1 capital to average assets 7.7 5.0 7.7 5.0 Bank Total capital to risk weighted assets 10.9 % 10.0 % 11.2 % 10.0 % Common equity tier 1 capital to risk weighted assets 9.6 6.5 9.9 6.5 Tier 1 capital to risk weighted assets 9.6 8.0 9.9 8.0 Tier 1 capital to average assets 7.6 5.0 7.7 5.0 At each date shown, the Company and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. 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. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of Common equity tier 1 capital, of 2.5% of risk-weighted assets, to be phased in over three years and applied to the Common equity tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio and the Total risk-based capital ratio. Accordingly, banking organizations, on a fully phased in basis no later than January 1, 2019, must maintain a minimum Common equity tier 1 risk-based capital ratio of 7.0% , a minimum Tier 1 risk-based capital ratio of 8.5% and a minimum Total risk-based capital ratio of 10.5% . The required minimum conservation buffer began to be phased in incrementally, starting at 0.625% on January 1, 2016 and will increase to 1.25% on January 1, 2017, 1.875% on January 1, 2018 and 2.5% on January 1, 2019. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met. At September 30, 2016 , the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at September 30, 2016 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 0.625% . Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is as follows: (In thousands) September 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding gain on AFS securities $ 27,955 $ 6,316 Net unrealized loss on effective cash flow hedging derivatives (11,191 ) (8,532 ) Net unrealized holding loss on pension plans (3,469 ) (3,469 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities (10,766 ) (2,437 ) Net unrealized loss on effective cash flow hedging derivatives 4,490 3,425 Net unrealized holding loss on pension plans 1,392 1,392 Accumulated other comprehensive income (loss) $ 8,411 $ (3,305 ) The following table presents the components of other comprehensive income for the three and nine months ended September 30, 2016 and 2015 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2016 Net unrealized holding (loss) on AFS securities: x Net unrealized (loss) arising during the period $ (5,576 ) $ 2,190 $ (3,386 ) Less: reclassification adjustment for gains realized in net income 78 (28 ) 50 Net unrealized holding (loss) on AFS securities (5,654 ) 2,218 (3,436 ) Net unrealized gain on cash flow hedging derivatives: Net unrealized gain arising during the period 1,363 (547 ) 816 Less: reclassification adjustment for (losses) realized in net income (1,367 ) 549 (818 ) Net unrealized gain on cash flow hedging derivatives 2,730 (1,096 ) 1,634 Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized holding (loss) on pension plans — — — Other comprehensive (loss) $ (2,924 ) $ 1,122 $ (1,802 ) Three Months Ended September 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 8,256 $ (3,204 ) $ 5,052 Less: reclassification adjustment for gains realized in net income 49 (18 ) 31 Net unrealized holding gains on AFS securities 8,207 (3,186 ) 5,021 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (4,369 ) 1,761 (2,608 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized (loss) on cash flow hedging derivatives (4,369 ) 1,761 (2,608 ) Net unrealized holding gain 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 income $ 3,903 $ (1,451 ) $ 2,452 (In thousands) Before Tax Tax Effect Net of Tax Nine Months Ended September 30, 2016 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 21,740 $ (8,366 ) $ 13,374 Less: reclassification adjustment for gains realized in net income 101 (36 ) 65 Net unrealized holding gains on AFS securities 21,639 (8,330 ) 13,309 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,322 ) 2,136 (3,186 ) Less: reclassification adjustment for (losses) realized in net income (2,662 ) 1,069 (1,593 ) Net unrealized (loss) on cash flow hedging derivatives (2,660 ) 1,067 (1,593 ) Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized holding (loss) on pension plans — — — Other comprehensive income $ 18,979 $ (7,263 ) $ 11,716 Nine Months Ended September 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 3,940 $ (1,580 ) $ 2,360 Less: reclassification adjustment for gains realized in net income 2,466 (888 ) 1,578 Net unrealized holding gains on AFS securities 1,474 (692 ) 782 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (7,486 ) 3,017 (4,469 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized (loss) on cash flow hedging derivatives (7,486 ) 3,017 (4,469 ) Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period (1,596 ) 643 (953 ) Less: reclassification adjustment for gains (losses) realized in net income (194 ) 78 (116 ) Net unrealized holding (loss) on pension plans (1,402 ) 565 (837 ) Other comprehensive (loss) $ (7,414 ) $ 2,890 $ (4,524 ) The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three and nine months ended September 30, 2016 and 2015 : (in thousands) Net unrealized holding gain on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding loss on pension plans Total Three Months Ended September 30, 2016 Balance at Beginning of Period $ 20,625 $ (8,335 ) $ (2,077 ) $ 10,213 Other Comprehensive (Loss) Gain Before reclassifications (3,386 ) 816 — (2,570 ) Less: Amounts Reclassified from Accumulated other comprehensive income 50 (818 ) — (768 ) Total Other Comprehensive (Loss) Income (3,436 ) 1,634 — (1,802 ) Balance at End of Period $ 17,189 $ (6,701 ) $ (2,077 ) $ 8,411 Three Months Ended September 30, 2015 Balance at Beginning of Period $ 5,677 $ (3,830 ) $ (2,244 ) $ (397 ) Other Comprehensive Gain (Loss) Before reclassifications 5,052 (2,608 ) — 2,444 Less: Amounts Reclassified from Accumulated other comprehensive income 31 — (39 ) (8 ) Total Other Comprehensive Income (Loss) 5,021 (2,608 ) 39 2,452 Balance at End of Period $ 10,698 $ (6,438 ) $ (2,205 ) $ 2,055 Nine Months Ended September 30, 2016 Balance at Beginning of Period $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) Other Comprehensive Gain (Loss) Before reclassifications 13,374 (3,186 ) — 10,188 Less: Amounts Reclassified from Accumulated other comprehensive income 65 (1,593 ) — (1,528 ) Total Other Comprehensive Income (Loss) 13,309 (1,593 ) — 11,716 Balance at End of Period $ 17,189 $ (6,701 ) $ (2,077 ) $ 8,411 Nine Months Ended September 30, 2015 Balance at Beginning of Period $ 9,916 $ (1,969 ) $ (1,368 ) $ 6,579 Other Comprehensive Gain (Loss) Before reclassifications 2,360 (4,469 ) (953 ) (3,062 ) Less: Amounts Reclassified from Accumulated other comprehensive income 1,578 — (116 ) 1,462 Total Other Comprehensive Income (Loss) 782 (4,469 ) (837 ) (4,524 ) Balance at End of Period $ 10,698 $ (6,438 ) $ (2,205 ) $ 2,055 The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015 : Affected Line Item in the Three Months Ended September 30, Statement where Net Income (in thousands) 2016 2015 is Presented Realized gains on AFS securities: $ 78 $ 49 Non-interest income (28 ) (18 ) Tax expense 50 31 Net of tax Realized (losses) on cash flow hedging derivatives: (1,367 ) — Non-interest income 549 — Tax expense (818 ) — Net of tax Realized (losses) on pension plans: — (65 ) Non-interest income — 26 Tax expense — (39 ) Net of tax Total reclassifications for the period $ (768 ) $ (8 ) Net of tax Affected Line Item in the Nine Months Ended September 30, Statement where Net Income (in thousands) 2016 2015 is Presented Realized gains on AFS securities: $ 101 $ 2,466 Non-interest income (36 ) (888 ) Tax expense 65 1,578 Net of tax Realized (losses) on cash flow hedging derivatives: (2,662 ) — Non-interest income 1,069 — Tax expense (1,593 ) — Net of tax Realized (losses) on pension plans: — (194 ) Non-interest income — 78 Tax expense — (116 ) Net of tax Total reclassifications for the period $ (1,528 ) $ 1,462 Net of tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, Nine Months Ended September 30, (In thousands, except per share data) 2016 2015 2016 2015 Net income $ 16,381 $ 14,701 $ 48,339 $ 33,504 Average number of common shares issued 32,273 31,565 32,216 29,374 Less: average number of treasury shares 1,137 1,201 1,117 1,229 Less: average number of unvested stock award shares 515 471 515 460 Average number of basic common shares outstanding 30,621 29,893 30,584 27,685 Plus: dilutive effect of unvested stock award shares 131 114 115 98 Plus: dilutive effect of stock options outstanding 59 62 58 64 Average number of diluted common shares outstanding 30,811 30,069 30,757 27,847 Earnings per share: Basic $ 0.53 $ 0.49 $ 1.58 $ 1.21 Diluted $ 0.53 $ 0.49 $ 1.57 $ 1.20 For the nine months ended September 30, 2016 , 401 thousand shares of restricted stock and 201 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. For the nine months ended September 30, 2015 , 361 thousand shares of restricted stock and 212 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2015 488 $ 25.09 265 $ 21.11 Granted 185 27.37 — — Stock options exercised — — (10 ) 14.98 Stock awards vested (116 ) 25.15 — — Forfeited (63 ) 25.39 — — Expired — — (3 ) 34.45 September 30, 2016 494 $ 26.23 252 $ 21.08 Exercisable options at September 30, 2016 251 $ 21.15 During the nine months ended September 30, 2016 and 2015 , proceeds from stock option exercises totaled $141 thousand and $116 thousand , respectively. During the nine months ended September 30, 2016 , there were 116 thousand shares issued in connection with vested stock awards. During the nine months ended September 30, 2015 , there were 126 thousand shares issued in connection with vested stock awards. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $3.5 million and $3.4 million during the nine months ended September 30, 2016 and 2015 , respectively. Stock-based compensation expense is recognized over the requisite service period for all awards. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of September 30, 2016 , the Company held derivatives with a total notional amount of $1.9 billion . That amount included $300.0 million in 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 $1.5 billion and $83.8 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 $1.3 billion , risk participation agreements with dealer banks of $77.9 million , and $95.0 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 September 30, 2016 . The Company pledged collateral to derivative counterparties in the form of cash totaling $650 thousand and securities with an amortized cost of $59.2 million and a fair value of $61.3 million as of September 30, 2016 . 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 September 30, 2016 , 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: Interest rate swaps on FHLBB borrowings $ 300,000 2.5 0.52 % 2.29 % $ (11,191 ) Total cash flow hedges 300,000 (11,191 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,540 13.2 0.89 % 5.09 % (2,869 ) Interest rate swaps on loans with commercial loan customers 642,399 6.4 2.27 % 4.23 % (36,055 ) Reverse interest rate swaps on loans with commercial loan customers 642,399 6.4 4.23 % 2.27 % 35,546 Risk Participation Agreements with Dealer Banks 77,887 12.2 47 Forward sale commitments 95,042 0.2 (582 ) Total economic hedges 1,469,267 (3,913 ) Non-hedging derivatives: Interest rate lock commitments 83,765 0.2 1,574 Total non-hedging derivatives 83,765 1,574 Total $ 1,853,032 $ (13,530 ) Information about derivative assets and liabilities at December 31, 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 3.3 0.14 % 2.29 % $ (8,532 ) Total cash flow hedges 300,000 (8,532 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,984 13.9 0.61 % 5.09 % (2,450 ) Interest rate swaps on loans with commercial loan customers 457,392 6.7 2.18 % 4.49 % (17,143 ) Reverse interest rate swaps on loans with commercial loan customers 457,392 6.7 4.49 % 2.18 % 17,129 Risk participation agreements with dealer banks 59,016 15.0 (56 ) Forward sale commitments 44,840 0.2 53 Total economic hedges 1,030,624 (2,467 ) Non-hedging derivatives: Interest rate lock commitments 36,043 0.2 323 Total non-hedging derivatives 36,043 323 Total $ 1,366,667 $ (10,676 ) 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 interest rate swap contracts with an aggregate notional value of $300 million as of September 30, 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 September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Interest rate swaps on FHLBB borrowings: Unrealized gain (loss) recognized in accumulated other comprehensive loss $ 1,363 $ (4,369 ) $ (5,322 ) $ (7,486 ) Less: Reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense (1,367 ) — (2,662 ) — Net tax effect on items recognized in accumulated other comprehensive income (1,096 ) 1,761 1,067 3,017 Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 1,634 $ (2,608 ) $ (1,593 ) $ (4,469 ) Net interest expense recognized in interest expense on hedged FHLBB borrowings $ 1,367 $ — $ 2,662 $ — Hedge ineffectiveness on interest rate swaps designated as cash flow hedges was immaterial to the Company’s financial statements during the three and nine months ended September 30, 2016 and 2015 . 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 anticipates reclassification of approximately $4.9 million . Economic hedges As of September 30, 2016 , the Company has an interest rate swap with a $11.5 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 $(62) thousand as of September 30, 2016 . 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 September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 29 $ (493 ) $ (802 ) $ (433 ) Interest rate swaps on loans with commercial loan customers: Unrealized gain (loss) recognized in other non-interest income 2,411 (7,698 ) (18,911 ) (6,923 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain (loss) recognized in other non-interest income (2,411 ) 7,698 18,911 6,923 (Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income (62 ) 52 (495 ) 109 Risk Participation Agreements: Unrealized (loss) gain recognized in other non-interest income (14 ) (65 ) 102 (42 ) Forward Commitments: Unrealized (loss) gain recognized in other non-interest income (582 ) (387 ) (1,898 ) (300 ) Realized gain (loss) in other non-interest income 109 (493 ) (224 ) (80 ) Non-hedging derivatives Interest rate lock commitments Unrealized gain recognized in other non-interest income $ 1,574 $ 754 $ 3,635 $ 2,113 Realized gain in other non-interest income 760 819 2,505 1,760 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 $35.5 million and $17.1 million as of September 30, 2016 and December 31, 2015 , respectively. The Company had net liability positions with its financial institution counterparties totaling $49.5 million and $28.2 million as of September 30, 2016 and December 31, 2015 , respectively. At September 30, 2016 , the Company did not have a net liability position with its commercial banking counterparties. The collateral posted by the Company that covered liability positions was $49.6 million and $28.2 million as of September 30, 2016 and December 31, 2015 , respectively. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of September 30, 2016 and December 31, 2015 : 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 September 30, 2016 Interest Rate Swap Agreements: Institutional counterparties $ 118 $ — $ 118 $ — $ — $ 118 Commercial counterparties 35,546 — 35,546 — — 35,546 Total $ 35,664 $ — $ 35,664 $ — $ — $ 35,664 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 September 30, 2016 Interest Rate Swap Agreements: Institutional counterparties $ (49,570 ) $ 42 $ (49,528 ) $ 48,878 $ 650 $ — Commercial counterparties — — — — — — Total $ (49,570 ) $ 42 $ (49,528 ) $ 48,878 $ 650 $ — 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, 2015 Interest Rate Swap Agreements: Institutional counterparties $ 40 $ — $ 40 $ — $ — $ 40 Commercial counterparties 17,129 — 17,129 — — 17,129 Total $ 17,169 $ — $ 17,169 $ — $ — $ 17,169 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, 2015 Interest Rate Swap Agreements: Institutional counterparties $ (28,220 ) $ — $ (28,220 ) $ 18,500 $ 9,720 $ — Commercial counterparties — — — — — — Total $ (28,220 ) $ — $ (28,220 ) $ 18,500 $ 9,720 $ — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,149 $ 14,149 Available-for-sale securities: Municipal bonds and obligations — 121,126 — 121,126 Agency collateralized mortgage obligations — 541,997 — 541,997 Agency residential mortgage-backed securities — 104,670 — 104,670 Agency commercial mortgage-backed securities — 62,300 — 62,300 Corporate bonds — 46,522 — 46,522 Trust preferred securities — 11,801 — 11,801 Other bonds and obligations — 3,200 — 3,200 Marketable equity securities 53,602 1,635 — 55,237 Loans held for sale — 20,471 — 20,471 Derivative assets 35,546 1,574 37,120 Derivative liabilities 331 50,068 251 50,650 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,189 $ 14,189 Available-for-sale securities: Municipal bonds and obligations — 104,561 — 104,561 Agency collateralized mortgage obligations — 833,036 — 833,036 Agency residential mortgage-backed securities — 126,829 — 126,829 Agency commercial mortgage-backed securities — — — — Corporate bonds — 41,023 — 41,023 Trust preferred securities — 11,900 — 11,900 Other bonds and obligations — 3,141 — 3,141 Marketable equity securities 32,925 334 708 33,967 Loans Held for Sale — 13,191 — 13,191 Derivative assets 45 17,130 332 17,507 Derivative liabilities — 28,181 — 28,181 There were no transfers between levels during the three months ended September 30, 2016 or 2015 . During the nine months ended September 30, 2016 , the Company had one transfer of $708 thousand in marketable equity securities from Level 3 to Level 2 based on a change in valuation technique driven by the availability of market data. There were no transfers between levels during the nine months ended September 30, 2015 . 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. 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 September 30, 2016 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 20,471 $ 19,796 $ 675 Aggregate Fair Value December 31, 2015 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 13,191 $ 12,914 $ 277 The changes in fair value of loans held for sale for the three and nine months ended September 30, 2016 , were losses of $216 thousand and gains of $398 thousand , respectively. The changes in fair value of loans held for sale for the three and nine months ended September 30, 2015 , were losses of $44 thousand and $115 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 September 30, 2016 , 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 nine months ended September 30, 2016 and 2015 . Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended September 30, 2016 June 30, 2016 $ 14,479 $ — $ 1,259 $ (189 ) Unrealized (loss) gain, net recognized in other non-interest income (180 ) — 3,563 (62 ) Paydown of trading security (150 ) — — — Transfers to held for sale loans — — (3,248 ) — September 30, 2016 $ 14,149 $ — $ 1,574 $ (251 ) Nine Months Ended September 30, 2016 December 31, 2015 $ 14,189 $ 708 $ 323 $ 9 Unrealized gain, net recognized in other non-interest income 405 — 6,480 (260 ) Transfers to Level 2 — (708 ) — — Paydown of trading security (445 ) — — — Transfers to held for sale loans — — (5,229 ) — September 30, 2016 $ 14,149 $ — $ 1,574 $ (251 ) Unrealized gains (losses) relating to instruments still held at September 30, 2016 $ 2,610 $ — $ 1,574 $ (251 ) Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended September 30, 2015 June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Sale of Marketable Equity Security — — — — Unrealized gain (loss), net recognized in other non-interest income 351 — 1,366 (72 ) Unrealized loss included in accumulated other comprehensive loss — (9 ) — — Paydown of trading account security (142 ) — — — Transfers to held for sale loans — — (994 ) — September 30, 2015 $ 14,587 $ 764 $ 754 $ (22 ) Nine Months Ended September 30, 2015 December 31, 2014 $ 14,909 $ 2,326 $ 625 $ (93 ) Sale of Marketable Equity Security — (1,327 ) — — Unrealized gain, net recognized in other non-interest income 103 — 4,037 71 Unrealized loss included in accumulated other comprehensive loss — (235 ) — — Paydown of trading account security (425 ) — — — Transfers to held for sale loans — — (3,908 ) — September 30, 2015 $ 14,587 $ 764 $ 754 $ (22 ) Unrealized gains (losses) relating to instruments still held at September 30, 2015 $ 2,457 $ (6 ) $ 754 $ (22 ) Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant Unobservable Input (In thousands) September 30, 2016 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,149 Discounted Cash Flow Discount Rate 1.80 % Forward Commitments (251 ) Historical Trend Closing Ratio 93.97 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 1,574 Historical Trend Closing Ratio 93.97 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,472 Fair Value Significant Unobservable Input (In thousands) December 31, 2015 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,189 Discounted Cash Flow Discount Rate 2.49 % AFS Securities 708 Pricing Model Median Peer Price/Tangible Book Value Percentage Multiple 88.52 % Forward Commitments 9 Historical Trend Closing Ratio 92.57 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 323 Historical Trend Closing Ratio 92.57 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,229 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. September 30, 2016 December 31, 2015 Three months ended September 30, 2016 Nine months ended September 30, 2016 Fair Value Measurement Date as of September 30, 2016 Level 3 Level 3 Total Total Level 3 (In thousands) Inputs Inputs Gains (Losses) Gains (Losses) Inputs Assets Impaired loans $ 19,591 $ 11,657 $ (2,955 ) $ 7,934 September 2016 Capitalized servicing rights 10,495 5,187 — — September 2016 Other real estate owned 80 1,725 (35 ) (456 ) Feb. 2016 - Mar. 2016 Total $ 30,166 $ 18,569 $ (2,990 ) $ 7,478 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (in thousands) September 30, 2016 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 19,591 Fair value of collateral - appraised value Discounted cash flow - loss severity 0.19% to 89.11% (10.01%) Appraised value $29.2 to $2,197.4 ($1160.1) Capitalized servicing rights 10,495 Discounted cash flow Constant prepayment rate (CPR) 7.35% to 15.23% (11.04%) Discount rate 10.00% to 14.00% (11.71%) Other real estate owned 80 Fair value of collateral Appraised value $46.0 to $129.0 ($118.6) Total $ 30,166 (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, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 11,657 Fair value of collateral - appraised value Discounted cash flow - loss severity 0.05% to 29.50% (7.55%) Appraised value $46.3 to $1,962.0 ($999.7) Capitalized servicing rights 5,187 Discounted cash flow Constant prepayment rate (CPR) 7.17% to 12.06% (10.02%) Discount rate 10.00% to 15.00 (10.88%) Other real estate owned 1,725 Fair value of collateral Appraised value $39.0 to $1,200.0 ($919.9) Total $ 18,569 (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 September 30, 2016 and December 31, 2015 . 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 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. September 30, 2016 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 69,285 $ 69,285 $ 69,285 $ — $ — Trading security 14,149 14,149 — — 14,149 Securities available for sale 946,853 946,853 53,602 893,251 — Securities held to maturity 131,467 139,358 — — 139,358 FHLB bank stock and restricted securities 61,277 61,277 — 61,277 — Net loans 6,003,899 6,081,799 — — 6,081,799 Loans held for sale 20,471 20,471 — 20,471 — Accrued interest receivable 17,263 17,263 — 17,263 — Cash surrender value of bank-owned life insurance policies 127,880 127,880 — 127,880 — Derivative assets 37,120 37,120 — 35,546 1,574 Assets held for sale — — — — — Financial Liabilities Total deposits $ 5,749,754 $ 5,751,777 $ — $ 5,751,777 $ — Short-term debt 939,800 939,823 — 939,823 — Long-term Federal Home Loan Bank advances 109,114 109,625 — 109,625 — Subordinated borrowings 89,116 97,437 — 97,437 — Derivative liabilities 50,650 50,650 331 50,068 251 December 31, 2015 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 103,562 $ 103,562 $ 103,562 $ — $ — Trading security 14,189 14,189 — — 14,189 Securities available for sale 1,154,457 1,154,457 32,925 1,120,824 708 Securities held to maturity 131,652 136,904 — — 136,904 FHLB bank stock and restricted securities 71,018 71,018 — 71,018 — Net loans 5,685,928 5,727,570 — — 5,727,570 Loans held for sale 13,191 13,191 — 13,191 — Accrued interest receivable 20,940 20,940 — 20,940 — Cash surrender value of bank-owned life insurance policies 125,233 125,233 — 125,233 — Derivative assets 17,507 17,507 45 17,130 332 Assets held for sale 278 278 — 278 — Financial Liabilities Total deposits $ 5,589,135 $ 5,582,835 $ — $ 5,582,835 $ — Short-term debt 1,071,200 1,071,044 — 1,071,044 — Long-term Federal Home Loan Bank advances 103,135 103,397 — 103,397 — Subordinated borrowings 89,812 93,291 — 93,291 — Derivative liabilities 28,181 28,181 — 28,181 — 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and 2015, respectively. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Net interest income $ 57,971 $ 56,971 $ 173,109 $ 155,101 Provision for loan losses 4,734 4,240 13,262 12,295 Net interest income after provision for loan losses $ 53,237 $ 52,731 $ 159,847 $ 142,806 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On June 24, 2016, the Company entered into an agreement and plan of merger with First Choice Bank ("First Choice"), the parent company of First Choice Loan Services ("FCLS"), pursuant to which First Choice will merge with and into Berkshire Bank in a transaction to be accounted for as a business combination. It is expected that FCLS will become an operating subsidiary of the Bank. Headquartered in Lawrenceville, New Jersey, First Choice had $1.1 billion in assets as of September 30, 2016 (unaudited) and operates eight banking offices providing a range of banking services in Central New Jersey and greater Philadelphia metropolitan area. If the Merger is completed, each outstanding share of First Choice Bank common stock will be converted into the right to receive 0.5773 shares of the Company's common stock. In addition, each outstanding share of First Choice preferred stock will be converted into the right to receive such number of the Company's common stock equal to the number of shares of First Choice common stock issuable upon the conversion of the First Choice preferred stock multiplied by 0.5773 . The transaction is subject to closing conditions, including the receipt of regulatory approvals and approval by the shareholders of First Choice. The merger is currently expected to be completed in the fourth quarter of 2016. If the merger is not consummated under specified circumstances, First Choice has agreed to pay the Company a termination fee of $4.1 million . The Company incurred $1.1 million and $1.5 million of merger and acquisition expenses related to the First Choice merger for the three and nine months ended September 30, 2016. There were no merger and acquisition expenses related to the First Choice merger in 2015. Excluding the merger and acquisition expenses incurred in 2016, this merger agreement had no material effect on the Company’s financial statements for the periods presented. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts, and Berkshire Insurance Group, Inc. (“Berkshire Insurance Group” or “BIG”). These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. 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, 2015. In management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. |
