Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | BERKSHIRE HILLS BANCORP INC | ||
Entity Central Index Key | 1,108,134 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1.4 | ||
Entity Common Stock, Shares Outstanding (shares) | 45,369,422 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 91,122 | $ 71,494 |
Short-term investments | 157,641 | 41,581 |
Total cash and cash equivalents | 248,763 | 113,075 |
Trading security | 12,277 | 13,229 |
Securities available for sale, at fair value | 1,426,099 | 1,209,537 |
Securities held to maturity (fair values of 405,276 in 2017 and $337,680 in 2016) | 397,103 | 334,368 |
Federal Home Loan Bank stock and other restricted securities | 63,085 | 71,112 |
Total securities | 1,898,564 | 1,628,246 |
Loans held for sale, at fair value | 153,620 | 120,673 |
Commercial real estate | 3,264,742 | 2,616,438 |
Commercial and industrial loans | 1,803,939 | 1,062,038 |
Residential mortgages | 2,102,807 | 1,893,131 |
Consumer loans | 1,127,850 | 978,180 |
Total loans | 8,299,338 | 6,549,787 |
Less: Allowance for loan losses | (51,834) | (43,998) |
Net loans | 8,247,504 | 6,505,789 |
Premises and equipment, net | 109,352 | 93,215 |
Other real estate owned | 0 | 151 |
Goodwill | 519,287 | 403,106 |
Other intangible assets | 38,296 | 19,445 |
Cash surrender value of bank-owned life insurance | 191,221 | 139,257 |
Deferred tax assets, net | 47,061 | 41,128 |
Other assets | 117,083 | 98,457 |
Total assets | 11,570,751 | 9,162,542 |
Liabilities | ||
Demand deposits | 1,667,323 | 1,278,875 |
NOW deposits | 673,891 | 570,583 |
Money market deposits | 2,776,157 | 1,781,605 |
Savings deposits | 741,954 | 657,486 |
Time deposits | 2,890,205 | 2,333,543 |
Total deposits | 8,749,530 | 6,622,092 |
Short-term debt | 667,300 | 1,082,044 |
Long-term Federal Home Loan Bank advances | 380,436 | 142,792 |
Subordinated notes | 89,339 | 89,161 |
Total borrowings | 1,137,075 | 1,313,997 |
Other liabilities | 187,882 | 133,155 |
Total liabilities | 10,074,487 | 8,069,244 |
Shareholders’ equity | ||
Preferred Stock (Series B non-voting convertible preferred stock - $0.01 par value; 1,000,000 shares authorized, 521,607 shares issued and outstanding in 2017; 1,000,000 shares authorized, no shares issued and outstanding in 2016) | 40,633 | 0 |
Common stock ($.01 par value; 50,000,000 shares authorized, 46,211,894 shares issued, and 45,290,433 shares outstanding in 2017; 50,000,000 shares authorized, 36,732,129 shares issued, and 35,672,817 shares outstanding in 2016) | 460 | 366 |
Additional paid-in capital - common stock | 1,242,487 | 898,989 |
Unearned compensation | (6,531) | (6,374) |
Retained earnings | 239,179 | 217,494 |
Accumulated other comprehensive income (loss) | 4,161 | 9,766 |
Treasury stock, at cost (921,461 shares in 2017 and 1,059,312 shares in 2016) | (24,125) | (26,943) |
Total shareholders’ equity | 1,496,264 | 1,093,298 |
Total liabilities and shareholders’ equity | $ 11,570,751 | $ 9,162,542 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Held-to-maturity securities, fair value | $ 405,276 | $ 337,680 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (shares) | 46,211,894 | 36,732,129 |
Common stock, shares outstanding (shares) | 45,290,433 | 35,672,817 |
Treasury stock, shares (shares) | 921,461 | 1,059,312 |
Series B Convertible Preferred Stock | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (shares) | 521,607 | 0 |
Preferred stock, shares outstanding (shares) | 521,607 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income | |||
Loans | $ 308,099 | $ 242,600 | $ 211,347 |
Securities and other | 52,159 | 37,839 | 35,683 |
Total interest and dividend income | 360,258 | 280,439 | 247,030 |
Interest expense | |||
Deposits | 43,855 | 30,883 | 22,948 |
Borrowings and subordinated notes | 21,608 | 17,289 | 10,233 |
Total interest expense | 65,463 | 48,172 | 33,181 |
Net interest income | 294,795 | 232,267 | 213,849 |
Non-interest income | |||
Mortgage banking income | 54,251 | 7,555 | 4,133 |
Loan related income | 21,401 | 16,694 | 8,310 |
Deposit related fees | 27,165 | 24,963 | 25,084 |
Insurance commissions and fees | 10,589 | 10,477 | 10,251 |
Wealth management fees | 9,395 | 8,917 | 9,702 |
Total fee income | 122,801 | 68,606 | 57,480 |
Other | (3,377) | (3,289) | (5,302) |
Gain (Loss) on securities, net | 12,598 | (551) | 2,110 |
Gain on sale of business operations, net | 296 | 1,085 | 0 |
Loss on termination of hedges | (6,629) | 0 | 0 |
Total non-interest income | 125,689 | 65,851 | 54,288 |
Total net revenue | 420,484 | 298,118 | 268,137 |
Provision for loan losses | 21,025 | 17,362 | 16,726 |
Non-interest expense | |||
Compensation and benefits | 152,979 | 104,600 | 97,370 |
Occupancy and equipment | 35,422 | 27,220 | 28,486 |
Technology and communications | 25,900 | 19,883 | 16,881 |
Marketing and promotion | 11,877 | 3,161 | 3,306 |
Professional services | 9,165 | 6,199 | 5,172 |
FDIC premiums and assessments | 6,457 | 5,066 | 4,649 |
Other real estate owned and foreclosures | 44 | 691 | 833 |
Amortization of intangible assets | 3,493 | 2,927 | 3,563 |
Merger, restructuring and conversion related expenses | 31,558 | 15,461 | 17,611 |
Other | 22,815 | 18,094 | 18,958 |
Total non-interest expense | 299,710 | 203,302 | 196,829 |
Income from continuing operations before income taxes | 99,749 | 77,454 | 54,582 |
Income tax expense | 44,502 | 18,784 | 5,064 |
Net income | 55,247 | 58,670 | 49,518 |
Preferred stock dividend | 219 | 0 | 0 |
Income available to common shareholders | $ 55,028 | $ 58,670 | $ 49,518 |
Earnings per common share: | |||
Basic earnings per share (USD per share) | $ 1.40 | $ 1.89 | $ 1.74 |
Diluted earnings per share (USD per share) | $ 1.39 | $ 1.88 | $ 1.73 |
Weighted average common shares outstanding: | |||
Basic (shares) | 39,456 | 30,988 | 28,393 |
Diluted (shares) | 39,695 | 31,167 | 28,564 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 55,247 | $ 58,670 | $ 49,518 |
Other comprehensive income (loss), before tax: | |||
Changes in unrealized gains and losses on securities available-for-sale | (15,142) | 18,859 | (9,677) |
Changes in unrealized gains and losses on derivative hedges | 6,573 | 1,959 | (5,232) |
Changes in unrealized gains and losses on pension | (94) | 515 | (1,177) |
Total other comprehensive income (loss), before tax | (8,663) | 21,333 | (16,086) |
Income taxes related to other comprehensive income (loss): | |||
Changes in unrealized gains and losses on securities available-for-sale | 5,610 | (7,199) | 3,640 |
Changes in unrealized gains and losses on derivative hedges | (2,589) | (835) | 2,094 |
Changes in unrealized gains and losses on pension | 37 | (228) | 468 |
Total income tax (expense) benefit related to other comprehensive income (loss) | 3,058 | (8,262) | 6,202 |
Total other comprehensive income (loss) | (5,605) | 13,071 | (9,884) |
Total comprehensive income | $ 49,642 | $ 71,741 | $ 39,634 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Hampden Bancorp Inc | Firestone Financial | 44 Business Capital | First Choice Bank | Commerce Bank | Preferred Stock | Preferred StockCommerce Bank | Common Stock | Common StockHampden Bancorp Inc | Common StockFirestone Financial | Common Stock44 Business Capital | Common StockFirst Choice Bank | Common StockCommerce Bank | Additional paid-in capital | Additional paid-in capitalHampden Bancorp Inc | Additional paid-in capitalFirestone Financial | Additional paid-in capitalFirst Choice Bank | Additional paid-in capitalCommerce Bank | Unearned compensation | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | Treasury stock44 Business Capital | |
Beginning balance (shares) at Dec. 31, 2014 | 0 | 25,183,000 | |||||||||||||||||||||||
Beginning balance at Dec. 31, 2014 | $ 709,287 | $ 0 | $ 265 | $ 585,289 | $ (6,147) | $ 156,446 | $ 6,579 | $ (33,145) | |||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Net income | 49,518 | 49,518 | |||||||||||||||||||||||
Other net comprehensive income (loss) | (9,884) | (9,884) | |||||||||||||||||||||||
Total comprehensive income | 39,634 | 49,518 | (9,884) | ||||||||||||||||||||||
Stock issued pursuant to acquisition (shares) | 4,186,000 | 1,442,000 | |||||||||||||||||||||||
Stock issued pursuant to acquisition | $ 114,604 | $ 42,107 | $ 42 | $ 15 | $ 114,562 | $ 42,092 | |||||||||||||||||||
Cash dividends declared on common shares | (21,903) | (21,903) | |||||||||||||||||||||||
Treasury stock purchased (shares) | (18,000) | ||||||||||||||||||||||||
Treasury stock purchased | (550) | (550) | |||||||||||||||||||||||
Forfeited shares (shares) | (20,000) | ||||||||||||||||||||||||
Forfeited shares | 0 | 47 | 509 | (556) | |||||||||||||||||||||
Exercise of stock options (shares) | 16,000 | ||||||||||||||||||||||||
Exercise of stock options | 239 | (176) | 415 | ||||||||||||||||||||||
Restricted stock grants (shares) | 226,000 | ||||||||||||||||||||||||
Restricted stock grants | 0 | 440 | (6,029) | 5,589 | |||||||||||||||||||||
Stock-based compensation | 4,670 | 4,670 | |||||||||||||||||||||||
Net tax benefit related to stock-based compensation | 167 | 167 | |||||||||||||||||||||||
Other, net (shares) | (41,000) | ||||||||||||||||||||||||
Other, net | (1,066) | 22 | (1,088) | ||||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2015 | 0 | 30,974,000 | |||||||||||||||||||||||
Ending balance at Dec. 31, 2015 | 887,189 | $ 0 | $ 322 | 742,619 | (6,997) | 183,885 | (3,305) | (29,335) | |||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Net income | 58,670 | 58,670 | |||||||||||||||||||||||
Other net comprehensive income (loss) | 13,071 | 13,071 | |||||||||||||||||||||||
Total comprehensive income | 71,741 | 58,670 | 13,071 | ||||||||||||||||||||||
Stock issued pursuant to acquisition (shares) | 45,000 | 4,410,000 | |||||||||||||||||||||||
Stock issued pursuant to acquisition | $ 1,217 | $ 151,048 | $ 44 | $ 151,004 | $ 1,217 | ||||||||||||||||||||
Cash dividends declared on common shares | (24,916) | (24,916) | |||||||||||||||||||||||
Treasury stock adjustment | [1] | 0 | 4,632 | (4,632) | |||||||||||||||||||||
Forfeited shares (shares) | (70,000) | ||||||||||||||||||||||||
Forfeited shares | 0 | 148 | 1,789 | (1,937) | |||||||||||||||||||||
Exercise of stock options (shares) | 151,000 | ||||||||||||||||||||||||
Exercise of stock options | 3,712 | (145) | 3,857 | ||||||||||||||||||||||
Restricted stock grants (shares) | 211,000 | ||||||||||||||||||||||||
Restricted stock grants | 0 | 575 | (5,787) | 5,212 | |||||||||||||||||||||
Stock-based compensation | 4,621 | 4,621 | |||||||||||||||||||||||
Net tax benefit related to stock-based compensation | (1) | (1) | |||||||||||||||||||||||
Other, net (shares) | (48,000) | ||||||||||||||||||||||||
Other, net | (1,313) | 12 | (1,325) | ||||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2016 | 0 | 35,673,000 | |||||||||||||||||||||||
Ending balance at Dec. 31, 2016 | $ 1,093,298 | $ 0 | $ 366 | 898,989 | (6,374) | 217,494 | 9,766 | (26,943) | |||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Treasury stock retired (in shares) | 168,931 | ||||||||||||||||||||||||
Net income | $ 55,247 | 55,247 | |||||||||||||||||||||||
Other net comprehensive income (loss) | (5,605) | (5,605) | |||||||||||||||||||||||
Total comprehensive income | 49,642 | 55,247 | (5,605) | ||||||||||||||||||||||
Stock issued pursuant to acquisition (shares) | 522,000 | 4,842,000 | |||||||||||||||||||||||
Stock issued pursuant to acquisition | $ 229,233 | $ 40,633 | $ 48 | $ 188,552 | |||||||||||||||||||||
Common stock issued (shares) | 4,638,000 | ||||||||||||||||||||||||
Common stock issued, net of $7.1 million offering costs | 152,984 | $ 46 | 152,938 | ||||||||||||||||||||||
Cash dividends declared on common shares | (33,022) | (33,022) | |||||||||||||||||||||||
Cash dividends declared on preferred shares | (219) | (219) | |||||||||||||||||||||||
Forfeited shares (shares) | (17,000) | ||||||||||||||||||||||||
Forfeited shares | 0 | 102 | 516 | (618) | |||||||||||||||||||||
Exercise of stock options (shares) | 19,000 | ||||||||||||||||||||||||
Exercise of stock options | 329 | (158) | 487 | ||||||||||||||||||||||
Restricted stock grants (shares) | 161,000 | ||||||||||||||||||||||||
Restricted stock grants | 0 | 1,650 | (5,775) | 4,125 | |||||||||||||||||||||
Stock-based compensation | 5,102 | 5,102 | |||||||||||||||||||||||
Other, net (shares) | (26,000) | ||||||||||||||||||||||||
Other, net | (1,083) | 256 | (163) | (1,176) | |||||||||||||||||||||
Ending balance (shares) at Dec. 31, 2017 | 522,000 | 45,290,000 | |||||||||||||||||||||||
Ending balance at Dec. 31, 2017 | $ 1,496,264 | $ 40,633 | $ 460 | $ 1,242,487 | $ (6,531) | $ 239,179 | $ 4,161 | $ (24,125) | |||||||||||||||||
[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 STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, common stock (USD per share) | $ 0.84 | $ 0.80 | $ 0.76 |
Cash dividends declared, preferred stock (USD per share) | $ 0.42 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 55,247 | $ 58,670 | $ 49,518 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 21,025 | 17,362 | 16,726 |
Net amortization of securities | 1,678 | 4,052 | 3,010 |
Net change in unamortized loan origination costs and premium | 2,232 | (4,138) | (961) |
Premises and equipment depreciation and amortization expense | 9,916 | 8,393 | 8,594 |
Stock-based compensation expense | 5,102 | 4,621 | 4,686 |
Accretion of purchase accounting entries, net | (18,189) | (9,407) | (10,074) |
Amortization of other intangibles | 3,493 | 2,927 | 3,563 |
Write down of other real estate owned | 10 | 395 | 480 |
Excess tax loss from stock-based payment arrangements | 0 | (105) | (167) |
Income from cash surrender value of bank-owned life insurance policies | (3,615) | (3,913) | (3,356) |
(Loss) gain on sales of securities, net | (12,598) | 551 | (2,110) |
Net (increase) decrease in loans held for sale | (32,947) | 5,185 | (3,212) |
Loss on disposition of assets | 912 | 1,318 | 3,514 |
(Gain) loss on sale of real estate | (51) | 40 | 191 |
Amortization of tax credits | 8,477 | 8,882 | 11,428 |
Remeasurement of deferred tax asset | 18,145 | 0 | 0 |
Net change in other | 19,254 | 3,309 | 4,458 |
Net cash provided by operating activities | 78,091 | 98,142 | 86,288 |
Cash flows from investing activities: | |||
Net decrease in trading security | 632 | 599 | 570 |
Proceeds from sales of securities available for sale | 188,921 | 421,843 | 41,169 |
Proceeds from maturities, calls and prepayments of securities available for sale | 206,648 | 166,736 | 184,753 |
Purchases of securities available for sale | (498,646) | (400,053) | (285,637) |
Proceeds from maturities, calls and prepayments of securities held to maturity | 12,600 | 7,734 | 8,534 |
Purchases of securities held to maturity | (77,208) | (7,115) | (62,274) |
Net change in loans | (468,331) | (334,347) | (388,091) |
Acquisitions, net of cash paid | 374,611 | (48,180) | 74,324 |
Net cash used for branch sale | 0 | 0 | (11,715) |
Proceeds from surrender of bank-owned life insurance | 310 | 258 | 554 |
Purchase of bank-owned life insurance | (20,000) | 0 | 0 |
Proceeds from sale of Federal Home Loan Bank stock | 96,378 | 19,461 | 2,357 |
Purchase of Federal Home Loan Bank stock | (88,351) | (19,555) | (10,706) |
Proceeds from premises and equipment | 0 | 226 | 2,261 |
Purchase of premises and equipment, net | (12,528) | (9,101) | (7,340) |
Net investment in limited partnership tax credits | (5,102) | (7,616) | (5,105) |
Payment to terminate cash flow hedges | 6,573 | 0 | 0 |
Proceeds from sale of other real estate | 590 | 1,515 | 1,854 |
Net cash used in investing activities | (282,903) | (207,595) | (454,492) |
Cash flows from financing activities: | |||
Net increase in deposits | 418,550 | 140,730 | 475,823 |
Proceeds from Federal Home Loan Bank advances and other borrowings | 5,978,358 | 9,364,599 | 8,566,300 |
Repayments of Federal Home Loan Bank advances and other borrowings | (6,174,781) | (9,365,159) | (8,620,064) |
Issuance of common stock, net of $7.1 million offering costs | 152,985 | 0 | 0 |
Purchase of treasury stock | 0 | 0 | (550) |
Exercise of stock options | 329 | 3,712 | 239 |
Excess tax loss from stock-based payment arrangements | 0 | 0 | 167 |
Cash dividends paid | (33,241) | (24,916) | (21,903) |
Acquisition contingent consideration paid | (1,700) | 0 | 0 |
Net cash provided by financing activities | 340,500 | 118,966 | 400,012 |
Net change in cash and cash equivalents | 135,688 | 9,513 | 31,808 |
Cash and cash equivalents at beginning of year | 113,075 | 103,562 | 71,754 |
Cash and cash equivalents at end of year | 248,763 | 113,075 | 103,562 |
Supplemental cash flow information: | |||
Interest paid on deposits | 43,133 | 28,777 | 22,130 |
Interest paid on borrowed funds | 21,336 | 16,674 | 9,974 |
Income taxes paid, net | 18,323 | 16,229 | 429 |
Acquisition of non-cash assets and liabilities: | |||
Assets acquired | 1,584,786 | 1,169,086 | 948,796 |
Liabilities assumed | (1,959,489) | (965,529) | (762,261) |
Other non-cash changes: | |||
Other net comprehensive (loss) income | (5,605) | 13,071 | (9,884) |
Real estate owned acquired in settlement of loans | $ 490 | $ 340 | $ 2,085 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Statement of Cash Flows [Abstract] | |
Offering costs | $ 7.1 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation 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 Boston, Mass. 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. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Business Combinations Business combinations are accounted for using the acquisition method of accounting. Under this method, the accounts of an acquired entity are included with the acquirer’s accounts as of the date of acquisition with any excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) capitalized as goodwill. To consummate an acquisition, the Company will typically issue common stock and/or pay cash, depending on the terms of the acquisition agreement. The value of common shares issued is determined based upon the market price of the stock as of the closing of the acquisition. Cash and Cash equivalents Cash and cash equivalents include cash, balances due from banks, and short-term investments, all of which had an original maturity within 90 days. Due to the nature of cash and cash equivalents and the near term maturity, the Company estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions. Trading Security The Company accounts for a tax advantaged economic development bond originated in 2008 at fair value, in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320. The bond has been designated as a trading account security and is recorded at fair value, with changes in unrealized gains and losses recorded through earnings each period as part of non-interest income. Securities Debt securities that management has the intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. All other securities, including equity securities with readily determinable fair values, are classified as available for sale and carried at fair value, with unrealized gains and losses reported as a component of other net comprehensive income. Management determines the appropriate classification of securities at the time of purchase. Restricted equity securities, such as stock in the Federal Home Loan Bank of Boston (“FHLBB”) are carried at cost. There are no quoted market prices for the Company’s restricted equity securities. The Bank is a member of the FHLBB, which requires that members maintain an investment in FHLBB stock, which may be redeemed based on certain conditions. The Bank reviews for impairment based on the ultimate recoverability of the cost bases in the FHLBB stock. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates debt and equity securities within the Company’s available for sale and held to maturity portfolios for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. In evaluating its marketable equity securities portfolios for OTTI, the Company considers its intent and ability to hold an equity security to recovery of its cost basis in addition to various other 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 on marketable equity securities is recognized immediately through earnings. Loans Held for Sale Loans originated with the intent to be sold in the secondary market are accounted for under the fair value option. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized in non-interest income or non-interest expense as earned or incurred. Fair value is primarily determined based on quoted prices for similar loans in active markets. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in non-interest income. Loans that were previously held for investment that the Company has an active plan to sell are transferred to loans held for sale at the lower of cost or market (fair value). The market price is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Gains are recorded in non-interest income at sale to the extent that the sale price of the loan exceeds carrying value. Any reduction in the loan’s value, prior to being transferred to loans held for sale, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan losses. Further changes in the fair value of the loan are recognized in non-interest income or expense, accordingly. Loans Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, the unamortized balance of any deferred fees or costs on originated loans and the unamortized balance of any premiums or discounts on loans purchased or acquired through mergers. Interest income is accrued on the unpaid principal balance. Interest income includes net accretion or amortization of deferred fees or costs and of premiums or discounts. Direct loan origination costs, net of any origination fees, in addition to premiums and discounts on loans, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest on loans, excluding automobile loans, is generally not accrued on loans which are ninety days or more past due unless the loan is well-secured and in the process of collection. Past due status is based on contractual terms of the loan. Automobile loans generally continue accruing until one hundred and twenty days delinquent, at which time they are charged off. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income, except for certain loans designated as well-secured. The interest on non-accrual loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All payments received on non-accrual loans are applied against the principal balance of the loan. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Acquired Loans Loans that the Company acquired in acquisitions are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “ Loans and Debt Securities Acquired with Deteriorated Credit Quality, ” the Company recognizes the accretable yield, which is defined as the excess of all cash flows expected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the nonaccretable difference. The nonaccretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. For ASC 310-30 loans, the expected cash flows reflect anticipated prepayments, determined on a loan by loan basis according to the anticipated collection plan of these loans. The expected prepayments used to determine the accretable yield are consistent between the cash flows expected to be collected and projections of contractual cash flows so as to not affect the nonaccretable difference. For ASC 310-30 loans, prepayments result in the recognition of the nonaccretable balance as current period yield. Changes in prepayment assumptions may change the amount of interest income and principal expected to be collected. Interest income is also net of recoveries recorded on acquired impaired loans. ASC310-30 loans that have similar risk characteristics, primarily credit risk, collateral type and interest rate risk, and are homogenous in size, are pooled and accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. ASC 310-30 loans that cannot be aggregated into a pool are accounted for individually. After we acquire loans determined to be accounted for under ASC 310-30, actual cash collections are monitored to determine if they conform to management’s expectations. Revised cash flow expectations are prepared each quarter. A decrease in expected cash flows in subsequent periods may indicate impairment and would require us to establish an allowance for loan and lease losses (“ALLL”) by recording a charge to the provision for loan and lease losses. An increase in expected cash flows in subsequent periods initially reduces any previously established ALLL by the increase in the present value of cash flows expected to be collected, and requires us to recalculate the amount of accretable yield for the ASC 310-30 loan or pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the ASC 310-30 loan or pool. An ASC 310-30 loan may be derecognized either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, foreclosure of the collateral, or charge-off. If one of these events occurs, the loan is removed from the loan pool, or derecognized if it is accounted for as an individual loan. ASC 310-30 loans subject to modification are not removed from an ASC 310-30 pool even if those loans would otherwise be deemed troubled debt restructurings (“TDRs”) since the pool, and not the individual loan, represents the unit of account. Individually accounted for ASC 310-30 loans that are modified in a TDR are no longer classified as ASC 310-30 loans and are subject to TDR recognition. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. The Company has determined that the Company can reasonably estimate future cash flows on the Company’s current portfolio of acquired loans that are past due 90 days or more and on which the Company is accruing interest and the Company expects to fully collect the carrying value of the loans. For loans that do not meet the ASC 310-30 criteria, the Company accretes interest income based on the contractually required cash flows. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans. Allowance for Loan Losses The allowance for loan losses is established based upon the level of estimated probable incurred losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses includes allowance allocations calculated in accordance with ASC 310, “Receivables,” and allowance allocations calculated in accordance with ASC 450, “Contingencies.” The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors derived from actual historical and industry portfolio loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Allowance amounts are based on an estimate of historical average annual percentage rate of loan loss for each loan segment, a temporal estimate of the incurred loss emergence and confirmation period for each loan category, and certain qualitative risk factors considered in the computation of the allowance for loan losses. Qualitative risk factors impacting the inherent risk of loss within the portfolio include the following: • National and local economic conditions, regulatory/legislative changes, or other competitive factors affecting the collectability of the portfolio • Trends in underwriting characteristics, composition of the portfolio, and/or asset quality • Changes in underwriting standards and/or collection, charge off, recovery, and account management practice • The existence and effect of any concentrations of credit Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate — Loans in this segment are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans. In addition, construction loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions Commercial and industrial loans — Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential mortgage — All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Consumer loans — Loans in this segment are primarily home equity lines of credit and second mortgages, together with automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. The Company utilizes a blend of historical and industry portfolio loss rates for commercial real estate and commercial and industrial loans that are assessed by internal risk rating. Historical loss rates for residential mortgages, home equity and other consumer loans are not risk graded but are assessed based on the total of each loan segment. This approach incorporates qualitative adjustments based upon management’s assessment of various market and portfolio specific risk factors into its formula-based estimate. Due to the imprecise nature of the loan loss estimation process and ever changing conditions, the qualitative risk attributes may not adequately capture amounts of incurred loss in the formula-based loan loss components used to determine allocations in the Company’s analysis of the adequacy of the allowance for loan losses. The Company evaluates certain loans individually for specific impairment. Large groups of small balance homogeneous loans such as the residential mortgage, home equity, and other consumer portfolios are collectively evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification, or non-accrual status. The evaluation of certain loans individually for specific impairment includes non-accrual loans over a threshold and loans that were determined to be Troubled Debt Restructurings (“TDRs”). A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows or the loan’s observable fair market value, or the fair value of the collateral less costs to sell, if the loan is collateral dependent. However, for collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. Regarding acquired loans, the Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450-20 by collectively evaluating these loans for an allowance for loan loss. The Company applies a methodology similar to the methodology prescribed for business activities loans, which includes the application of environmental factors to each category of loans. The methodology to collectively evaluate the acquired loans outside the scope of ASC 310-30 includes the application of a number of environmental factors that reflect management’s best estimate of the level of incremental credit losses that might be recognized given current conditions. This is reviewed as part of the allowance for loan loss adequacy analysis. As the loan portfolio matures and environmental factors change, the loan portfolio will be reassessed each quarter to determine an appropriate reserve allowance. Additionally, the Company considers the need for an additional reserve for acquired loans accounted for outside of the scope of ASC 310-30 under ASC 310-20. At acquisition date, the Bank determined a fair value mark with credit and interest rate components. Under the Company’s model, the impairment evaluation process involves comparing the carrying value of acquired loans, including the unamortized premium or discount, to the calculated reserve allowance. If necessary, the Company books an additional reserve to account for shortfalls identified through this calculation. 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. Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes. Foreclosed and Repossessed Assets Other real estate owned is comprised of real estate acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Repossessed collateral is primarily comprised of aircraft, motor vehicles, and taxi medallions. Both other real estate owned and repossessed collateral are held for sale and are initially recorded at the fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. The shortfall, if any, of the loan balance over the fair value of the property or collateral, less cost to sell, at the time of transfer from loans to other real estate owned or repossessed collateral is charged to the allowance for loan losses. Subsequent to transfer, the asset is carried at lower of cost or fair value less cost to sell and periodically evaluated for impairment. Subsequent impairments in the fair value of other real estate owned and repossessed collateral are charged to expense in the period incurred. Net operating income or expense related to other real estate owned and repossessed collateral is included in operating expenses in the accompanying consolidated statements of income. Because of changing market conditions, there are inherent uncertainties in the assumptions with respect to the estimated fair value of other real estate owned and repossessed collateral. Because of these inherent uncertainties, the amount ultimately realized on other real estate owned and repossessed collateral may differ from the amounts reflected in the consolidated financial statements. Capitalized Servicing Rights Capitalized servicing rights are included in “other assets” in the consolidated balance sheet. Servicing assets are initially recognized as separate assets at fair value when rights are acquired through purchase or through sale of financial assets with servicing retained. The Company's servicing rights accounted for under the fair value method are carried on the consolidated balance sheet at fair value with changes in fair value recorded in income in the period in which the change occurs. Changes in the fair value of servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company’s servicing rights accounted for under the amortization method are initially recorded at fair value. Under that method, capitalized servicing rights are charged to expense in proportion to and over the period of estimated net servicing income. Fair value of the servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds and default rates and losses. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Premises and Equipment Land is carried at cost. Buildings, improvements, and equipment are carried at cost less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the shorter of the lease term, plus optional terms if certain conditions are met, or the estimated useful life of the asset. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is assessed annually for impairment, and more frequently if events or changes in circumstances indicate that there may be an impairment. Adverse changes in the economic environment, declining operations, unanticipated competition, loss of key personnel, or other factors could result in a decline in the implied fair value of goodwill. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other non-interest expense to reduce the carrying amount to the implied fair value of goodwill. The Company performs an annual qualitative assessment of whether it is more likely than not that the reporting unit's fair value is less than its carrying amount. If the results of the qualitative assessment suggest goodwill impairment, the Company would perform a two-step impairment test through the application of various quantitative valuation methodologies. Step 1, used to identify instances of potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount, including goodwill, exceeds its fair value, the second step of the goodwill impairment analysis is performed to measure the amount of impairment loss, if any. Step 2 of the goodwill impairment analysis compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for the reporting unit exceeds the implied fair value of the reporting unit’s goodwill, an impairment loss is recognized in an amount equal to that excess. Subsequent reversals of goodwill impairment are prohibited. The Company may elect to bypass the qualitative assessment and begin with Step 1. Other Intangibles Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. The fair values of these assets are generally determined based on appraisals and are subsequently amortized on a straight-line basis or an accelerated basis over their estimated lives. Management assesses the recoverability of these intangible assets whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount exceeds fair value, an impairment charge is recorded to income. Transfers of Financial Assets Transfers of an entire financial asset, group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable for future years to differences between financial statement and tax bases of existing assets and liabilities. The effect of tax rate changes on deferred taxes is recognized in the income tax provision in the period that includes the enactment date. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely than not that some or all of the deferred tax asset allowances will not be needed, the valuation allowance will be adjusted. In the ordinary course of business there is inherent uncertainty in quantifying the Company’s income tax positions. Income tax positions and recorded tax benefits are based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be recognized by estimating the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is more-likely-than-not that a tax benefit will not be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Insurance Commissions Commission revenue is recognized as of the effective date of the insurance policy or the date the customer is billed, whichever is later, net of return commissions related to policy cancellations. In addition, the Company may receive additional performance commissions based on achieving certain sales and loss experience measures. Such commissions are recognized when determinable, which is generally when such commissions are received or when the Company receives data from the insurance companies that allows the reasonable estimation of these amounts. Advertising Costs Advertising costs are expensed as incurred. Stock-Based Compensation The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. The fair value of restricted stock is recorded as unearned compensation. The deferred expense is amortized to compensation expense based on one of several permitted attribution methods over the longer of the required service period or performance period. For performance-based restricted stock awards, the Company estimates the degree to which performance conditions will be met to determine the number of shares that will vest and the related compensation expense. Compensation expense is adjusted in the period such estimates change. Income tax benefits and/or tax deficiencies related to stock compensation determined as the difference between compensation cost recognized for financial reporting purposes and the deduction for tax, are recognized in the income statement as income tax expense or benefit in the period in which they occur. Wealth Management Wealth management assets held in a fiduciary or agent capacity are not included in the accompanying consolidated balance sheets because they are not assets of the Company. Fees earned from wealth management activities are amortized over the pe |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Commerce Bank At the close of business on October 13, 2017, the Company completed the acquisition of Commerce Bancshares Corp. (“Commerce”), the parent company of Commerce Bank & Trust Company (“Commerce Bank”). Commerce Bank also merged with and into Berkshire Bank. Headquartered in Worcester, Mass., Commerce Bank operated 16 branch banking offices providing a range of services in Central Massachusetts and greater Boston. With this agreement, the Company established a market position in Worcester, New England’s second largest city. Additionally, this acquisition was a catalyst for the Company’s decision to relocate its corporate headquarters to Boston and to expand its Greater Boston market initiatives. This acquisition also increased the Company’s total assets over the $10 billion Dodd Frank Act threshold for additional regulatory requirements. As established by the merger agreement, each of the 6.328 million outstanding shares of Commerce common stock was converted into the right to receive 0.93 shares of the Company's common stock, plus cash in lieu of fractional shares. Certain Commerce common stock was instead converted into the right to receive 0.465 shares of new Series B preferred stock (non-voting) issued by the Company, pursuant to limited circumstances established by the merger agreement. Each preferred share is convertible into two shares of the Company's common stock under specified conditions. As of close of business on October 13, 2017, the Company issued 4.842 million common shares and 522 thousand preferred shares as merger consideration, pursuant to the merger agreement. The value of this consideration was measured at $188.6 million for the common stock and $40.6 million for the preferred stock based on the $38.95 closing price of the Company’s common stock on the issuance date. Pursuant to the Merger Agreement, the Commerce Bancshares 2010 Long-Term Incentive Plan was terminated prior to the acquisition date and the holder of a phantom stock award, whether or not vested, received an amount of cash determined by multiplying (i) the excess, if any, of $34.00 less the applicable per share exercise price of that Commerce phantom stock award by (ii) the number of shares of Commerce common stock subject to that Commerce phantom stock award, less any required tax withholding. Prior to the effective time of the merger, Commerce accelerated and repaid in full the Commerce subordinated debt per the merger agreement. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Accordingly, the Company recognizes amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair value, with any excess of purchase consideration over the net assets being reported as goodwill. Due to the complexity in valuing the acquired loans and the significant amount of data inputs required, the valuation of the loans is not yet final. Fair value estimates are based on the information available, and are subject to change for up to one year after the closing date of the acquisition as additional information relative to the closing date fair values becomes available. Management continues to review initial estimates on certain areas such as loan valuations and the deferred tax asset. 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: Fair Value As Recorded by (in thousands) As Acquired Adjustments the Company Consideration Paid: Company common stock issued to Commerce common shareholders $ 188,599 Company preferred stock issued to certain Commerce shareholders 40,633 Cash in lieu paid to Commerce shareholders 1 Total consideration paid $ 229,233 Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: Cash and short-term investments $ 374,611 $ — $ 374,611 Investment securities 115,274 (1,427 ) (a) 113,847 Loans, net 1,327,256 (86,505 ) (b) 1,240,751 Premises and equipment 8,931 5,346 (c) 14,277 Core deposit intangibles — 22,400 (d) 22,400 Deferred tax assets, net 7,956 26,580 (e) 34,536 Goodwill and other intangibles 11,233 (11,233 ) (f) — Other assets 52,709 (3,664 ) (g) 49,045 Deposits (1,710,872 ) (1,180 ) (h) (1,712,052 ) Borrowings (19,542 ) — (19,542 ) Other liabilities (5,086 ) 265 (4,821 ) Total identifiable net assets $ 162,470 $ (49,418 ) $ 113,052 Goodwill $ 116,181 ________________________________ Explanation of Certain Fair Value Adjustments (a) The adjustment represents the write down of the book value of securities to their estimated fair value at the date of acquisition. (b) The adjustment represents the write-off of $15.0 million in allowance for loan and lease losses and the write down of the book value of loans to their estimated fair value based on interest rates and expected cash flows as of the acquisition date, which includes an estimate of expected loan loss inherent in the portfolio. The valuation of the loans is provisional. Loans with evidence of credit deterioration at acquisition are accounted for under ASC 310-30 and had a book value of $163.1 million and had a fair value of $71.1 million . Non-impaired loans accounted for under ASC 310-20 had a book value of $1.18 billion and have a fair value of $1.17 billion . ASC 310-30 loans have a $10.8 million fair value adjustment that is accretable in earnings. ASC 310-20 loans have a $4.0 million fair value adjustment premium that is amortized over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The adjustment represents an increased fair value based on the appraised value of Commerce’s owned branches and headquarters comprised of $5.7 million for buildings and $0.7 million for land. This was offset by a $1.0 million reduction of the book value of furniture, fixtures, and equipment, to their estimated fair value and the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The adjustments will be depreciated over the remaining estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized over the estimated useful life of the deposit base ( 10 years ). (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) Represents the write-off of goodwill and intangible assets from a prior Commerce acquisition. (g) The adjustment includes a $3.5 million write-down of repossessed assets based on market report data. (h) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized over the estimated useful life of nine months. Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, the Company estimated fair value by analyzing the value of the underlying collateral of the loans, assuming the fair values of the loans were derived from the eventual sale of the collateral. Those values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of the seller’s allowance for credit losses associated with the loans acquired, as the loans were initially recorded at fair value. Provisional information about the Commerce Bank acquired loan portfolio subject to ASC 310-30 as of October 13, 2017 is as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 163,125 Contractual cash flows not expected to be collected (nonaccretable discount) (81,205 ) Expected cash flows at acquisition 81,920 Interest component of expected cash flows (accretable discount) (10,815 ) Fair value of acquired loans $ 71,105 Capitalized goodwill, which is not amortized for book purposes, is not deductible for tax purposes. Direct acquisition and integration costs of the Commerce Bank acquisition were expensed as incurred, and totaled $17.8 million during the twelve months ending December 31, 2017 and there were none for the same period of 2016. Pro Forma Information (unaudited) The following table presents selected unaudited pro forma financial information reflecting the acquisition of Commerce assuming the acquisition was completed as of January 1, 2016. The unaudited pro forma financial information includes adjustments for scheduled amortization and accretion of fair value adjustments. These adjustments would have been different if they had been recorded on January 1, 2016, 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 the acquisition 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. The unaudited pro forma information is based on the actual financial statements of Berkshire and the acquired business for the periods shown until the dates of acquisition, at which time the acquired business operations became included in Berkshire’s financial statements. For whole-bank acquisitions, the Company has determined it is impractical to report the amounts of revenue and earnings of each entity since acquisition date. Due to the integration of their operations with those of the organization, the Company does not record revenue and earnings separately. The revenue and earnings of Commerce’s operations are included in the Consolidated Statement of Income. The unaudited pro forma information, for the twelve months ended December 31, 2017 and 2016, set forth below reflects adjustments related to (a) amortization and accretion of purchase accounting fair value adjustments; (b) amortization of core deposit and customer relationship intangibles; and (c) an estimated tax rate of 40 percent . Direct acquisition expenses incurred by the Company during 2017, 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) 2017 2016 Net interest income $ 344,797 $ 302,012 Non-interest income 134,818 77,192 Income available to common shareholders 77,340 78,859 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, amounts due from banks, and short-term investments with original maturities of 90 days or less. Short-term investments included $2.1 million and $0.9 million pledged as collateral support for derivative financial contracts at year-end 2017 and 2016, respectively. The Federal Reserve Bank requires the Bank to maintain certain reserve requirements of vault cash and/or deposits. The reserve requirement, included in cash and equivalents, was $20.4 million and $17.0 million at year-end 2017 and 2016, respectively. |