Recently Adopted Accounting Standards and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles Effective January 1, 2016, the following new accounting guidance was adopted by the Company: • ASU No. 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis; • ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs; • ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement; and • ASU No. 2015-16, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement - Period Adjustments. The adoption of these accounting standards did not have a material impact on the Company's financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Improvement to Employee Share-Based Payment Accounting”. This ASU contains targeted amendments to the accounting for shared based payment transactions, including income tax consequences for awards, classification of awards as either equity or liabilities, and classification of activity on the statement of cash flows. Specifically, some of the requirements under the amendments include: (1) excess tax benefits and/or tax deficiencies, determined as the difference between compensation cost recognized for financial reporting purposes and the deduction for tax, be recognized in the income statement as income tax expense or benefit in the period in which they occur, removing historical equity treatment; (2) excess tax benefits are no longer separately classified as a financing activity but rather should be classified with other income tax cash flows as an operating activity on the statement of cash flows; (3) cash paid by an employer when withholding shares for tax withholding purposes should be classified as a financing activity. Additionally, regarding forfeitures, this guidance permits a company to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016. The Company adopted ASU No. 2016-09 in April 2016 and the adoption of this accounting standard did not have a material impact on the Company's consolidated financial statements. The Company chose a modified retrospective approach and a policy election to account for forfeitures when they occur. This change resulted in a cumulative adjustment immaterial to all periods presented. 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 August 2015, Accounting Standards Update No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”) was issued and delayed the effective date of ASU 2014-09 to annual and interim periods in fiscal years 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. In March, April and May 2016, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” and ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” respectfully. The updates are not intended to change the core principles of the standard; however, they attempt to clarify important aspects of the guidance and improve its operability. The amendments have the same effective date and transition requirements as the new revenue standard. 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 the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to: i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The guidance also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument specific credit risk. The Company is currently evaluating the impact of the new standard on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. The new pronouncement improves the transparency and comparability of financial reporting around leasing transactions and more closely aligns accounting for leases with the recently issued International Financial Reporting Standard. The pronouncement affects all entities that are participants to leasing agreements. From a lessee accounting perspective, the ASU requires a lessee to recognize assets and liabilities on the balance sheet for operating leases and changes many key definitions, including the definition of a lease. The ASU includes a short-term lease exception for leases with a term of twelve months or less, in which a lessee can make an accounting policy election not to recognize lease assets and lease liabilities. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases, using classification criteria that are substantially similar to the previous guidance. For lessees, the recognition, measurement, and presentation of expenses and cash flows arising from a lease have not significantly changed from previous GAAP. From a lessor accounting perspective, the guidance is largely unchanged, except for targeted improvements to align with new terminology under lessee accounting and with the updated revenue recognition guidance in Topic 606. For sale-leaseback transactions, for a sale to occur the transfer must meet the sale criteria under the new revenue standard, ASC 606. Entities will not be required to reassess transactions previously accounted under then existing guidance. Additionally, the ASU includes additional quantitative and qualitative disclosures required by lessees and lessors to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply as well as transition guidance specific to nonstandard leasing transactions. The Company is currently evaluating the provisions of ASU No. 2016-02 to determine the potential impact the new standard will have on the Company's consolidated financial statements. In March 2016 , the FASB issued ASU No. 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” This ASU clarifies that changes in the counterparty to a derivative instrument designated as a hedg e does not alone require it to be de-designated and therefore discontinue the application of hedge accounting. Companies are still required to evaluate whether it is probable that a counterparty will perform under the contract as part of the ongoing effectiveness assessment for hedge accounting. The new guidance is effective for annual periods beginning after December 15, 2016 and entities may adopt on a prospective or modified retrospective basis. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, “Contingent Put and Call Options in Debt Instruments” clarifying the assessment of whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to the economic characteristics and risks of their debt hosts, a criteria in assessing whether to bifurcate an embedded derivative. The new pronouncement clarifies the exercise contingency and the event triggering the contingency does not need to be evaluated in the clearly and closely analysis relative to interest rates or credit risks. Rather, the call or put would be evaluated as a derivative regardless of the exercise contingency. Further, if an entity is no longer required to bifurcate a put or call option per the new guidance, the entity has a one-time option to irrevocably elect to measure that debt instrument in its entirety at fair value with changes in fair value recognized in earnings. ASU No. 2016-06 is effective for annual periods beginning after December 15, 2016 and early adoption is permitted. The ASU should be applied using the modified retrospective basis to existing instruments as of the beginning of the annual period of adoption. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07 “Simplifying the Transition to the Equity Method of Accounting” which eliminates the requirement to retroactively adjust an investment that becomes subject to the equity method of accounting as a result of an increase ownership interest or degree of influence. Alternatively, an investor entity adds the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopts the equity method of accounting prospectively as of the qualifying date; no retroactive adjustment is required. Additionally, ASU No. 2016-07 specifies that when an available-for-sale equity security becomes qualified for the equity method of accounting, a company should recognize the unrealized holding gain or loss in accumulated other comprehensive income through earnings at the date the investment becomes qualified for use of the equity method. This guidance is effective for all entities for annual periods beginning after December 15, 2016, with early adoption permitted on a prospective basis. The adoption of this pronouncement is not expected to have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU improves financial reporting by requiring timelier recording of credit losses on loans and other financial instruments. The ASU requires companies to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Forward-looking information will now be used in credit loss estimates. The ASU requires enhanced disclosures to provide better understanding surrounding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a company’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Most debt instruments will require a cumulative-effect adjustment to retained earnings on the statement of financial position as of the beginning of the first reporting period in which the guidance is adopted (modified retrospective approach). However, there is instrument-specific transition guidance. ASU No. 2016-13 is effective for interim and annual periods beginning after December 15, 2019. Early application will be permitted for interim and annual periods beginning after December 15, 2018. The Company is evaluating the provisions of ASU No. 2016-13, and will closely monitor developments and additional guidance to determine the potential impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” Current GAAP is unclear or does not include specific guidance on how to classify certain transactions in the statement of cash flows. The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for interim and annual periods beginning after December 15, 2017. Early application will be permitted provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendment related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU No. 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid, and Fair Values of the Assets Acquired and Liabilities Assumed | The following table provides a summary of the assets acquired and liabilities assumed and the associated fair value adjustments as recorded by the Company at acquisition: (in thousands) As Acquired Fair Value Adjustments As Recorded at Acquisition Consideration paid: Company common stock issued to certain 44 Business Capital shareholders (44,840 shares) $ 1,217 Cash paid to 44 Business Capital shareholders and Parke 55,649 Total consideration paid $ 56,866 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: Cash and short-term investments $ 107 $ — $ 107 Loans 42,627 (5,777 ) (a) 36,850 Premises and equipment 69 (36 ) (b) $ 33 Other assets 3,076 639 (c) 3,715 Other liabilities (108 ) — $ (108 ) Total identifiable net assets $ 45,771 $ (5,174 ) $ 40,597 Goodwill $ 16,269 Explanation of Certain Fair Value Adjustments (a) 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 $6.3 million and have a fair value $2.6 million . Non-impaired loans accounted for under ASC 310-10 had a book value of $36.4 million and have a fair value of $34.3 million . ASC 310-30 loans have a $708 thousand fair value adjustment discount that is accretable in earnings over an average estimated six -year life using the effective yield as determined on the date of acquisition. The effective yield is periodically adjusted for changes in expected cash flows. ASC 310-10 loans have a $2.1 million fair value adjustment discount that is amortized into income over the remaining term of the loans using the effective interest method. (b) The fair value of the equipment was assumed to approximate the net carrying value based on overall condition and age. The adjustment represents the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The recorded amount will be depreciated over the remaining estimated economic lives of the assets. (c) The adjustment represents the fair value write up of book value of the loan servicing right asset to its estimated fair value based on current interest rates and expected cash flows, which includes an estimate of cost of service and conditional prepayment rates applied to the underlying unpaid loan pool balance over the remaining life of the loans. The balance includes accrued interest of $221 thousand . |
Schedule of Acquired Loan Portfolio | Information about the acquired loan portfolio subject to ASC 310-30 as of April 29, 2016 is, as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 6,265 Contractual cash flows not expected to be collected (nonaccretable discount) (3,000 ) Expected cash flows at acquisition 3,265 Interest component of expected cash flows (accretable discount) (708 ) Fair value of acquired loans $ 2,557 |
Pro Forma Financial Information | Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Nine Months Ended September 30, 2016 2015 Net interest income $ 173,421 $ 156,812 Non-interest income 51,279 46,196 Net income 49,170 35,567 Pro forma earnings per share: Basic $ 1.61 $ 1.28 Diluted $ 1.60 $ 1.28 |
SECURITIES AVAILABLE FOR SALE26
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 114,866 $ 6,357 $ (97 ) $ 121,126 Agency collateralized mortgage obligations 530,548 11,567 (118 ) 541,997 Agency mortgage-backed securities 103,261 1,463 (54 ) 104,670 Agency commercial mortgage-backed securities 61,673 627 — 62,300 Corporate bonds 46,869 359 (706 ) 46,522 Trust preferred securities 11,584 275 (58 ) 11,801 Other bonds and obligations 3,158 42 — 3,200 Total debt securities 871,959 20,690 (1,033 ) 891,616 Marketable equity securities 47,825 9,148 (1,736 ) 55,237 Total securities available for sale 919,784 29,838 (2,769 ) 946,853 Securities held to maturity Municipal bonds and obligations 95,457 5,708 — 101,165 Agency collateralized mortgage obligations 66 7 — 73 Tax advantaged economic development bonds 35,619 2,176 — 37,795 Other bonds and obligations 325 — — 325 Total securities held to maturity 131,467 7,891 — 139,358 Total $ 1,051,251 $ 37,729 $ (2,769 ) $ 1,086,211 December 31, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 99,922 $ 4,763 $ (124 ) $ 104,561 Agency collateralized mortgage obligations 833,633 4,957 (5,554 ) 833,036 Agency mortgage-backed securities 127,274 542 (987 ) 126,829 Agency commercial mortgage-backed securities — — — — Corporate bonds 42,849 — (1,826 ) 41,023 Trust preferred securities 11,719 182 (1 ) 11,900 Other bonds and obligations 3,175 — (34 ) 3,141 Total debt securities 1,118,572 10,444 (8,526 ) 1,120,490 Marketable equity securities 30,522 5,331 (1,886 ) 33,967 Total securities available for sale 1,149,094 15,775 (10,412 ) 1,154,457 Securities held to maturity Municipal bonds and obligations 94,642 3,359 (34 ) 97,967 Agency collateralized mortgage obligations 68 3 — 71 Tax advantaged economic development bonds 36,613 1,924 — 38,537 Other bonds and obligations 329 — — 329 Total securities held to maturity 131,652 5,286 (34 ) 136,904 Total $ 1,280,746 $ 21,061 $ (10,446 ) $ 1,291,361 |
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 September 30, 2016 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 $ — $ — $ 2,580 $ 2,589 Over 1 year to 5 years 4,894 4,984 16,906 17,920 Over 5 years to 10 years 32,920 33,643 13,853 14,444 Over 10 years 138,663 144,022 98,062 104,332 Total bonds and obligations 176,477 182,649 131,401 139,285 Marketable equity securities 47,825 55,237 — — Mortgage-backed securities 695,482 708,967 66 73 Total $ 919,784 $ 946,853 $ 131,467 $ 139,358 |
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 September 30, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 97 $ 12,160 $ — $ — $ 97 $ 12,160 Agency collateralized mortgage obligations 118 43,710 — — 118 43,710 Agency mortgage-backed securities 30 12,901 24 1,349 54 14,250 Corporate bonds — — 706 19,998 706 19,998 Trust preferred securities — — 58 1,200 58 1,200 Total debt securities 245 68,771 788 22,547 1,033 91,318 Marketable equity securities 494 9,899 1,242 6,939 1,736 16,838 Total securities available for sale 739 78,670 2,030 29,486 2,769 108,156 Total $ 739 $ 78,670 $ 2,030 $ 29,486 $ 2,769 $ 108,156 December 31, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 9 $ 1,587 $ 115 $ 3,400 $ 124 $ 4,987 Agency collateralized mortgage obligations 2,958 304,907 2,596 136,988 5,554 441,895 Agency mortgage-backed securities 306 34,543 681 35,522 987 70,065 Corporate bonds 30 6,934 1,796 21,587 1,826 28,521 Trust preferred securities 1 1,269 — — 1 1,269 Other bonds and obligations — 108 34 3,032 34 3,140 Total debt securities 3,304 349,348 5,222 200,529 8,526 549,877 Marketable equity securities 534 2,908 1,352 5,729 1,886 8,637 Total securities available for sale 3,838 352,256 6,574 206,258 10,412 558,514 Securities held to maturity Tax advantaged economic development bonds — — 34 2,143 34 2,143 Total securities held to maturity — — 34 2,143 34 2,143 Total $ 3,838 $ 352,256 $ 6,608 $ 208,401 $ 10,446 $ 560,657 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans: September 30, 2016 December 31, 2015 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 221,749 $ 19,850 $ 241,599 $ 210,196 $ 43,474 $ 253,670 Single and multi-family 271,844 40,696 312,540 214,823 36,783 251,606 Other commercial real estate 1,438,726 334,179 1,772,905 1,209,008 345,483 1,554,491 Total commercial real estate 1,932,319 394,725 2,327,044 1,634,027 425,740 2,059,767 Commercial and industrial loans: Asset based lending 327,100 — 327,100 331,253 — 331,253 Other commercial and industrial loans 520,769 147,005 667,774 495,979 221,031 717,010 Total commercial and industrial loans 847,869 147,005 994,874 827,232 221,031 1,048,263 Total commercial loans 2,780,188 541,730 3,321,918 2,461,259 646,771 3,108,030 Residential mortgages: 1-4 family 1,513,122 287,574 1,800,696 1,454,233 332,747 1,786,980 Construction 16,600 815 17,415 26,704 1,351 28,055 Total residential mortgages 1,529,722 288,389 1,818,111 1,480,937 334,098 1,815,035 Consumer loans: Home equity 323,642 46,258 369,900 307,159 53,446 360,605 Auto and other 435,618 101,457 537,075 311,328 130,238 441,566 Total consumer loans 759,260 147,715 906,975 618,487 183,684 802,171 Total loans $ 5,069,170 $ 977,834 $ 6,047,004 $ 4,560,683 $ 1,164,553 $ 5,725,236 |
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 September 30, (In thousands) 2016 2015 Balance at beginning of period $ 6,213 $ 6,540 Acquisitions — 684 Reclassification from nonaccretable difference for loans with improved cash flows 688 1,214 Accretion (2,298 ) (967 ) Balance at end of period $ 4,603 $ 7,471 Nine Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of period $ 6,925 $ 2,541 Acquisitions 708 4,862 Reclassification from nonaccretable difference for loans with improved cash flows 2,106 2,950 Reclassification to TDR (185 ) — Accretion (4,951 ) (2,882 ) Balance at end of period $ 4,603 $ 7,471 |
Summary of Past Due Loans | Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > September 30, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 221,749 $ 221,749 $ — Single and multi-family 573 — 351 924 270,920 271,844 — Other commercial real estate 568 473 7,240 8,281 1,430,445 1,438,726 2,292 Total 1,141 473 7,591 9,205 1,923,114 1,932,319 2,292 Commercial and industrial loans: Asset based lending — — — — 327,100 327,100 — Other commercial and industrial loans 1,304 181 5,270 6,755 514,014 520,769 503 Total 1,304 181 5,270 6,755 841,114 847,869 503 Residential mortgages: 1-4 family 1,446 1,602 3,411 6,459 1,506,663 1,513,122 944 Construction — — 45 45 16,555 16,600 — Total 1,446 1,602 3,456 6,504 1,523,218 1,529,722 944 Consumer loans: Home equity 154 5 1,732 1,891 321,751 323,642 150 Auto and other 1,774 405 530 2,709 432,909 435,618 — Total 1,928 410 2,262 4,600 754,660 759,260 150 Total $ 5,819 $ 2,666 $ 18,579 $ 27,064 $ 5,042,106 $ 5,069,170 $ 3,889 Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2015 Commercial real estate: Construction $ — $ — $ 58 $ 58 $ 210,138 $ 210,196 $ — Single and multi-family 65 160 70 295 214,528 214,823 — Other commercial real estate 1,523 831 3,286 5,640 1,203,368 1,209,008 — Total 1,588 991 3,414 5,993 1,628,034 1,634,027 — Commercial and industrial loans: Asset based lending — — — — 331,253 331,253 — Other commercial and industrial loans 1,202 1,105 7,770 10,077 485,902 495,979 146 Total 1,202 1,105 7,770 10,077 817,155 827,232 146 Residential mortgages: 1-4 family 3,537 857 4,304 8,698 1,445,535 1,454,233 2,006 Construction — — — — 26,704 26,704 — Total 3,537 857 4,304 8,698 1,472,239 1,480,937 2,006 Consumer loans: Home equity 563 20 1,658 2,241 304,918 307,159 61 Auto and other 1,230 132 610 1,972 309,356 311,328 59 Total 1,793 152 2,268 4,213 614,274 618,487 120 Total $ 8,120 $ 3,105 $ 17,756 $ 28,981 $ 4,531,702 $ 4,560,683 $ 2,272 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > September 30, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 1,082 $ 19,850 $ — Single and multi-family 1,086 — — 1,086 1,169 40,696 — Other commercial real estate 431 — 996 1,427 9,580 334,179 — Total 1,517 — 996 2,513 11,831 394,725 — Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,190 177 1,947 3,314 1,852 147,005 — Total 1,190 177 1,947 3,314 1,852 147,005 — Residential mortgages: 1-4 family 764 441 1,951 3,156 1,337 287,574 89 Construction — — — — — 815 — Total 764 441 1,951 3,156 1,337 288,389 89 Consumer loans: Home equity — 489 784 1,273 7 46,258 257 Auto and other 340 842 818 2,000 96 101,457 176 Total 340 1,331 1,602 3,273 103 147,715 433 Total $ 3,811 $ 1,949 $ 6,496 $ 12,256 $ 15,123 $ 977,834 $ 522 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > December 31, 2015 Commercial real estate: — Construction $ — $ — $ — $ — $ 1,298 $ 43,474 $ — Single and multi-family — 176 227 403 1,380 36,783 127 Other commercial real estate 547 43 1,368 1,958 13,087 345,483 — Total 547 219 1,595 2,361 15,765 425,740 127 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,214 505 1,420 3,139 2,775 221,031 785 Total 1,214 505 1,420 3,139 2,775 221,031 785 Residential mortgages: 1-4 family 2,580 311 1,880 4,771 2,572 332,747 212 Construction — — — — — 1,351 — Total 2,580 311 1,880 4,771 2,572 334,098 212 Consumer loans: Home equity 82 277 837 1,196 118 53,446 111 Auto and other 1,491 145 1,081 2,717 132 130,238 187 Total 1,573 422 1,918 3,913 250 183,684 298 Total $ 5,914 $ 1,457 $ 6,813 $ 14,184 $ 21,362 $ 1,164,553 $ 1,422 |
Summary of Information Pertaining to Non-Accrual Loans | The following is summary information pertaining to non-accrual loans at September 30, 2016 and December 31, 2015 September 30, 2016 December 31, 2015 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ 59 $ — $ 59 Single and multi-family 351 — 351 70 100 170 Other commercial real estate 4,948 996 5,944 3,285 1,368 4,653 Total 5,299 996 6,295 3,414 1,468 4,882 Commercial and industrial loans: Other commercial and industrial loans 4,767 1,695 6,462 7,624 597 8,221 Total 4,767 1,695 6,462 7,624 597 8,221 Residential mortgages: 1-4 family 2,467 1,862 4,329 2,298 1,668 3,966 Construction 45 — 45 — — — Total 2,512 1,862 4,374 2,298 1,668 3,966 Consumer loans: Home equity 1,582 526 2,108 1,597 727 2,324 Auto and other 530 643 1,173 551 893 1,444 Total 2,112 1,169 3,281 2,148 1,620 3,768 Total non-accrual loans $ 14,690 $ 5,722 $ 20,412 $ 15,484 $ 5,353 $ 20,837 _______________________________________ (1) At quarter end September 30, 2016 , acquired credit impaired loans accounted for $252 thousand of non-accrual loans that are not presented in the above table. (2) At December 31, 2015, acquired credit impaired loans accounted for $39 thousand of non-accrual loans that are not presented in the above table. |
Schedule of Loans Evaluated for Impairment | Loans evaluated for impairment as of September 30, 2016 and December 31, 2015 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total September 30, 2016 Loans receivable: Balance at end of period Individually evaluated for impairment $ 14,058 $ 3,955 $ 3,045 $ 1,483 $ 22,541 Collectively evaluated 1,918,261 843,914 1,526,677 757,777 5,046,629 Total $ 1,932,319 $ 847,869 $ 1,529,722 $ 759,260 $ 5,069,170 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2015 Loans receivable: Balance at end of year Individually evaluated for impairment $ 11,560 $ 7,191 $ 2,812 $ 1,810 $ 23,373 Collectively evaluated for impairment 1,622,467 820,041 1,478,125 616,677 4,537,310 Total $ 1,634,027 $ 827,232 $ 1,480,937 $ 618,487 $ 4,560,683 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total September 30, 2016 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 4,190 $ 1,144 $ 315 $ 415 $ 6,064 Purchased credit-impaired loans 11,831 1,852 1,337 103 15,123 Collectively evaluated 378,704 144,009 286,737 147,197 956,647 Total $ 394,725 $ 147,005 $ 288,389 $ 147,715 $ 977,834 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2015 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,749 $ — $ 570 $ 487 $ 4,806 Purchased credit-impaired loans 15,765 2,775 2,572 250 21,362 Collectively evaluated for impairment 406,226 218,256 330,956 182,947 1,138,385 Total $ 425,740 $ 221,031 $ 334,098 $ 183,684 $ 1,164,553 |
Summary of Impaired Loans | The following is a summary of impaired loans at September 30, 2016 and December 31, 2015: Business Activities Loans September 30, 2016 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 3,593 3,593 — Other commercial and industrial loans 218 218 — Residential mortgages - 1-4 family 2,367 2,367 — Consumer - home equity 380 380 — Consumer - other 3 3 — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 10,275 10,465 190 Other commercial and industrial loans 3,543 3,737 194 Residential mortgages - 1-4 family 589 678 89 Consumer - home equity 841 999 158 Consumer - other 94 101 7 Total Commercial real estate $ 13,868 $ 14,058 $ 190 Commercial and industrial loans 3,761 3,955 194 Residential mortgages 2,956 3,045 89 Consumer 1,318 1,483 165 Total impaired loans $ 21,903 $ 22,541 $ 638 Business Activities Loans December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ 2,000 $ 2,000 $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 4,613 4,613 — Other commercial and industrial loans 5,828 5,828 — Residential mortgages - 1-4 family 1,181 1,181 — Consumer - home equity 702 702 — Consumer - other 1 1 — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 4,798 4,947 149 Other commercial and industrial loans 1,341 1,362 21 Residential mortgages - 1-4 family 1,479 1,632 153 Consumer - home equity 903 999 96 Consumer - other 101 108 7 Total Commercial real estate $ 11,411 $ 11,560 $ 149 Commercial and industrial loans 7,169 7,190 21 Residential mortgages 2,660 2,813 153 Consumer 1,707 1,810 103 Total impaired loans $ 22,947 $ 23,373 $ 426 Acquired Loans September 30, 2016 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily — — — Other commercial real estate loans 632 632 — Other commercial and industrial loans — — — Residential mortgages - 1-4 family 211 211 — Consumer - home equity — — — Consumer - other — — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily 891 930 39 Other commercial real estate loans 1,963 2,628 665 Other commercial and industrial loans 1,023 1,144 121 Residential mortgages - 1-4 family 92 104 12 Consumer - home equity 280 415 135 Consumer - other — — — Total Commercial real estate $ 3,486 $ 4,190 $ 704 Commercial and industrial loans 1,023 1,144 121 Residential mortgages 303 315 12 Consumer 280 415 135 Total impaired loans $ 5,092 $ 6,064 $ 972 Acquired Loans December 31, 2015 (In thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 1,722 $ 1,722 $ — Residential mortgages - 1-4 family 274 274 — Consumer - home equity 117 117 — Consumer - other 177 177 — With an allowance recorded: Commercial real estate - single and multifamily $ 638 $ 655 $ 17 Other commercial real estate loans 1,964 2,032 68 Residential mortgages - 1-4 family 266 296 30 Consumer - home equity 167 192 25 Total Other commercial real estate loans $ 4,324 $ 4,409 $ 85 Other commercial and industrial loans — — — Residential mortgages 540 570 30 Consumer 461 486 25 Total impaired loans $ 5,325 $ 5,465 $ 140 |
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 September 30, 2016 and 2015: Business Activities Loans Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ 2,326 $ 1 Commercial real estate - single and multifamily 48 1 80 — Other commercial real estate loans 2,624 111 9,787 157 Other commercial and industrial loans 805 26 234 7 Residential mortgages - 1-4 family 2,309 51 1,264 32 Consumer - home equity 693 5 155 6 Consumer - other 1 — — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — Commercial real estate - single and multifamily — — — — Other commercial real estate loans 10,266 351 7,725 199 Other commercial and industrial loans 4,609 154 3,610 103 Residential mortgages - 1-4 family 684 21 1,795 60 Consumer - home equity 999 26 248 — Consumer - other 104 3 113 3 Total Commercial real estate $ 12,938 $ 463 $ 19,918 $ 357 Commercial and industrial loans 5,414 180 3,844 110 Residential mortgages 2,993 72 3,059 92 Consumer loans 1,797 34 516 9 Total impaired loans $ 23,142 $ 749 $ 27,337 $ 568 Acquired Loans Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ 593 $ 60 Commercial real estate - single and multifamily — — 169 — Other commercial real estate loans 546 20 1,824 5 Other commercial and industrial loans 191 1 42 3 Residential mortgages - 1-4 family 321 9 423 — Consumer - home equity — — 39 — Consumer - other 140 1 — — With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — Commercial real estate - single and multifamily 942 37 2,878 82 Other commercial real estate loans 2,606 127 1,266 77 Other commercial and industrial loans 404 10 — — Residential mortgages - 1-4 family 117 4 409 13 Consumer - home equity 356 13 309 11 Consumer - other — — 19 4 Total Other commercial real estate loans $ 4,094 $ 184 $ 6,730 $ 224 Commercial and industrial loans 595 11 42 3 Residential mortgages 438 13 832 13 Consumer loans 496 14 367 15 Total impaired loans $ 5,623 $ 222 $ 7,971 $ 255 |
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 nine months ended September 30, 2016 and for the three and nine months ended September 30, 2015 , 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 nine months ended September 30, 2016 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the three and nine months ending September 30, 2015 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended September 30, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial - Other 2 $ 404 $ 404 Residential - 1-4 Family 2 5 5 Total 4 $ 409 $ 409 Nine Months Ended September 30, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 2 $ 1,049 $ 1,049 Commercial and industrial - Other 4 555 555 Residential - 1-4 Family 2 5 5 Consumer - Home Equity 1 117 117 Total 9 $ 1,726 $ 1,726 Three Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 2 307 307 Total 2 $ 307 $ 307 Nine Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 2,000 $ 2,000 Commercial - Single and multifamily 2 307 307 Commercial - Other 2 1,694 1,694 Commercial and industrial - Other 5 8,192 8,192 Total 10 12,193 12,193 The following tables disclose the recorded investments and numbers of modifications for TDRs for the prior year where a concession has been made, that then defaulted in the respective reporting period. For the three and nine months ended September 30, 2016 , there were no loans that were restructured that had subsequently defaulted during the period. Modifications that Subsequently Defaulted Three Months Ended September 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial and industrial- Other 2 $ 5,742 Modifications that Subsequently Defaulted Nine Months Ended September 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 649 Commercial and industrial - Other 2 $ 5,742 |
Schedule of TDR Activity | The following table presents the Company’s TDR activity for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of the period $ 22,122 $ 25,716 Principal payments (932 ) (1,538 ) TDR status change (1) — — Other reductions/increases (2) — (69 ) Newly identified TDRs 409 307 Balance at end of the period $ 21,599 $ 24,416 Nine Months Ended September 30, (In thousands) 2016 2015 Balance at beginning of the period $ 22,048 $ 16,714 Principal payments (2,041 ) (2,629 ) TDR status change (1) 2,236 — Other reductions/increases (2) (2,370 ) (1,862 ) Newly identified TDRs 1,726 12,193 Balance at end of the period $ 21,599 $ 24,416 _________________________________ (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) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Activity in the Allowance for Loan Losses | Activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 was as follows: At or for the three months ended September 30, 2016 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 16,895 $ 8,296 $ 7,526 $ 4,769 $ (362 ) $ 37,124 Charged-off loans — 1,599 253 434 — 2,286 Recoveries on charged-off loans 114 37 96 61 — 308 Provision/(releases) for loan losses 507 1,776 37 904 251 3,475 Balance at end of period $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 Individually evaluated for impairment 190 194 89 165 — 638 Collectively evaluated 17,326 8,316 7,317 5,135 (111 ) 37,983 Total $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 At or for the nine months ended September 30, 2016 Business Activities Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 14,508 $ 7,317 $ 7,566 $ 4,956 $ 227 $ 34,574 Charged-off loans 1,578 4,145 1,340 1,175 — 8,238 Recoveries on charged-off loans 242 114 101 183 — 640 Provision/(releases) for loan losses 4,344 5,224 1,079 1,336 (338 ) 11,645 Balance at end of period $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 Individually evaluated for impairment 190 194 89 165 — 638 Collectively evaluated 17,326 8,316 7,317 5,135 (111 ) 37,983 Total $ 17,516 $ 8,510 $ 7,406 $ 5,300 $ (111 ) $ 38,621 At or for the three months ended September 30, 2015 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 12,967 $ 9,166 $ 6,471 $ 4,914 $ (292 ) $ 33,226 Charged-off loans 1,329 916 316 353 — 2,914 Recoveries on charged-off loans — 6 28 86 — 120 Provision/(releases) for loan losses 2,623 (223 ) 1,187 281 263 4,131 Balance at end of period $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 Individually evaluated for impairment 410 1,032 248 38 — 1,728 Collectively evaluated 13,851 7,001 7,122 4,890 (29 ) 32,835 Total $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 At or for the nine months ended September 30, 2015 Business Activities Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 14,690 $ 5,206 $ 6,836 $ 5,928 $ 135 $ 32,795 Charged-off loans 5,751 1,288 762 815 — 8,616 Recoveries on charged-off loans 146 160 141 213 — 660 Provision/(releases) for loan losses 5,176 3,955 1,155 (398 ) (164 ) 9,724 Balance at end of period $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 Individually evaluated for impairment 410 1,032 248 38 — 1,728 Collectively evaluated 13,851 7,001 7,122 4,890 (29 ) 32,835 Total $ 14,261 $ 8,033 $ 7,370 $ 4,928 $ (29 ) $ 34,563 At or for the three months ended September 30, 2016 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 2,140 $ 776 $ 881 $ 476 $ — $ 4,273 Charged-off loans 662 84 332 77 — 1,155 Recoveries on charged-off loans — 37 37 33 — 107 Provision for loan losses 907 210 111 31 — 1,259 Balance at end of period $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 Individually evaluated for impairment 704 121 12 135 — 972 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,681 818 685 328 — 3,512 Total $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 At or for the nine months ended September 30, 2016 Acquired Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 1,903 $ 1,330 $ 976 $ 525 $ — $ 4,734 Charged-off loans 788 359 696 457 — 2,300 Recoveries on charged-off loans — 213 141 79 — 433 Provision for loan losses 1,270 (245 ) 276 316 — 1,617 Balance at end of period $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 Individually evaluated for impairment 704 121 12 135 — 972 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,681 818 685 328 — 3,512 Total $ 2,385 $ 939 $ 697 $ 463 $ — $ 4,484 At or for the three months ended September 30, 2015 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Unallocated Total Balance at beginning of period $ 1,786 $ 973 $ 808 $ 404 $ — $ 3,971 Charged-off loans 38 318 66 206 — 628 Recoveries on charged-off loans 23 130 1 11 — 165 Provision for loan losses (252 ) (133 ) 182 312 — 109 Balance at end of period $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 Individually evaluated for impairment 199 — 48 71 — 318 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,320 652 877 450 — 3,299 Total $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 At or for the nine months ended September 30, 2015 Acquired Loans Commercial Commercial and Residential Consumer Unallocated Total Balance at beginning of period $ 790 $ 1,093 $ 615 $ 369 $ — $ 2,867 Charged-off loans 625 654 441 814 — 2,534 Recoveries on charged-off loans 418 186 42 67 — 713 Provision for loan losses 936 27 709 899 — 2,571 Balance at end of period $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 Individually evaluated for impairment 199 — 48 71 — 318 Purchased credit-impaired loans — — — — — — Collectively evaluated 1,320 652 877 450 — 3,299 Total $ 1,519 $ 652 $ 925 $ 521 $ — $ 3,617 |
Schedule of Loans by Risk Rating | The following tables present the Company’s loans by risk rating at September 30, 2016 and December 31, 2015: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 221,749 $ 208,138 $ 269,342 $ 212,900 $ 1,378,353 $ 1,155,770 $ 1,869,444 $ 1,576,808 Special mention — — 348 — 21,533 3,449 21,881 3,449 Substandard — 2,058 2,154 1,923 38,803 49,716 40,957 53,697 Doubtful — — — — 37 73 37 73 Total $ 221,749 $ 210,196 $ 271,844 $ 214,823 $ 1,438,726 $ 1,209,008 $ 1,932,319 $ 1,634,027 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 327,100 $ 331,253 $ 499,953 $ 455,710 $ 827,053 $ 786,963 Special mention — — 484 24,578 484 24,578 Substandard — — 20,332 15,691 20,332 15,691 Total $ 327,100 $ 331,253 $ 520,769 $ 495,979 $ 847,869 $ 827,232 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 1,508,109 $ 1,449,073 $ 16,555 $ 26,704 $ 1,524,664 $ 1,475,777 Special mention 1,602 857 — — 1,602 857 Substandard 3,411 4,303 45 — 3,456 4,303 Total $ 1,513,122 $ 1,454,233 $ 16,600 $ 26,704 $ 1,529,722 $ 1,480,937 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 322,060 $ 305,562 $ 435,088 $ 310,777 $ 757,148 $ 616,339 Nonperforming 1,582 1,597 530 551 2,112 2,148 Total $ 323,642 $ 307,159 $ 435,618 $ 311,328 $ 759,260 $ 618,487 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 18,768 $ 42,176 $ 35,812 $ 32,796 $ 317,894 $ 324,614 $ 372,474 $ 399,586 Special mention — — — 655 1,630 352 1,630 1,007 Substandard 1,082 1,298 4,884 3,332 14,655 20,517 20,621 25,147 Total $ 19,850 $ 43,474 $ 40,696 $ 36,783 $ 334,179 $ 345,483 $ 394,725 $ 425,740 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ — $ — $ 141,843 $ 212,825 $ 141,843 $ 212,825 Special mention — — 180 487 180 487 Substandard — — 4,813 7,719 4,813 7,719 Doubtful — — 169 — 169 — Total $ — $ — $ 147,005 $ 221,031 $ 147,005 $ 221,031 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Grade: Pass $ 285,167 $ 329,375 $ 815 $ 1,351 $ 285,982 $ 330,726 Special mention 441 311 — — 441 311 Substandard 1,966 3,061 — — 1,966 3,061 Total $ 287,574 $ 332,747 $ 815 $ 1,351 $ 288,389 $ 334,098 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Performing $ 45,732 $ 52,719 $ 100,814 $ 129,345 $ 146,546 $ 182,064 Nonperforming 526 727 643 893 1,169 1,620 Total $ 46,258 $ 53,446 $ 101,457 $ 130,238 $ 147,715 $ 183,684 |
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 September 30, 2016 and December 31, 2015. 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. September 30, 2016 December 31, 2015 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 14,690 $ 5,974 $ 20,664 $ 15,484 $ 5,391 $ 20,875 Substandard Accruing 52,352 23,223 75,575 60,549 32,560 93,109 Total Classified 67,042 29,197 96,239 76,033 37,951 113,984 Special Mention 24,378 3,583 27,961 29,036 2,259 31,295 Total Criticized $ 91,420 $ 32,780 $ 124,200 $ 105,069 $ 40,210 $ 145,279 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Summary of Time Deposits | A summary of time deposits is as follows: (In thousands) September 30, December 31, Time less than $100,000 $ 535,655 $ 545,819 Time $100,000 or more 1,547,234 1,440,781 Total time deposits $ 2,082,889 $ 1,986,600 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at September 30, 2016 and December 31, 2015 are summarized, as follows: September 30, 2016 December 31, 2015 Weighted Weighted Average Average (dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLBB $ 924,800 0.55 % $ 1,071,200 0.43 % Other Borrowings 15,000 2.17 — — Total short-term borrowings: 939,800 0.58 1,071,200 0.43 Long-term borrowings: Advances from the FHLBB 109,114 1.61 103,135 1.89 Subordinated borrowings 73,652 7.00 73,519 7.00 Junior subordinated borrowings 15,464 2.67 15,464 2.23 Total long-term borrowings: 198,230 3.69 192,118 3.88 Total $ 1,138,030 1.12 % $ 1,263,318 0.96 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLBB advances as of September 30, 2016 is as follows: September 30, 2016 Weighted Average (in thousands, except rates) Principal Rate Fixed rate advances maturing: 2016 $ 835,308 0.54 % 2017 183,154 1.08 2018 1,018 2.62 2019 — — 2020 and beyond 14,434 2.41 Total FHLBB advances $ 1,033,914 0.66 % |
CAPITAL RATIOS AND SHAREHOLDE31
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | The actual and required capital ratios were as follows: September 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 11.5 % 10.0 % 11.9 % 10.0 % Common equity tier 1 capital to risk weighted assets 9.5 6.5 9.8 6.5 Tier 1 capital to risk weighted assets 9.6 8.0 9.9 8.0 Tier 1 capital to average assets 7.7 5.0 7.7 5.0 Bank Total capital to risk weighted assets 10.9 % 10.0 % 11.2 % 10.0 % Common equity tier 1 capital to risk weighted assets 9.6 6.5 9.9 6.5 Tier 1 capital to risk weighted assets 9.6 8.0 9.9 8.0 Tier 1 capital to average assets 7.6 5.0 7.7 5.0 |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income is as follows: (In thousands) September 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding gain on AFS securities $ 27,955 $ 6,316 Net unrealized loss on effective cash flow hedging derivatives (11,191 ) (8,532 ) Net unrealized holding loss on pension plans (3,469 ) (3,469 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities (10,766 ) (2,437 ) Net unrealized loss on effective cash flow hedging derivatives 4,490 3,425 Net unrealized holding loss on pension plans 1,392 1,392 Accumulated other comprehensive income (loss) $ 8,411 $ (3,305 ) |
Schedule of Components of Other Comprehensive Income | The following table presents the components of other comprehensive income for the three and nine months ended September 30, 2016 and 2015 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2016 Net unrealized holding (loss) on AFS securities: x Net unrealized (loss) arising during the period $ (5,576 ) $ 2,190 $ (3,386 ) Less: reclassification adjustment for gains realized in net income 78 (28 ) 50 Net unrealized holding (loss) on AFS securities (5,654 ) 2,218 (3,436 ) Net unrealized gain on cash flow hedging derivatives: Net unrealized gain arising during the period 1,363 (547 ) 816 Less: reclassification adjustment for (losses) realized in net income (1,367 ) 549 (818 ) Net unrealized gain on cash flow hedging derivatives 2,730 (1,096 ) 1,634 Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized holding (loss) on pension plans — — — Other comprehensive (loss) $ (2,924 ) $ 1,122 $ (1,802 ) Three Months Ended September 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 8,256 $ (3,204 ) $ 5,052 Less: reclassification adjustment for gains realized in net income 49 (18 ) 31 Net unrealized holding gains on AFS securities 8,207 (3,186 ) 5,021 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (4,369 ) 1,761 (2,608 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized (loss) on cash flow hedging derivatives (4,369 ) 1,761 (2,608 ) Net unrealized holding gain 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 income $ 3,903 $ (1,451 ) $ 2,452 (In thousands) Before Tax Tax Effect Net of Tax Nine Months Ended September 30, 2016 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 21,740 $ (8,366 ) $ 13,374 Less: reclassification adjustment for gains realized in net income 101 (36 ) 65 Net unrealized holding gains on AFS securities 21,639 (8,330 ) 13,309 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,322 ) 2,136 (3,186 ) Less: reclassification adjustment for (losses) realized in net income (2,662 ) 1,069 (1,593 ) Net unrealized (loss) on cash flow hedging derivatives (2,660 ) 1,067 (1,593 ) Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period — — — Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized holding (loss) on pension plans — — — Other comprehensive income $ 18,979 $ (7,263 ) $ 11,716 Nine Months Ended September 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized gains arising during the period $ 3,940 $ (1,580 ) $ 2,360 Less: reclassification adjustment for gains realized in net income 2,466 (888 ) 1,578 Net unrealized holding gains on AFS securities 1,474 (692 ) 782 Net unrealized (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (7,486 ) 3,017 (4,469 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized (loss) on cash flow hedging derivatives (7,486 ) 3,017 (4,469 ) Net unrealized holding (loss) on pension plans: Net unrealized (loss) arising during the period (1,596 ) 643 (953 ) Less: reclassification adjustment for gains (losses) realized in net income (194 ) 78 (116 ) Net unrealized holding (loss) on pension plans (1,402 ) 565 (837 ) Other comprehensive (loss) $ (7,414 ) $ 2,890 $ (4,524 ) |
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 nine months ended September 30, 2016 and 2015 : (in thousands) Net unrealized holding gain on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding loss on pension plans Total Three Months Ended September 30, 2016 Balance at Beginning of Period $ 20,625 $ (8,335 ) $ (2,077 ) $ 10,213 Other Comprehensive (Loss) Gain Before reclassifications (3,386 ) 816 — (2,570 ) Less: Amounts Reclassified from Accumulated other comprehensive income 50 (818 ) — (768 ) Total Other Comprehensive (Loss) Income (3,436 ) 1,634 — (1,802 ) Balance at End of Period $ 17,189 $ (6,701 ) $ (2,077 ) $ 8,411 Three Months Ended September 30, 2015 Balance at Beginning of Period $ 5,677 $ (3,830 ) $ (2,244 ) $ (397 ) Other Comprehensive Gain (Loss) Before reclassifications 5,052 (2,608 ) — 2,444 Less: Amounts Reclassified from Accumulated other comprehensive income 31 — (39 ) (8 ) Total Other Comprehensive Income (Loss) 5,021 (2,608 ) 39 2,452 Balance at End of Period $ 10,698 $ (6,438 ) $ (2,205 ) $ 2,055 Nine Months Ended September 30, 2016 Balance at Beginning of Period $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) Other Comprehensive Gain (Loss) Before reclassifications 13,374 (3,186 ) — 10,188 Less: Amounts Reclassified from Accumulated other comprehensive income 65 (1,593 ) — (1,528 ) Total Other Comprehensive Income (Loss) 13,309 (1,593 ) — 11,716 Balance at End of Period $ 17,189 $ (6,701 ) $ (2,077 ) $ 8,411 Nine Months Ended September 30, 2015 Balance at Beginning of Period $ 9,916 $ (1,969 ) $ (1,368 ) $ 6,579 Other Comprehensive Gain (Loss) Before reclassifications 2,360 (4,469 ) (953 ) (3,062 ) Less: Amounts Reclassified from Accumulated other comprehensive income 1,578 — (116 ) 1,462 Total Other Comprehensive Income (Loss) 782 (4,469 ) (837 ) (4,524 ) Balance at End of Period $ 10,698 $ (6,438 ) $ (2,205 ) $ 2,055 |
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 nine months ended September 30, 2016 and 2015 : Affected Line Item in the Three Months Ended September 30, Statement where Net Income (in thousands) 2016 2015 is Presented Realized gains on AFS securities: $ 78 $ 49 Non-interest income (28 ) (18 ) Tax expense 50 31 Net of tax Realized (losses) on cash flow hedging derivatives: (1,367 ) — Non-interest income 549 — Tax expense (818 ) — Net of tax Realized (losses) on pension plans: — (65 ) Non-interest income — 26 Tax expense — (39 ) Net of tax Total reclassifications for the period $ (768 ) $ (8 ) Net of tax Affected Line Item in the Nine Months Ended September 30, Statement where Net Income (in thousands) 2016 2015 is Presented Realized gains on AFS securities: $ 101 $ 2,466 Non-interest income (36 ) (888 ) Tax expense 65 1,578 Net of tax Realized (losses) on cash flow hedging derivatives: (2,662 ) — Non-interest income 1,069 — Tax expense (1,593 ) — Net of tax Realized (losses) on pension plans: — (194 ) Non-interest income — 78 Tax expense — (116 ) Net of tax Total reclassifications for the period $ (1,528 ) $ 1,462 Net of tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, Nine Months Ended September 30, (In thousands, except per share data) 2016 2015 2016 2015 Net income $ 16,381 $ 14,701 $ 48,339 $ 33,504 Average number of common shares issued 32,273 31,565 32,216 29,374 Less: average number of treasury shares 1,137 1,201 1,117 1,229 Less: average number of unvested stock award shares 515 471 515 460 Average number of basic common shares outstanding 30,621 29,893 30,584 27,685 Plus: dilutive effect of unvested stock award shares 131 114 115 98 Plus: dilutive effect of stock options outstanding 59 62 58 64 Average number of diluted common shares outstanding 30,811 30,069 30,757 27,847 Earnings per share: Basic $ 0.53 $ 0.49 $ 1.58 $ 1.21 Diluted $ 0.53 $ 0.49 $ 1.57 $ 1.20 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2015 488 $ 25.09 265 $ 21.11 Granted 185 27.37 — — Stock options exercised — — (10 ) 14.98 Stock awards vested (116 ) 25.15 — — Forfeited (63 ) 25.39 — — Expired — — (3 ) 34.45 September 30, 2016 494 $ 26.23 252 $ 21.08 Exercisable options at September 30, 2016 251 $ 21.15 |
DERIVATIVE INSTRUMENTS AND HE34
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 , 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: Interest rate swaps on FHLBB borrowings $ 300,000 2.5 0.52 % 2.29 % $ (11,191 ) Total cash flow hedges 300,000 (11,191 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,540 13.2 0.89 % 5.09 % (2,869 ) Interest rate swaps on loans with commercial loan customers 642,399 6.4 2.27 % 4.23 % (36,055 ) Reverse interest rate swaps on loans with commercial loan customers 642,399 6.4 4.23 % 2.27 % 35,546 Risk Participation Agreements with Dealer Banks 77,887 12.2 47 Forward sale commitments 95,042 0.2 (582 ) Total economic hedges 1,469,267 (3,913 ) Non-hedging derivatives: Interest rate lock commitments 83,765 0.2 1,574 Total non-hedging derivatives 83,765 1,574 Total $ 1,853,032 $ (13,530 ) Information about derivative assets and liabilities at December 31, 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 3.3 0.14 % 2.29 % $ (8,532 ) Total cash flow hedges 300,000 (8,532 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,984 13.9 0.61 % 5.09 % (2,450 ) Interest rate swaps on loans with commercial loan customers 457,392 6.7 2.18 % 4.49 % (17,143 ) Reverse interest rate swaps on loans with commercial loan customers 457,392 6.7 4.49 % 2.18 % 17,129 Risk participation agreements with dealer banks 59,016 15.0 (56 ) Forward sale commitments 44,840 0.2 53 Total economic hedges 1,030,624 (2,467 ) Non-hedging derivatives: Interest rate lock commitments 36,043 0.2 323 Total non-hedging derivatives 36,043 323 Total $ 1,366,667 $ (10,676 ) |