TRADING SECURITY
TRADING SECURITY | 12 Months Ended |
Dec. 31, 2017 | |
Trading Securities [Abstract] | |
TRADING SECURITY | TRADING SECURITY The Company holds a tax advantaged economic development bond that is being accounted for at fair value. The security had an amortized cost of $10.8 million and $11.4 million and a fair value of $12.3 million and $13.2 million at year-end 2017 and 2016, respectively. Unrealized (losses) gains recorded through income on this security totaled ($0.3) million , ($0.4) million , and ($0.2) million for 2017, 2016, and 2015, respectively. As discussed further in Note 16 - Derivative 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 year-end 2017 and 2016. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following is a summary of securities available for sale (“AFS”) and securities held to maturity (“HTM”): (In thousands) Amortized Gross Gross Fair Value December 31, 2017 Securities available for sale Debt securities: Municipal bonds and obligations $ 113,427 $ 5,012 $ (206 ) $ 118,233 Agency collateralized mortgage obligations 859,705 397 (8,944 ) 851,158 Agency mortgage-backed securities 218,926 279 (2,265 ) 216,940 Agency commercial mortgage-backed securities 64,025 41 (1,761 ) 62,305 Corporate bonds 110,076 882 (237 ) 110,721 Trust preferred securities 11,334 343 — 11,677 Other bonds and obligations 9,757 154 (31 ) 9,880 Total debt securities 1,387,250 7,108 (13,444 ) 1,380,914 Marketable equity securities 36,483 9,211 (509 ) 45,185 Total securities available for sale 1,423,733 16,319 (13,953 ) 1,426,099 Securities held to maturity Municipal bonds and obligations 270,310 8,675 (90 ) 278,895 Agency collateralized mortgage obligations 73,742 1,045 (486 ) 74,301 Agency mortgage-backed securities 7,892 — (164 ) 7,728 Agency commercial mortgage-backed securities 10,481 — (268 ) 10,213 Tax advantaged economic development bonds 34,357 596 (1,135 ) 33,818 Other bonds and obligations 321 — — 321 Total securities held to maturity 397,103 10,316 (2,143 ) 405,276 Total $ 1,820,836 $ 26,635 $ (16,096 ) $ 1,831,375 December 31, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 117,910 $ 2,955 $ (1,049 ) $ 119,816 Agency collateralized mortgage obligations 652,680 2,522 (3,291 ) 651,911 Agency mortgage-backed securities 230,308 557 (2,181 ) 228,684 Agency commercial mortgage-backed securities 65,673 229 (1,368 ) 64,534 Corporate bonds 56,320 408 (722 ) 56,006 Trust preferred securities 11,578 368 (59 ) 11,887 Other bonds and obligations 10,979 195 (16 ) 11,158 Total debt securities 1,145,448 7,234 (8,686 ) 1,143,996 Marketable equity securities 47,858 19,296 (1,613 ) 65,541 Total securities available for sale 1,193,306 26,530 (10,299 ) 1,209,537 Securities held to maturity Municipal bonds and obligations 203,463 3,939 (2,416 ) 204,986 Agency collateralized mortgage-backed securities 75,655 1,281 (411 ) 76,525 Agency mortgage-backed securities 9,102 — (243 ) 8,859 Agency commercial mortgage-backed securities 10,545 — (434 ) 10,111 Tax advantaged economic development bonds 35,278 1,596 — 36,874 Other bonds and obligations 325 — — 325 Total securities held to maturity 334,368 6,816 (3,504 ) 337,680 Total $ 1,527,674 $ 33,346 $ (13,803 ) $ 1,547,217 At year-end 2017 and 2016, accumulated net unrealized gains on AFS securities included in accumulated other comprehensive income were $2.3 million and $16.2 million , respectively. At year-end 2017 and 2016, accumulated net unrealized gains on HTM securities included in accumulated other comprehensive income were $7.7 million and $9.0 million respectively. The year-end 2017 and 2016 related income tax benefit of $4.0 million and $9.6 million , respectively, was also included in accumulated other comprehensive income. The amortized cost and estimated fair value of available for sale (AFS) and held to maturity (HTM) securities, segregated by contractual maturity at year-end 2017 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities and collateralized mortgage obligations 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 (In thousands) Amortized Fair Amortized Fair Within 1 year $ 622 $ 623 $ 1,261 $ 1,261 Over 1 year to 5 years 32,659 32,972 25,892 26,422 Over 5 years to 10 years 75,261 76,745 8,752 8,917 Over 10 years 136,052 140,171 269,083 276,434 Total bonds and obligations 244,594 250,511 304,988 313,034 Marketable equity securities 36,483 45,185 — — Mortgage-backed securities 1,142,656 1,130,403 92,115 92,242 Total $ 1,423,733 $ 1,426,099 $ 397,103 $ 405,276 At year-end 2017 and 2016, the Company had pledged securities as collateral for certain municipal deposits and for interest rate swaps with certain counterparties. The total amortized cost and fair values of these pledged securities follows. Additionally, there is a blanket lien on certain securities to collateralize borrowings from the FHLBB, as discussed further in Note 12 - Borrowed Funds. 2017 2016 (In thousands) Amortized Fair Amortized Fair Securities pledged to swap counterparties $ 24,410 $ 24,240 $ 51,292 $ 51,290 Securities pledged for municipal deposits 210,382 214,513 147,950 148,435 Total $ 234,792 $ 238,753 $ 199,242 $ 199,725 Proceeds from the sale of AFS securities in 2017, 2016, and 2015 were $188.9 million , $421.8 million , and $41.2 million , respectively. The components of net realized gains and losses on the sale of AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income and into earnings: (In thousands) 2017 2016 2015 Gross realized gains $ 13,877 $ 2,762 $ 4,567 Gross realized losses (1,279 ) (3,313 ) (2,457 ) Net realized gains/(losses) $ 12,598 $ (551 ) $ 2,110 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 (In thousands) Gross Fair Gross Fair Gross Fair December 31, 2017 Securities available for sale Debt securities: Municipal bonds and obligations $ — $ — $ 206 $ 8,985 $ 206 $ 8,985 Agency collateralized mortgage obligations 6,849 655,479 2,095 80,401 8,944 735,880 Agency mortgage-backed securities 765 95,800 1,500 65,323 2,265 161,123 Agency commercial mortgage-back securities 334 17,379 1,427 39,268 1,761 56,647 Corporate bonds 1 328 236 15,769 237 16,097 Trust preferred securities — — — — — — Other bonds and obligations 11 1,096 20 2,004 31 3,100 Total debt securities 7,960 770,082 5,484 211,750 13,444 981,832 Marketable equity securities 509 3,731 — — 509 3,731 Total securities available for sale $ 8,469 $ 773,813 $ 5,484 $ 211,750 $ 13,953 $ 985,563 Securities held to maturity Municipal bonds and obligations 35 10,213 55 2,059 90 12,272 Agency collateralized mortgage obligations — — 486 12,946 486 12,946 Agency mortgage-backed securities — — 164 7,728 164 7,728 Agency commercial mortgage-back securities — — 268 10,213 268 10,213 Tax advantaged economic development bonds 1,135 7,305 — — 1,135 7,305 Total securities held to maturity 1,170 17,518 973 32,946 2,143 50,464 Total $ 9,639 $ 791,331 $ 6,457 $ 244,696 $ 16,096 $ 1,036,027 December 31, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 1,049 $ 13,839 $ — $ — $ 1,049 $ 13,839 Agency collateralized mortgage obligations 3,291 319,448 — — 3,291 319,448 Agency mortgage-backed securities 2,153 130,766 28 2,061 2,181 132,827 Agency commercial mortgage-backed securities 1,368 44,860 — — 1,368 44,860 Corporate bonds 11 4,780 711 19,655 722 24,435 Trust preferred securities — — 59 1,204 59 1,204 Other bonds and obligations 15 3,014 1 27 16 3,041 Total debt securities 7,887 516,707 799 22,947 8,686 539,654 Marketable equity securities 157 6,600 1,456 5,927 1,613 12,527 Total securities available for sale $ 8,044 $ 523,307 $ 2,255 $ 28,874 $ 10,299 $ 552,181 Securities held to maturity Municipal bonds and obligations 2,416 69,308 — — 2,416 69,308 Agency collateralized mortgage obligations 411 14,724 — — 411 14,724 Agency mortgage-backed securities 243 8,859 — — 243 8,859 Agency commercial mortgage-back securities 434 10,111 — — 434 10,111 Total securities held to maturity 3,504 103,002 — — 3,504 103,002 Total $ 11,548 $ 626,309 $ 2,255 $ 28,874 $ 13,803 $ 655,183 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 December 31, 2017, 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 historical 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 did not maintain other-than-temporary impairment ("OTTI") at year-end 2017: AFS municipal bonds and obligations At year-end 2017, 6 out of the total 260 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 2.3% 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 that the bonds in this portfolio carry minimal risk of default and that the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during 2017. All securities are performing. AFS collateralized mortgage obligations At year-end 2017, 179 out of the total 234 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 1.2% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), and Government National Mortgage Association ("GNMA") guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during 2017. All securities are performing. AFS commercial and residential mortgage-backed securities At year-end 2017, 58 out of the total 103 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 1.8% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during 2017. All securities are performing. AFS corporate bonds At year-end 2017, 1 out of the total 20 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. The aggregate unrealized loss represents 1.5% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. AFS other bonds and obligations At year-end 2017, 6 out of the total 9 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 1.0% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during 2017. All securities are performing. HTM Municipal bonds and obligations At year-end 2017, 12 out of the total 231 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.7% 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 that the bonds in this portfolio carry minimal risk of default and that the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during 2017. All securities are performing. HTM collateralized mortgage obligations At year-end 2017, 1 out of the total 9 securities in the Company’s portfolio of HTM collateralized mortgage obligations was in unrealized loss positions. Aggregate unrealized losses represented 3.6% 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 collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during 2017. All securities are performing. HTM commercial and residential mortgage-backed securities At year-end 2017, 2 out of the total 2 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 2.4% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantees the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during 2017. All securities are performing. HTM tax-advantaged economic development bonds At year-end 2017, 1 out of the total 7 securities in the Company’s portfolio of tax advantaged economic development bonds were in an unrealized loss position. Aggregate unrealized losses represented 13.4% of the amortized cost of the security in an unrealized loss position. The above mentioned tax advantaged economic bond was downgraded to special mention during the year. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing. Marketable Equity Securities In evaluating its marketable equity securities portfolio for OTTI, the Company considers its ability to more likely than not hold an equity security to recovery. The Company additionally considers other various factors including the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer. Any OTTI is recognized immediately through earnings. At year-end 2017, 2 out of the total 20 securities in the Company’s portfolio of marketable equity securities were in unrealized loss positions. The unrealized loss represented 11.3% of the amortized cost of the securities. The Company has the ability and intent to hold the securities until a recovery of their cost basis and does not consider the securities other-than-temporarily impaired at year-end 2017. 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 | 12 Months Ended |
Dec. 31, 2017 | |
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. 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 consumer loan classes. 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 Massachusetts, southern Vermont, northeastern New York, New Jersey, 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 Commerce Bank, First Choice Bank, 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. Once the full integration of the acquired entity is complete, acquired and business activity loans are serviced, managed, and accounted for under the Company's same control environment. The following is a summary of total loans: December 31, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction $ 181,371 $ 84,965 $ 266,336 $ 253,302 $ 34,207 $ 287,509 Single and multi-family 217,083 206,082 423,165 191,819 125,672 317,491 Other commercial real estate 1,819,253 755,988 2,575,241 1,481,223 530,215 2,011,438 Total commercial real estate 2,217,707 1,047,035 3,264,742 1,926,344 690,094 2,616,438 Commercial and industrial loans 1,182,569 621,370 1,803,939 908,102 153,936 1,062,038 Total commercial loans 3,400,276 1,668,405 5,068,681 2,834,446 844,030 3,678,476 Residential mortgages: 1-4 family 1,808,024 289,373 2,097,397 1,583,794 297,355 1,881,149 Construction 5,177 233 5,410 11,178 804 11,982 Total residential mortgages 1,813,201 289,606 2,102,807 1,594,972 298,159 1,893,131 Consumer loans: Home equity 294,954 115,227 410,181 313,521 80,279 393,800 Auto and other 603,767 113,902 717,669 478,368 106,012 584,380 Total consumer loans 898,721 229,129 1,127,850 791,889 186,291 978,180 Total loans $ 6,112,198 $ 2,187,140 $ 8,299,338 $ 5,221,307 $ 1,328,480 $ 6,549,787 Total unamortized net costs and premiums included in the year-end total loans for business activity loans were the following: (In thousands) December 31, 2017 December 31, 2016 Unamortized net loan origination costs $ 24,669 $ 21,972 Unamortized net premium on purchased loans 4,311 4,849 Total unamortized net costs and premiums $ 28,980 $ 26,821 The Company occasionally transfers a portion of its originated commercial loans to participating lending partners. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying consolidated balance sheets. The Company and its lending partners share proportionally in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans, collects cash payments from the borrowers, remits payments (net of servicing fees), and disburses required escrow funds to relevant parties. At year-end 2017 and 2016, the Company was servicing loans for participants totaling $1.8 billion and $0.5 billion , respectively. In 2017, the Company purchased loans aggregating $500.9 million and sold loans aggregating $514.5 million . In 2016, the Company purchased loans aggregating $190.8 million and sold loans aggregating $307.7 million . Net gains (losses) on sales of loans were $11.7 million , $8.0 million , and $6.0 million for the years 2017, 2016, and 2015, respectively. These amounts are included in Loan Related Income on the Consolidated Statement of Income. Most of the Company’s lending activity occurs within its primary markets in Massachusetts, Southern Vermont, and Northeastern New York. Most of the loan portfolio is secured by real estate, including residential mortgages, commercial mortgages, and home equity loans. Year-end loans to operators of non-residential buildings totaled $1.3 billion , or 15.8% , and $1.1 billion , or 16.8% of total loans in 2017 and 2016, respectively. There were no other concentrations of loans related to any single industry in excess of 10% of total loans at year-end 2017 or 2016. At year-end 2017, the Company had pledged loans totaling $350.7 million to the Federal Reserve Bank of Boston as collateral for certain borrowing arrangements. Also, residential first mortgage loans are subject to a blanket lien for FHLBB advances. See Note 12 - Borrowed Funds. At year-end 2017 and 2016, the Company’s commitments outstanding to related parties totaled $50.8 million and $38.7 million , respectively, and the loans outstanding against these commitments totaled $44.1 million and $25.6 million , respectively. Related parties include directors and executive officers of the Company and its subsidiaries, as well as their respective affiliates in which they have a controlling interest and immediate family members. For the years 2017 and 2016, all related party loans were performing. The carrying amount of the acquired loans at December 31, 2017 totaled $2.2 billion . A subset of these loans was determined to have evidence of credit deterioration at acquisition date, which is accounted for in accordance with ASC 310-30. These purchased credit-impaired loans presently maintain a carrying value of $97.3 million . These loans are evaluated for impairment through the quarterly reforecasting of expected cash flows. Of the $97.3 million , $53.3 million are Commercial Real Estate, $34.6 million are Commercial and Industrial loans, $7.0 million are Residential Mortgages, and $2.4 million are Consumer loans. The carrying amount of the acquired loans at December 31, 2016 totaled $1.3 billion . A subset of these loans was determined to have evidence of credit deterioration at acquisition date, which is accounted for in accordance with ASC 310-30. These purchased credit-impaired loans maintained a carrying value of $46.8 million . Of the $46.8 million , $34.8 million were Commercial Real Estate, $3.4 million were Commercial and Industrial loans, $7.3 million were Residential Mortgages, and $1.3 million were Consumer loans. The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality : (In thousands) 2017 2016 2015 Balance at beginning of period $ 8,738 $ 6,925 $ 2,541 Acquisitions 10,815 6,125 4,777 Reclassification from nonaccretable difference for loans with improved cash flows (23 ) 2,488 3,640 Changes in expected cash flows that do not affect nonaccretable difference (2,380 ) (3,018 ) — Reclassification to TDR — (185 ) — Accretion (5,589 ) (3,597 ) (4,033 ) Balance at end of period $ 11,561 $ 8,738 $ 6,925 The following is a summary of past due loans at December 31, 2017 and 2016: Business Activities Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Current Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 181,371 $ 181,371 $ — Single and multi-family — — 451 451 216,632 217,083 — Commercial real estate 1,925 48 5,023 6,996 1,812,257 1,819,253 457 Total 1,925 48 5,474 7,447 2,210,260 2,217,707 457 Commercial and industrial loans Total 4,031 1,912 6,023 11,966 1,170,603 1,182,569 128 Residential mortgages: 1-4 family 2,412 242 2,186 4,840 1,803,184 1,808,024 520 Construction — — — — 5,177 5,177 — Total 2,412 242 2,186 4,840 1,808,361 1,813,201 520 Consumer loans: Home equity 444 1,235 1,747 3,426 291,528 294,954 120 Auto and other 3,389 599 1,597 5,585 598,182 603,767 143 Total 3,833 1,834 3,344 9,011 889,710 898,721 263 Total $ 12,201 $ 4,036 $ 17,027 $ 33,264 $ 6,078,934 $ 6,112,198 $ 1,368 Business Activities Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Current Total Loans Past Due > December 31, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 253,302 $ 253,302 $ — Single and multi-family 618 110 624 1,352 190,467 191,819 155 Commercial real estate 481 2,243 4,212 6,936 1,474,287 1,481,223 — Total 1,099 2,353 4,836 8,288 1,918,056 1,926,344 155 Commercial and industrial loans Total 3,090 1,301 6,290 10,681 897,421 908,102 5 Residential mortgages: 1-4 family 1,393 701 4,179 6,273 1,577,521 1,583,794 1,956 Construction 10 — — 10 11,168 11,178 — Total 1,403 701 4,179 6,283 1,588,689 1,594,972 1,956 Consumer loans: Home equity 99 — 2,981 3,080 310,441 313,521 306 Auto and other 2,483 494 968 3,945 474,423 478,368 16 Total 2,582 494 3,949 7,025 784,864 791,889 322 Total $ 8,174 $ 4,849 $ 19,254 $ 32,277 $ 5,189,030 $ 5,221,307 $ 2,438 Acquired Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Acquired Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 7,655 $ 84,965 $ — Single and multi-family 671 — 203 874 2,846 206,082 — Commercial real estate 816 1,875 2,156 4,847 42,801 755,988 109 Total 1,487 1,875 2,359 5,721 53,302 1,047,035 109 Commercial and industrial loans Total 1,252 268 1,439 2,959 34,629 621,370 23 Residential mortgages: 1-4 family 957 2,581 1,247 4,785 6,974 289,373 30 Construction — — — — — 233 — Total 957 2,581 1,247 4,785 6,974 289,606 30 Consumer loans: Home equity 286 40 1,965 2,291 1,956 115,227 — Auto and other 346 135 430 911 483 113,902 38 Total 632 175 2,395 3,202 2,439 229,129 38 Total $ 4,328 $ 4,899 $ 7,440 $ 16,667 $ 97,344 $ 2,187,140 $ 200 Acquired Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Acquired Total Loans Past Due > December 31, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 47 $ 34,207 $ — Single and multi-family 2 — 437 439 4,726 125,672 — Commercial real estate 1,555 — 765 2,320 30,047 530,215 — Total 1,557 — 1,202 2,759 34,820 690,094 — Commercial and industrial loans: Total 1,850 15 1,262 3,127 3,369 153,936 24 Residential mortgages: 1-4 family 321 343 2,015 2,679 7,283 297,355 443 Construction — — — — — 804 — Total 321 343 2,015 2,679 7,283 298,159 443 Consumer loans: Home equity 753 — 870 1,623 957 80,279 353 Auto and other 542 314 1,686 2,542 387 106,012 791 Total 1,295 314 2,556 4,165 1,344 186,291 1,144 Total $ 5,023 $ 672 $ 7,035 $ 12,730 $ 46,816 $ 1,328,480 $ 1,611 The following is summary information pertaining to non-accrual loans at year-end 2017 and 2016: December 31, 2017 December 31, 2016 (In thousands) Business Activities Acquired Loans (1) Total Business Activities Acquired Loans (2) Total Commercial real estate: Construction — — — — — — Single and multi-family 451 203 654 469 437 906 Other commercial real estate 4,566 2,047 6,613 4,212 765 4,977 Total 5,017 2,250 7,267 4,681 1,202 5,883 Commercial and industrial loans: Total 5,895 1,333 7,228 6,285 1,155 7,440 Residential mortgages: 1-4 family $ 1,666 $ 1,217 $ 2,883 $ 2,223 $ 1,572 $ 3,795 Construction — — — — — — Total 1,666 1,217 2,883 2,223 1,572 3,795 Consumer loans: Home equity 1,627 1,965 3,592 2,675 517 3,192 Auto and other 1,454 392 1,846 952 895 1,847 Total 3,081 2,357 5,438 3,627 1,412 5,039 Total non-accrual loans $ 15,659 $ 7,157 $ 22,816 $ 16,816 $ 5,341 $ 22,157 (1) At year-end 2017, acquired credit impaired loans account for $83 thousand of loans greater than 90 days past due that are not presented in the above table. (2) At year-end 2016, acquired credit impaired loans account for $83 thousand of loans greater than 90 days past due that are not presented in the above table. Loans evaluated for impairment as of December 31, 2017 and 2016 were as follows: Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 33,732 $ 5,761 $ 3,872 $ — $ 43,365 Collectively evaluated 2,183,975 1,176,808 1,809,329 898,721 6,068,833 Total $ 2,217,707 $ 1,182,569 $ 1,813,201 $ 898,721 $ 6,112,198 Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 25,549 $ 5,705 $ 2,775 $ 2,703 $ 36,732 Collectively evaluated 1,900,795 902,397 1,592,197 789,186 5,184,575 Total $ 1,926,344 $ 908,102 $ 1,594,972 $ 791,889 $ 5,221,307 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 4,244 $ 421 $ 2,617 $ 27 $ 7,309 Purchased credit-impaired loans 53,302 34,629 6,974 2,439 97,344 Collectively evaluated 989,489 586,320 280,015 226,663 2,082,487 Total $ 1,047,035 $ 621,370 $ 289,606 $ 229,129 $ 2,187,140 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 4,256 $ 635 $ 308 $ 406 $ 5,605 Purchased credit-impaired loans 34,820 3,369 7,283 1,344 46,816 Collectively evaluated 651,018 149,932 290,568 184,541 1,276,059 Total $ 690,094 $ 153,936 $ 298,159 $ 186,291 $ 1,328,480 The following is a summary of impaired loans at year-end 2017 and 2016 and for the years then ended: Business Activities Loans At December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily 1,077 3,607 — Other commercial real estate 18,285 18,611 — Other commercial and industrial loans 2,060 2,629 — Residential mortgages - 1-4 family 660 1,075 — Consumer - home equity 867 1,504 — With an allowance recorded: Commercial real estate - construction $ 159 $ 159 $ 1 Commercial real estate - single and multifamily 159 171 1 Other commercial real estate 14,321 15,235 227 Other commercial and industrial loans 3,716 4,249 66 Residential mortgages - 1-4 family 1,344 1,446 130 Consumer - home equity 1,014 999 34 Consumer - other 17 17 1 Total Commercial real estate $ 34,001 $ 37,783 $ 229 Commercial and industrial 5,776 6,878 66 Residential mortgages 2,004 2,521 130 Consumer 1,898 2,520 35 Total impaired loans $ 43,679 $ 49,702 $ 460 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Business Activities Loans At December 31, 2016 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate $ 18,905 $ 18,905 $ — Other commercial and industrial loans 382 382 — Residential mortgages - 1-4 family 2,101 2,101 — Consumer - home equity 1,605 1,605 — With an allowance recorded: Commercial real estate - single and multifamily $ 179 $ 181 $ 2 Other commercial real estate 6,306 6,462 156 Other commercial and industrial loans 5,060 5,324 264 Residential mortgages - 1-4 family 538 674 136 Consumer - home equity 942 1,098 156 Total Commercial real estate $ 25,390 $ 25,548 $ 158 Commercial and industrial 5,442 5,706 264 Residential mortgages 2,639 2,775 136 Consumer 2,547 2,703 156 Total impaired loans $ 36,018 $ 36,732 $ 714 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Acquired Loans At December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 204 $ 290 $ — Other commercial real estate loans 1,123 2,794 — Other commercial and industrial loans 255 310 — Residential mortgages - 1-4 family 658 671 — Consumer - home equity 1,374 1,654 — Consumer - other 27 27 — With an allowance recorded: Commercial real estate - single and multifamily $ 887 $ 880 $ 18 Other commercial real estate loans 2,043 1,661 38 Other commercial and industrial loans 165 166 1 Residential mortgages - 1-4 family 166 185 9 Consumer - home equity 433 540 45 Total Commercial real estate $ 4,257 $ 5,625 $ 56 Commercial and industrial 420 476 1 Residential mortgages 824 856 9 Consumer 1,834 2,221 45 Total impaired loans $ 7,335 $ 9,178 $ 111 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Acquired Loans December 31, 2016 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 547 $ 547 $ — Residential mortgages - 1-4 family 208 208 — Consumer - home equity — — — Consumer - other — — — With an allowance recorded: Commercial real estate - single and multifamily $ 1,250 $ 1,358 $ 108 Other commercial real estate loans 2,209 2,351 142 Other Commercial and industrial loans 576 635 59 Residential mortgages - 1-4 family 89 100 11 Consumer - home equity 292 406 114 Total Commercial real estate $ 4,006 $ 4,256 $ 250 Commercial and industrial 576 635 59 Residential mortgages 297 308 11 Consumer 292 406 114 Total impaired loans $ 5,171 $ 5,605 $ 434 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. The following is a summary of the average recorded investment and interest income recognized on impaired loans as of December 31, 2017, 2016 and 2015: Business Activities Loans December 31, 2017 December 31, 2016 December 31, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ — $ — $ 2,245 $ 92 Commercial real estate - single and multifamily 341 214 36 1 60 — Other commercial real estate 20,867 1,123 6,463 1,155 12,487 302 Other commercial and industrial 4,437 265 3,349 131 3,870 177 Residential mortgages - 1-4 family 1,128 31 2,403 91 1,353 38 Consumer-home equity 1,291 30 612 5 442 13 Consumer-other 72 3 2 — — — With an allowance recorded: Commercial mortgages - construction $ 41 $ 3 $ — $ — $ — $ — Commercial real estate - single and multifamily 169 12 15 6 — — Other commercial real estate 11,372 520 7,576 349 3,214 132 Other commercial and industrial 3,251 267 2,002 225 810 37 Residential mortgages - 1-4 family 1,289 59 682 26 1,704 72 Consumer-home equity 1,007 29 999 35 83 — Consumer - other 4 1 103 4 112 4 Total Commercial real estate $ 32,790 $ 1,872 $ 14,090 $ 1,511 $ 18,006 $ 526 Commercial and industrial 7,688 532 5,351 356 4,680 214 Residential mortgages 2,417 90 3,085 117 3,057 110 Consumer loans 2,374 63 1,716 44 637 17 Total impaired loans $ 45,269 $ 2,557 $ 24,242 $ 2,028 $ 26,380 $ 867 Acquired Loans December 31, 2017 December 31, 2016 December 31, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ — $ — $ 445 $ 60 Commercial real estate - single and multifamily 342 82 — — 2,014 57 Other commercial real estate 487 239 521 20 1,721 37 Other commercial and industrial 581 43 492 9 — — Residential mortgages - 1-4 family 390 28 293 12 463 6 Consumer - home equity 773 22 — — 152 5 Consumer - other 7 1 105 1 59 5 With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — $ — $ — Commercial real estate - single and multifamily 903 47 1,064 115 623 33 Other commercial real estate 1,719 91 2,618 165 1,384 96 Other commercial and industrial 47 13 369 17 31 3 Residential mortgages - 1-4 family 173 9 214 25 304 9 Consumer - home equity 400 21 — — 195 7 Total Commercial real estate $ 3,451 $ 459 $ 4,203 $ 300 $ 6,187 $ 283 Commercial and industrial 628 56 861 26 31 3 Residential mortgages 563 37 507 37 767 15 Consumer loans 1,180 44 105 1 406 17 Total impaired loans $ 5,822 $ 596 $ 5,676 $ 364 $ 7,391 $ 318 No additional funds are committed to be advanced in connection with impaired loans. 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 for modified loans identified during the years-ended December 31, 2017, 2016, and 2015 respectively. The tables include 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 year-ended December 31, 2017 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the year-ended December 31, 2016 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 1 $ 235 $ 235 Commercial - Other 15 13,445 11,718 Commercial and industrial - Other 12 3,507 3,507 Residential - 1-4 Family 4 331 314 Consumer - Home Equity 3 122 122 35 $ 17,640 $ 15,896 Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 5 $ 437 $ 437 Commercial - Other 5 16,651 16,651 Commercial and industrial - Other 4 555 555 Residential - 1-4 Family 2 5 5 Consumer - Home Equity 1 117 117 17 $ 17,765 $ 17,765 Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 123 $ 123 Commercial - Single and multifamily 2 307 307 Commercial - Other 4 8,577 7,274 Commercial and industrial - Other 6 9,041 8,904 Consumer - Other 1 999 999 14 $ 19,047 $ 17,607 The following tables disclose the recorded investment and number of modifications for TDRs for the prior years where a concession was made and the borrower subsequently defaulted in the respective reporting period. For the year ended 2017, there were three loans that were restructured that had subsequently defaulted during the period. For the period ended 2016, there were no loans that were restructured that had subsequently defaulted during the period. For the year ended 2015, there were eight loans that were restructured that had subsequently defaulted during the period. Modifications that subsequently defaulted for the twelve months ending December 31, 2017 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Single and multifamily — $ — Commercial - Other 1 113 Commercial and industrial - Other 2 492 Residential - 1-4 Family — — 3 $ 605 Modifications that subsequently defaulted for the twelve months ending December 31, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Single and multifamily 1 $ — Commercial - Other 1 373 Commercial and industrial - Other 4 6,579 Residential - 1-4 Family 2 169 8 $ 7,121 The following table presents the Company’s TDR activity in 2017 and 2016: (In thousands) 2017 2016 2015 Balance at beginning of year $ 33,829 $ 22,048 $ 16,714 Principal payments (3,213 ) (5,870 ) (5,460 ) TDR status change (1) — 2,235 — Other reductions (2) (4,522 ) (2,349 ) (3,160 ) Newly identified TDRs 15,896 17,765 13,954 Balance at end of year $ 41,990 $ 33,829 $ 22,048 ________________________________ (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, charge-offs to loans, and other loan sale payoffs. 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 December 31, 2017, the Company maintained no foreclosed residential real estate property. Additionally, residential mortgage loans collateralized by real estate property that are in the process of foreclosure as of December 31, 2017 and December 31, 2016 totaled $4.9 million and $4.8 million , respectively. As of December 31, 2016, foreclosed residential real estate property totaled $151 thousand . |
LOAN LOSS ALLOWANCE
LOAN LOSS ALLOWANCE | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
LOAN LOSS ALLOWANCE | LOAN LOSS ALLOWANCE Activity in the allowance for loan losses for 2017, 2016, and 2015 was as follows: Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Charged-off loans 3,875 3,373 806 3,470 11,524 Recoveries on charged-off loans 170 179 270 270 889 Provision for loan losses 4,050 7,597 2,151 3,528 17,326 Balance at end of year $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Individually evaluated for impairment 229 66 130 35 460 Collectively evaluated 16,614 13,784 9,290 5,772 45,460 Total $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Business Activities Loans (In thousands) Commercial real estate Commercial Residential Consumer Total Balance at beginning of year $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Charged-off loans 2,127 4,620 2,036 1,722 10,505 Recoveries on charged-off loans 243 123 159 267 792 Provision for loan losses 3,791 6,559 2,069 1,949 14,368 Balance at end of year $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Individually evaluated for impairment 158 264 136 156 714 Collectively evaluated 16,340 9,183 7,669 5,323 38,515 Total $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 14,740 $ 5,246 $ 6,864 $ 5,945 $ 32,795 Charged-off loans 6,865 2,358 1,215 1,183 11,621 Recoveries on charged-off loans 164 169 141 285 759 Provision for loan losses 6,552 4,328 1,823 (62 ) 12,641 Balance at end of year $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Individually evaluated for impairment 149 21 153 103 426 Collectively evaluated 14,442 7,364 7,460 4,882 34,148 Total $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Charged-off loans 771 844 797 648 3,060 Recoveries on charged-off loans 65 245 43 153 506 Provision for loan losses 2,259 560 586 294 3,699 Balance at end of year $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Individually evaluated for impairment 56 1 9 45 111 Collectively evaluated 3,800 1,124 589 290 5,803 Total $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 Charged-off loans 977 1,095 829 620 3,521 Recoveries on charged-off loans 61 266 144 91 562 Provision for loan losses 1,316 663 475 540 2,994 Balance at end of year $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Individually evaluated for impairment 250 59 11 114 434 Collectively evaluated 2,053 1,105 755 422 4,335 Total $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 790 $ 1,093 $ 615 $ 369 $ 2,867 Charged-off loans 681 752 642 992 3,067 Recoveries on charged-off loans 418 289 64 78 849 Provision for loan losses 1,376 700 939 1,070 4,085 Balance at end of year $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 Individually evaluated for impairment 43 — 30 25 98 Purchased credit-impaired loans 42 — — — 42 Collectively evaluated 1,818 1,330 946 500 4,594 Total $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 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 weaknesses 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 annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60 - 89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. Home equity loans are risk rated based on the same rating system as the Company’s residential mortgages. Ratings for other consumer loans, including auto loans, are based on a two rating system. Loans that are current within 119 days are rated Performing while loans delinquent for 120 days or more are rated Non-performing. Other consumer loans are placed on non-accrual at such time as they become Non-performing. Acquired Loans Credit Quality Analysis Upon acquiring a loan portfolio, our internal loan review function assigns risk ratings to the acquired loans, utilizing the same methodology as it does with business activities loans. This may differ from the risk rating policy of the predecessor bank. Loans which are rated Substandard or worse according to the rating process outlined below are deemed to be credit impaired loans accounted for under ASC 310-30, regardless of whether they are classified as performing or non-performing. The Bank utilizes a loan risk rating system for acquired loans consistent with loans originated from business activities, as outlined in the Credit Quality Information section of this Note. The ratings system is similar to loans originated through business activities. The Company presented several tables within this footnote separately for business activity loans and acquired loans in order to distinguish the credit performance of the acquired loans from the business activity loans. The following tables present the Company’s loans by risk rating at year-end 2017 and 2016: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Grade: Pass $ 181,371 $ 253,302 $ 214,289 $ 189,310 $ 1,775,091 $ 1,434,762 $ 2,170,751 $ 1,877,374 Special mention — — 504 334 12,999 5,827 13,503 6,161 Substandard — — 2,290 2,175 31,163 40,598 33,453 42,773 Doubtful — — — — — 36 — 36 Total $ 181,371 $ 253,302 $ 217,083 $ 191,819 $ 1,819,253 $ 1,481,223 $ 2,217,707 $ 1,926,344 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial (In thousands) 2017 2016 Grade: Pass $ 1,156,240 $ 890,974 Special mention 12,806 123 Substandard 11,123 13,825 Doubtful 2,400 3,180 Total $ 1,182,569 $ 908,102 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) 2017 2016 2017 2016 2017 2016 Grade: Pass $ 1,805,596 $ 1,578,913 $ 5,177 $ 11,178 $ 1,810,773 $ 1,590,091 Special mention 242 701 — — 242 701 Substandard 2,186 4,179 — — 2,186 4,179 Total $ 1,808,024 $ 1,583,793 $ 5,177 $ 11,178 $ 1,813,201 $ 1,594,971 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer (In thousands) 2017 2016 2017 2016 2017 2016 Performing $ 293,327 $ 310,846 $ 602,313 $ 477,416 $ 895,640 $ 788,262 Nonperforming 1,627 2,675 1,454 952 3,081 3,627 Total $ 294,954 $ 313,521 $ 603,767 $ 478,368 $ 898,721 $ 791,889 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Grade: Pass $ 76,611 $ 33,461 $ 203,624 $ 119,414 $ 684,846 $ 496,562 $ 965,081 $ 649,437 Special mention — — 603 907 22,070 1,622 22,673 2,529 Substandard 8,354 746 1,855 5,351 49,072 32,031 59,281 38,128 Total $ 84,965 $ 34,207 $ 206,082 $ 125,672 $ 755,988 $ 530,215 $ 1,047,035 $ 690,094 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial (In thousands) 2017 2016 Grade: Pass $ 606,922 $ 147,102 Special mention 1,241 1,260 Substandard 13,207 5,574 Total $ 621,370 $ 153,936 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) 2017 2016 2017 2016 2017 2016 Grade: Pass $ 281,160 $ 294,983 $ 233 $ 804 $ 281,393 $ 295,787 Special mention 2,704 343 — — 2,704 343 Substandard 5,509 2,029 — — 5,509 2,029 Total $ 289,373 $ 297,355 $ 233 $ 804 $ 289,606 $ 298,159 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer (In thousands) 2017 2016 2017 2016 2017 2016 Performing $ 113,262 $ 79,762 $ 113,510 $ 105,117 $ 226,772 $ 184,879 Nonperforming 1,965 517 392 895 2,357 1,412 Total $ 115,227 $ 80,279 $ 113,902 $ 106,012 $ 229,129 $ 186,291 The following table summarizes information about total loans rated Special Mention or lower. 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. December 31, 2017 December 31, 2016 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 15,659 $ 7,240 $ 22,899 $ 16,816 $ 5,424 $ 22,240 Substandard Accruing 36,846 73,412 110,258 51,125 44,177 95,302 Total Classified 52,505 80,652 133,157 67,941 49,601 117,542 Special Mention 28,387 26,802 55,189 7,479 4,323 11,802 Total Criticized $ 80,892 $ 107,454 $ 188,346 $ 75,420 $ 53,924 $ 129,344 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Year-end premises and equipment are summarized as follows: (In thousands) 2017 2016 Estimated Useful Land $ 14,177 $ 10,563 N/A Buildings and improvements 99,821 85,319 5 - 39 years Furniture and equipment 49,600 42,693 3 - 7 years Construction in process 5,177 4,084 Premises and equipment, gross 168,775 142,659 Accumulated depreciation and amortization (59,423 ) (49,444 ) Premises and equipment, net $ 109,352 $ 93,215 Depreciation and amortization expense for the years 2017, 2016, and 2015 amounted to $9.9 million , $8.4 million , and $8.6 million , respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill and other intangible assets are presented in the tables below. The Company completed one acquisition during 2017 which resulted in the capitalization of goodwill and other intangibles. In accordance with applicable accounting guidance, the Company allocated the amount paid to the fair value of the net assets acquired, with any excess amounts recorded as goodwill. There were three acquisitions during 2016. The goodwill balance is allocated to the consolidated Company. The activity impacting goodwill in 2017 and 2016 is as follows: (In thousands) 2017 2016 Balance, beginning of the period $ 403,106 $ 323,943 Goodwill acquired and adjusted: Commerce Bank 116,181 — 44 Business Capital — 15,892 Ronald N. Lazzaro, PC — 5,492 First Choice Bank — 58,036 Adjustments (1) — (257 ) Balance, end of the period $ 519,287 $ 403,106 ______________________________________________________________________________________________________ (1) In 2016, goodwill related to the Hampden and Firestone acquisitions was adjusted since acquisition dates to reflect new information available during the one-year measurement period. The Company tests goodwill impairment annually as of September 30, 2017 using third quarter data. The results of the qualitative assessment indicated it is more likely than not that the reporting unit's fair value exceeds its carrying amount, and accordingly, the two-step impairment test was not performed. If events or changes in circumstances indicate that impairment is possible, the Company will perform additional reviews. No impairment was recorded on goodwill for 2017, 2016 and 2015. The components of other intangible assets are as follows: (In thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets December 31, 2017 Non-maturity deposits (core deposit intangible) $ 66,923 $ (33,024 ) $ 33,899 Insurance contracts 7,558 (7,526 ) 32 All other intangible assets 7,810 (3,445 ) 4,365 Total $ 82,291 $ (43,995 ) $ 38,296 December 31, 2016 Non-maturity deposits (core deposit intangible) $ 44,523 $ (30,099 ) $ 14,424 Insurance contracts 7,558 (7,504 ) 54 All other intangible assets 7,866 (2,899 ) 4,967 Total $ 59,947 $ (40,502 ) $ 19,445 Other intangible assets are amortized on a straight-line or accelerated basis over their estimated lives, which range from four to fifteen years. Amortization expense related to intangibles totaled $3.5 million in 2017, $2.9 million in 2016, and $3.6 million in 2015. The estimated aggregate future amortization expense for intangible assets remaining at year-end 2017 is as follows: 2018- $4.9 million ; 2019- $4.7 million ; 2020- $4.4 million ; 2021- $4.2 million ; 2022- $ 4.1 million ; and thereafter- $16.0 million . For the years 2017, 2016, and 2015, no impairment charges were identified for the Company’s intangible assets. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Year-end other assets are summarized as follows: (In thousands) 2017 2016 Capitalized servicing rights $ 16,361 $ 11,524 Accrued interest receivable 33,739 26,113 Accrued federal and state tax receivable (1) 33,101 19,076 Derivative assets 19,308 21,617 Assets held for sale 1,392 — Other 13,182 20,127 Total other assets $ 117,083 $ 98,457 (1) Accrued federal and state tax receivable as of December 31, 2017 includes $4.3 million of New York State refundable tax credits from investment in historical tax credit partnerships in New York State. This balance was $5.9 million at year-end 2016. The Bank sells loans in the secondary market and retains the ability to service many of these loans. The Bank earns fees for the servicing provided. Loans sold and serviced for others amounted to $1.8 billion , $1.3 billion , and $0.8 billion at year-end 2017, 2016, and 2015, respectively. Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. Contractually specified servicing fees were $4.6 million , $3.2 million , and $1.7 million for the years 2017, 2016, and 2015, respectively, and included as a component of loan related fees within non-interest income. The significant assumptions used in the valuation at year-end 2017 included a weighted average discount rate of 10.4% and pre-payment speed assumptions ranging from 7.78% to 12.78% . Servicing rights activity was as follows: (In thousands) 2017 2016 Balance at beginning of year $ 11,524 $ 5,187 Acquired from 44 Business Capital — 3,489 Acquired from First Choice Bank (1) — 696 Additions 7,604 4,116 Amortization (2,446 ) (1,964 ) Change in fair value (221 ) — Allowance adjustment (100 ) — Balance at end of year $ 16,361 $ 11,524 (1) Amounts acquired from First Choice Bank are accounted for at fair value. The balance as of December 31, 2017 and December 31, 2016 were $3.8 million and $0.8 million , respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of year-end time deposits is as follows: (In thousands) 2017 2016 Maturity date: Within 1 year $ 1,790,056 $ 1,316,973 Over 1 year to 2 years 546,381 582,764 Over 2 years to 3 years 268,897 142,160 Over 3 years to 4 years 161,314 150,388 Over 4 years to 5 years 121,400 137,845 Over 5 years 2,157 3,413 Total $ 2,890,205 $ 2,333,543 Account balances: Less than $100,000 $ 733,785 $ 656,055 $100,000 or more 2,156,420 1,677,488 Total $ 2,890,205 $ 2,333,543 Included in total deposits are brokered deposits of $1.2 billion and $0.9 billion at December 31, 2017 and December 31, 2016, respectively. Included in total brokered deposits are reciprocal deposits of $99.8 million and $113.4 million at December 31, 2017 and December 31, 2016, respectively. Included in total deposits are related party deposits of $36.0 million and $17.2 million at December 31, 2017 and December 31, 2016, respectively. |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at December 31, 2017 and 2016 are summarized, as follows: 2017 2016 (in thousands, except rates) Principal Weighted Principal Weighted Short-term borrowings: Advances from the FHLBB $ 667,300 1.48 % $ 1,072,044 0.71 % Other Borrowings — — 10,000 2.42 Total short-term borrowings: 667,300 1.48 1,082,044 0.72 Long-term borrowings: Advances from the FHLBB 380,436 1.54 142,792 1.53 Subordinated notes 73,875 7.00 73,697 7.00 Junior subordinated notes 15,464 3.30 15,464 2.77 Total long-term borrowings: 469,775 2.46 231,953 3.35 Total $ 1,137,075 1.88 % $ 1,313,997 1.19 % Short-term debt includes Federal Home Loan Bank of Boston (“FHLBB”) advances with an original maturity of less than one year. At year-end 2017, the Company maintained 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 December 31, 2017 and December 31, 2016. The Company is in compliance with all debt covenants as of December 31, 2017. The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank of Boston took place for the periods ended December 31, 2017 and December 31, 2016. Long-term FHLBB advances consist of advances with an original maturity of more than one year. The advances outstanding at December 31, 2017 include amortizing advances totaling $1.4 million . The advances outstanding at December 31, 2016 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 at year-end 2017 is as follows: 2017 (In thousands) Amount Weighted Fixed rate advances maturing: 2018 $ 836,115 1.43 % 2019 150,082 1.64 2020 54,101 2.04 2021 220 3.21 2022 and beyond 7,218 2.64 Total fixed rate advances $ 1,047,736 1.50 Total FHLBB advances $ 1,047,736 1.50 % The Company did not have variable-rate FHLB advances for the period ended December 31, 2017 and December 31, 2016. 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 plus 5.113% . The subordinated note includes reduction to the note principal balance of $583 thousand and $706 thousand for unamortized debt issuance costs as of December 31, 2017 and December 31 2016, 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 3.30% and 2.77% at December 31, 2017 and December 31, 2016, 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 on each quarterly payment date. 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. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Year-end other liabilities are summarized as follows: December 31, (In thousands) 2017 2016 Derivative liabilities $ 15,838 $ 24,420 Capital lease obligation 11,323 11,639 Asset purchase settlement payable 70,637 29,158 Employee benefits liability 27,093 17,972 Level lease liability 5,766 6,997 Accrued interest payable 6,813 4,394 Customer transaction clearing accounts 9,118 1,786 Other 41,294 36,789 Total other liabilities $ 187,882 $ 133,155 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plan The Company maintains a legacy, employer-sponsored defined benefit pension plan (the “Plan”) for which participation and benefit accruals were frozen on January 1, 2003. The Plan was assumed in connection with the Rome Bancorp acquisition in 2011. Accordingly, no employees are permitted to commence participation in the Plan and future salary increases and years of credited service are not considered when computing an employee’s benefits under the Plan. As of December 31, 2017, all minimum Employee Retirement Income Security Act (“ERISA”) funding requirements have been met. Information regarding the pension plan is as follows: December 31, (In thousands) 2017 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,126 $ 6,585 Service Cost 66 76 Interest cost 237 267 Actuarial gain 309 (308 ) Benefits paid (324 ) (318 ) Settlements (61 ) (176 ) Projected benefit obligation at end of year 6,353 6,126 Accumulated benefit obligation 6,353 6,126 Change in fair value of plan assets: Fair value of plan assets at plan beginning of year 5,121 5,211 Actual return on plan assets 710 404 Benefits paid (324 ) (318 ) Settlements (61 ) (176 ) Fair value of plan assets at end of year 5,446 5,121 Underfunded status $ 907 $ 1,005 Amounts Recognized in Consolidated Balance Sheet Other Liabilities $ 907 $ 1,005 Net periodic pension cost is comprised of the following: December 31, (In thousands) 2017 2016 Service Cost $ 66 $ 76 Interest Cost 237 267 Expected return on plan assets (346 ) (361 ) Amortization of unrecognized actuarial loss 100 163 Net periodic pension costs $ 57 $ 145 Changes in plan assets and benefit obligations recognized in accumulated other comprehensive income are as follows: December 31, (In thousands) 2017 2016 Amortization of actuarial (loss) $ (100 ) $ (163 ) Actuarial (gain) loss (54 ) (351 ) Total recognized in accumulated other comprehensive income (154 ) (514 ) Total recognized in net periodic pension cost recognized and other comprehensive income $ (97 ) $ (369 ) The amounts in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost are a net loss of $1.3 million and $1.5 million in 2017 and 2016, respectively. The Company expects to make no cash contributions to the pension trust during 2018. The amount expected to be amortized from other comprehensive income into net periodic pension cost over the next fiscal year is $83 thousand . The principal actuarial assumptions used were as follows: December 31, 2017 2016 Projected benefit obligation Discount rate 3.510 % 3.980 % Net periodic pension cost Discount rate 3.980 % 4.170 % Long term rate of return on plan assets 7.000 % 7.000 % The discount rate that is used in the measurement of the pension obligation is determined by comparing the expected future retirement payment cash flows of the pension plan to the Citigroup Above Median Double-A Curve as of the measurement date. The expected long-term rate of return on Plan assets reflects long-term earnings expectations on existing Plan assets and those contributions expected to be received during the current plan year. In estimating that rate, appropriate consideration was given to historical returns earned by Plan assets in the fund and the rates of return expected to be available for reinvestment. The rates of return were adjusted to reflect current capital market assumptions and changes in investment allocations. The Company’s overall investment strategy with respect to the Plan’s assets is primarily for preservation of capital and to provide regular dividend and interest payments. The Plan’s targeted asset allocation is 65% equity securities via investment in the Long-Term Growth - Equity Portfolio (‘LTGE’), 34% intermediate-term investment grade bonds via investment in the Long-Term Growth - Fixed-Income Portfolio (‘LTGFI’), and 1% in cash equivalents portfolio (for liquidity). Equity securities include investments in a diverse mix of equity funds to gain exposure in the US and international markets. The fixed income portion of the Plan assets is a diversified portfolio that primarily invests in intermediate-term bond funds. The overall rate of return is based on the historical performance of the assets applied against the Plan’s target allocation, and is adjusted for the long-term inflation rate. The fair values for investment securities are determined by quoted prices in active markets, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of the Plan’s assets by category and level within the fair value hierarchy are as follows at December 31, 2017: December 31, 2017 Asset Category (In thousands) Total Level 1 Level 2 Equity Mutual Funds: Large-Cap $ 1,820 $ — $ 1,820 Mid-Cap 439 — 439 Small-Cap 438 — 438 International 893 — 893 Fixed Income Funds Fixed Income - US Core 1,308 — 1,308 Intermediate Duration 437 — 437 Cash Equivalents - money market 111 29 82 Total $ 5,446 $ 29 $ 5,417 The fair values of the Plan’s assets by category and level within the fair value hierarchy are as follows at December 31, 2016: December 31, 2016 Asset Category (In thousands) Total Level 1 Level 2 Equity Mutual Funds: Large-Cap $ 1,624 $ — $ 1,624 Mid-Cap 401 — 401 Small-Cap 415 — 415 International 757 — 757 Fixed Income Funds Fixed Income - US Core 1,378 — 1,378 Intermediate Duration 472 — 472 Cash Equivalents - money market 74 30 44 Total $ 5,121 $ 30 $ 5,091 The Plan did not hold any assets classified as Level 3, and there were no transfers between levels during 2017 or 2016. Estimated benefit payments under the Company’s pension plans over the next ten years at December 31, 2017 are as follows: Year Payments (In thousands) 2018 343 2019 380 2020 372 2021 361 2022 386 2023 - 2027 1,792 Postretirement Benefits The Company has an unfunded post-retirement medical plan which was assumed in connection with the Rome Bancorp acquisition in 2011. The postretirement plan has been modified so that participation is closed to those employees who did not meet the retirement eligibility requirements by March 31, 2011. The Company contributes partially to medical benefits and life insurance coverage for retirees. Such retirees and their surviving spouses are responsible for the remainder of the medical benefits, including increases in premiums levels, between the total premium and the Company’s contribution. The Company also has an executive long-term care (“LTC”) postretirement benefit plan which started August 1, 2014. The LTC plan reimburses executives for certain costs in the event of a future chronic illness. Funding of the plan comes from Company paid insurance policies or direct payments. At plan’s inception, a $558 thousand benefit obligation was recorded against equity representing the prior service cost of plan participants. Information regarding the post-retirement plan is as follows: December 31, (In thousands) 2017 2016 Change in accumulated postretirement benefit obligation: Accumulated post-retirement benefit obligation at beginning of year $ 3,249 $ 3,039 Service Cost 35 32 Interest cost 131 129 Participant contributions 46 47 Actuarial loss (gain) 326 130 Benefits paid (94 ) (128 ) Accumulated post-retirement benefit obligation at end of year $ 3,693 $ 3,249 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Contributions by employer 48 81 Contributions by participant 46 47 Benefits paid (94 ) (128 ) Fair value of plan assets at end of year $ — $ — Amounts Recognized in Consolidated Balance Sheet Other Liabilities $ 3,693 $ 3,249 Net periodic post-retirement cost is comprised of the following: December 31, (In thousands) 2017 2016 Service cost $ 35 $ 32 Interest costs 131 129 Amortization of net prior service credit 83 83 Amortization of net actuarial loss — — Net periodic post-retirement costs $ 249 $ 244 Changes in benefit obligations recognized in accumulated other comprehensive income are as follows: December 31, (In thousands) 2017 2016 Amortization of actuarial loss $ — $ — Amortization of prior service credit (83 ) (83 ) Net actuarial (gain) loss 199 (126 ) Total recognized in accumulated other comprehensive income 116 (209 ) Accrued post-retirement liability recognized $ 1,918 $ 1,718 The amounts in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost are as follows: December 31, (In thousands) 2017 2016 Net prior service cost (credit) $ 1,576 $ 1,659 Net actuarial (gain) loss 199 (126 ) Total recognized in accumulated other comprehensive income $ 1,775 $ 1,533 The amount expected to be amortized from other comprehensive income into net periodic postretirement cost over the next fiscal year is $83 thousand . The discount rates used in the measurement of the postretirement medical and LTC plan obligations are determined by comparing the expected future retirement payment cash flows of the plans to the Citigroup Above Median Double-A Curve as of the measurement date. The assumed discount rates on a weighted-average basis were 3.44% and 3.91% as of December 31, 2017 and December 31, 2016, respectively. The assumed health care cost trend rate used in measuring the accumulated post-retirement benefit medical obligation is expected to be 7.75% for 2018, and is gradually expected to decrease to 3.89% by 2076. This assumption may have a significant effect on the amounts reported. However, as noted above, increases in premium levels are the financial responsibility of the plan beneficiary. Thus an increase or decrease in 1% of the health care cost trend rates utilized would have had an immaterial effect on the service and interest cost as well as the accumulated post-retirement benefit obligation for the postretirement plan as of December 31, 2017. For participants in the LTC plan covered by insurance policies, no increase in annual premiums is assumed based on the history of the corresponding insurance provider. Estimated benefit payments under the post-retirement benefit plan over the next ten years at December 31, 2017 are as follows: Year Payments (In thousands) 2018 103 2019 103 2020 102 2021 106 2022 109 2023 - 2027 548 401(k) Plan The Company provides a 401(k) Plan in which most eligible employees participate. Expense related to the plan was $3.4 million in 2017, $3.9 million in 2016, and $3.6 million in 2015. Employee Stock Ownership Plan (“ESOP”) As part of acquisitions in 2015, 2012 and two during 2011, the Company acquired ESOP plans that were frozen and terminated prior to the completion of those transactions. On the acquisition dates, all amounts in the plans were vested and the loans under the plans were repaid from the sale proceeds of unallocated shares. Other Plans The Company maintains a supplemental executive retirement plan (“SERP”) for a few select executives. Benefits generally commence no earlier than age sixty-two and are payable at the executive’s option, either as an annuity or as a lump sum. Some of these SERPs were assumed in connection with the Beacon acquisition in 2012. A SERP was acquired in connection with the Hampden Bank acquisition with an accrued liability of $1.4 million at acquisition date. At year-end 2017, the liability was $1.1 million and $1.2 million at year-end 2016. At year-end 2017 and 2016, the accrued liability for these SERPs were $8.3 million and $7.4 million , respectively. SERP expense was $968 thousand in 2017, $917 thousand in 2016, and $752 thousand in 2015, and is recognized over the required service period. The Company assumed split-dollar life insurance agreements with the acquisition of Hampden Bank with an accrued liability of $860 thousand at acquisition date in April 2015. At year-end 2017, the liability was $1.2 million and $1.2 million as of year-end 2016. The Company assumed split-dollar life insurance agreements with the acquisition of Commerce Bank with an accrued liability of $2.7 million at acquisition date in October 2017. At year-end 2017, the liability was $2.8 million . The Company has endorsement split-dollar arrangements pertaining to certain current and prior executives. Under these arrangements, the Company purchased policies insuring the lives of the executives, and separately entered into agreements to split the policy benefits with the executive. There are no post-retirement benefits associated with these policies. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Provision for Income Taxes The components of the Company’s provision for income taxes for the years ended December 31, 2017, 2016, and 2015 were, as follows: (In thousands) 2017 2016 2015 Current: Federal tax expense $ 11,686 $ 6,758 $ 4,696 State tax expense 1,112 1,101 (1,631 ) Total current expense 12,798 7,859 3,065 Deferred: Federal tax expense 29,824 9,438 2,023 State tax expense 1,805 1,591 (24 ) Total deferred tax expense (1) 31,629 11,029 1,999 Change in valuation allowance 75 (104 ) — Total income tax expense $ 44,502 $ 18,784 $ 5,064 (1) 2017 Deferred tax expense of $31.6 million includes an $18.1 million charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017. Effective Tax Rate The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2017, 2016, and 2015: 2017 2016 2015 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 34,912 35.0 % $ 27,108 35.0 % $ 19,104 35.0 % Increase (decrease) resulting from: State taxes, net of federal tax benefit 2,232 2.2 1,675 2.2 (974 ) (1.8 ) Tax exempt income - investments, net (5,395 ) (5.4 ) (3,849 ) (5.0 ) (3,463 ) (6.3 ) Bank-owned life insurance (1,556 ) (1.6 ) (1,364 ) (1.8 ) (1,284 ) (2.4 ) Non-deductible merger costs 368 0.4 542 0.7 422 0.8 Non-deductible goodwill on disposal operations sale — — — — 313 0.6 Tax credits, net of basis reduction (4,656 ) (4.7 ) (6,225 ) (8.0 ) (8,308 ) (15.2 ) Change in valuation allowance 75 0.1 125 0.2 — — Impact of federal tax reform enactment 18,145 18.2 — — — — Other, net 377 0.4 772 1.0 (746 ) (1.4 ) Effective tax rate $ 44,502 44.6 % $ 18,784 24.3 % $ 5,064 9.3 % On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of US GAAP in situations when a registrant does not have the necessary information available to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the "2017 Act"). SAB 118 allows for adjustments to the tax provision for up to one year from the enactment date (the measurement period). Any provisional amounts or adjustments to provisional amounts included in the Company’s financial statements during the measurement period will be included in income from continuing operations as an adjustment to tax expense or benefit in the reporting period the amounts are determined. The Company recorded provisional amounts of deferred income taxes using reasonable estimates in five areas where the information necessary to determine the final deferred tax asset or liability was either not available, not prepared, or not sufficiently analyzed as of the report filing date: 1) The deferred tax liability for temporary differences between the tax and financial reporting bases of fixed assets is awaiting completion and implementation of software updates to process the calculations associated with the Act's provisions allowing for direct expensing of qualified assets. 2) The net deferred tax asset for temporary differences associated with Commerce acquired tax attributes is awaiting final determinations of those amounts, some of which remain provisional. 3) The net deferred tax liability for loan servicing rights is awaiting formal approval from the Internal Revenue Service of a requested tax accounting method change with respect to these rights. 4) The net deferred tax asset for temporary differences associated with equity investments in partnerships is awaiting the receipt of Schedules K-1 from outside preparers, which is necessary to determine the 2017 tax impact from these investments. In a fifth area, the Company made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code Section 162(m) which, generally, limits the annual deduction for certain compensation paid to certain employees to $1 million. As of the report filing date, there is uncertainty regarding how the newly-enacted rules in this area apply to existing contracts. Consequently, the Company is seeking further clarification of these matters before completing the analysis. The Company will complete and record the income tax effects of these provisional items during the period the necessary information becomes available. This measurement period will not extend beyond December 22, 2018. Deferred Tax Liabilities and Assets As of December 31, 2017 and 2016, significant components of the Company’s deferred tax assets and liabilities were, as follows: (In thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 14,578 $ 17,747 Tax credit carryforwards 4,100 4,100 Unrealized capital loss on tax credit investments 6,502 6,999 Employee benefit plans 4,983 7,813 Purchase accounting adjustments 37,843 23,520 Net operating loss carryforwards 1,374 2,643 Other 2,332 4,997 Deferred tax assets, net before valuation allowances 71,712 67,819 Valuation allowance (200 ) (125 ) Deferred tax assets, net of valuation allowances $ 71,512 $ 67,694 Deferred tax liabilities: Net unrealized gain on swaps, securities available for sale, and pension in OCI $ (1,888 ) $ (5,884 ) Premises and equipment (1,126 ) (2,519 ) Loan servicing rights (2,174 ) (4,546 ) Deferred loan fees (3,900 ) — Intangible amortization (15,001 ) (11,543 ) Other (362 ) (2,074 ) Deferred tax liabilities $ (24,451 ) $ (26,566 ) Deferred tax assets, net $ 47,061 $ 41,128 The Company’s net deferred tax asset increased by $5.9 million during 2017, including $34.5 million from the acquisition of Commerce resulting in a reduction in goodwill, $3.1 million deferred tax benefit recognized as an increase in shareholder's equity, and an $18.1 million deferred tax expense to re-measure the net deferred tax assets as a result of the federal tax reform enactment. Refer to Note 2 - Acquisitions for more information about the acquisition of Commerce. Deferred tax assets, net of valuation allowances, are expected to be realized through the reversal of existing taxable temporary differences and future taxable income. Valuation Allowances The components of the Company’s valuation allowance on its deferred tax asset, net as of December 31, 2017 and 2016 were, as follows: (in thousands) 2017 2016 State tax basis difference, net of Federal tax benefit $ (200 ) $ (125 ) Valuation allowances $ (200 ) $ (125 ) The state tax basis difference, net of Federal tax benefit was originally recorded in 2012, due to management’s assessment that it is more likely than not that certain deferred tax assets recorded for the difference between the book basis and the state tax basis in certain tax credit limited partnership investments (LPs) will not be realized. Management anticipates that the remaining excess state tax basis will be realized as a capital loss upon disposition, and that it is unlikely that the Company will have capital gains against which to offset such capital losses. During 2017, the valuation allowance increased by $75 thousand and the change was recorded as an increase to income tax expense. The valuation allowances as of December 31, 2017 are subject to change in the future as the Company continues to periodically assess the likelihood of realizing its deferred tax assets. Tax Attributes At December 31, 2017, the Company has $6.5 million of federal net operating loss carryforwards, $3.3 million of New Jersey net operating loss carryforwards, and $13.9 million of Connecticut net operating loss carryforwards available that were obtained through acquisition, the utilization of which are limited under Internal Revenue Code Section 382. No deferred tax asset has been recorded for the Connecticut net operating loss carryforward since the state of Connecticut does not currently allow a deduction for net operating losses. These net operating losses begin to expire in 2024. The related deferred tax asset is $1.4 million . In addition, the Company has alternative minimum tax credit carryforwards of $4.0 million , which the Company expects to be monetized over the next two years. Unrecognized Tax Benefits On a periodic basis, the Company evaluates its income tax positions based on tax laws and regulations and financial reporting considerations, and records adjustments as appropriate. This evaluation takes into consideration the status of taxing authorities’ current examinations of the Company’s tax returns, recent positions taken by the taxing authorities on similar transactions, if any, and the overall tax environment in relation to uncertain tax positions. The following table presents changes in unrecognized tax benefits for the years ended December 31, 2017, 2016, and 2015: (In thousands) 2017 2016 2015 Unrecognized tax benefits at January 1 $ 460 $ 307 $ 553 Increase in gross amounts of tax positions related to prior years — 270 — Decrease in gross amounts of tax positions related to prior years (156 ) — — Decrease due to settlement with taxing authority — — — Increase in gross amounts of tax positions related to current year — — — Decrease due to lapse in statute of limitations — (117 ) (246 ) Unrecognized tax benefits at December 31 $ 304 $ 460 $ 307 It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from the closure of tax statutes. The Company does not expect any significant changes in unrecognized tax benefits during the next twelve months. All of the Company’s unrecognized tax benefits, if recognized, would be recorded as a component of income tax expense, therefore, affecting the effective tax rate. The Company recognizes interest and penalties, if any, related to the liability for uncertain tax positions as a component of income tax expense. The accrual for interest and penalties was not material for all years presented. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as in various states. In the normal course of business, the Company is subject to U.S. federal, state, and local income tax examinations by tax authorities. The Company is no longer subject to examination for tax years prior to 2014 including any related income tax filings from its recent acquisitions. The Company has been selected for audit in the state of New York for tax years 2013-2014. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES At year-end 2017, the Company held derivatives with a total notional amount of $2.5 billion . The Company had economic hedges and non-hedging derivatives totaling $2.3 billion and $194.0 million , respectively, which are not designated as hedges for accounting purposes and are therefore recorded at fair value with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $1.9 billion , risk participation agreements with dealer banks of $142.1 million , and $276.6 million in forward commitment contracts. As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management 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 December 31, 2017. The Company pledged collateral to derivative counterparties in the form of cash totaling $2.1 million and securities with an amortized cost of $24.4 million and a fair value of $24.4 million at year-end 2017. At December 31, 2016, the Company pledged cash collateral of $0.9 million and securities with an amortized cost of $47.8 million and a fair value of $47.9 million . 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 interest rate swap agreements and non-hedging derivative assets and liabilities at December 31, 2017 follows: Notional Amount Weighted Average Maturity Weighted Average Rate Estimated Fair Value Asset (Liability) December 31, 2017 Received Contract pay rate (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLBB borrowings $ — 0 — % — % $ — Total cash flow hedges — — Economic hedges: Interest rate swap on tax advantaged economic development bond 10,755 11.9 1.73 % 5.09 % (1,649 ) Interest rate swaps on loans with commercial loan customers 943,795 5.9 3.26 % 4.25 % (3,195 ) Reverse interest rate swaps on loans with commercial loan customers 943,795 5.9 4.25 % 3.26 % 3,204 Risk participation agreements with dealer banks 142,054 8.4 (26 ) Forward sale commitments 276,572 0.2 (123 ) Total economic hedges 2,316,971 (1,789 ) Non-hedging derivatives: Commitments to lend 193,966 0.2 5,259 Total non-hedging derivatives 193,966 5,259 Total $ 2,510,937 $ 3,470 Information about interest rate swap agreements and non-hedging derivative asset and liabilities at December 31, 2016 follows: Notional Amount Weighted Average Maturity Weighted Average Rate Estimated Fair Value Asset (Liability) December 31, 2016 Received Contract pay rate (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 2.3 0.63 % 2.29 % $ (6,573 ) Total cash flow hedges 300,000 (6,573 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,386 12.9 0.98 % 5.09 % (2,021 ) Interest rate swaps on loans with commercial loan customers 668,541 6.2 2.43 % 4.21 % (6,752 ) Reverse interest rate swaps on loans with commercial loan customers 668,541 6.2 4.21 % 2.43 % 7,077 Risk participation agreements with dealer banks 83,360 11.6 5 Forward sale commitments 259,889 0.2 722 Total economic hedges 1,691,717 (969 ) Non-hedging derivatives: Commitments to lend 208,145 0.2 4,738 Total non-hedging derivatives 208,145 4,738 Total $ 2,199,862 $ (2,804 ) Cash Flow Hedges In the first quarter of 2017, the Company maintained six interest rate swap contracts with an aggregate notional value of $300 million with original durations of three years . This hedge strategy converted one month rolling FHLB borrowings based on the FHLB’s one month fixed interest rate to fixed interest rates, thereby protecting the Company from floating interest rate variability. On February 7, 2017, the Company terminated all of its interest rate swaps associated with FHLB advances with 1-month LIBOR based floating interest rates of an aggregate notional amount of $300 million . As of March 31, 2017, the Company no longer held the FHLB advances associated with the interest rate swaps. As a result, the Company reclassified $6.6 million of losses from the effective portion of the unrealized changes in the fair value of the terminated derivatives from other comprehensive income to non-interest income as the forecasted transactions to the related FHLB advances will not occur. For the periods presented prior to the termination, the effective portion of unrealized changes in the fair value of derivatives accounted for as cash flow hedges was reported in other comprehensive income. Each quarter, the Company assessed 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. Hedge ineffectiveness on interest rate swaps designated as cash flow hedges was immaterial to the Company’s financial statements during the years ended December 31, 2017 and 2016. 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: Years Ended December 31, (In thousands) 2017 2016 2015 Interest rate swaps on FHLBB borrowings: Unrealized (loss) recognized in accumulated other comprehensive loss $ (449 ) $ (2,023 ) $ (5,232 ) Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense (393 ) (3,981 ) — Less: reclassification of unrealized (loss) from accumulated other (6,629 ) — — Net tax effect on items recognized in accumulated other comprehensive income (2,589 ) (835 ) 2,094 Other comprehensive income recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 3,984 $ 1,123 $ (3,138 ) Economic hedges As of December 31, 2017 the Company has an interest rate swap with a $10.8 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 $(316) thousand at year-end 2017. 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 earns 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. 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 held 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 sales 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 sales 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 to-be-announced 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 commitments to lend 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. Commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding commitments 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 commitments are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s consolidated statements of income. Changes in the fair value of commitments 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: Years Ended December 31, (In thousands) 2017 2016 2015 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 371 $ (75 ) $ (344 ) Interest rate swaps on loans with commercial loan customers: Unrealized gain recognized in other non-interest income 3,557 1,312 (4,852 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized (loss) recognized in other non-interest income (3,557 ) (1,312 ) 4,852 (Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income (316 ) 338 (51 ) Risk Participation Agreements: Unrealized (loss) recognized in other non-interest income (31 ) (61 ) (36 ) Forward Commitments: Unrealized gain (loss) recognized in non-interest income (123 ) (1,176 ) (247 ) Realized (loss) in non-interest income (1,764 ) (3,705 ) 45 Non-hedging derivatives Commitments to lend: Unrealized gain recognized in non-interest income $ 5,259 $ 8,373 $ 2,436 Realized gain in non-interest income 50,879 3,650 1,899 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 financial institution counterparties totaling $1.1 million and $49 thousand as of December 31, 2017 and December 31, 2016, respectively. The Company had net asset positions with its commercial banking counterparties totaling $8.6 million and $11.5 million as of December 31, 2017 and December 31, 2016, respectively. The Company had net liability positions with its financial institution counterparties totaling $5.9 million and $15.4 million as of December 31, 2017 and December 31, 2016, respectively. At December 31, 2017, the Company had net liability positions with its commercial banking counterparties totaling $5.4 million and $4.4 million as of December 31, 2017 and December 31, 2016, respectively. The collateral posted by the Company that covered liability positions was $5.9 million and $19.8 million as of December 31, 2017 and December 31, 2016, respectively. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2017 and December 31, 2016 : Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts of Assets Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2017 Interest Rate Swap Agreements: Institutional counterparties $ 2,692 $ (1,622 ) $ 1,070 $ — $ — $ 1,070 Commercial counterparties 8,577 — 8,577 — — 8,577 Total $ 11,269 $ (1,622 ) $ 9,647 $ — $ — $ 9,647 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts of Liabilities Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2017 Interest Rate Swap Agreements: Institutional counterparties $ (8,777 ) $ 2,835 $ (5,942 ) $ 3,982 $ 1,960 $ — Commercial counterparties (5,375 ) 2 (5,373 ) — — (5,373 ) Total $ (14,152 ) $ 2,837 $ (11,315 ) $ 3,982 $ 1,960 $ (5,373 ) Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts of Assets Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2016 Interest Rate Swap Agreements: Institutional counterparties $ 49 $ — $ 49 $ — $ — $ 49 Commercial counterparties 11,461 — 11,461 — — 11,461 Total $ 11,510 $ — $ 11,510 $ — $ — $ 11,510 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts of Liabilities Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2016 Interest Rate Swap Agreements: Institutional counterparties $ (20,077 ) $ 4,689 $ (15,388 ) $ 14,738 $ 650 $ — Commercial counterparties (4,407 ) 23 (4,384 ) — — (4,384 ) Total $ (24,484 ) $ 4,712 $ (19,772 ) $ 14,738 $ 650 $ (4,384 ) |
OTHER COMMITMENTS, CONTINGENCIE
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES Credit Related Financial Instruments. The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit, and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. A summary of financial instruments outstanding whose contract amounts represent credit risk is as follows at year-end: (In thousands) 2017 2016 Commitments to originate new loans $ 244,252 $ 243,519 Unused funds on commercial and other lines of credit 678,567 574,043 Unadvanced funds on home equity lines of credit 297,367 281,621 Unadvanced funds on construction and real estate loans 360,472 320,635 Standby letters of credit 13,613 14,939 Lease obligation 11,323 11,639 Total $ 1,605,594 $ 1,446,396 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These letters of credit are primarily issued to support borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company considers standby letters of credit to be guarantees and the amount of the recorded liability related to such guarantees was not material at year-end 2017 and 2016. Operating Lease Commitments. Future minimum rental payments required under operating leases at year-end 2017 are as follows: 2018 — $12.8 million ; 2019 — $10.8 million ; 2020 — $9.3 million ; 2021 — $8.3 million ; 2022 — $7.6 million ; and all years thereafter — $47.6 million . The leases contain options to extend for periods up to twenty years. The cost of such rental options is not included above. Total rent expense for the years 2017, 2016, and 2015 amounted to $12.0 million , $8.3 million , and $7.5 million , respectively. Lease Obligations. Future obligations required under the capital lease at year-end 2017 are $647 thousand in 2018; $646 thousand in 2019; $644 thousand in 2020; $612 thousand in 2021; $583 thousand in 2022 and $5.0 million all years thereafter. Amortization under the capital lease is included with premises and equipment depreciation and amortization expense. Future obligations required under the financing lease at year-end 2017 are $86 thousand in 2018; $86 thousand in 2019; $86 thousand in 2020; $86 thousand in 2021; $87 thousand in 2022; and $1.5 million all years thereafter. Amortization under the financing lease is included with premises and equipment depreciation and amortization expense. Employment and Change in Control Agreements. The Company and the Bank have entered into a three -year employment agreement with one senior executive. The Company and the Bank also have change in control agreements with several officers which provide a severance payment in the event employment is terminated in conjunction with a defined change in control. Legal Claims. Various legal claims arise from time to time in the normal course of business. As of December 31, 2017, neither the Company nor the Bank was involved in any pending legal proceedings believed by management to be material to the Company’s financial condition or results of operations. Periodically, there have been various claims and lawsuits involving the Bank, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans, and other issues incident to the Bank’s business. However, other than the items noted below, neither the Company nor the Bank is a party to any pending legal proceedings that it believes, in the aggregate, would have a material adverse effect on the financial condition or operations of the Company. Additionally, an estimate of future, probable losses cannot be estimated as of December 31, 2017. On April 28, 2016, Berkshire Hills and Berkshire Bank were served with a complaint filed in the United States District Court, District of Massachusetts, Springfield Division. The complaint was filed by an individual Berkshire Bank depositor, who claims to have filed the complaint on behalf of a purported class of Berkshire Bank depositors, and alleges violations of the Electronic Funds Transfer Act and certain regulations thereunder, among other matters. On July 15, 2016, the complaint was amended to add purported claims under the Massachusetts Consumer Protection Act. The complaint seeks, in part, compensatory, consequential, statutory, and punitive damages. Berkshire Hills and Berkshire Bank deny the allegations contained in the complaint and are vigorously defending this lawsuit. On January 29, 2018, the Bank was served with an amended complaint filed nominally against Berkshire Hills in the Business Litigation Session of the Massachusetts Superior Court sitting in Suffolk County. The amended complaint was filed by two residuary beneficiaries of an estate planning trust that was administered by the Bank as successor trustee following the death of the trust donor, and alleges the Bank breached its fiduciary duty and violated the Massachusetts Consumer Protection Act in the course of performing its duties as trustee. The complaint seeks compensatory, statutory, and punitive damages. Berkshire Hills and Berkshire Bank deny the allegations contained in the complaint and are vigorously defending this lawsuit. |
SHAREHOLDERS' EQUITY AND EARNIN