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 September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Interest rate swaps on FHLBB borrowings: Unrealized gain (loss) recognized in accumulated other comprehensive loss $ 1,363 $ (4,369 ) $ (5,322 ) $ (7,486 ) Less: Reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense (1,367 ) — (2,662 ) — Net tax effect on items recognized in accumulated other comprehensive income (1,096 ) 1,761 1,067 3,017 Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 1,634 $ (2,608 ) $ (1,593 ) $ (4,469 ) Net interest expense recognized in interest expense on hedged FHLBB borrowings $ 1,367 $ — $ 2,662 $ — |
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 September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 29 $ (493 ) $ (802 ) $ (433 ) Interest rate swaps on loans with commercial loan customers: Unrealized gain (loss) recognized in other non-interest income 2,411 (7,698 ) (18,911 ) (6,923 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain (loss) recognized in other non-interest income (2,411 ) 7,698 18,911 6,923 (Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income (62 ) 52 (495 ) 109 Risk Participation Agreements: Unrealized (loss) gain recognized in other non-interest income (14 ) (65 ) 102 (42 ) Forward Commitments: Unrealized (loss) gain recognized in other non-interest income (582 ) (387 ) (1,898 ) (300 ) Realized gain (loss) in other non-interest income 109 (493 ) (224 ) (80 ) Non-hedging derivatives Interest rate lock commitments Unrealized gain recognized in other non-interest income $ 1,574 $ 754 $ 3,635 $ 2,113 Realized gain in other non-interest income 760 819 2,505 1,760 |
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, 2015 Interest Rate Swap Agreements: Institutional counterparties $ 40 $ — $ 40 $ — $ — $ 40 Commercial counterparties 17,129 — 17,129 — — 17,129 Total $ 17,169 $ — $ 17,169 $ — $ — $ 17,169 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 September 30, 2016 Interest Rate Swap Agreements: Institutional counterparties $ 118 $ — $ 118 $ — $ — $ 118 Commercial counterparties 35,546 — 35,546 — — 35,546 Total $ 35,664 $ — $ 35,664 $ — $ — $ 35,664 |
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 September 30, 2016 Interest Rate Swap Agreements: Institutional counterparties $ (49,570 ) $ 42 $ (49,528 ) $ 48,878 $ 650 $ — Commercial counterparties — — — — — — Total $ (49,570 ) $ 42 $ (49,528 ) $ 48,878 $ 650 $ — 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, 2015 Interest Rate Swap Agreements: Institutional counterparties $ (28,220 ) $ — $ (28,220 ) $ 18,500 $ 9,720 $ — Commercial counterparties — — — — — — Total $ (28,220 ) $ — $ (28,220 ) $ 18,500 $ 9,720 $ — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. September 30, 2016 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,149 $ 14,149 Available-for-sale securities: Municipal bonds and obligations — 121,126 — 121,126 Agency collateralized mortgage obligations — 541,997 — 541,997 Agency residential mortgage-backed securities — 104,670 — 104,670 Agency commercial mortgage-backed securities — 62,300 — 62,300 Corporate bonds — 46,522 — 46,522 Trust preferred securities — 11,801 — 11,801 Other bonds and obligations — 3,200 — 3,200 Marketable equity securities 53,602 1,635 — 55,237 Loans held for sale — 20,471 — 20,471 Derivative assets 35,546 1,574 37,120 Derivative liabilities 331 50,068 251 50,650 December 31, 2015 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,189 $ 14,189 Available-for-sale securities: Municipal bonds and obligations — 104,561 — 104,561 Agency collateralized mortgage obligations — 833,036 — 833,036 Agency residential mortgage-backed securities — 126,829 — 126,829 Agency commercial mortgage-backed securities — — — — Corporate bonds — 41,023 — 41,023 Trust preferred securities — 11,900 — 11,900 Other bonds and obligations — 3,141 — 3,141 Marketable equity securities 32,925 334 708 33,967 Loans Held for Sale — 13,191 — 13,191 Derivative assets 45 17,130 332 17,507 Derivative liabilities — 28,181 — 28,181 |
Schedule of Loans Held for Sale | Aggregate Fair Value September 30, 2016 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 20,471 $ 19,796 $ 675 Aggregate Fair Value December 31, 2015 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 13,191 $ 12,914 $ 277 |
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 nine months ended September 30, 2016 and 2015 . Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended September 30, 2016 June 30, 2016 $ 14,479 $ — $ 1,259 $ (189 ) Unrealized (loss) gain, net recognized in other non-interest income (180 ) — 3,563 (62 ) Paydown of trading security (150 ) — — — Transfers to held for sale loans — — (3,248 ) — September 30, 2016 $ 14,149 $ — $ 1,574 $ (251 ) Nine Months Ended September 30, 2016 December 31, 2015 $ 14,189 $ 708 $ 323 $ 9 Unrealized gain, net recognized in other non-interest income 405 — 6,480 (260 ) Transfers to Level 2 — (708 ) — — Paydown of trading security (445 ) — — — Transfers to held for sale loans — — (5,229 ) — September 30, 2016 $ 14,149 $ — $ 1,574 $ (251 ) Unrealized gains (losses) relating to instruments still held at September 30, 2016 $ 2,610 $ — $ 1,574 $ (251 ) Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended September 30, 2015 June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Sale of Marketable Equity Security — — — — Unrealized gain (loss), net recognized in other non-interest income 351 — 1,366 (72 ) Unrealized loss included in accumulated other comprehensive loss — (9 ) — — Paydown of trading account security (142 ) — — — Transfers to held for sale loans — — (994 ) — September 30, 2015 $ 14,587 $ 764 $ 754 $ (22 ) Nine Months Ended September 30, 2015 December 31, 2014 $ 14,909 $ 2,326 $ 625 $ (93 ) Sale of Marketable Equity Security — (1,327 ) — — Unrealized gain, net recognized in other non-interest income 103 — 4,037 71 Unrealized loss included in accumulated other comprehensive loss — (235 ) — — Paydown of trading account security (425 ) — — — Transfers to held for sale loans — — (3,908 ) — September 30, 2015 $ 14,587 $ 764 $ 754 $ (22 ) Unrealized gains (losses) relating to instruments still held at September 30, 2015 $ 2,457 $ (6 ) $ 754 $ (22 ) |
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) September 30, 2016 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 19,591 Fair value of collateral - appraised value Discounted cash flow - loss severity 0.19% to 89.11% (10.01%) Appraised value $29.2 to $2,197.4 ($1160.1) Capitalized servicing rights 10,495 Discounted cash flow Constant prepayment rate (CPR) 7.35% to 15.23% (11.04%) Discount rate 10.00% to 14.00% (11.71%) Other real estate owned 80 Fair value of collateral Appraised value $46.0 to $129.0 ($118.6) Total $ 30,166 (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, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 11,657 Fair value of collateral - appraised value Discounted cash flow - loss severity 0.05% to 29.50% (7.55%) Appraised value $46.3 to $1,962.0 ($999.7) Capitalized servicing rights 5,187 Discounted cash flow Constant prepayment rate (CPR) 7.17% to 12.06% (10.02%) Discount rate 10.00% to 15.00 (10.88%) Other real estate owned 1,725 Fair value of collateral Appraised value $39.0 to $1,200.0 ($919.9) Total $ 18,569 (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. September 30, 2016 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 69,285 $ 69,285 $ 69,285 $ — $ — Trading security 14,149 14,149 — — 14,149 Securities available for sale 946,853 946,853 53,602 893,251 — Securities held to maturity 131,467 139,358 — — 139,358 FHLB bank stock and restricted securities 61,277 61,277 — 61,277 — Net loans 6,003,899 6,081,799 — — 6,081,799 Loans held for sale 20,471 20,471 — 20,471 — Accrued interest receivable 17,263 17,263 — 17,263 — Cash surrender value of bank-owned life insurance policies 127,880 127,880 — 127,880 — Derivative assets 37,120 37,120 — 35,546 1,574 Assets held for sale — — — — — Financial Liabilities Total deposits $ 5,749,754 $ 5,751,777 $ — $ 5,751,777 $ — Short-term debt 939,800 939,823 — 939,823 — Long-term Federal Home Loan Bank advances 109,114 109,625 — 109,625 — Subordinated borrowings 89,116 97,437 — 97,437 — Derivative liabilities 50,650 50,650 331 50,068 251 December 31, 2015 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 103,562 $ 103,562 $ 103,562 $ — $ — Trading security 14,189 14,189 — — 14,189 Securities available for sale 1,154,457 1,154,457 32,925 1,120,824 708 Securities held to maturity 131,652 136,904 — — 136,904 FHLB bank stock and restricted securities 71,018 71,018 — 71,018 — Net loans 5,685,928 5,727,570 — — 5,727,570 Loans held for sale 13,191 13,191 — 13,191 — Accrued interest receivable 20,940 20,940 — 20,940 — Cash surrender value of bank-owned life insurance policies 125,233 125,233 — 125,233 — Derivative assets 17,507 17,507 45 17,130 332 Assets held for sale 278 278 — 278 — Financial Liabilities Total deposits $ 5,589,135 $ 5,582,835 $ — $ 5,582,835 $ — Short-term debt 1,071,200 1,071,044 — 1,071,044 — Long-term Federal Home Loan Bank advances 103,135 103,397 — 103,397 — Subordinated borrowings 89,812 93,291 — 93,291 — Derivative liabilities 28,181 28,181 — 28,181 — |
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) September 30, 2016 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,149 Discounted Cash Flow Discount Rate 1.80 % Forward Commitments (251 ) Historical Trend Closing Ratio 93.97 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 1,574 Historical Trend Closing Ratio 93.97 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,472 Fair Value Significant Unobservable Input (In thousands) December 31, 2015 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,189 Discounted Cash Flow Discount Rate 2.49 % AFS Securities 708 Pricing Model Median Peer Price/Tangible Book Value Percentage Multiple 88.52 % Forward Commitments 9 Historical Trend Closing Ratio 92.57 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 323 Historical Trend Closing Ratio 92.57 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,229 |
Non-recurring | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | 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. September 30, 2016 December 31, 2015 Three months ended September 30, 2016 Nine months ended September 30, 2016 Fair Value Measurement Date as of September 30, 2016 Level 3 Level 3 Total Total Level 3 (In thousands) Inputs Inputs Gains (Losses) Gains (Losses) Inputs Assets Impaired loans $ 19,591 $ 11,657 $ (2,955 ) $ 7,934 September 2016 Capitalized servicing rights 10,495 5,187 — — September 2016 Other real estate owned 80 1,725 (35 ) (456 ) Feb. 2016 - Mar. 2016 Total $ 30,166 $ 18,569 $ (2,990 ) $ 7,478 |
NET INTEREST INCOME AFTER PRO36
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and 2015, respectively. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Net interest income $ 57,971 $ 56,971 $ 173,109 $ 155,101 Provision for loan losses 4,734 4,240 13,262 12,295 Net interest income after provision for loan losses $ 53,237 $ 52,731 $ 159,847 $ 142,806 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) | Apr. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 28, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||
Loans | $ 6,047,004,000 | $ 6,047,004,000 | $ 6,047,004,000 | $ 5,725,236,000 | ||||
Pro forma estimated tax rate | 40.00% | 40.00% | ||||||
44 Business Capital | ||||||||
Business Acquisition [Line Items] | ||||||||
Servicing asset at fair value, additions | $ 148,000,000 | |||||||
Acquisition related costs | 66,000 | $ 124,000 | $ 164,000 | $ 124,000 | ||||
Business acquisition, equity interest issued or Issuable, number of shares (in shares) | 44,840 | |||||||
Pro forma revenue | 2,800,000 | |||||||
Pro forma net income (loss) | 593,000 | |||||||
Business Combination, Pro Forma Information, Acquisition Expenses | 164,000 | |||||||
Commercial Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Loans | 2,327,044,000 | 2,327,044,000 | 2,327,044,000 | 2,059,767,000 | ||||
Commercial Real Estate | 44 Business Capital | ||||||||
Business Acquisition [Line Items] | ||||||||
Loans | $ 35,600,000 | |||||||
Commercial Loans | ||||||||
Business Acquisition [Line Items] | ||||||||
Loans | $ 3,321,918,000 | $ 3,321,918,000 | $ 3,321,918,000 | $ 3,108,030,000 | ||||
Commercial Loans | 44 Business Capital | ||||||||
Business Acquisition [Line Items] | ||||||||
Loans | $ 1,200,000 | |||||||
44 Business Capital | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage by parent | 51.00% | |||||||
Ownership percentage by noncontrolling owners | 49.00% |
ACQUISITION - Consideration Pai
ACQUISITION - Consideration Paid and Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 29, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Goodwill | $ 339,975 | $ 323,943 | |||||
Loans | 6,047,004 | 5,725,236 | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 4,603 | $ 6,213 | $ 6,925 | $ 7,471 | $ 6,540 | $ 2,541 | |
44 Business Capital | |||||||
Consideration paid: | |||||||
Company common stock issued to certain 44 Business Capital shareholders | $ 1,217 | ||||||
Business acquisition, equity interest issued or Issuable, number of shares (in shares) | 44,840 | ||||||
Cash paid to 44 Business Capital shareholders and Parke | $ 55,649 | ||||||
Total consideration paid | 56,866 | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Cash and short-term investments | 107 | ||||||
Loans | 36,850 | ||||||
Premises and equipment | 33 | ||||||
Other assets | 3,715 | ||||||
Other liabilities | (108) | ||||||
Total identifiable net assets | 40,597 | ||||||
Goodwill | 16,269 | ||||||
Loans receivable, fair value disclosure | 34,300 | ||||||
Loans and leases receivable, deferred income | 2,100 | ||||||
44 Business Capital | Receivables Acquired with Deteriorated Credit Quality | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Loans receivable, fair value disclosure | 2,600 | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 708 | ||||||
Fair value discount, amortization period (in years) | 6 years | ||||||
44 Business Capital | Scenario, Previously Reported | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Cash and short-term investments | $ 107 | ||||||
Loans | 42,627 | ||||||
Premises and equipment | 69 | ||||||
Other assets | 3,076 | ||||||
Other liabilities | (108) | ||||||
Total identifiable net assets | 45,771 | ||||||
Loans | 36,400 | ||||||
44 Business Capital | Scenario, Previously Reported | Receivables Acquired with Deteriorated Credit Quality | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Loans | 6,300 | ||||||
44 Business Capital | Scenario, Adjustment | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||||||
Cash and short-term investments | 0 | ||||||
Loans | (5,777) | ||||||
Premises and equipment | (36) | ||||||
Other assets | 639 | ||||||
Other liabilities | 0 | ||||||
Total identifiable net assets | (5,174) | ||||||
Accrued interest | $ 221 |
ACQUISITION - Loan Portfolio Ac
ACQUISITION - Loan Portfolio Acquired (Details) - ASC 310-30 - 44 Business Capital $ in Thousands | Apr. 29, 2016USD ($) |
Business Acquisition [Line Items] | |
Gross contractual receivable amounts at acquisition | $ 6,265 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (3,000) |
Expected cash flows at acquisition | 3,265 |
Interest component of expected cash flows (accretable discount) | (708) |
Fair value of acquired loans | $ 2,557 |
ACQUISITION - Pro Forma Informa
ACQUISITION - Pro Forma Information (Details) - 44 Business Capital - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 173,421 | $ 156,812 |
Non-interest income | 51,279 | 46,196 |
Net income | $ 49,170 | $ 35,567 |
Pro forma earnings per share, basic (in dollars per share) | $ 1.61 | $ 1.28 |
Pro forma earnings per share, diluted (in dollars per share) | $ 1.60 | $ 1.28 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Trading Securities [Abstract] | ||
Amortized cost | $ 11,500,000 | $ 12,000,000 |
Fair value | 14,149,000 | $ 14,189,000 |
Amount of other securities in the trading portfolio | $ 0 |
SECURITIES AVAILABLE FOR SALE42
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY - Summary of Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | $ 871,959 | $ 1,118,572 |
Available-for-sale debt securities, accumulated gross unrealized gain | 20,690 | 10,444 |
Available-for-sale debt securities, accumulated gross unrealized loss | (1,033) | (8,526) |
Available-for-sale securities, debt securities | 891,616 | 1,120,490 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 47,825 | 30,522 |
Available-for-sale equity securities, accumulated gross unrealized gain | 9,148 | 5,331 |
Available-for-sale equity securities, accumulated gross unrealized loss | (1,736) | (1,886) |
Available-for-sale securities, equity securities | 55,237 | 33,967 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Available-for-sale securities, amortized cost basis | 919,784 | 1,149,094 |
Available-for-sale securities, accumulated gross unrealized gain | 29,838 | 15,775 |
Available-for-sale securities, accumulated gross unrealized loss | (2,769) | (10,412) |
Available for sale securities | 946,853 | 1,154,457 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 131,467 | 131,652 |
Held to maturity securities accumulated unrecognized holding gains | 7,891 | 5,286 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | (34) |
Securities held to maturity, fair value | 139,358 | 136,904 |
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||
Held to maturity and available for sale securities, amortized cost basis | 1,051,251 | 1,280,746 |
Held to maturity and available for sale securities, gross unrealized gain | 37,729 | 21,061 |
Held to maturity and available for sale securities, gross unrealized loss | (2,769) | (10,446) |
Held to maturity and available for sale securities, fair value | 1,086,211 | 1,291,361 |
Municipal bonds and obligations | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 95,457 | 94,642 |
Held to maturity securities accumulated unrecognized holding gains | 5,708 | 3,359 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | (34) |
Securities held to maturity, fair value | 101,165 | 97,967 |
Agency collateralized mortgage obligations | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 66 | 68 |
Held to maturity securities accumulated unrecognized holding gains | 7 | 3 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Securities held to maturity, fair value | 73 | 71 |
Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 35,619 | 36,613 |
Held to maturity securities accumulated unrecognized holding gains | 2,176 | 1,924 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Securities held to maturity, fair value | 37,795 | 38,537 |
Other bonds and obligations | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 325 | 329 |
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 | 325 | 329 |
Municipal bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 114,866 | 99,922 |
Available-for-sale debt securities, accumulated gross unrealized gain | 6,357 | 4,763 |
Available-for-sale debt securities, accumulated gross unrealized loss | (97) | (124) |
Available-for-sale securities, debt securities | 121,126 | 104,561 |
Agency collateralized mortgage obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 530,548 | 833,633 |
Available-for-sale debt securities, accumulated gross unrealized gain | 11,567 | 4,957 |
Available-for-sale debt securities, accumulated gross unrealized loss | (118) | (5,554) |
Available-for-sale securities, debt securities | 541,997 | 833,036 |
Agency mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 103,261 | 127,274 |
Available-for-sale debt securities, accumulated gross unrealized gain | 1,463 | 542 |
Available-for-sale debt securities, accumulated gross unrealized loss | (54) | (987) |
Available-for-sale securities, debt securities | 104,670 | 126,829 |
Agency commercial mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 61,673 | 0 |
Available-for-sale debt securities, accumulated gross unrealized gain | 627 | 0 |
Available-for-sale debt securities, accumulated gross unrealized loss | 0 | 0 |
Available-for-sale securities, debt securities | 62,300 | 0 |
Corporate bonds | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 46,869 | 42,849 |
Available-for-sale debt securities, accumulated gross unrealized gain | 359 | 0 |
Available-for-sale debt securities, accumulated gross unrealized loss | (706) | (1,826) |
Available-for-sale securities, debt securities | 46,522 | 41,023 |
Trust preferred securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 11,584 | 11,719 |
Available-for-sale debt securities, accumulated gross unrealized gain | 275 | 182 |
Available-for-sale debt securities, accumulated gross unrealized loss | (58) | (1) |
Available-for-sale securities, debt securities | 11,801 | 11,900 |
Other bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 3,158 | 3,175 |
Available-for-sale debt securities, accumulated gross unrealized gain | 42 | 0 |
Available-for-sale debt securities, accumulated gross unrealized loss | 0 | (34) |
Available-for-sale securities, debt securities | $ 3,200 | $ 3,141 |
SECURITIES AVAILABLE FOR SALE43
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 0 | |
Over 1 year to 5 years | 4,894 | |
Over 5 years to 10 years | 32,920 | |
Over 10 years | 138,663 | |
Total bonds and obligations | 176,477 | |
Marketable equity securities | 47,825 | $ 30,522 |
Residential mortgage-backed securities | 695,482 | |
Available-for-sale securities, amortized cost basis | 919,784 | 1,149,094 |
Available for sale, Fair Value | ||
Within 1 year | 0 | |
Over 1 year to 5 years | 4,984 | |
Over 5 years to 10 years | 33,643 | |
Over 10 years | 144,022 | |
Total bonds and obligations | 182,649 | |
Marketable equity securities | 55,237 | 33,967 |
Residential mortgage-backed securities | 708,967 | |
Available for sale securities | 946,853 | 1,154,457 |
Held to maturity, Amortized Cost | ||
Within 1 year | 2,580 | |
Over 1 year to 5 years | 16,906 | |
Over 5 years to 10 years | 13,853 | |
Over 10 years | 98,062 | |
Total bonds and obligations | 131,401 | |
Residential mortgage-backed securities | 66 | |
Held to maturity, amortized cost basis | 131,467 | 131,652 |
Held to maturity, Fair Value | ||
Within 1 year | 2,589 | |
Over 1 year to 5 years | 17,920 | |
Over 5 years to 10 years | 14,444 | |
Over 10 years | 104,332 | |
Total bonds and obligations | 139,285 | |
Residential mortgage-backed securities | 73 | |
Fair Value | $ 139,358 | $ 136,904 |
SECURITIES AVAILABLE FOR SALE44
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | $ 739 | $ 3,838 |
Available for sale securities, over twelve months, gross unrealized losses | 2,030 | 6,574 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 2,769 | 10,412 |
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 | 78,670 | 352,256 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 29,486 | 206,258 |
Available for sale securities, continuous unrealized loss position, fair value | 108,156 | 558,514 |
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 | 0 | |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 34 | |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 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 | 0 | |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 2,143 | |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 2,143 | |
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 | 739 | 3,838 |
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value | 78,670 | 352,256 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses | 2,030 | 6,608 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value | 29,486 | 208,401 |
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses | 2,769 | 10,446 |
Held to maturity and available for sale securities continuous unrealized loss position, fair value | 108,156 | 560,657 |
Debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 245 | 3,304 |
Available for sale securities, over twelve months, gross unrealized losses | 788 | 5,222 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,033 | 8,526 |
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 | 68,771 | 349,348 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 22,547 | 200,529 |
Available for sale securities, continuous unrealized loss position, fair value | 91,318 | 549,877 |
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 | 97 | 9 |
Available for sale securities, over twelve months, gross unrealized losses | 0 | 115 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 97 | 124 |
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 | 12,160 | 1,587 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 3,400 |
Available for sale securities, continuous unrealized loss position, fair value | 12,160 | 4,987 |
Debt securities | Agency collateralized mortgage obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 118 | 2,958 |
Available for sale securities, over twelve months, gross unrealized losses | 0 | 2,596 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 118 | 5,554 |
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 | 43,710 | 304,907 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 136,988 |
Available for sale securities, continuous unrealized loss position, fair value | 43,710 | 441,895 |
Debt securities | Agency commercial 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 | 30 | 306 |
Available for sale securities, over twelve months, gross unrealized losses | 24 | 681 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 54 | 987 |
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 | 12,901 | 34,543 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 1,349 | 35,522 |
Available for sale securities, continuous unrealized loss position, fair value | 14,250 | 70,065 |
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 | 30 |
Available for sale securities, over twelve months, gross unrealized losses | 706 | 1,796 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 706 | 1,826 |
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 | 6,934 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 19,998 | 21,587 |
Available for sale securities, continuous unrealized loss position, fair value | 19,998 | 28,521 |
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 | 1 |
Available for sale securities, over twelve months, gross unrealized losses | 58 | 0 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 58 | 1 |
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 | 1,269 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 1,200 | 0 |
Available for sale securities, continuous unrealized loss position, fair value | 1,200 | 1,269 |
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 | 0 | |
Available for sale securities, over twelve months, gross unrealized losses | 34 | |
Available for sale securities, continuous unrealized loss position, accumulated loss | 34 | |
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 | 108 | |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 3,032 | |
Available for sale securities, continuous unrealized loss position, fair value | 3,140 | |
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 | 0 | |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 34 | |
Held to maturity securities, accumulated unrecognized holding loss | 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 | 0 | |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 2,143 | |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 2,143 | |
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 | 494 | 534 |
Available for sale securities, over twelve months, gross unrealized losses | 1,242 | 1,352 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,736 | 1,886 |
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 | 9,899 | 2,908 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 6,939 | 5,729 |
Available for sale securities, continuous unrealized loss position, fair value | $ 16,838 | $ 8,637 |
SECURITIES AVAILABLE FOR SALE45
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 946,853,000 | $ 1,154,457,000 |
Level 2 | ||
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 893,251,000 | $ 1,120,824,000 |
Marketable equity securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 10 | |
Available for sale securities portfolio, number of securities (security) | 28 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 9.40% | |
Municipal bonds and obligations | Debt securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 7 | |
Available for sale securities portfolio, number of securities (security) | 127 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 0.80% | |
Collateralized Mortgage Obligations | Debt securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 6 | |
Available for sale securities portfolio, number of securities (security) | 112 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 0.30% | |
Residential Mortgage Backed Securities | Debt securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 13 | |
Available for sale securities portfolio, number of securities (security) | 87 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 0.40% | |
Corporate bonds | One Investment | Level 2 | ||
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 16,900,000 | |
Corporate bonds | Debt securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 2 | |
Available for sale securities portfolio, number of securities (security) | 9 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 3.40% | |
Corporate bonds | Debt securities | One Investment | ||
Investment Holdings [Line Items] | ||
Available for sale securities gross unrealized loss accumulated in investments | $ | $ 637,900 | |
Securities available for sale, at fair value | $ | $ 17,500,000 | |
Trust Preferred Securities | Debt securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 1 | |
Available for sale securities portfolio, number of securities (security) | 3 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 4.60% |
LOANS - Summary of Total Loans
LOANS - Summary of Total Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 6,047,004 | $ 5,725,236 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 5,069,170 | 4,560,683 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 977,834 | 1,164,553 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,327,044 | 2,059,767 |
Commercial Real Estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,932,319 | 1,634,027 |
Commercial Real Estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 394,725 | 425,740 |
Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 241,599 | 253,670 |
Commercial Real Estate | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 221,749 | 210,196 |
Commercial Real Estate | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 19,850 | 43,474 |
Commercial Real Estate | Single and Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 312,540 | 251,606 |
Commercial Real Estate | Single and Multi-family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 271,844 | 214,823 |
Commercial Real Estate | Single and Multi-family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 40,696 | 36,783 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,772,905 | 1,554,491 |
Commercial Real Estate | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,438,726 | 1,209,008 |
Commercial Real Estate | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 334,179 | 345,483 |
Commercial and Industrial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 994,874 | 1,048,263 |
Commercial and Industrial Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 847,869 | 827,232 |
Commercial and Industrial Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 147,005 | 221,031 |
Commercial and Industrial Loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 667,774 | 717,010 |
Commercial and Industrial Loans | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 520,769 | 495,979 |
Commercial and Industrial Loans | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 147,005 | 221,031 |
Commercial and Industrial Loans | Asset Based Lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 327,100 | 331,253 |
Commercial and Industrial Loans | Asset Based Lending | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 327,100 | 331,253 |
Commercial and Industrial Loans | Asset Based Lending | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 0 | 0 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,321,918 | 3,108,030 |
Commercial Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,780,188 | 2,461,259 |
Commercial Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 541,730 | 646,771 |
Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,818,111 | 1,815,035 |
Residential Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,529,722 | 1,480,937 |
Residential Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 288,389 | 334,098 |
Residential Mortgages | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 17,415 | 28,055 |
Residential Mortgages | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 16,600 | 26,704 |
Residential Mortgages | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 815 | 1,351 |
Residential Mortgages | 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,800,696 | 1,786,980 |
Residential Mortgages | 1-4 Family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,513,122 | 1,454,233 |
Residential Mortgages | 1-4 Family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 287,574 | 332,747 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 906,975 | 802,171 |
Consumer Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 759,260 | 618,487 |
Consumer Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 147,715 | 183,684 |
Consumer Loans | Home Equity Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 369,900 | 360,605 |
Consumer Loans | Home Equity Loan | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 323,642 | 307,159 |
Consumer Loans | Home Equity Loan | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 46,258 | 53,446 |
Consumer Loans | Auto And Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 537,075 | 441,566 |
Consumer Loans | Auto And Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 435,618 | 311,328 |
Consumer Loans | Auto And Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 101,457 | $ 130,238 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 6,047,004 | $ 5,725,236 |
Borrower's sustained repayment performance period | 6 months | |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 977,834 | 1,164,553 |
Acquired Credit Impaired | 15,123 | 21,362 |
Certain loans acquired in transfer not accounted for as debt securities, note balance, net | 29,900 | 40,200 |
Financing receivable not considered impaired at time of acquisition | 962,700 | 1,100,000 |
Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,818,111 | 1,815,035 |
Foreclosed property | 80 | 675 |
Residential Mortgages | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Process of foreclosure | 6,300 | 7,500 |
Residential Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 288,389 | 334,098 |
Acquired Credit Impaired | 1,337 | 2,572 |
Residential Mortgages | Acquired Loans | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 288,389 | $ 334,098 |
LOANS - Accretable Yield Activi
LOANS - Accretable Yield Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 6,213 | $ 6,540 | $ 6,925 | $ 2,541 |
Acquisitions | 0 | 684 | 708 | 4,862 |
Reclassification from nonaccretable difference for loans with improved cash flows | 688 | 1,214 | 2,106 | 2,950 |
Reclassification to TDR | (185) | 0 | ||
Accretion | (2,298) | (967) | (4,951) | (2,882) |
Balance at end of period | $ 4,603 | $ 7,471 | $ 4,603 | $ 7,471 |
LOANS - Summary of Past Due Loa
LOANS - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 6,047,004 | $ 5,725,236 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,327,044 | 2,059,767 |
Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 241,599 | 253,670 |
Commercial Real Estate | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 312,540 | 251,606 |
Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,772,905 | 1,554,491 |
Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 994,874 | 1,048,263 |
Commercial and Industrial Loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 667,774 | 717,010 |
Commercial and Industrial Loans | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 327,100 | 331,253 |
Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,818,111 | 1,815,035 |
Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 17,415 | 28,055 |
Residential Mortgages | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,800,696 | 1,786,980 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 906,975 | 802,171 |
Consumer Loans | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 369,900 | 360,605 |
Consumer Loans | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 537,075 | 441,566 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 27,064 | 28,981 |
Current | 5,042,106 | 4,531,702 |
Total loans | 5,069,170 | 4,560,683 |
Past Due 90 days and Accruing | 3,889 | 2,272 |
Business Activities Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,819 | 8,120 |
Business Activities Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,666 | 3,105 |
Business Activities Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,579 | 17,756 |
Business Activities Loans | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,205 | 5,993 |
Current | 1,923,114 | 1,628,034 |
Total loans | 1,932,319 | 1,634,027 |
Past Due 90 days and Accruing | 2,292 | 0 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 58 |
Current | 221,749 | 210,138 |
Total loans | 221,749 | 210,196 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 924 | 295 |
Current | 270,920 | 214,528 |
Total loans | 271,844 | 214,823 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,281 | 5,640 |
Current | 1,430,445 | 1,203,368 |
Total loans | 1,438,726 | 1,209,008 |
Past Due 90 days and Accruing | 2,292 | 0 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,141 | 1,588 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 573 | 65 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 568 | 1,523 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 473 | 991 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 160 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 473 | 831 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,591 | 3,414 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 58 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 351 | 70 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,240 | 3,286 |
Business Activities Loans | Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,755 | 10,077 |
Current | 841,114 | 817,155 |
Total loans | 847,869 | 827,232 |
Past Due 90 days and Accruing | 503 | 146 |
Business Activities Loans | Commercial and Industrial Loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,755 | 10,077 |
Current | 514,014 | 485,902 |
Total loans | 520,769 | 495,979 |
Past Due 90 days and Accruing | 503 | 146 |
Business Activities Loans | Commercial and Industrial Loans | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 327,100 | 331,253 |
Total loans | 327,100 | 331,253 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial and Industrial Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,304 | 1,202 |
Business Activities Loans | Commercial and Industrial Loans | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,304 | 1,202 |
Business Activities Loans | Commercial and Industrial Loans | 30-59 Days Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial and Industrial Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 181 | 1,105 |
Business Activities Loans | Commercial and Industrial Loans | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 181 | 1,105 |
Business Activities Loans | Commercial and Industrial Loans | 60-89 Days Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,270 | 7,770 |
Business Activities Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,270 | 7,770 |
Business Activities Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,504 | 8,698 |
Current | 1,523,218 | 1,472,239 |
Total loans | 1,529,722 | 1,480,937 |
Past Due 90 days and Accruing | 944 | 2,006 |
Business Activities Loans | Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45 | 0 |
Current | 16,555 | 26,704 |
Total loans | 16,600 | 26,704 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential Mortgages | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,459 | 8,698 |
Current | 1,506,663 | 1,445,535 |
Total loans | 1,513,122 | 1,454,233 |
Past Due 90 days and Accruing | 944 | 2,006 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,446 | 3,537 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,446 | 3,537 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,602 | 857 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,602 | 857 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,456 | 4,304 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 45 | 0 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,411 | 4,304 |
Business Activities Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,600 | 4,213 |
Current | 754,660 | 614,274 |
Total loans | 759,260 | 618,487 |
Past Due 90 days and Accruing | 150 | 120 |
Business Activities Loans | Consumer Loans | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,891 | 2,241 |
Current | 321,751 | 304,918 |
Total loans | 323,642 | 307,159 |
Past Due 90 days and Accruing | 150 | 61 |
Business Activities Loans | Consumer Loans | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,709 | 1,972 |
Current | 432,909 | 309,356 |
Total loans | 435,618 | 311,328 |
Past Due 90 days and Accruing | 0 | 59 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,928 | 1,793 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 154 | 563 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,774 | 1,230 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 410 | 152 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 20 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 405 | 132 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,262 | 2,268 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,732 | 1,658 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 530 | 610 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 12,256 | 14,184 |
Acquired Credit Impaired | 15,123 | 21,362 |
Total loans | 977,834 | 1,164,553 |
Past Due 90 days and Accruing | 522 | 1,422 |
Acquired Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,811 | 5,914 |
Acquired Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,949 | 1,457 |
Acquired Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,496 | 6,813 |
Acquired Loans | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,513 | 2,361 |
Acquired Credit Impaired | 11,831 | 15,765 |
Total loans | 394,725 | 425,740 |
Past Due 90 days and Accruing | 0 | 127 |
Acquired Loans | Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 1,082 | 1,298 |
Total loans | 19,850 | 43,474 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial Real Estate | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,086 | 403 |
Acquired Credit Impaired | 1,169 | 1,380 |
Total loans | 40,696 | 36,783 |
Past Due 90 days and Accruing | 0 | 127 |
Acquired Loans | Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,427 | 1,958 |
Acquired Credit Impaired | 9,580 | 13,087 |
Total loans | 334,179 | 345,483 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,517 | 547 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,086 | 0 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 431 | 547 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 219 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 176 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 43 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 996 | 1,595 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Single and Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 227 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 996 | 1,368 |
Acquired Loans | Commercial and Industrial Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,314 | 3,139 |
Acquired Credit Impaired | 1,852 | 2,775 |
Total loans | 147,005 | 221,031 |
Past Due 90 days and Accruing | 0 | 785 |
Acquired Loans | Commercial and Industrial Loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,314 | 3,139 |
Acquired Credit Impaired | 1,852 | 2,775 |
Total loans | 147,005 | 221,031 |
Past Due 90 days and Accruing | 0 | 785 |
Acquired Loans | Commercial and Industrial Loans | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total loans | 0 | 0 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial and Industrial Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,190 | 1,214 |
Acquired Loans | Commercial and Industrial Loans | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,190 | 1,214 |
Acquired Loans | Commercial and Industrial Loans | 30-59 Days Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and Industrial Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 177 | 505 |
Acquired Loans | Commercial and Industrial Loans | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 177 | 505 |
Acquired Loans | Commercial and Industrial Loans | 60-89 Days Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,947 | 1,420 |
Acquired Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,947 | 1,420 |
Acquired Loans | Commercial and Industrial Loans | 90 Days or Greater Past Due | Asset Based Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,156 | 4,771 |
Acquired Credit Impaired | 1,337 | 2,572 |
Total loans | 288,389 | 334,098 |
Past Due 90 days and Accruing | 89 | 212 |
Acquired Loans | Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total loans | 815 | 1,351 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential Mortgages | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,156 | 4,771 |
Acquired Credit Impaired | 1,337 | 2,572 |
Total loans | 287,574 | 332,747 |
Past Due 90 days and Accruing | 89 | 212 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 764 | 2,580 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 764 | 2,580 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 441 | 311 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 441 | 311 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,951 | 1,880 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,951 | 1,880 |
Acquired Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,273 | 3,913 |
Acquired Credit Impaired | 103 | 250 |
Total loans | 147,715 | 183,684 |
Past Due 90 days and Accruing | 433 | 298 |
Acquired Loans | Consumer Loans | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,273 | 1,196 |
Acquired Credit Impaired | 7 | 118 |
Total loans | 46,258 | 53,446 |
Past Due 90 days and Accruing | 257 | 111 |
Acquired Loans | Consumer Loans | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,000 | 2,717 |
Acquired Credit Impaired | 96 | 132 |
Total loans | 101,457 | 130,238 |
Past Due 90 days and Accruing | 176 | 187 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 340 | 1,573 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 82 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 340 | 1,491 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,331 | 422 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 489 | 277 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 842 | 145 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,602 | 1,918 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | Home Equity Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 784 | 837 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | Auto And Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 818 | $ 1,081 |
LOANS - Summary Information Per
LOANS - Summary Information Pertaining to Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Non-accrual loans | ||
Non-accrual loans | $ 20,412 | $ 20,837 |
Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 14,690 | 15,484 |
Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,722 | 5,353 |
Acquired Credit Impaired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 252 | 39 |
Commercial Real Estate | ||
Non-accrual loans | ||
Non-accrual loans | 6,295 | 4,882 |
Commercial Real Estate | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,299 | 3,414 |
Commercial Real Estate | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 996 | 1,468 |
Commercial Real Estate | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 59 |
Commercial Real Estate | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 59 |
Commercial Real Estate | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial Real Estate | Single and Multi-family | ||
Non-accrual loans | ||
Non-accrual loans | 351 | 170 |
Commercial Real Estate | Single and Multi-family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 351 | 70 |
Commercial Real Estate | Single and Multi-family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 100 |
Commercial Real Estate | Other | ||
Non-accrual loans | ||
Non-accrual loans | 5,944 | 4,653 |
Commercial Real Estate | Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,948 | 3,285 |
Commercial Real Estate | Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 996 | 1,368 |
Commercial and Industrial Loans | ||
Non-accrual loans | ||
Non-accrual loans | 6,462 | 8,221 |
Commercial and Industrial Loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,767 | 7,624 |
Commercial and Industrial Loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,695 | 597 |
Commercial and Industrial Loans | Other | ||
Non-accrual loans | ||
Non-accrual loans | 6,462 | 8,221 |
Commercial and Industrial Loans | Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,767 | 7,624 |
Commercial and Industrial Loans | Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,695 | 597 |
Residential Mortgages | ||
Non-accrual loans | ||
Non-accrual loans | 4,374 | 3,966 |
Residential Mortgages | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,512 | 2,298 |
Residential Mortgages | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,862 | 1,668 |
Residential Mortgages | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 45 | 0 |
Residential Mortgages | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 45 | 0 |
Residential Mortgages | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential Mortgages | 1-4 Family | ||
Non-accrual loans | ||
Non-accrual loans | 4,329 | 3,966 |
Residential Mortgages | 1-4 Family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,467 | 2,298 |
Residential Mortgages | 1-4 Family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,862 | 1,668 |
Consumer Loans | ||
Non-accrual loans | ||
Non-accrual loans | 3,281 | 3,768 |
Consumer Loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,112 | 2,148 |
Consumer Loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,169 | 1,620 |
Consumer Loans | Home Equity Loan | ||
Non-accrual loans | ||
Non-accrual loans | 2,108 | 2,324 |
Consumer Loans | Home Equity Loan | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,582 | 1,597 |
Consumer Loans | Home Equity Loan | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 526 | 727 |
Consumer Loans | Auto And Other | ||
Non-accrual loans | ||
Non-accrual loans | 1,173 | 1,444 |
Consumer Loans | Auto And Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 530 | 551 |
Consumer Loans | Auto And Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | $ 643 | $ 893 |
LOANS - Loans Evaluated for Imp
LOANS - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans receivable: balance at end of period | ||
Total loans | $ 6,047,004 | $ 5,725,236 |
Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Total loans | 2,327,044 | 2,059,767 |
Commercial and Industrial Loans | ||
Loans receivable: balance at end of period | ||
Total loans | 994,874 | 1,048,263 |
Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Total loans | 1,818,111 | 1,815,035 |
Consumer Loans | ||
Loans receivable: balance at end of period | ||
Total loans | 906,975 | 802,171 |
Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 22,541 | 23,373 |
Collectively evaluated | 5,046,629 | 4,537,310 |
Total loans | 5,069,170 | 4,560,683 |
Business Activities Loans | Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 14,058 | 11,560 |
Collectively evaluated | 1,918,261 | 1,622,467 |
Total loans | 1,932,319 | 1,634,027 |
Business Activities Loans | Commercial and Industrial Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 3,955 | 7,191 |
Collectively evaluated | 843,914 | 820,041 |
Total loans | 847,869 | 827,232 |
Business Activities Loans | Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 3,045 | 2,812 |
Collectively evaluated | 1,526,677 | 1,478,125 |
Total loans | 1,529,722 | 1,480,937 |
Business Activities Loans | Consumer Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 1,483 | 1,810 |
Collectively evaluated | 757,777 | 616,677 |
Total loans | 759,260 | 618,487 |
Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 6,064 | 4,806 |