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE | SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE Minimum Regulatory Capital Requirements The Company and Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if imposed, could have a direct material impact on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital to average assets (as defined). As of year-end 2017 and 2016, the Bank and the Company met the capital adequacy requirements. Regulators may set higher expected capital requirements in some cases based on their examinations. 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 increasing to 1.25% on January 1, 2017. It will increase to 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 December 31, 2017, 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. The capital levels of both the Company and the Bank at December 31, 2017 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 1.25%. As of year-end 2017 and 2016 , 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 following tables. The Company and Bank’s actual and required capital amounts were as follows: Minimum Capital Requirement Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Actual (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Company (Consolidated) Total capital to risk-weighted assets $ 1,063,843 12.43 % $ 684,692 8.00 % $ 855,865 N/A Common Equity Tier 1 Capital to risk weighted assets 942,389 11.01 385,139 4.50 556,312 N/A Tier 1 capital to risk-weighted assets 954,103 11.15 513,519 6.00 684,692 N/A Tier 1 capital to average assets 954,103 9.01 342,346 4.00 427,932 N/A Bank Total capital to risk-weighted assets $ 954,172 11.17 % $ 683,103 8.00 % $ 853,879 10.00 % Common Equity Tier 1 Capital to risk weighted assets 881,324 10.32 384,245 4.50 555,021 6.50 Tier 1 capital to risk-weighted assets 881,324 10.32 512,327 6.00 683,103 8.00 Tier 1 capital to average assets 881,324 8.32 341,552 4.00 426,939 5.00 December 31, 2016 Company (Consolidated) Total capital to risk-weighted assets $ 803,618 11.87 % $ 541,603 8.00 % $ 677,004 N/A Common Equity Tier 1 Capital to risk weighted assets 670,120 9.90 304,652 4.50 440,053 N/A Tier 1 capital to risk-weighted assets 681,500 10.07 406,202 6.00 541,603 N/A Tier 1 capital to average assets 681,500 7.88 270,802 4.00 338,502 N/A Bank Total capital to risk-weighted assets $ 756,792 11.21 % $ 539,893 8.00 % $ 674,866 10.00 % Common Equity Tier 1 Capital to risk weighted assets 672,244 9.96 303,690 4.50 438,663 6.50 Tier 1 capital to risk-weighted assets 672,244 9.96 404,920 6.00 539,893 8.00 Tier 1 capital to average assets 672,244 7.84 269,920 4.00 337,433 5.00 Common stock The Bank is subject to dividend restrictions imposed by various regulators, including a limitation on the total of all dividends that the Bank may pay to the Company in any calendar year. The total of all dividends shall not exceed the Bank’s net income for the current year (as defined by statute), plus the Bank’s net income retained for the two previous years, without regulatory approval. Dividends from the Bank are an important source of funds to the Company to make dividend payments on its common and preferred stock, to make payments on its borrowings, and for its other cash needs. The ability of the Company and the Bank to pay dividends is dependent on regulatory policies and regulatory capital requirements. The ability to pay such dividends in the future may be adversely affected by new legislation or regulations, or by changes in regulatory policies relating to capital, safety and soundness, and other regulatory concerns. The payment of dividends by the Company is subject to Delaware law, which generally limits dividends to an amount equal to an excess of the net assets of a company (the amount by which total assets exceed total liabilities) over statutory capital, or if there is no excess, to the Company’s net profits for the current and/or immediately preceding fiscal year. Preferred stock As a provision of the merger agreement with Commerce, certain Commerce common stock was converted into the right to receive 0.465 shares of Series B Non-Voting Preferred Stock issued by the Company. Each preferred share is convertible into two shares of the Company's common stock under specified conditions. The shares are considered participating, but do not maintain preferential treatment over common shares. Proportional dividends on the preferred shares are not payable unless also declared for common shares. As of year-end 2017, 522 thousand preferred shares were issued and outstanding. Accumulated other comprehensive income Year-end components of accumulated other comprehensive income/(loss) are as follows: (In thousands) 2017 2016 Other accumulated comprehensive income/(loss), before tax: Net unrealized holding gain on AFS securities $ 10,034 $ 25,176 Net (loss) on effective cash flow hedging derivatives — (6,573 ) Net unrealized holding (loss) on pension plans (3,048 ) (2,954 ) Income taxes related to items of accumulated other comprehensive income/(loss): Net unrealized holding (gain) on AFS securities (4,026 ) (9,636 ) Net loss on effective cash flow hedging derivatives — 2,589 Net unrealized holding loss on pension plans 1,201 1,164 Accumulated other comprehensive income/(loss) $ 4,161 $ 9,766 The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2017, 2016, and 2015: (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2017 Net unrealized holding gain on AFS securities: Net unrealized (loss) arising during the period $ (2,544 ) $ 1,075 $ (1,469 ) Less: reclassification adjustment for gains realized in net income 12,598 (4,535 ) 8,063 Net unrealized holding (loss) on AFS securities (15,142 ) 5,610 (9,532 ) Net loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period (449 ) 180 (269 ) Less: reclassification adjustment for (losses) realized in net income (7,022 ) 2,769 (4,253 ) Net gain on cash flow hedging derivatives 6,573 (2,589 ) 3,984 Net unrealized holding (loss) on pension plans Net unrealized (loss) arising during the period (311 ) 124 (187 ) Less: reclassification adjustment for losses realized in net income (217 ) 87 (130 ) Net unrealized holding (loss) on pension plans (94 ) 37 (57 ) Other Comprehensive Income(Loss) $ (8,663 ) $ 3,058 $ (5,605 ) (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2016 Net unrealized holding gain on AFS securities: Net unrealized gain arising during the period $ 18,308 $ (6,979 ) $ 11,329 Less: reclassification adjustment for (losses) realized in net income (551 ) 220 (331 ) Net unrealized holding gain on AFS securities 18,859 (7,199 ) 11,660 Net (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (2,022 ) 754 (1,268 ) Less: reclassification adjustment for (losses) realized in net income (3,981 ) 1,589 (2,392 ) Net gain on cash flow hedging derivatives 1,959 (835 ) 1,124 Net unrealized holding gain on pension plans Net unrealized gain arising during the period 351 (155 ) 196 Less: reclassification adjustment for (losses) realized in net income (164 ) 73 (91 ) Net unrealized holding gain on pension plans 515 (228 ) 287 Other Comprehensive Income $ 21,333 $ (8,262 ) $ 13,071 (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2015 Net unrealized holding gain on AFS securities: Net unrealized loss arising during the period $ (7,567 ) $ 2,793 $ (4,774 ) Less: reclassification adjustment for gains realized in net income 2,110 (847 ) 1,263 Net unrealized holding loss on AFS securities (9,677 ) 3,640 (6,037 ) Net (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,232 ) 2,094 (3,138 ) Less: reclassification adjustment for (losses) realized in net income — — — Net (loss) on cash flow hedging derivatives (5,232 ) 2,094 (3,138 ) Net unrealized holding (loss) on pension plans Net unrealized (loss) arising during the period (1,436 ) 572 (864 ) Less: reclassification adjustment for (losses) realized in net income (259 ) 104 (155 ) Net unrealized holding (loss) on pension plans (1,177 ) 468 (709 ) Other Comprehensive Loss $ (16,086 ) $ 6,202 $ (9,884 ) The following table presents the changes in each component of accumulated other comprehensive income (loss), for the years ended December 31, 2017 , 2016 , and 2015: (in thousands) Net unrealized holding gain (loss) on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding gain (loss) on pension plans Total Year Ended December 31, 2017 Balance at Beginning of Year $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Other comprehensive gain (loss) before reclassifications (1,469 ) (269 ) (187 ) (1,925 ) Amounts reclassified from accumulated other comprehensive income 8,063 (4,253 ) (130 ) 3,680 Total Other Comprehensive (Loss) Income (9,532 ) 3,984 (57 ) (5,605 ) Balance at End of Period $ 6,008 $ — $ (1,847 ) $ 4,161 Year Ended December 31, 2016 Balance at Beginning of Year $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) Other comprehensive gain (loss) before reclassifications 11,329 (1,268 ) 196 10,257 Amounts reclassified from accumulated other comprehensive income (331 ) (2,392 ) (91 ) (2,814 ) Total Other Comprehensive Income 11,660 1,124 287 13,071 Balance at End of Period $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Year Ended December 31, 2015 Balance at Beginning of Year $ 9,916 $ (1,969 ) $ (1,368 ) $ 6,579 Other comprehensive gain (loss) Before reclassifications (4,774 ) (3,138 ) (864 ) (8,776 ) Amounts reclassified from accumulated other comprehensive income 1,263 — (155 ) 1,108 Total Other Comprehensive (Loss) (6,037 ) (3,138 ) (709 ) (9,884 ) Balance at End of Period $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2017 , 2016 , and 2015: Affected Line Item in the Years Ended December 31, (in thousands) 2017 2016 2015 Realized (losses) gains on AFS securities: $ 12,598 $ (551 ) $ 2,110 Non-interest income (4,535 ) 220 (847 ) Tax expense 8,063 (331 ) 1,263 Realized (losses) on cash flow hedging derivatives: (393 ) — — Interest expense (6,629 ) — — Non-interest income — (3,981 ) — Non-interest expense 2,769 1,589 — Tax benefit (4,253 ) (2,392 ) — Realized (losses) on pension plans (217 ) (164 ) (259 ) Non-interest expense 87 73 104 Tax expense (130 ) (91 ) (155 ) Total reclassifications for the period $ 3,680 $ (2,814 ) $ 1,108 Earnings Per Common Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. Earnings per common share has been computed based on the following (average diluted shares outstanding is calculated using the treasury stock method): Years Ended December 31, (In thousands, except per share data) 2017 2016 2015 Net income $ 55,247 $ 58,670 $ 49,518 Average number of common shares issued 40,627 32,604 30,074 Less: average number of treasury shares 963 1,116 1,215 Less: average number of unvested stock award shares 437 500 466 Plus: average participating preferred shares 229 — — Average number of basic common shares outstanding 39,456 30,988 28,393 Plus: dilutive effect of unvested stock award shares 202 122 106 Plus: dilutive effect of stock options outstanding 37 57 65 Average number of diluted common shares outstanding 39,695 31,167 28,564 Basic earning per common share $ 1.40 $ 1.89 $ 1.74 Diluted earnings per common share $ 1.39 $ 1.88 $ 1.73 For the year ended 2017, 55 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. For the year ended 2016, 52 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. For the year ended 2015, 200 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The 2013 Equity Incentive Plan (the “2013 Plan”) permits the granting of a combination of Restricted Stock awards and incentive and non-qualified stock options (“Stock Options”) to employees and directors. A total of 1.0 million shares was authorized under the Plan. Awards may be granted as either Restricted Stock or Stock Options provided that any shares that are granted as Restricted Stock are counted against the share limit set forth as (1) three for every one share of Restricted Stock granted and (2) one for every one share of Stock Option granted. As of year-end 2017, the Company had the ability to grant approximately 383 thousand shares under this plan. The 2011 Equity Incentive Plan (the “2011 Plan”) permits the granting of a combination of Restricted Stock awards and incentive and non-qualified stock options to employees and directors. A total of 1.4 million shares was authorized under the Plan. Awards may be granted as either Restricted Stock or Stock Options provided that any shares that are granted as Restricted Stock are counted against the share limit set forth as (1) three for every one share of Restricted Stock granted and (2) one for every one share of Stock Option granted. As of year-end 2017, the Company had the ability to grant approximately 6 thousand shares under this plan. A summary of activity in the Company’s stock compensation plans is shown below: Non-vested Stock Stock Options Outstanding (Shares in thousands) Number of Shares Weighted- Average Number of Shares Weighted- Average Exercise Price Balance, December 31, 2016 448 $ 26.28 109 $ 15.72 Granted 161 35.84 — — Stock options exercised — — (19 ) 17.74 Stock awards vested (174 ) 25.68 — — Forfeited (17 ) 30.04 — — Expired — — (14 ) 29.35 Balance, December 31, 2017 418 $ 29.68 76 $ 13.59 Stock Awards The total compensation cost for stock awards recognized as expense was $5.3 million , $4.6 million , and $4.7 million , in the years 2017, 2016, and 2015, respectively. The total recognized tax benefit associated with this compensation cost was $2.0 million , $1.8 million , and $1.9 million , respectively. The weighted average fair value of stock awards granted was $35.84 , $26.81 , and $26.66 in 2017, 2016, and 2015, respectively. Stock awards vest over periods up to five years and are valued at the closing price of the stock on the grant date. The total fair value of stock awards vested during 2017, 2016, and 2015 was $4.4 million , $4.4 million , and $3.4 million respectively. The unrecognized stock-based compensation expense related to unvested stock awards was $6.5 million as of year-end 2017. This amount is expected to be recognized over a weighted average period of two years. Option Awards Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant, and vest over periods up to five years. The options grant the holder the right to acquire a share of the Company’s common stock for each option held, and have a contractual life of ten years. As of year-end 2017, the weighted average remaining contractual term for options outstanding is two years. The Company generally issues shares from treasury stock as options are exercised. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The expected dividend yield and expected term are based on management estimates. The expected volatility is based on historical volatility. The risk-free interest rates for the expected term are based on the U.S. Treasury yield curve in effect at the time of the grant. The Company acquired options in the Beacon transaction in 2012, but did not grant additional options in 2017, 2016, or 2015. The total intrinsic value of options exercised was $362.7 thousand , $879.6 thousand , and $210.0 thousand for the years 2017, 2016, and 2014, respectively. There was no expense pertaining to options vesting in 2017, 2016 or 2015. There was no tax benefit associated with stock option expense in 2017, 2016 or 2015. There was no unrecognized stock-based compensation expense related to unvested stock options as of year-ends 2017, 2016, and 2015. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for instruments 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 of Financial Instruments The following table summarizes assets and liabilities measured at fair value on a recurring basis as of year-end 2017 and 2016 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2017 (In thousands) Level 1 Level 2 Level 3 Total Trading security $ — $ — $ 12,277 $ 12,277 Available-for-sale securities: Municipal bonds and obligations — 118,233 — 118,233 Agency collateralized mortgage obligations — 851,158 — 851,158 Agency residential mortgage-backed securities — 216,940 — 216,940 Agency commercial mortgage-backed securities — 62,305 — 62,305 Corporate bonds — 110,721 — 110,721 Trust preferred securities — 11,677 — 11,677 Other bonds and obligations — 9,880 — 9,880 Marketable equity securities 44,851 334 — 45,185 Loans held for sale — 153,620 — 153,620 Derivative assets — 14,049 5,259 19,308 Other assets — — 3,834 3,834 Derivative liabilities 104 15,715 19 15,838 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Trading security $ — $ — $ 13,229 $ 13,229 Available-for-sale securities: Municipal bonds and obligations — 119,816 — 119,816 Agency collateralized mortgage obligations — 651,911 — 651,911 Agency residential mortgage-backed securities — 228,684 — 228,684 Agency commercial mortgage-backed securities — 64,534 — 64,534 Corporate bonds — 56,006 — 56,006 Trust preferred securities — 11,887 — 11,887 Other bonds and obligations — 11,158 — 11,158 Marketable equity securities 62,284 3,257 — 65,541 Loans held for sale — 120,673 — 120,673 Derivative assets 622 16,157 4,838 21,617 Other assets — — 798 798 Derivative liabilities — 24,420 — 24,420 There were no transfers between Level 1, 2, and 3 during the year ended December 31, 2017. During the year ended December 31, 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 Level 1, 2, and 3 during the year ended December 31, 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 originated for sale (HFS) that were 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 Aggregate Aggregate Fair Value December 31, 2017 (In thousands) Loans Held for Sale $ 153,620 $ 149,022 $ 4,598 Aggregate Aggregate Aggregate Fair Value December 31, 2016 (In thousands) Loans Held for Sale $ 120,673 $ 118,178 $ 2,495 The changes in fair value of loans held for sale for years ended December 31, 2017 and 2016 were gains of $2.1 million and $2.2 million , respectively. The changes in fair value are included in mortgage banking income in the Consolidated Statements of Income. In 2017, originations of loans held for sale totaled $2.4 billion and sales of loans originated as held for sale totaled $2.3 billion . Interest Rate Swaps. 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 year-end 2017, 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. Commitments to Lend. The Company enters into commitments to lend for residential mortgage loans intended for sale, which commit the Company to lend funds to a potential borrower at a certain 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 commitment 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, these commitments to lend 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 commitments to lend and loans originated for sale. To be announced (TBA) mortgage-backed securities forward commitment sales are used as hedging instruments, 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 commitments to lend 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 sale commitments are classified as Level 3 measurements. Capitalized Servicing Rights. The Company accounts for certain capitalized servicing rights at fair value in its Consolidated Financial Statements, as the Company is permitted to elect the fair value option for each specific instrument. 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. 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. The table below presents the changes in Level 3 assets that were measured at fair value on a recurring basis at year-end 2017 and 2016 : Assets (Liabilities) (In thousands) Trading Securities Available for Sale Commitments to Lend Forward Capitalized Servicing Rights Balance as of December 31, 2015 $ 14,189 $ 708 $ 323 $ 9 $ — Amounts acquired from First Choice Bank — — 3,900 — 696 Unrealized (loss) gain, net recognized in other non-interest income (362 ) — 13,563 91 102 Unrealized gain included in accumulated other comprehensive loss — — — — — Transfers to Level 2 — (708 ) — — — Paydown of trading security (598 ) — — — — Transfers to loans held for sale — — (13,048 ) — — Balance as of December 31, 2016 $ 13,229 $ — $ 4,738 $ 100 $ 798 Unrealized (loss) gain, net recognized in other non-interest income (320 ) — 63,894 (81 ) (221 ) Unrealized gain included in accumulated other comprehensive loss — — — — — Transfers to Level 2 — — — — — Paydown of trading security (632 ) — — — — Transfers to loans held for sale — — (63,373 ) — — Additions to servicing rights — — — — 3,257 Balance as of December 31, 2017 $ 12,277 $ — $ 5,259 $ 19 $ 3,834 Unrealized gains (losses) relating to instruments still held at December 31, 2017 $ 1,522 $ — $ 5,259 $ 19 $ (221 ) Unrealized gains relating to instruments still held at December 31, 2016 $ 1,843 $ — $ 4,738 $ 100 $ 102 Quantitative information about the significant unobservable inputs within Level 3 recurring assets/(liabilities) as of December 31, 2017 and 2016 are as follows: Fair Value Significant Unobservable Input Value (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Assets Trading Security $ 12,277 Discounted Cash Flow Discount Rate 2.74 % Forward Commitments 19 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Commitments to Lend 5,259 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Capitalized Servicing Rights 3,834 Discounted cash flow Constant prepayment rate (CPR) 10.00 % Discount rate 10.95 % Total $ 21,389 Fair Value Significant (In thousands) December 31, 2016 Valuation Techniques Unobservable Inputs Assets Trading Security $ 13,229 Discounted Cash Flow Discount Rate 2.62 % Forward Commitments 100 Historical Trend Closing Ratio 80.36 % Commitments to Lend 4,738 Pricing Model Origination Costs, per loan $ 3.692 Historical Trend Closing Ratio 80.36 % Capitalized Servicing Rights 798 Pricing Model Origination Costs, per loan $ 3.692 Discounted cash flow Constant prepayment rate (CPR) 10.40 % Discount rate 11.00 % Total $ 18,865 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 on a non-recurring basis. December 31, 2017 Fair Value Measurements as of December 31, 2017 (In thousands) Level 3 Level 3 Inputs Assets Impaired loans $ 23,853 December 2017 Capitalized servicing rights 12,527 December 2017 Other real estate owned — — Total $ 36,380 December 31, 2016 Fair Value Measurements as of December 31, 2016 (In thousands) Level 3 Level 3 Assets Impaired loans $ 17,761 December 2016 Capitalized servicing rights 10,726 December 2016 Other real estate owned 151 Feb. 2016 - July 2016 Total $ 28,638 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2017 and 2016 are as follows: (in thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 23,853 Fair value of collateral Loss severity 38.72% to 0.21% (3.40%) Appraised value $10.9 to $5967 ($2,197) Capitalized servicing rights 12,527 Discounted cash flow Constant prepayment rate (CPR) 7.78% to 12.78% (10.38%) Discount rate 10.00% to 13.28% (11.72%) Other real estate owned — Fair value of collateral Appraised value — Total Assets $ 36,380 (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. (in thousands) December 31, 2016 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 17,761 Fair value of collateral Loss severity 0% to 88.70% (9.73%) Appraised value $0 to $2,192 ($1,026) Capitalized servicing rights 10,726 Discounted cash flow Constant prepayment rate (CPR) 7.35% to 14.28% (10.44%) Discount rate 10.00% to 14.00% (11.77%) Other real estate owned 151 Fair value of collateral Appraised value $101 to $129 ($122) Total Assets $ 28,638 (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 year-end 2017 and 2016 . 