Purchased credit-impaired loans | 15,123 | 21,362 |
Collectively evaluated | 956,647 | 1,138,385 |
Total loans | 977,834 | 1,164,553 |
Acquired Loans | Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 4,190 | 3,749 |
Purchased credit-impaired loans | 11,831 | 15,765 |
Collectively evaluated | 378,704 | 406,226 |
Total loans | 394,725 | 425,740 |
Acquired Loans | Commercial and Industrial Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 1,144 | 0 |
Purchased credit-impaired loans | 1,852 | 2,775 |
Collectively evaluated | 144,009 | 218,256 |
Total loans | 147,005 | 221,031 |
Acquired Loans | Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 315 | 570 |
Purchased credit-impaired loans | 1,337 | 2,572 |
Collectively evaluated | 286,737 | 330,956 |
Total loans | 288,389 | 334,098 |
Acquired Loans | Consumer Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 415 | 487 |
Purchased credit-impaired loans | 103 | 250 |
Collectively evaluated | 147,197 | 182,947 |
Total loans | $ 147,715 | $ 183,684 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Business Activities Loans | ||
Recorded Investment | ||
Total | $ 21,903 | $ 22,947 |
Unpaid Principal Balance | ||
Total | 22,541 | 23,373 |
Related Allowance | ||
With an allowance recorded | 638 | 426 |
Business Activities Loans | Commercial Real Estate | ||
Recorded Investment | ||
Total | 13,868 | 11,411 |
Unpaid Principal Balance | ||
Total | 14,058 | 11,560 |
Related Allowance | ||
With an allowance recorded | 190 | 149 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Recorded Investment | ||
With no related allowance | 0 | 2,000 |
With an allowance recorded | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 2,000 |
With an allowance recorded | 0 | 0 |
Related Allowance | ||
With an allowance recorded | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | ||
Recorded Investment | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 0 | 0 |
Related Allowance | ||
With an allowance recorded | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Other | ||
Recorded Investment | ||
With no related allowance | 3,593 | 4,613 |
With an allowance recorded | 10,275 | 4,798 |
Unpaid Principal Balance | ||
With no related allowance | 3,593 | 4,613 |
With an allowance recorded | 10,465 | 4,947 |
Related Allowance | ||
With an allowance recorded | 190 | 149 |
Business Activities Loans | Commercial and Industrial Loans | ||
Recorded Investment | ||
Total | 3,761 | 7,169 |
Unpaid Principal Balance | ||
Total | 3,955 | 7,190 |
Related Allowance | ||
With an allowance recorded | 194 | 21 |
Business Activities Loans | Commercial and Industrial Loans | Other | ||
Recorded Investment | ||
With no related allowance | 218 | 5,828 |
With an allowance recorded | 3,543 | 1,341 |
Unpaid Principal Balance | ||
With no related allowance | 218 | 5,828 |
With an allowance recorded | 3,737 | 1,362 |
Related Allowance | ||
With an allowance recorded | 194 | 21 |
Business Activities Loans | Residential Mortgages | ||
Recorded Investment | ||
Total | 2,956 | 2,660 |
Unpaid Principal Balance | ||
Total | 3,045 | 2,813 |
Related Allowance | ||
With an allowance recorded | 89 | 153 |
Business Activities Loans | Residential Mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 2,367 | 1,181 |
With an allowance recorded | 589 | 1,479 |
Unpaid Principal Balance | ||
With no related allowance | 2,367 | 1,181 |
With an allowance recorded | 678 | 1,632 |
Related Allowance | ||
With an allowance recorded | 89 | 153 |
Business Activities Loans | Consumer Loans | ||
Recorded Investment | ||
Total | 1,318 | 1,707 |
Unpaid Principal Balance | ||
Total | 1,483 | 1,810 |
Related Allowance | ||
With an allowance recorded | 165 | 103 |
Business Activities Loans | Consumer Loans | Other | ||
Recorded Investment | ||
With no related allowance | 3 | 1 |
With an allowance recorded | 94 | 101 |
Unpaid Principal Balance | ||
With no related allowance | 3 | 1 |
With an allowance recorded | 101 | 108 |
Related Allowance | ||
With an allowance recorded | 7 | 7 |
Business Activities Loans | Consumer Loans | Home Equity Loan | ||
Recorded Investment | ||
With no related allowance | 380 | 702 |
With an allowance recorded | 841 | 903 |
Unpaid Principal Balance | ||
With no related allowance | 380 | 702 |
With an allowance recorded | 999 | 999 |
Related Allowance | ||
With an allowance recorded | 158 | 96 |
Acquired Loans | ||
Recorded Investment | ||
Total | 5,092 | 5,325 |
Unpaid Principal Balance | ||
Total | 6,064 | 5,465 |
Related Allowance | ||
With an allowance recorded | 972 | 140 |
Acquired Loans | Commercial Real Estate | ||
Recorded Investment | ||
Total | 3,486 | 4,324 |
Unpaid Principal Balance | ||
Total | 4,190 | 4,409 |
Related Allowance | ||
With an allowance recorded | 704 | 85 |
Acquired Loans | Commercial Real Estate | Construction | ||
Recorded Investment | ||
With no related allowance | 0 | |
With an allowance recorded | 0 | |
Unpaid Principal Balance | ||
With no related allowance | 0 | |
With an allowance recorded | 0 | |
Related Allowance | ||
With an allowance recorded | 0 | |
Acquired Loans | Commercial Real Estate | Single and Multi-family | ||
Recorded Investment | ||
With no related allowance | 0 | |
With an allowance recorded | 891 | 638 |
Unpaid Principal Balance | ||
With no related allowance | 0 | |
With an allowance recorded | 930 | 655 |
Related Allowance | ||
With an allowance recorded | 39 | 17 |
Acquired Loans | Commercial Real Estate | Other | ||
Recorded Investment | ||
With no related allowance | 632 | 1,722 |
With an allowance recorded | 1,963 | 1,964 |
Unpaid Principal Balance | ||
With no related allowance | 632 | 1,722 |
With an allowance recorded | 2,628 | 2,032 |
Related Allowance | ||
With an allowance recorded | 665 | 68 |
Acquired Loans | Commercial and Industrial Loans | ||
Recorded Investment | ||
Total | 1,023 | 0 |
Unpaid Principal Balance | ||
Total | 1,144 | 0 |
Related Allowance | ||
With an allowance recorded | 121 | 0 |
Acquired Loans | Commercial and Industrial Loans | Other | ||
Recorded Investment | ||
With no related allowance | 0 | |
With an allowance recorded | 1,023 | |
Unpaid Principal Balance | ||
With no related allowance | 0 | |
With an allowance recorded | 1,144 | |
Related Allowance | ||
With an allowance recorded | 121 | |
Acquired Loans | Residential Mortgages | ||
Recorded Investment | ||
Total | 303 | 540 |
Unpaid Principal Balance | ||
Total | 315 | 570 |
Related Allowance | ||
With an allowance recorded | 12 | 30 |
Acquired Loans | Residential Mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 211 | 274 |
With an allowance recorded | 92 | 266 |
Unpaid Principal Balance | ||
With no related allowance | 211 | 274 |
With an allowance recorded | 104 | 296 |
Related Allowance | ||
With an allowance recorded | 12 | 30 |
Acquired Loans | Consumer Loans | ||
Recorded Investment | ||
Total | 280 | 461 |
Unpaid Principal Balance | ||
Total | 415 | 486 |
Related Allowance | ||
With an allowance recorded | 135 | 25 |
Acquired Loans | Consumer Loans | Other | ||
Recorded Investment | ||
With no related allowance | 0 | 177 |
With an allowance recorded | 0 | |
Unpaid Principal Balance | ||
With no related allowance | 0 | 177 |
With an allowance recorded | 0 | |
Related Allowance | ||
With an allowance recorded | 0 | |
Acquired Loans | Consumer Loans | Home Equity Loan | ||
Recorded Investment | ||
With no related allowance | 0 | 117 |
With an allowance recorded | 280 | 167 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 117 |
With an allowance recorded | 415 | 192 |
Related Allowance | ||
With an allowance recorded | $ 135 | $ 25 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | $ 5,623 | $ 7,971 |
Interest income, cash basis method | 222 | 255 |
Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 4,094 | 6,730 |
Interest income, cash basis method | 184 | 224 |
Acquired Loans | Commercial and Industrial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 595 | 42 |
Interest income, cash basis method | 11 | 3 |
Acquired Loans | Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 438 | 832 |
Interest income, cash basis method | 13 | 13 |
Acquired Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 496 | 367 |
Interest income, cash basis method | 14 | 15 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 23,142 | 27,337 |
Interest income, cash basis method | 749 | 568 |
Business Activities Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 12,938 | 19,918 |
Interest income, cash basis method | 463 | 357 |
Business Activities Loans | Commercial and Industrial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 5,414 | 3,844 |
Interest income, cash basis method | 180 | 110 |
Business Activities Loans | Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 2,993 | 3,059 |
Interest income, cash basis method | 72 | 92 |
Business Activities Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 1,797 | 516 |
Interest income, cash basis method | 34 | 9 |
Construction | Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 593 |
Cash basis interest income recognized, with no related allowance | 0 | 60 |
Recorded investment with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Construction | Business Activities Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 2,326 |
Cash basis interest income recognized, with no related allowance | 0 | 1 |
Recorded investment with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Single and Multi-family | Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 169 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment with related allowance | 942 | 2,878 |
Cash basis interest income recognized, with related allowance | 37 | 82 |
Single and Multi-family | Business Activities Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 48 | 80 |
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 |
Other | Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 546 | 1,824 |
Cash basis interest income recognized, with no related allowance | 20 | 5 |
Recorded investment with related allowance | 2,606 | 1,266 |
Cash basis interest income recognized, with related allowance | 127 | 77 |
Other | Acquired Loans | Commercial and Industrial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 191 | 42 |
Cash basis interest income recognized, with no related allowance | 1 | 3 |
Recorded investment with related allowance | 404 | 0 |
Cash basis interest income recognized, with related allowance | 10 | 0 |
Other | Acquired Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 140 | 0 |
Cash basis interest income recognized, with no related allowance | 1 | 0 |
Recorded investment with related allowance | 0 | 19 |
Cash basis interest income recognized, with related allowance | 0 | 4 |
Other | Business Activities Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,624 | 9,787 |
Cash basis interest income recognized, with no related allowance | 111 | 157 |
Recorded investment with related allowance | 10,266 | 7,725 |
Cash basis interest income recognized, with related allowance | 351 | 199 |
Other | Business Activities Loans | Commercial and Industrial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 805 | 234 |
Cash basis interest income recognized, with no related allowance | 26 | 7 |
Recorded investment with related allowance | 4,609 | 3,610 |
Cash basis interest income recognized, with related allowance | 154 | 103 |
Other | Business Activities Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment with related allowance | 104 | 113 |
Cash basis interest income recognized, with related allowance | 3 | 3 |
1-4 Family | Acquired Loans | Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 321 | 423 |
Cash basis interest income recognized, with no related allowance | 9 | 0 |
Recorded investment with related allowance | 117 | 409 |
Cash basis interest income recognized, with related allowance | 4 | 13 |
1-4 Family | Business Activities Loans | Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,309 | 1,264 |
Cash basis interest income recognized, with no related allowance | 51 | 32 |
Recorded investment with related allowance | 684 | 1,795 |
Cash basis interest income recognized, with related allowance | 21 | 60 |
Home Equity Loan | Acquired Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 39 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment with related allowance | 356 | 309 |
Cash basis interest income recognized, with related allowance | 13 | 11 |
Home Equity Loan | Business Activities Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 693 | 155 |
Cash basis interest income recognized, with no related allowance | 5 | 6 |
Recorded investment with related allowance | 999 | 248 |
Cash basis interest income recognized, with related allowance | $ 26 | $ 0 |
LOANS - Recorded Investment and
LOANS - Recorded Investment and Number of Modifications (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)modification | Sep. 30, 2015USD ($)modification | Sep. 30, 2016USD ($)modification | Sep. 30, 2015USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 4 | 2 | 9 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 409 | $ 307 | $ 1,726 | $ 12,193 |
Post-Modification Outstanding Recorded Investment | $ 409 | $ 307 | $ 1,726 | $ 12,193 |
Other | Commercial and Industrial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 4 | 5 | |
Pre-Modification Outstanding Recorded Investment | $ 404 | $ 555 | $ 8,192 | |
Post-Modification Outstanding Recorded Investment | $ 404 | $ 555 | $ 8,192 | |
Other | Commercial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,049 | $ 1,694 | ||
Post-Modification Outstanding Recorded Investment | $ 1,049 | $ 1,694 | ||
1-4 Family | Residential Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 5 | $ 5 | ||
Post-Modification Outstanding Recorded Investment | $ 5 | $ 5 | ||
Home Equity Loan | Consumer Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 117 | |||
Post-Modification Outstanding Recorded Investment | $ 117 | |||
Single and Multi-family | Commercial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 307 | $ 307 | ||
Post-Modification Outstanding Recorded Investment | $ 307 | $ 307 | ||
Construction | Commercial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 2,000 | |||
Post-Modification Outstanding Recorded Investment | $ 2,000 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) - Other $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)contract | |
Commercial Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Modifications that subsequently defaulted, number of contracts | contract | 1 |
Modifications that subsequently defaulted, recorded investment | $ | $ 649 |
Commercial and Industrial Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Modifications that subsequently defaulted, number of contracts | contract | 2 |
Modifications that subsequently defaulted, recorded investment | $ | $ 5,742 |
LOANS - Troubled Debt Restruc56
LOANS - Troubled Debt Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||||
Balance at beginning of the period | $ 22,122 | $ 25,716 | $ 22,048 | $ 16,714 |
Principal payments | (932) | (1,538) | (2,041) | (2,629) |
TDR status change | 0 | 0 | 2,236 | 0 |
Other reductions/increases | 0 | (69) | (2,370) | (1,862) |
Newly identified TDRs | 409 | 307 | 1,726 | 12,193 |
Balance at end of the period | $ 21,599 | $ 24,416 | $ 21,599 | $ 24,416 |
LOAN LOSS ALLOWANCE - Allowance
LOAN LOSS ALLOWANCE - Allowance Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | $ 39,308 | |||||
Provision for loan losses | $ 4,734 | $ 4,240 | 13,262 | $ 12,295 | ||
Balance at end of period | 43,105 | 43,105 | ||||
Allowance For Loan Losses | ||||||
Total | 43,105 | 39,308 | $ 43,105 | |||
Business Activities Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 37,124 | 33,226 | 34,574 | 32,795 | ||
Charged-off loans | 2,286 | 2,914 | 8,238 | 8,616 | ||
Recoveries on charged-off loans | 308 | 120 | 640 | 660 | ||
Provision for loan losses | 3,475 | 4,131 | 11,645 | 9,724 | ||
Balance at end of period | 38,621 | 34,563 | 38,621 | 34,563 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 638 | $ 1,728 | ||||
Collectively evaluated | 37,983 | 32,835 | ||||
Total | 37,124 | 33,226 | 34,574 | 32,795 | 38,621 | 34,563 |
Business Activities Loans | Commercial Real Estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 16,895 | 12,967 | 14,508 | 14,690 | ||
Charged-off loans | 0 | 1,329 | 1,578 | 5,751 | ||
Recoveries on charged-off loans | 114 | 0 | 242 | 146 | ||
Provision for loan losses | 507 | 2,623 | 4,344 | 5,176 | ||
Balance at end of period | 17,516 | 14,261 | 17,516 | 14,261 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 190 | 410 | ||||
Collectively evaluated | 17,326 | 13,851 | ||||
Total | 16,895 | 12,967 | 14,508 | 14,690 | 17,516 | 14,261 |
Business Activities Loans | Commercial and Industrial Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 8,296 | 9,166 | 7,317 | 5,206 | ||
Charged-off loans | 1,599 | 916 | 4,145 | 1,288 | ||
Recoveries on charged-off loans | 37 | 6 | 114 | 160 | ||
Provision for loan losses | 1,776 | (223) | 5,224 | 3,955 | ||
Balance at end of period | 8,510 | 8,033 | 8,510 | 8,033 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 194 | 1,032 | ||||
Collectively evaluated | 8,316 | 7,001 | ||||
Total | 8,296 | 9,166 | 7,317 | 5,206 | 8,510 | 8,033 |
Business Activities Loans | Residential Mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 7,526 | 6,471 | 7,566 | 6,836 | ||
Charged-off loans | 253 | 316 | 1,340 | 762 | ||
Recoveries on charged-off loans | 96 | 28 | 101 | 141 | ||
Provision for loan losses | 37 | 1,187 | 1,079 | 1,155 | ||
Balance at end of period | 7,406 | 7,370 | 7,406 | 7,370 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 89 | 248 | ||||
Collectively evaluated | 7,317 | 7,122 | ||||
Total | 7,526 | 6,471 | 7,566 | 6,836 | 7,406 | 7,370 |
Business Activities Loans | Consumer Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 4,769 | 4,914 | 4,956 | 5,928 | ||
Charged-off loans | 434 | 353 | 1,175 | 815 | ||
Recoveries on charged-off loans | 61 | 86 | 183 | 213 | ||
Provision for loan losses | 904 | 281 | 1,336 | (398) | ||
Balance at end of period | 5,300 | 4,928 | 5,300 | 4,928 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 165 | 38 | ||||
Collectively evaluated | 5,135 | 4,890 | ||||
Total | 4,769 | 4,914 | 4,956 | 5,928 | 5,300 | 4,928 |
Business Activities Loans | Unallocated | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | (362) | (292) | 227 | 135 | ||
Charged-off loans | 0 | 0 | 0 | 0 | ||
Recoveries on charged-off loans | 0 | 0 | 0 | 0 | ||
Provision for loan losses | 251 | 263 | (338) | (164) | ||
Balance at end of period | (111) | (29) | (111) | (29) | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated | (111) | (29) | ||||
Total | (362) | (292) | 227 | 135 | (111) | (29) |
Acquired Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 4,273 | 3,971 | 4,734 | 2,867 | ||
Charged-off loans | 1,155 | 628 | 2,300 | 2,534 | ||
Recoveries on charged-off loans | 107 | 165 | 433 | 713 | ||
Provision for loan losses | 1,259 | 109 | 1,617 | 2,571 | ||
Balance at end of period | 4,484 | 3,617 | 4,484 | 3,617 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 972 | 318 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 3,512 | 3,299 | ||||
Total | 4,273 | 3,971 | 4,734 | 2,867 | 4,484 | 3,617 |
Acquired Loans | Commercial Real Estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 2,140 | 1,786 | 1,903 | 790 | ||
Charged-off loans | 662 | 38 | 788 | 625 | ||
Recoveries on charged-off loans | 0 | 23 | 0 | 418 | ||
Provision for loan losses | 907 | (252) | 1,270 | 936 | ||
Balance at end of period | 2,385 | 1,519 | 2,385 | 1,519 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 704 | 199 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 1,681 | 1,320 | ||||
Total | 2,140 | 1,786 | 1,903 | 790 | 2,385 | 1,519 |
Acquired Loans | Commercial and Industrial Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 776 | 973 | 1,330 | 1,093 | ||
Charged-off loans | 84 | 318 | 359 | 654 | ||
Recoveries on charged-off loans | 37 | 130 | 213 | 186 | ||
Provision for loan losses | 210 | (133) | (245) | 27 | ||
Balance at end of period | 939 | 652 | 939 | 652 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 121 | 0 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 818 | 652 | ||||
Total | 776 | 973 | 1,330 | 1,093 | 939 | 652 |
Acquired Loans | Residential Mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 881 | 808 | 976 | 615 | ||
Charged-off loans | 332 | 66 | 696 | 441 | ||
Recoveries on charged-off loans | 37 | 1 | 141 | 42 | ||
Provision for loan losses | 111 | 182 | 276 | 709 | ||
Balance at end of period | 697 | 925 | 697 | 925 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 12 | 48 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 685 | 877 | ||||
Total | 881 | 808 | 976 | 615 | 697 | 925 |
Acquired Loans | Consumer Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 476 | 404 | 525 | 369 | ||
Charged-off loans | 77 | 206 | 457 | 814 | ||
Recoveries on charged-off loans | 33 | 11 | 79 | 67 | ||
Provision for loan losses | 31 | 312 | 316 | 899 | ||
Balance at end of period | 463 | 521 | 463 | 521 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 135 | 71 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 328 | 450 | ||||
Total | 476 | 404 | 525 | 369 | 463 | 521 |
Acquired Loans | Unallocated | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 0 | 0 | 0 | 0 | ||
Charged-off loans | 0 | 0 | 0 | 0 | ||
Recoveries on charged-off loans | 0 | 0 | 0 | 0 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Balance at end of period | 0 | 0 | 0 | 0 | ||
Allowance For Loan Losses | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Purchased credit-impaired loans | 0 | 0 | ||||
Collectively evaluated | 0 | 0 | ||||
Total | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
LOAN LOSS ALLOWANCE - Narrative
LOAN LOSS ALLOWANCE - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)grade | |
Credit quality information | |
Allowance for losses on acquired loans under Subtopic ASC 310-30 | $ | $ 4.5 |
Consumer Loans | Other | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 2 |
Consumer Loans | Performing | Maximum | Other | |
Credit quality information | |
Period within which loans are current, based on which risk rating is assigned (in days) | 119 days |
Consumer Loans | Nonperforming | Minimum | Other | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 120 days |
Residential Mortgages | Mortgages | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 3 |
Residential Mortgages | Mortgages | Pass | Maximum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 59 days |
Residential Mortgages | Mortgages | Special mention | Minimum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 60 days |
Residential Mortgages | Mortgages | Special mention | Maximum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 89 days |
Residential Mortgages | Mortgages | Substandard | Minimum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 90 days |
Acquired Loans | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 11 |
LOAN LOSS ALLOWANCE - Loans by
LOAN LOSS ALLOWANCE - Loans by Credit Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Credit quality information | ||
Total Loans | $ 6,047,004 | $ 5,725,236 |
Special mention | ||
Credit quality information | ||
Total Loans | 27,961 | 31,295 |
Substandard | ||
Credit quality information | ||
Total Loans | 75,575 | 93,109 |
Non Accrual | ||
Credit quality information | ||
Total Loans | 20,664 | 20,875 |
Classified | ||
Credit quality information | ||
Total Loans | 96,239 | 113,984 |
Criticized | ||
Credit quality information | ||
Total Loans | 124,200 | 145,279 |
Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 2,327,044 | 2,059,767 |
Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 241,599 | 253,670 |
Commercial Real Estate | Single and Multi-family | ||
Credit quality information | ||
Total Loans | 312,540 | 251,606 |
Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 1,772,905 | 1,554,491 |
Commercial and Industrial Loans | ||
Credit quality information | ||
Total Loans | 994,874 | 1,048,263 |
Commercial and Industrial Loans | Other | ||
Credit quality information | ||
Total Loans | 667,774 | 717,010 |
Commercial and Industrial Loans | Asset Based Lending | ||
Credit quality information | ||
Total Loans | 327,100 | 331,253 |
Residential Mortgages | ||
Credit quality information | ||
Total Loans | 1,818,111 | 1,815,035 |
Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 17,415 | 28,055 |
Residential Mortgages | 1-4 Family | ||
Credit quality information | ||
Total Loans | 1,800,696 | 1,786,980 |
Consumer Loans | ||
Credit quality information | ||
Total Loans | 906,975 | 802,171 |
Consumer Loans | Home Equity Loan | ||
Credit quality information | ||
Total Loans | 369,900 | 360,605 |
Consumer Loans | Auto And Other | ||
Credit quality information | ||
Total Loans | 537,075 | 441,566 |
Business Activities Loans | ||
Credit quality information | ||
Total Loans | 5,069,170 | 4,560,683 |
Business Activities Loans | Special mention | ||
Credit quality information | ||
Total Loans | 24,378 | 29,036 |
Business Activities Loans | Substandard | ||
Credit quality information | ||
Total Loans | 52,352 | 60,549 |
Business Activities Loans | Non Accrual | ||
Credit quality information | ||
Total Loans | 14,690 | 15,484 |
Business Activities Loans | Classified | ||
Credit quality information | ||
Total Loans | 67,042 | 76,033 |
Business Activities Loans | Criticized | ||
Credit quality information | ||
Total Loans | 91,420 | 105,069 |
Business Activities Loans | Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 1,932,319 | 1,634,027 |
Business Activities Loans | Commercial Real Estate | Pass | ||
Credit quality information | ||
Total Loans | 1,869,444 | 1,576,808 |
Business Activities Loans | Commercial Real Estate | Special mention | ||
Credit quality information | ||
Total Loans | 21,881 | 3,449 |
Business Activities Loans | Commercial Real Estate | Substandard | ||
Credit quality information | ||
Total Loans | 40,957 | 53,697 |
Business Activities Loans | Commercial Real Estate | Doubtful | ||
Credit quality information | ||
Total Loans | 37 | 73 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 221,749 | 210,196 |
Business Activities Loans | Commercial Real Estate | Construction | Pass | ||
Credit quality information | ||
Total Loans | 221,749 | 208,138 |
Business Activities Loans | Commercial Real Estate | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 2,058 |
Business Activities Loans | Commercial Real Estate | Construction | Doubtful | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | ||
Credit quality information | ||
Total Loans | 271,844 | 214,823 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | Pass | ||
Credit quality information | ||
Total Loans | 269,342 | 212,900 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | Special mention | ||
Credit quality information | ||
Total Loans | 348 | 0 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | Substandard | ||
Credit quality information | ||
Total Loans | 2,154 | 1,923 |
Business Activities Loans | Commercial Real Estate | Single and Multi-family | Doubtful | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 1,438,726 | 1,209,008 |
Business Activities Loans | Commercial Real Estate | Other | Pass | ||
Credit quality information | ||
Total Loans | 1,378,353 | 1,155,770 |
Business Activities Loans | Commercial Real Estate | Other | Special mention | ||
Credit quality information | ||
Total Loans | 21,533 | 3,449 |
Business Activities Loans | Commercial Real Estate | Other | Substandard | ||
Credit quality information | ||
Total Loans | 38,803 | 49,716 |
Business Activities Loans | Commercial Real Estate | Other | Doubtful | ||
Credit quality information | ||
Total Loans | 37 | 73 |
Business Activities Loans | Commercial and Industrial Loans | ||
Credit quality information | ||
Total Loans | 847,869 | 827,232 |
Business Activities Loans | Commercial and Industrial Loans | Other | ||
Credit quality information | ||
Total Loans | 520,769 | 495,979 |
Business Activities Loans | Commercial and Industrial Loans | Asset Based Lending | ||
Credit quality information | ||
Total Loans | 327,100 | 331,253 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | ||
Credit quality information | ||
Total Loans | 847,869 | 827,232 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Pass | ||
Credit quality information | ||
Total Loans | 827,053 | 786,963 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Special mention | ||
Credit quality information | ||
Total Loans | 484 | 24,578 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Substandard | ||
Credit quality information | ||
Total Loans | 20,332 | 15,691 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Other | ||
Credit quality information | ||
Total Loans | 520,769 | 495,979 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Other | Pass | ||
Credit quality information | ||
Total Loans | 499,953 | 455,710 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Other | Special mention | ||
Credit quality information | ||
Total Loans | 484 | 24,578 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Other | Substandard | ||
Credit quality information | ||
Total Loans | 20,332 | 15,691 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Asset Based Lending | ||
Credit quality information | ||
Total Loans | 327,100 | 331,253 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Asset Based Lending | Pass | ||
Credit quality information | ||
Total Loans | 327,100 | 331,253 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Asset Based Lending | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial and Industrial Loans | Commercial Loan | Asset Based Lending | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Residential Mortgages | ||
Credit quality information | ||
Total Loans | 1,529,722 | 1,480,937 |
Business Activities Loans | Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 16,600 | 26,704 |
Business Activities Loans | Residential Mortgages | 1-4 Family | ||
Credit quality information | ||
Total Loans | 1,513,122 | 1,454,233 |
Business Activities Loans | Residential Mortgages | Mortgages | ||
Credit quality information | ||
Total Loans | 1,529,722 | 1,480,937 |
Business Activities Loans | Residential Mortgages | Mortgages | Pass | ||
Credit quality information | ||
Total Loans | 1,524,664 | 1,475,777 |
Business Activities Loans | Residential Mortgages | Mortgages | Special mention | ||
Credit quality information | ||
Total Loans | 1,602 | 857 |
Business Activities Loans | Residential Mortgages | Mortgages | Substandard | ||
Credit quality information | ||
Total Loans | 3,456 | 4,303 |
Business Activities Loans | Residential Mortgages | Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 16,600 | 26,704 |
Business Activities Loans | Residential Mortgages | Mortgages | Construction | Pass | ||
Credit quality information | ||
Total Loans | 16,555 | 26,704 |
Business Activities Loans | Residential Mortgages | Mortgages | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Residential Mortgages | Mortgages | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 45 | 0 |
Business Activities Loans | Residential Mortgages | Mortgages | 1-4 Family | ||
Credit quality information | ||
Total Loans | 1,513,122 | 1,454,233 |
Business Activities Loans | Residential Mortgages | Mortgages | 1-4 Family | Pass | ||
Credit quality information | ||
Total Loans | 1,508,109 | 1,449,073 |
Business Activities Loans | Residential Mortgages | Mortgages | 1-4 Family | Special mention | ||
Credit quality information | ||
Total Loans | 1,602 | 857 |
Business Activities Loans | Residential Mortgages | Mortgages | 1-4 Family | Substandard | ||
Credit quality information | ||
Total Loans | 3,411 | 4,303 |
Business Activities Loans | Consumer Loans | ||
Credit quality information | ||
Total Loans | 759,260 | 618,487 |
Business Activities Loans | Consumer Loans | Performing | ||
Credit quality information | ||
Total Loans | 757,148 | 616,339 |
Business Activities Loans | Consumer Loans | Nonperforming | ||
Credit quality information | ||
Total Loans | 2,112 | 2,148 |
Business Activities Loans | Consumer Loans | Home Equity Loan | ||
Credit quality information | ||
Total Loans | 323,642 | 307,159 |
Business Activities Loans | Consumer Loans | Home Equity Loan | Performing | ||
Credit quality information | ||
Total Loans | 322,060 | 305,562 |
Business Activities Loans | Consumer Loans | Home Equity Loan | Nonperforming | ||
Credit quality information | ||
Total Loans | 1,582 | 1,597 |
Business Activities Loans | Consumer Loans | Auto And Other | ||
Credit quality information | ||
Total Loans | 435,618 | 311,328 |
Business Activities Loans | Consumer Loans | Auto And Other | Performing | ||
Credit quality information | ||
Total Loans | 435,088 | 310,777 |
Business Activities Loans | Consumer Loans | Auto And Other | Nonperforming | ||
Credit quality information | ||
Total Loans | 530 | 551 |
Acquired Loans | ||
Credit quality information | ||
Total Loans | 977,834 | 1,164,553 |
Acquired Loans | Special mention | ||
Credit quality information | ||
Total Loans | 3,583 | 2,259 |
Acquired Loans | Substandard | ||
Credit quality information | ||
Total Loans | 23,223 | 32,560 |
Acquired Loans | Non Accrual | ||
Credit quality information | ||
Total Loans | 5,974 | 5,391 |
Acquired Loans | Classified | ||
Credit quality information | ||
Total Loans | 29,197 | 37,951 |
Acquired Loans | Criticized | ||
Credit quality information | ||
Total Loans | 32,780 | 40,210 |
Acquired Loans | Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 394,725 | 425,740 |
Acquired Loans | Commercial Real Estate | Pass | ||
Credit quality information | ||
Total Loans | 372,474 | 399,586 |
Acquired Loans | Commercial Real Estate | Special mention | ||
Credit quality information | ||
Total Loans | 1,630 | 1,007 |
Acquired Loans | Commercial Real Estate | Substandard | ||
Credit quality information | ||
Total Loans | 20,621 | 25,147 |
Acquired Loans | Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 19,850 | 43,474 |
Acquired Loans | Commercial Real Estate | Construction | Pass | ||
Credit quality information | ||
Total Loans | 18,768 | 42,176 |
Acquired Loans | Commercial Real Estate | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 1,082 | 1,298 |
Acquired Loans | Commercial Real Estate | Single and Multi-family | ||
Credit quality information | ||
Total Loans | 40,696 | 36,783 |
Acquired Loans | Commercial Real Estate | Single and Multi-family | Pass | ||
Credit quality information | ||
Total Loans | 35,812 | 32,796 |
Acquired Loans | Commercial Real Estate | Single and Multi-family | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 655 |
Acquired Loans | Commercial Real Estate | Single and Multi-family | Substandard | ||
Credit quality information | ||
Total Loans | 4,884 | 3,332 |
Acquired Loans | Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 334,179 | 345,483 |
Acquired Loans | Commercial Real Estate | Other | Pass | ||
Credit quality information | ||
Total Loans | 317,894 | 324,614 |
Acquired Loans | Commercial Real Estate | Other | Special mention | ||
Credit quality information | ||
Total Loans | 1,630 | 352 |
Acquired Loans | Commercial Real Estate | Other | Substandard | ||
Credit quality information | ||
Total Loans | 14,655 | 20,517 |
Acquired Loans | Commercial Real Estate | Commercial Loan | ||
Credit quality information | ||
Total Loans | 147,005 | 221,031 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Pass | ||
Credit quality information | ||
Total Loans | 141,843 | 212,825 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Special mention | ||
Credit quality information | ||
Total Loans | 180 | 487 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Substandard | ||
Credit quality information | ||
Total Loans | 4,813 | 7,719 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Doubtful | ||
Credit quality information | ||
Total Loans | 169 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Other | ||
Credit quality information | ||
Total Loans | 147,005 | 221,031 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Other | Pass | ||
Credit quality information | ||
Total Loans | 141,843 | 212,825 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Other | Special mention | ||
Credit quality information | ||
Total Loans | 180 | 487 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Other | Substandard | ||
Credit quality information | ||
Total Loans | 4,813 | 7,719 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Other | Doubtful | ||
Credit quality information | ||
Total Loans | 169 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Asset Based Lending | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Asset Based Lending | Pass | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Asset Based Lending | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Asset Based Lending | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Commercial Loan | Asset Based Lending | Doubtful | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial and Industrial Loans | ||
Credit quality information | ||
Total Loans | 147,005 | 221,031 |
Acquired Loans | Commercial and Industrial Loans | Other | ||
Credit quality information | ||
Total Loans | 147,005 | 221,031 |
Acquired Loans | Commercial and Industrial Loans | Asset Based Lending | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Residential Mortgages | ||
Credit quality information | ||
Total Loans | 288,389 | 334,098 |
Acquired Loans | Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 815 | 1,351 |
Acquired Loans | Residential Mortgages | 1-4 Family | ||
Credit quality information | ||
Total Loans | 287,574 | 332,747 |
Acquired Loans | Residential Mortgages | Mortgages | ||
Credit quality information | ||
Total Loans | 288,389 | 334,098 |
Acquired Loans | Residential Mortgages | Mortgages | Pass | ||
Credit quality information | ||
Total Loans | 285,982 | 330,726 |
Acquired Loans | Residential Mortgages | Mortgages | Special mention | ||
Credit quality information | ||
Total Loans | 441 | 311 |
Acquired Loans | Residential Mortgages | Mortgages | Substandard | ||
Credit quality information | ||
Total Loans | 1,966 | 3,061 |
Acquired Loans | Residential Mortgages | Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 815 | 1,351 |
Acquired Loans | Residential Mortgages | Mortgages | Construction | Pass | ||
Credit quality information | ||
Total Loans | 815 | 1,351 |
Acquired Loans | Residential Mortgages | Mortgages | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Residential Mortgages | Mortgages | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Residential Mortgages | Mortgages | 1-4 Family | ||
Credit quality information | ||
Total Loans | 287,574 | 332,747 |
Acquired Loans | Residential Mortgages | Mortgages | 1-4 Family | Pass | ||
Credit quality information | ||
Total Loans | 285,167 | 329,375 |
Acquired Loans | Residential Mortgages | Mortgages | 1-4 Family | Special mention | ||
Credit quality information | ||
Total Loans | 441 | 311 |
Acquired Loans | Residential Mortgages | Mortgages | 1-4 Family | Substandard | ||
Credit quality information | ||
Total Loans | 1,966 | 3,061 |
Acquired Loans | Consumer Loans | ||
Credit quality information | ||
Total Loans | 147,715 | 183,684 |
Acquired Loans | Consumer Loans | Performing | ||
Credit quality information | ||
Total Loans | 146,546 | 182,064 |
Acquired Loans | Consumer Loans | Nonperforming | ||
Credit quality information | ||
Total Loans | 1,169 | 1,620 |
Acquired Loans | Consumer Loans | Home Equity Loan | ||
Credit quality information | ||
Total Loans | 46,258 | 53,446 |
Acquired Loans | Consumer Loans | Home Equity Loan | Performing | ||
Credit quality information | ||
Total Loans | 45,732 | 52,719 |
Acquired Loans | Consumer Loans | Home Equity Loan | Nonperforming | ||
Credit quality information | ||
Total Loans | 526 | 727 |
Acquired Loans | Consumer Loans | Auto And Other | ||
Credit quality information | ||
Total Loans | 101,457 | 130,238 |
Acquired Loans | Consumer Loans | Auto And Other | Performing | ||
Credit quality information | ||
Total Loans | 100,814 | 129,345 |
Acquired Loans | Consumer Loans | Auto And Other | Nonperforming | ||
Credit quality information | ||
Total Loans | $ 643 | $ 893 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 535,655 | $ 545,819 |
Time $100,000 or more | 1,547,234 | 1,440,781 |
Total time deposits | 2,082,889 | 1,986,600 |
Brokered time deposits | 810,000 | 784,100 |
Reciprocal deposits | $ 102,400 | $ 101,500 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 939,800 | $ 1,071,200 |
Long-term borrowings | 198,230 | 192,118 |
Total borrowings | $ 1,138,030 | $ 1,263,318 |
Weighted average rate on short-term borrowings | 0.58% | 0.43% |
Weighted average rate on long-term borrowings | 3.69% | 3.88% |
Weighted Average Rate | 1.12% | 0.96% |
Advances from the FHLBB | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 924,800 | $ 1,071,200 |
Long-term borrowings | $ 109,114 | $ 103,135 |
Weighted average rate on short-term borrowings | 0.55% | 0.43% |
Weighted average rate on long-term borrowings | 1.61% | 1.89% |
Other Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 15,000 | $ 0 |
Weighted average rate on short-term borrowings | 2.17% | 0.00% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 73,652 | $ 73,519 |
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 | 2.67% | 2.23% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Line of credit, current | $ 3,000,000 | ||
Short-term debt | 939,800,000 | $ 1,071,200,000 | |
Long-term borrowings | 198,230,000 | 192,118,000 | |
Advances from the FHLBB | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 0 | 0 | |
Short-term debt | 924,800,000 | 1,071,200,000 | |
Long-term borrowings | 109,114,000 | 103,135,000 | |
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 | 11,000,000 | |
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 1,200,000 | 1,200,000 | |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 73,652,000 | 73,519,000 | |
Maturity period (in years) | 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 (in months) | 10 years | ||
Subordinated borrowings | Three-month LIBOR rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 5.113% | ||
Unamortized debt issuance expense | 737,000 | 829,000 | |
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 | 2.67% | 2.23% | |
Junior subordinated borrowings | Trust I | Maximum | |||
Debt Instrument [Line Items] | |||
Period up to which interest payments can be deferred (in years) | 5 years | ||
Junior subordinated borrowings | LIBOR | Trust I | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.85% |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLBB (Details) - Fixed rate advances $ in Thousands | Sep. 30, 2016USD ($) |
Principal | |
2,016 | $ 835,308 |
2,017 | 183,154 |
2,018 | 1,018 |
2,019 | 0 |
2020 and beyond | 14,434 |
Total FHLBB advances | $ 1,033,914 |
Weighted Average | |
Weighted Average Rate (as a percent) | |
2,016 | 0.54% |
2,017 | 1.08% |
2,018 | 2.62% |
2,019 | 0.00% |
2020 and beyond | 2.41% |
Total FHLBB advances | 0.66% |
CAPITAL RATIOS AND SHAREHOLDE64
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Sep. 30, 2016 | Dec. 31, 2015 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 11.50% | 11.90% |
Common equity tier 1 capital to risk weighted assets | 9.50% | 9.80% |
Tier 1 capital to risk weighted assets | 9.60% | 9.90% |
Tier 1 capital to average assets | 7.70% | 7.70% |
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% | 6.50% |
Regulatory minimum to be well capitalized, Tier 1 capital to risk weighted assets | 8.00% | 8.00% |
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 | 10.90% | 11.20% |
Common equity tier 1 capital to risk weighted assets | 9.60% | 9.90% |
Tier 1 capital to risk weighted assets | 9.60% | 9.90% |
Tier 1 capital to average assets | 7.60% | 7.70% |
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% | 6.50% |
Regulatory minimum to be well capitalized, Tier 1 capital to risk weighted assets | 8.00% | 8.00% |
Regulatory minimum to be well capitalized, Tier 1 capital to average assets | 5.00% | 5.00% |
CAPITAL RATIOS AND SHAREHOLDE65
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accumulated other comprehensive income | $ 932,593 | $ 887,189 | $ 881,568 | $ 709,287 | ||
Net unrealized holding gain on AFS securities | ||||||
Other accumulated comprehensive income (loss), before tax: | 27,955 | 6,316 | ||||
Income taxes related to items of accumulated other comprehensive income: | (10,766) | (2,437) | ||||
Accumulated other comprehensive income | 17,189 | $ 20,625 | 3,880 | 10,698 | $ 5,677 | 9,916 |
Net unrealized loss on effective cash flow hedging derivatives | ||||||
Other accumulated comprehensive income (loss), before tax: | (11,191) | (8,532) | ||||
Income taxes related to items of accumulated other comprehensive income: | 4,490 | 3,425 | ||||
Accumulated other comprehensive income | (6,701) | (8,335) | (5,108) | (6,438) | (3,830) | (1,969) |
Net unrealized holding loss on pension plans | ||||||
Other accumulated comprehensive income (loss), before tax: | (3,469) | (3,469) | ||||
Income taxes related to items of accumulated other comprehensive income: | 1,392 | 1,392 | ||||
Accumulated other comprehensive income | (2,077) | (2,077) | (2,077) | (2,205) | (2,244) | (1,368) |
Accumulated other comprehensive (loss) income | ||||||
Accumulated other comprehensive income | $ 8,411 | $ 10,213 | $ (3,305) | $ 2,055 | $ (397) | $ 6,579 |
CAPITAL RATIOS AND SHAREHOLDE66
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net unrealized gain (loss) arising during the period | ||||
Net of Tax | $ (2,570) | $ 2,444 | $ 10,188 | $ (3,062) |
Less: reclassification adjustment for losses realized in net income | ||||
Net of Tax | (768) | (8) | (1,528) | 1,462 |
Other Comprehensive Income | ||||
Before Tax | (2,924) | 3,903 | 18,979 | (7,414) |
Tax Effect | 1,122 | (1,451) | (7,263) | 2,890 |
Total other comprehensive (loss) income | (1,802) | 2,452 | 11,716 | (4,524) |
Net unrealized holding gain on AFS securities | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | (5,576) | 8,256 | 21,740 | 3,940 |
Tax Effect | 2,190 | (3,204) | (8,366) | (1,580) |
Net of Tax | (3,386) | 5,052 | 13,374 | 2,360 |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | (78) | (49) | (101) | (2,466) |
Tax Effect | (28) | (18) | (36) | (888) |
Net of Tax | 50 | 31 | 65 | 1,578 |
Other Comprehensive Income | ||||
Before Tax | (5,654) | 8,207 | 21,639 | 1,474 |
Tax Effect | 2,218 | (3,186) | (8,330) | (692) |
Total other comprehensive (loss) income | (3,436) | 5,021 | 13,309 | 782 |
Net unrealized loss on effective cash flow hedging derivatives | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | 1,363 | (4,369) | (5,322) | (7,486) |
Tax Effect | (547) | 1,761 | 2,136 | 3,017 |
Net of Tax | 816 | (2,608) | (3,186) | (4,469) |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | 1,367 | 0 | 2,662 | 0 |
Tax Effect | 549 | 0 | 1,069 | 0 |
Net of Tax | (818) | 0 | (1,593) | 0 |
Other Comprehensive Income | ||||
Before Tax | 2,730 | (4,369) | (2,660) | (7,486) |
Tax Effect | (1,096) | 1,761 | 1,067 | 3,017 |
Total other comprehensive (loss) income | 1,634 | (2,608) | (1,593) | (4,469) |
Net unrealized holding loss on pension plans | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | 0 | 0 | 0 | (1,596) |
Tax Effect | 0 | 0 | 0 | 643 |
Net of Tax | 0 | 0 | 0 | (953) |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | 0 | 65 | 0 | 194 |
Tax Effect | 0 | 26 | 0 | 78 |
Net of Tax | 0 | (39) | 0 | (116) |
Other Comprehensive Income | ||||
Before Tax | 0 | 65 | 0 | (1,402) |
Tax Effect | 0 | (26) | 0 | 565 |
Total other comprehensive (loss) income | $ 0 | $ 39 | $ 0 | $ (837) |
CAPITAL RATIOS AND SHAREHOLDE67
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ 887,189 | $ 709,287 | ||
Other Comprehensive (Loss) Gain Before reclassifications | $ (2,570) | $ 2,444 | 10,188 | (3,062) |
Less: Amounts Reclassified from Accumulated other comprehensive income | 768 | 8 | 1,528 | (1,462) |
Total other comprehensive (loss) income | (1,802) | 2,452 | 11,716 | (4,524) |
Balance at End of Period | 932,593 | 881,568 | 932,593 | 881,568 |
Net unrealized holding gain on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 20,625 | 5,677 | 3,880 | 9,916 |
Other Comprehensive (Loss) Gain Before reclassifications | (3,386) | 5,052 | 13,374 | 2,360 |
Less: Amounts Reclassified from Accumulated other comprehensive income | (50) | (31) | (65) | (1,578) |
Total other comprehensive (loss) income | (3,436) | 5,021 | 13,309 | 782 |
Balance at End of Period | 17,189 | 10,698 | 17,189 | 10,698 |
Net unrealized loss on effective cash flow hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (8,335) | (3,830) | (5,108) | (1,969) |
Other Comprehensive (Loss) Gain Before reclassifications | 816 | (2,608) | (3,186) | (4,469) |
Less: Amounts Reclassified from Accumulated other comprehensive income | 818 | 0 | 1,593 | 0 |
Total other comprehensive (loss) income | 1,634 | (2,608) | (1,593) | (4,469) |
Balance at End of Period | (6,701) | (6,438) | (6,701) | (6,438) |
Net unrealized holding loss on pension plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (2,077) | (2,244) | (2,077) | (1,368) |
Other Comprehensive (Loss) Gain Before reclassifications | 0 | 0 | 0 | (953) |
Less: Amounts Reclassified from Accumulated other comprehensive income | 0 | 39 | 0 | 116 |
Total other comprehensive (loss) income | 0 | 39 | 0 | (837) |
Balance at End of Period | (2,077) | (2,205) | (2,077) | (2,205) |
Accumulated other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 10,213 | (397) | (3,305) | 6,579 |
Total other comprehensive (loss) income | 11,716 | (4,524) | ||
Balance at End of Period | $ 8,411 | $ 2,055 | $ 8,411 | $ 2,055 |
CAPITAL RATIOS AND SHAREHOLDE68
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | $ (18,941) | $ (12,698) | $ (49,126) | $ (42,040) |
Income tax expense (benefit) | 6,953 | 1,350 | 18,422 | 2,791 |
Net income (loss) | (16,381) | (14,701) | (48,339) | (33,504) |
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Net income (loss) | (768) | (8) | (1,528) | 1,462 |
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 | 78 | 49 | 101 | 2,466 |
Income tax expense (benefit) | (28) | (18) | (36) | (888) |
Net income (loss) | 50 | 31 | 65 | 1,578 |
Net unrealized 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 | (1,367) | 0 | (2,662) | 0 |
Income tax expense (benefit) | 549 | 0 | 1,069 | 0 |
Net income (loss) | (818) | 0 | (1,593) | 0 |
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 | 0 | (65) | 0 | (194) |
Income tax expense (benefit) | 0 | 26 | 0 | 78 |
Net income (loss) | $ 0 | $ (39) | $ 0 | $ (116) |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings per share | ||||
Net income | $ 16,381 | $ 14,701 | $ 48,339 | $ 33,504 |
Average number of common shares issued (in shares) | 32,273 | 31,565 | 32,216 | 29,374 |
Less: average number of treasury shares (in shares) | 1,137 | 1,201 | 1,117 | 1,229 |
Less: average number of unvested stock award shares (in shares) | 515 | 471 | 515 | 460 |
Average number of basic common shares outstanding (in shares) | 30,621 | 29,893 | 30,584 | 27,685 |
Average number of diluted common shares outstanding (in shares) | 30,811 | 30,069 | 30,757 | 27,847 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.49 | $ 1.58 | $ 1.21 |
Diluted (in dollars per share) | $ 0.53 | $ 0.49 | $ 1.57 | $ 1.20 |
Unvested Stock Award shares | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 131 | 114 | 115 | 98 |
Options | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 59 | 62 | 58 | 64 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Unvested Stock Award shares | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 401 | 361 |
Options | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 201 | 212 |
STOCK-BASED COMPENSATION PLAN71
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-based compensation plans | ||
Total compensation cost | $ 3,500 | $ 3,400 |
Unvested Stock Award shares | ||
Non-vested Stock Awards Outstanding, Number of Shares | ||
Balance at the beginning of the period (in shares) | 488 | |
Granted (in shares) | 185 | |
Stock awards vested (in shares) | (116) | (126) |
Forfeited (in shares) | (63) | |
Balance at the end of the period (in shares) | 494 | |
Non-vested Stock Awards Outstanding, Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 25.09 | |
Granted (in dollars per share) | 27.37 | |
Stock awards vested (in dollars per share) | 25.15 | |
Forfeited (in dollars per share) | 25.39 | |
Balance at the end of the period (in dollars per share) | $ 26.23 | |
Options | ||
Stock Options Outstanding, Number of Shares | ||
Balance at the beginning of the period (in shares) | 265 | |
Stock options exercised (in shares) | (10) | |
Expired (in shares) | (3) | |
Balance at the end of the period (in shares) | 252 | |
Exercisable options at the end of the period (in shares) | 251 | |
Stock Options Outstanding, Weighted-Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 21.11 | |
Stock options exercised (in dollars per share) | 14.98 | |
Expired (in dollars per share) | 34.45 | |
Balance at the end of the period (in dollars per share) | 21.08 | |
Exercisable options at the end of the period (in dollars per share) | $ 21.15 | |
Stock-based compensation plans | ||
Proceeds from stock option exercises | $ 141 | $ 116 |
DERIVATIVE INSTRUMENTS AND HE72
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)contract | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | ||
Notional amount | $ 1,853,032 | $ 1,366,667 |
Cash pledged as collateral to derivative counterparties | 650 | |
Amortized cost of securities pledged as collateral to derivative counterparties | 59,200 | |
Fair value of securities as pledged collateral to derivative counterparties | 61,300 | |
Cash flow hedge gain (loss) to be reclassified within 12 months | 4,900 | |
Estimated fair value asset (liability) | (13,530) | (10,676) |
Commercial counterparties | ||
Derivative [Line Items] | ||
Net asset position | 35,500 | 17,100 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 11,500 | |
Cash pledged as collateral to derivative counterparties | 650 | 9,720 |
Derivative liability | 49,528 | 28,220 |
Amount of collateral posted for the net liability positions | 49,600 | 28,200 |
Interest rate swaps | Commercial counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral to derivative counterparties | 0 | 0 |
Derivative liability | 0 | 0 |
Interest rate swaps | Institutional counterparties | ||
Derivative [Line Items] | ||
Cash pledged as collateral to derivative counterparties | 650 | 9,720 |
Derivative liability | 49,528 | 28,220 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 83,765 | 36,043 |
Estimated fair value asset (liability) | 1,574 | $ 323 |
Cash flow hedges: | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000 | |
Durations of derivative instruments (in years) | 3 years | |
Cash flow hedges: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000 | |
Number of instruments (contract) | contract | 6 | |
Cash flow hedges: | Interest rate swaps | FHLBB borrowings | ||
Derivative [Line Items] | ||
Period of rolling advances (in months) | 1 month | |
Maturity period with fixed interest rate (in months) | 1 month | |
Economic hedges: | ||
Derivative [Line Items] | ||
Notional amount | $ 1,500,000 | |
Credit valuation adjustments | $ (62) | |
Economic hedges: | Tax advantaged economic development bonds | ||
Derivative [Line Items] | ||
Fixed rate of interest | 5.09% | |
Maturity period (in years) | 21 years | |
Economic hedges: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 1,300,000 | |
Economic hedges: | Risk participation agreements | ||
Derivative [Line Items] | ||
Notional amount | 77,900 | |
Economic hedges: | Forward sale commitments | ||
Derivative [Line Items] | ||
Notional amount | $ 95,000 |
DERIVATIVE INSTRUMENTS AND HE73
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 1,853,032 | $ 1,366,667 |
Estimated fair value asset (liability) | (13,530) | (10,676) |
Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 11,500 | |
Cash flow hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 300,000 | |
Cash flow hedges: | Interest rate swaps | ||
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 | 1,500,000 | |
Economic hedges: | Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 1,300,000 | |
Economic hedges: | Risk participation agreements | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 77,900 | |
Economic hedges: | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 95,000 | |
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) | (11,191) | (8,532) |
Designated as Hedging Instrument | Cash flow hedges: | Interest rate swaps | FHLBB borrowings | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 300,000 | |
Weighted average maturity | 2 years 5 months 18 days | |
Weighted average rate, received | 0.52% | |
Weighted average rate, contract pay rate | 2.29% | |
Estimated fair value asset (liability) | $ (11,191) | |
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 | |
Weighted average maturity | 3 years 3 months 18 days | |
Weighted average rate, received | 0.14% | |
Weighted average rate, contract pay rate | 2.29% | |
Estimated fair value asset (liability) | $ (8,532) | |
Designated as Hedging Instrument | Economic hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 1,469,267 | 1,030,624 |
Estimated fair value asset (liability) | (3,913) | (2,467) |
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 | $ 11,540 | $ 11,984 |
Weighted average maturity | 13 years 2 months 10 days | 13 years 10 months 24 days |
Weighted average rate, received | 0.89% | 0.61% |
Weighted average rate, contract pay rate | 5.09% | 5.09% |
Estimated fair value asset (liability) | $ (2,869) | $ (2,450) |
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 | $ 642,399 | $ 457,392 |
Weighted average maturity | 6 years 4 months 10 days | 6 years 8 months 12 days |
Weighted average rate, received | 2.27% | 2.18% |
Weighted average rate, contract pay rate | 4.23% | 4.49% |
Estimated fair value asset (liability) | $ (36,055) | $ (17,143) |
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 | $ 642,399 | $ 457,392 |
Weighted average maturity | 6 years 4 months 10 days | 6 years 8 months 12 days |
Weighted average rate, received | 4.23% | 4.49% |
Weighted average rate, contract pay rate | 2.27% | 2.18% |
Estimated fair value asset (liability) | $ 35,546 | $ 17,129 |
Designated as Hedging Instrument | Economic hedges: | Risk participation agreements | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 77,887 | $ 59,016 |
Weighted average maturity | 12 years 2 months 10 days | 15 years |
Estimated fair value asset (liability) | $ 47 | $ (56) |
Designated as Hedging Instrument | Economic hedges: | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 95,042 | $ 44,840 |
Weighted average maturity | 2 months 2 days | 2 months 12 days |
Estimated fair value asset (liability) | $ (582) | $ 53 |
Not Designated as Hedging Instrument | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 83,765 | 36,043 |
Estimated fair value asset (liability) | 1,574 | 323 |
Not Designated as Hedging Instrument | Interest rate lock commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 83,765 | $ 36,043 |
Weighted average maturity | 2 months 2 days | 2 months 12 days |
Estimated fair value asset (liability) | $ 1,574 | $ 323 |
DERIVATIVE INSTRUMENTS AND HE74
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Interest Rate Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative [Line Items] | ||||
Net interest expense recognized in interest expense on hedged FHLBB borrowings | $ 4,750 | $ 2,435 | $ 12,569 | $ 7,218 |
FHLBB borrowings | Interest rate swaps | Cash flow hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in accumulated other comprehensive loss | 1,363 | (4,369) | (5,322) | (7,486) |
Less: Reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense | (1,367) | 0 | (2,662) | 0 |
Net tax effect on items recognized in accumulated other comprehensive income | (1,096) | 1,761 | 1,067 | 3,017 |
Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | 1,634 | (2,608) | (1,593) | (4,469) |
Net interest expense recognized in interest expense on hedged FHLBB borrowings | $ 1,367 | $ 0 | $ 2,662 | $ 0 |
DERIVATIVE INSTRUMENTS AND HE75
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest rate swaps | Economic hedges: | Industrial revenue bond | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | $ 29 | $ (493) | $ (802) | $ (433) |
Interest rate swaps | Economic hedges: | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 2,411 | (7,698) | (18,911) | (6,923) |
(Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income | (62) | 52 | (495) | 109 |
Reverse interest rate swaps | Economic hedges: | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | (2,411) | 7,698 | 18,911 | 6,923 |
Risk participation agreements | Economic hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | (14) | (65) | 102 | (42) |
Forward sale commitments | Economic hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | (582) | (387) | (1,898) | (300) |
Realized gain in other non-interest income | 109 | (493) | (224) | (80) |
Interest rate lock commitments | Non-hedging derivatives: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 1,574 | 754 | 3,635 | 2,113 |
Realized gain in other non-interest income | $ 760 | $ 819 | $ 2,505 | $ 1,760 |
DERIVATIVE INSTRUMENTS AND HE76
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | $ 35,664 | $ 17,169 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 35,664 | 17,169 |
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 | 35,664 | 17,169 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 118 | 40 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 118 | 40 |
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 | 118 | 40 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 35,546 | 17,129 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 35,546 | 17,129 |
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 | $ 35,546 | $ 17,129 |
DERIVATIVE INSTRUMENTS AND HE77
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts not offset in the Statements of Condition, cash collateral pledged | $ 650 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (49,570) | $ (28,220) |
Gross amounts offset in the Statements of Condition | 42 | 0 |
Net amounts of liabilities presented in the Statements of Condition | (49,528) | (28,220) |
Gross amounts not offset in the Statements of Condition, financial instruments | 48,878 | 18,500 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 650 | 9,720 |
Net amount | 0 | 0 |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (49,570) | (28,220) |
Gross amounts offset in the Statements of Condition | 42 | 0 |
Net amounts of liabilities presented in the Statements of Condition | (49,528) | (28,220) |
Gross amounts not offset in the Statements of Condition, financial instruments | 48,878 | 18,500 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 650 | 9,720 |
Net amount | 0 | 0 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | 0 | 0 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of liabilities presented in the Statements of Condition | 0 | 0 |
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 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | $ 14,149 | $ 14,189 |
Securities available for sale, at fair value | 946,853 | 1,154,457 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale, at fair value | 946,853 | 1,154,457 |
Loans held for sale | 20,471 | 13,191 |
Derivative assets | 37,120 | 17,507 |
Derivative liabilities | 50,650 | 28,181 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 0 | 0 |
Securities available for sale, at fair value | 53,602 | 32,925 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 45 |
Derivative liabilities | 331 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 0 | 0 |
Securities available for sale, at fair value | 893,251 | 1,120,824 |
Loans held for sale | 20,471 | 13,191 |
Derivative assets | 35,546 | 17,130 |
Derivative liabilities | 50,068 | 28,181 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale, at fair value | 0 | 708 |
Loans held for sale | 0 | 0 |
Derivative assets | 1,574 | 332 |
Derivative liabilities | 251 | 0 |
Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 14,149 | 14,189 |
Loans held for sale | 20,471 | 13,191 |
Derivative assets | 37,120 | 17,507 |
Derivative liabilities | 50,650 | 28,181 |
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 | 121,126 | 104,561 |
Recurring | Total Fair Value | Debt securities | Collateralized Mortgage Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 541,997 | 833,036 |
Recurring | Total Fair Value | Debt securities | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 104,670 | 126,829 |
Recurring | Total Fair Value | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 62,300 | 0 |
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 | 46,522 | 41,023 |
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 | 11,801 | 11,900 |
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 | 3,200 | 3,141 |
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 | 55,237 | 33,967 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 45 | |
Derivative liabilities | 331 | 0 |
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 | Collateralized Mortgage 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 | Agency 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 | Agency commercial 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 | 53,602 | 32,925 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 0 | 0 |
Loans held for sale | 20,471 | 13,191 |
Derivative assets | 35,546 | 17,130 |
Derivative liabilities | 50,068 | 28,181 |
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 | 121,126 | 104,561 |
Recurring | Level 2 | Debt securities | Collateralized Mortgage Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 541,997 | 833,036 |
Recurring | Level 2 | Debt securities | Agency mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 104,670 | 126,829 |
Recurring | Level 2 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 62,300 | 0 |
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 | 46,522 | 41,023 |
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 | 11,801 | 11,900 |
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 | 3,200 | 3,141 |
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 | 1,635 | 334 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security, at fair value | 14,149 | 14,189 |
Loans held for sale | 0 | 0 |
Derivative assets | 1,574 | 332 |
Derivative liabilities | 251 | 0 |
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 | Collateralized Mortgage 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 | Agency 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 | Agency commercial 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 | 0 |
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 | $ 0 | $ 708 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)transfer | Sep. 30, 2015USD ($)transfer | Sep. 30, 2016USD ($)securitytransfer | Sep. 30, 2015USD ($)transfer | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers out of Level 3, number of transfers | transfer | 0 | 0 | 1 | 0 |
Transfers to Level 2 | $ 708 | |||
Junior subordinated debentures re-price period (in days) | 90 days | |||
Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) in fair value of loans held for sale included in earnings | $ (216) | $ (44) | $ 398 | $ (115) |
Trading Security | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers to Level 2 | $ 0 | |||
Number of securities in the portfolio (security) | security | 1 | |||
Securities Available for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfers to Level 2 | $ 708 |
FAIR VALUE MEASUREMENTS - Loans
FAIR VALUE MEASUREMENTS - Loans Held for Sale (Details) - Level 2 - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans Held for Sale | ||
Aggregate Fair Value | $ 20,471 | $ 13,191 |
Aggregate Unpaid Principal | 0 | 278 |
Recurring | ||
Loans Held for Sale | ||
Aggregate Fair Value | 20,471 | 13,191 |
Recurring | Loans Held for Sale | ||
Loans Held for Sale | ||
Aggregate Fair Value | 20,471 | 13,191 |
Aggregate Unpaid Principal | 19,796 | 12,914 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 675 | $ 277 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Transfers to Level 2 | $ (708) | |||
Trading Security | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | $ 14,479 | $ 14,378 | 14,189 | $ 14,909 |
Sale of Marketable Equity Security | 0 | 0 | ||
Unrealized (loss) gain, net recognized in other non-interest income | (180) | 351 | 405 | 103 |
Unrealized gain included in accumulated other comprehensive loss | 0 | 0 | ||
Transfers to Level 2 | 0 | |||
Paydown of trading security | (150) | (142) | (445) | (425) |
Transfers to held for sale loans | 0 | 0 | 0 | 0 |
Balance at the end of the period | 14,149 | 14,587 | 14,149 | 14,587 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 2,610 | 2,457 | 2,610 | 2,457 |
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 | 0 | 773 | 708 | 2,326 |
Sale of Marketable Equity 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 | (9) | (235) | ||
Transfers to Level 2 | (708) | |||
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 | 0 | 764 | 0 | 764 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 0 | (6) | 0 | (6) |
Interest rate lock commitments | ||||
Derivative Asset (Liability) | ||||
Beginning balance | 1,259 | 382 | 323 | 625 |
Sale of Marketable Equity Security | 0 | 0 | ||
Unrealized (loss) gain, net recognized in other non-interest income | 3,563 | 1,366 | 6,480 | 4,037 |
Unrealized gain included in accumulated other comprehensive loss | 0 | 0 | ||
Transfers to Level 2 | 0 | |||
Paydown of trading security | 0 | 0 | 0 | 0 |
Transfers to held for sale loans | (3,248) | (994) | (5,229) | (3,908) |
Ending balance | 1,574 | 754 | 1,574 | 754 |
Unrealized gains (losses) relating to instruments still held at end of period | 1,574 | 754 | 1,574 | 754 |
Forward Commitments | ||||
Derivative Asset (Liability) | ||||
Beginning balance | (189) | 50 | 9 | (93) |
Unrealized (loss) gain, net recognized in other non-interest income | 62 | 72 | 260 | (71) |
Ending balance | (251) | (22) | (251) | (22) |
Unrealized gains (losses) relating to instruments still held at end of period | $ (251) | $ (22) | $ (251) | $ (22) |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset (liability), at fair value | $ (13,530,000) | $ (10,676,000) |
Level 3 | Recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Total | 15,472,000 | 15,229,000 |
Level 3 | Recurring | Trading Security | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 14,149,000 | $ 14,189,000 |
Discount Rate | 1.80% | 2.49% |
Level 3 | Recurring | Securities Available for Sale | Pricing Model | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 708,000 | |
Median Peer Price/Tangible Book Value Percentage Multiple | 88.52% | |
Level 3 | Recurring | Forward Commitments | Historical Trend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset (liability), at fair value | $ (251,000) | $ 9,000 |
Closing Ratio | 93.97% | 92.57% |
Level 3 | Recurring | Forward Commitments | Pricing Model | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Origination Costs, per loan | $ 2,500 | $ 2,500 |
Level 3 | Recurring | Interest rate lock commitments | Historical Trend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset (liability), at fair value | $ 1,574,000 | $ 323,000 |
Closing Ratio | 93.97% | 92.57% |
Level 3 | Recurring | 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 - Mea83
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Quantitative information about the significant unobservable inputs within Level 3 | |||
Other real estate owned | $ 80 | $ 80 | $ 1,725 |
Non-recurring | Level 3 | |||
Quantitative information about the significant unobservable inputs within Level 3 | |||
Impaired loans | 19,591 | 19,591 | 11,657 |
Capitalized servicing rights | 10,495 | 10,495 | 5,187 |
Other real estate owned | 80 | 80 | 1,725 |
Total | 30,166 | 30,166 | 18,569 |
Unrealized gain included in accumulated other comprehensive loss | (2,990) | 7,478 | |
Non-recurring | Level 3 | Impaired loans | |||
Quantitative information about the significant unobservable inputs within Level 3 | |||
Impaired loans | 19,591 | 19,591 | 11,657 |
Unrealized gain included in accumulated other comprehensive loss | (2,955) | 7,934 | |
Non-recurring | Level 3 | Capitalized servicing rights | |||
Quantitative information about the significant unobservable inputs within Level 3 | |||
Capitalized servicing rights | 10,495 | 10,495 | 5,187 |
Unrealized gain included in accumulated other comprehensive loss | 0 | 0 | |
Non-recurring | Level 3 | Other real estate owned | |||
Quantitative information about the significant unobservable inputs within Level 3 | |||
Other real estate owned | 80 | 80 | $ 1,725 |
Unrealized gain included in accumulated other comprehensive loss | $ (35) | $ (456) |
FAIR VALUE MEASUREMENTS - Uno84
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 80,000 | $ 1,725,000 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 19,591,000 | 11,657,000 |
Capitalized servicing rights | 10,495,000 | 5,187,000 |
Other real estate owned | 80,000 | 1,725,000 |
Total | 30,166,000 | 18,569,000 |
Non-recurring | Impaired loans | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | $ 19,591,000 | $ 11,657,000 |
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 | 0.19% | 0.05% |
Appraised value | $ 29,200 | $ 46,300 |
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 | 89.11% | 29.50% |
Appraised value | $ 2,197,400 | $ 1,962,000 |
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 | 10.01% | 7.55% |
Appraised value | $ 1,160,100 | $ 999,700 |
Non-recurring | Capitalized servicing rights | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 10,495,000 | $ 5,187,000 |
Non-recurring | Capitalized servicing rights | Minimum | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 7.35% | 7.17% |
Discount Rate | 10.00% | 10.00% |
Non-recurring | Capitalized servicing rights | Maximum | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 15.23% | 12.06% |
Discount Rate | 14.00% | 15.00% |
Non-recurring | Capitalized servicing rights | Weighted Average | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 11.04% | 10.02% |
Discount Rate | 11.71% | 10.88% |
Non-recurring | Other real estate owned | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 80,000 | $ 1,725,000 |
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 | 46,000 | 39,000 |
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 | 129,000 | 1,200,000 |
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 | $ 118,600 | $ 919,900 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Trading security, at fair value | $ 14,149 | $ 14,189 |
Securities available for sale | 946,853 | 1,154,457 |
Securities held to maturity | 139,358 | 136,904 |
FHLB bank stock and restricted securities | 61,277 | 71,018 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 69,285 | 103,562 |
Trading security, at fair value | 0 | 0 |
Securities available for sale | 53,602 | 32,925 |
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 | 0 | 45 |
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 | 331 | 0 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security, at fair value | 0 | 0 |
Securities available for sale | 893,251 | 1,120,824 |
Securities held to maturity | 0 | 0 |
FHLB bank stock and restricted securities | 61,277 | 71,018 |
Net loans | 0 | 0 |
Loans held for sale | 20,471 | 13,191 |
Accrued interest receivable | 17,263 | 20,940 |
Cash surrender value of bank-owned life insurance policies | 127,880 | 125,233 |
Derivative assets | 35,546 | 17,130 |
Assets held for sale | 0 | 278 |
Financial Liabilities | ||
Total deposits | 5,751,777 | 5,582,835 |
Short-term debt | 939,823 | 1,071,044 |
Long-term Federal Home Loan Bank advances | 109,625 | 103,397 |
Subordinated borrowings | 97,437 | 93,291 |
Derivative liabilities | 50,068 | 28,181 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale | 0 | 708 |
Securities held to maturity | 139,358 | 136,904 |
FHLB bank stock and restricted securities | 0 | 0 |
Net loans | 6,081,799 | 5,727,570 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | 0 |
Derivative assets | 1,574 | 332 |
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 | 251 | 0 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 69,285 | 103,562 |
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale | 946,853 | 1,154,457 |
Securities held to maturity | 131,467 | 131,652 |
FHLB bank stock and restricted securities | 61,277 | 71,018 |
Net loans | 6,003,899 | 5,685,928 |
Loans held for sale | 20,471 | 13,191 |
Accrued interest receivable | 17,263 | 20,940 |
Cash surrender value of bank-owned life insurance policies | 127,880 | 125,233 |
Derivative assets | 37,120 | 17,507 |
Assets held for sale | 0 | 278 |
Financial Liabilities | ||
Total deposits | 5,749,754 | 5,589,135 |
Short-term debt | 939,800 | 1,071,200 |
Long-term Federal Home Loan Bank advances | 109,114 | 103,135 |
Subordinated borrowings | 89,116 | 89,812 |
Derivative liabilities | 50,650 | 28,181 |
Total Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 69,285 | 103,562 |
Trading security, at fair value | 14,149 | 14,189 |
Securities available for sale | 946,853 | 1,154,457 |
Securities held to maturity | 139,358 | 136,904 |
FHLB bank stock and restricted securities | 61,277 | 71,018 |
Net loans | 6,081,799 | 5,727,570 |
Loans held for sale | 20,471 | 13,191 |
Accrued interest receivable | 17,263 | 20,940 |
Cash surrender value of bank-owned life insurance policies | 127,880 | 125,233 |
Derivative assets | 37,120 | 17,507 |
Assets held for sale | 0 | 278 |
Financial Liabilities | ||
Total deposits | 5,751,777 | 5,582,835 |
Short-term debt | 939,823 | 1,071,044 |
Long-term Federal Home Loan Bank advances | 109,625 | 103,397 |
Subordinated borrowings | 97,437 | 93,291 |
Derivative liabilities | $ 50,650 | $ 28,181 |
NET INTEREST INCOME AFTER PRO86
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Banking and Thrift, Interest [Abstract] | ||||
Net interest income | $ 57,971 | $ 56,971 | $ 173,109 | $ 155,101 |
Provision for loan losses | 4,734 | 4,240 | 13,262 | 12,295 |
Net interest income after provision for loan losses | $ 53,237 | $ 52,731 | $ 159,847 | $ 142,806 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($)banking_office | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | ||||
Assets | $ 7,931,161,000 | $ 7,931,161,000 | $ 7,831,086,000 | |
Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Business combination, number of shares issued, conversion of acquiree stock | 0.5773 | |||
First Choice Bank | ||||
Subsequent Event [Line Items] | ||||
Assets | 1,100,000,000 | $ 1,100,000,000 | ||
Number of offices company operates | banking_office | 8 | |||
Acquisition related costs | $ 1,100,000 | $ 1,500,000 | $ 0 | |
First Choice Bank | Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Termination fee | $ 4,100,000 |