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 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, real estate collateral related nonrecurring fair value measurement adjustments 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. December 31, 2017 Carrying Fair (In thousands) Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 248,763 $ 248,763 $ 248,763 $ — $ — Trading security 12,277 12,277 — — 12,277 Securities available for sale 1,426,099 1,426,099 44,850 1,381,249 — Securities held to maturity 397,103 405,276 — 371,458 33,818 FHLB stock and restricted equity securities 63,085 N/A — N/A — Net loans 8,247,504 8,422,034 — — 8,422,034 Loans held for sale 153,620 153,620 — 153,620 — Accrued interest receivable 33,739 33,739 — 33,739 — Derivative assets 19,308 19,308 — 14,049 5,259 Assets held for sale 1,392 1,392 — 1,392 — Financial Liabilities Total deposits 8,749,530 8,731,527 — 8,731,527 — Short-term debt 667,300 667,246 — 667,246 — Long-term FHLB advances 380,436 378,766 — 378,766 — Subordinated notes 89,339 97,414 — 97,414 — Derivative liabilities 15,838 15,838 104 15,715 19 December 31, 2016 Carrying Fair (In thousands) Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 113,075 $ 113,075 $ 113,075 $ — $ — Trading security 13,229 13,229 — — 13,229 Securities available for sale 1,209,537 1,209,537 62,284 1,147,253 — Securities held to maturity 334,368 337,680 — 300,806 36,874 FHLB stock and restricted equity securities 71,112 N/A — N/A — Net loans 6,505,789 6,532,745 — — 6,532,745 Loans held for sale 120,673 120,673 — 120,673 — Accrued interest receivable 26,113 26,113 — 26,113 — Derivative assets 21,617 21,617 622 16,157 4,838 Assets held for sale 322 322 — 322 — Financial Liabilities Total deposits 6,622,092 6,624,108 — 6,624,108 — Short-term debt 1,082,044 1,081,996 — 1,081,996 — Long-term FHLB advances 142,792 143,151 — 143,151 — Subordinated notes 89,161 96,973 — 96,973 — Derivative liabilities 24,420 24,420 — 24,420 — 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 stock and restricted equity securities. It is not practical to determine fair value due to the restricted nature of the security. Loans, net. The carrying value of the loans in the loan portfolio is based on cash flows 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. The methodology utilized to determine fair value does not represent exit price. 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. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Condensed financial information pertaining only to the Parent, Berkshire Hills Bancorp, is as follows. Investment in subsidiaries at December 31, 2017 includes $35 million of intercompany subordinated notes. CONDENSED BALANCE SHEETS December 31, (In thousands) 2017 2016 Assets Cash due from Berkshire Bank $ 83,380 $ 43,018 Investment in subsidiaries 1,470,859 1,127,706 Securities available for sale, at fair value 21,827 23,651 Other assets 12,138 1,372 Total assets $ 1,588,204 $ 1,195,747 Liabilities and Shareholders’ Equity Short term debt $ — $ 10,000 Subordinated notes 89,339 89,161 Accrued expenses 2,601 3,288 Shareholders’ equity 1,496,264 1,093,298 Total liabilities and shareholders’ equity $ 1,588,204 $ 1,195,747 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (In thousands) 2017 2016 2015 Income: Dividends from subsidiaries $ 39,000 $ 33,000 $ 34,000 Other 5,864 4,072 2,763 Total income 44,864 37,072 36,763 Interest expense 5,338 5,743 5,674 Non-interest expenses 6,042 3,740 3,670 Total expense 11,380 9,483 9,344 Income before income taxes and equity in undistributed income of subsidiaries 33,484 27,589 27,419 Income tax benefit (1,783 ) (2,123 ) (2,518 ) Income before equity in undistributed income of subsidiaries 35,267 29,712 29,937 Equity in undistributed income of subsidiaries 19,980 28,958 19,581 Net income 55,247 58,670 49,518 Preferred stock dividend 219 — — Income available to common shareholders $ 55,028 $ 58,670 $ 49,518 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (In thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 55,247 $ 58,670 $ 49,518 Adjustments to reconcile net income to net cash (used) provided by operating activities: Equity in undistributed income of subsidiaries (19,980 ) (28,958 ) (19,581 ) Other, net (7,964 ) 1,988 10,904 Net cash provided by operating activities 27,303 31,700 40,841 Cash flows from investing activities: Advances to subsidiaries (100,000 ) — — Acquisitions, net of cash paid — — (3,293 ) Purchase of securities (1,057 ) (18,016 ) (18 ) Sale of securities 2,101 — — Other, net 1,508 9,728 — Net cash (used) in investing activities (97,448 ) (8,288 ) (3,311 ) Cash flows from financing activities: Proceed from issuance of short term debt — 9,349 — Repayment of short term debt (9,822 ) — (9,935 ) Net proceeds from common stock 153,313 3,712 — Net proceeds from preferred stock — — — Net proceeds from reissuance of treasury stock — — 240 Payment to repurchase common stock — (4,632 ) (550 ) Common stock cash dividends paid (33,022 ) (24,916 ) (21,903 ) Preferred stock cash dividends paid (219 ) — — Other, net 257 11 167 Net cash provided provided/(used) by financing activities 110,507 (16,476 ) (31,981 ) Net change in cash and cash equivalents 40,362 6,936 5,549 Cash and cash equivalents at beginning of year 43,018 36,082 30,533 Cash and cash equivalents at end of year $ 83,380 $ 43,018 $ 36,082 |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (UNAUDITED) | QUARTERLY DATA (UNAUDITED) Quarterly results of operations were as follows: 2017 2016 (In thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 105,823 $ 89,060 $ 84,666 $ 80,709 $ 72,434 $ 70,511 $ 69,018 $ 68,476 Interest expense 19,457 17,062 15,121 13,823 13,276 12,540 11,577 10,779 Net interest income 86,366 71,998 69,545 66,886 59,158 57,971 57,441 57,697 Non-interest income 29,298 28,836 32,798 34,757 16,725 18,941 14,555 15,630 Total revenue 115,664 100,834 102,343 101,643 75,883 76,912 71,996 73,327 Provision for loan losses 6,141 4,900 4,889 5,095 4,100 4,734 4,522 4,006 Non-interest expense 90,041 65,820 69,523 74,326 61,090 48,844 46,268 47,100 Income before income taxes 19,482 30,114 27,931 22,222 10,693 23,334 21,206 22,221 Income tax expense (1) 22,292 7,211 8,237 6,762 362 6,953 5,249 6,220 Net (loss)/income $ (2,810 ) $ 22,903 $ 19,694 $ 15,460 $ 10,331 $ 16,381 $ 15,957 $ 16,001 Basic (loss)/earnings per common share $ (0.06 ) $ 0.57 $ 0.53 $ 0.44 $ 0.32 $ 0.53 $ 0.52 $ 0.52 Diluted (loss)/earnings per share $ (0.06 ) $ 0.57 $ 0.53 $ 0.44 $ 0.32 $ 0.53 $ 0.52 $ 0.52 Weighted average common shares outstanding: Basic 45,122 39,984 37,324 35,280 32,185 30,621 30,605 30,511 Diluted 45,122 40,145 37,474 35,452 32,381 30,811 30,765 30,688 (1) 2017 income tax expense includes $18.1 million charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017. |
NET INTEREST INCOME AFTER PROVI
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2017 | |
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 years ended 2017, 2016, and 2015, respectively: Years Ended December 31, (In thousands) 2017 2016 2015 Net interest income $ 294,795 $ 232,267 $ 213,849 Provision for loan losses 21,025 17,362 16,726 Net interest income after provision for loan losses 273,770 214,905 197,123 Total non-interest income 125,689 65,851 54,288 Total non-interest expense 299,710 203,302 196,829 Income from continuing operations before income taxes 99,749 77,454 54,582 Income tax expense 44,502 18,784 5,064 Net income $ 55,247 $ 58,670 $ 49,518 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation 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 Boston, Mass. 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. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Business Combinations | Business Combinations Business combinations are accounted for using the acquisition method of accounting. Under this method, the accounts of an acquired entity are included with the acquirer’s accounts as of the date of acquisition with any excess of purchase price over the fair value of the net assets acquired (including identifiable intangibles) capitalized as goodwill. To consummate an acquisition, the Company will typically issue common stock and/or pay cash, depending on the terms of the acquisition agreement. The value of common shares issued is determined based upon the market price of the stock as of the closing of the acquisition. |
Cash and Cash equivalents | Cash and Cash equivalents Cash and cash equivalents include cash, balances due from banks, and short-term investments, all of which had an original maturity within 90 days. Due to the nature of cash and cash equivalents and the near term maturity, the Company estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions. |
Trading Security | Trading Security The Company accounts for a tax advantaged economic development bond originated in 2008 at fair value, in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320. The bond has been designated as a trading account security and is recorded at fair value, with changes in unrealized gains and losses recorded through earnings each period as part of non-interest income. |
Securities | Securities Debt securities that management has the intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. All other securities, including equity securities with readily determinable fair values, are classified as available for sale and carried at fair value, with unrealized gains and losses reported as a component of other net comprehensive income. Management determines the appropriate classification of securities at the time of purchase. Restricted equity securities, such as stock in the Federal Home Loan Bank of Boston (“FHLBB”) are carried at cost. There are no quoted market prices for the Company’s restricted equity securities. The Bank is a member of the FHLBB, which requires that members maintain an investment in FHLBB stock, which may be redeemed based on certain conditions. The Bank reviews for impairment based on the ultimate recoverability of the cost bases in the FHLBB stock. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates debt and equity securities within the Company’s available for sale and held to maturity portfolios for other-than-temporary impairment (“OTTI”), at least quarterly. If the fair value of a debt security is below the amortized cost basis of the security, OTTI is required to be recognized if any of the following are met: (1) the Company intends to sell the security; (2) it is “more likely than not” that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. For all impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. Credit-related OTTI for all other impaired debt securities is recognized through earnings. Non-credit related OTTI for such debt securities is recognized in other comprehensive income, net of applicable taxes. In evaluating its marketable equity securities portfolios for OTTI, the Company considers its intent and ability to hold an equity security to recovery of its cost basis in addition to various other 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 on marketable equity securities is recognized immediately through earnings. |
Loans Held for Sale | Loans Held for Sale Loans originated with the intent to be sold in the secondary market are accounted for under the fair value option. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized in non-interest income or non-interest expense as earned or incurred. Fair value is primarily determined based on quoted prices for similar loans in active markets. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in non-interest income. Loans that were previously held for investment that the Company has an active plan to sell are transferred to loans held for sale at the lower of cost or market (fair value). The market price is primarily determined based on quoted prices for similar loans in active markets or agreed upon sales prices. Gains are recorded in non-interest income at sale to the extent that the sale price of the loan exceeds carrying value. Any reduction in the loan’s value, prior to being transferred to loans held for sale, is reflected as a charge-off of the recorded investment in the loan resulting in a new cost basis, with a corresponding reduction in the allowance for loan losses. Further changes in the fair value of the loan are recognized in non-interest income or expense, accordingly. |
Loans | Loans Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, the unamortized balance of any deferred fees or costs on originated loans and the unamortized balance of any premiums or discounts on loans purchased or acquired through mergers. Interest income is accrued on the unpaid principal balance. Interest income includes net accretion or amortization of deferred fees or costs and of premiums or discounts. Direct loan origination costs, net of any origination fees, in addition to premiums and discounts on loans, are deferred and recognized as an adjustment of the related loan yield using the interest method. Interest on loans, excluding automobile loans, is generally not accrued on loans which are ninety days or more past due unless the loan is well-secured and in the process of collection. Past due status is based on contractual terms of the loan. Automobile loans generally continue accruing until one hundred and twenty days delinquent, at which time they are charged off. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income, except for certain loans designated as well-secured. The interest on non-accrual loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. All payments received on non-accrual loans are applied against the principal balance of the loan. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Acquired Loans | Acquired Loans Loans that the Company acquired in acquisitions are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “ Loans and Debt Securities Acquired with Deteriorated Credit Quality, ” the Company recognizes the accretable yield, which is defined as the excess of all cash flows expected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the nonaccretable difference. The nonaccretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. For ASC 310-30 loans, the expected cash flows reflect anticipated prepayments, determined on a loan by loan basis according to the anticipated collection plan of these loans. The expected prepayments used to determine the accretable yield are consistent between the cash flows expected to be collected and projections of contractual cash flows so as to not affect the nonaccretable difference. For ASC 310-30 loans, prepayments result in the recognition of the nonaccretable balance as current period yield. Changes in prepayment assumptions may change the amount of interest income and principal expected to be collected. Interest income is also net of recoveries recorded on acquired impaired loans. ASC310-30 loans that have similar risk characteristics, primarily credit risk, collateral type and interest rate risk, and are homogenous in size, are pooled and accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. ASC 310-30 loans that cannot be aggregated into a pool are accounted for individually. After we acquire loans determined to be accounted for under ASC 310-30, actual cash collections are monitored to determine if they conform to management’s expectations. Revised cash flow expectations are prepared each quarter. A decrease in expected cash flows in subsequent periods may indicate impairment and would require us to establish an allowance for loan and lease losses (“ALLL”) by recording a charge to the provision for loan and lease losses. An increase in expected cash flows in subsequent periods initially reduces any previously established ALLL by the increase in the present value of cash flows expected to be collected, and requires us to recalculate the amount of accretable yield for the ASC 310-30 loan or pool. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the ASC 310-30 loan or pool. An ASC 310-30 loan may be derecognized either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, foreclosure of the collateral, or charge-off. If one of these events occurs, the loan is removed from the loan pool, or derecognized if it is accounted for as an individual loan. ASC 310-30 loans subject to modification are not removed from an ASC 310-30 pool even if those loans would otherwise be deemed troubled debt restructurings (“TDRs”) since the pool, and not the individual loan, represents the unit of account. Individually accounted for ASC 310-30 loans that are modified in a TDR are no longer classified as ASC 310-30 loans and are subject to TDR recognition. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. The Company has determined that the Company can reasonably estimate future cash flows on the Company’s current portfolio of acquired loans that are past due 90 days or more and on which the Company is accruing interest and the Company expects to fully collect the carrying value of the loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established based upon the level of estimated probable incurred losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses includes allowance allocations calculated in accordance with ASC 310, “Receivables,” and allowance allocations calculated in accordance with ASC 450, “Contingencies.” The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors derived from actual historical and industry portfolio loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Allowance amounts are based on an estimate of historical average annual percentage rate of loan loss for each loan segment, a temporal estimate of the incurred loss emergence and confirmation period for each loan category, and certain qualitative risk factors considered in the computation of the allowance for loan losses. Qualitative risk factors impacting the inherent risk of loss within the portfolio include the following: • National and local economic conditions, regulatory/legislative changes, or other competitive factors affecting the collectability of the portfolio • Trends in underwriting characteristics, composition of the portfolio, and/or asset quality • Changes in underwriting standards and/or collection, charge off, recovery, and account management practice • The existence and effect of any concentrations of credit Risk characteristics relevant to each portfolio segment are as follows: Commercial real estate — Loans in this segment are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans. In addition, construction loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions Commercial and industrial loans — Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential mortgage — All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Consumer loans — Loans in this segment are primarily home equity lines of credit and second mortgages, together with automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. The Company utilizes a blend of historical and industry portfolio loss rates for commercial real estate and commercial and industrial loans that are assessed by internal risk rating. Historical loss rates for residential mortgages, home equity and other consumer loans are not risk graded but are assessed based on the total of each loan segment. This approach incorporates qualitative adjustments based upon management’s assessment of various market and portfolio specific risk factors into its formula-based estimate. Due to the imprecise nature of the loan loss estimation process and ever changing conditions, the qualitative risk attributes may not adequately capture amounts of incurred loss in the formula-based loan loss components used to determine allocations in the Company’s analysis of the adequacy of the allowance for loan losses. The Company evaluates certain loans individually for specific impairment. Large groups of small balance homogeneous loans such as the residential mortgage, home equity, and other consumer portfolios are collectively evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification, or non-accrual status. The evaluation of certain loans individually for specific impairment includes non-accrual loans over a threshold and loans that were determined to be Troubled Debt Restructurings (“TDRs”). A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows or the loan’s observable fair market value, or the fair value of the collateral less costs to sell, if the loan is collateral dependent. However, for collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. Regarding acquired loans, the Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450-20 by collectively evaluating these loans for an allowance for loan loss. The Company applies a methodology similar to the methodology prescribed for business activities loans, which includes the application of environmental factors to each category of loans. The methodology to collectively evaluate the acquired loans outside the scope of ASC 310-30 includes the application of a number of environmental factors that reflect management’s best estimate of the level of incremental credit losses that might be recognized given current conditions. This is reviewed as part of the allowance for loan loss adequacy analysis. As the loan portfolio matures and environmental factors change, the loan portfolio will be reassessed each quarter to determine an appropriate reserve allowance. Additionally, the Company considers the need for an additional reserve for acquired loans accounted for outside of the scope of ASC 310-30 under ASC 310-20. At acquisition date, the Bank determined a fair value mark with credit and interest rate components. Under the Company’s model, the impairment evaluation process involves comparing the carrying value of acquired loans, including the unamortized premium or discount, to the calculated reserve allowance. If necessary, the Company books an additional reserve to account for shortfalls identified through this calculation. 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. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of operations and are not subject to income taxes. |
Foreclosed and Repossessed Assets | Foreclosed and Repossessed Assets Other real estate owned is comprised of real estate acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Repossessed collateral is primarily comprised of aircraft, motor vehicles, and taxi medallions. Both other real estate owned and repossessed collateral are held for sale and are initially recorded at the fair value less estimated costs to sell at the date of foreclosure or repossession, establishing a new cost basis. The shortfall, if any, of the loan balance over the fair value of the property or collateral, less cost to sell, at the time of transfer from loans to other real estate owned or repossessed collateral is charged to the allowance for loan losses. Subsequent to transfer, the asset is carried at lower of cost or fair value less cost to sell and periodically evaluated for impairment. Subsequent impairments in the fair value of other real estate owned and repossessed collateral are charged to expense in the period incurred. Net operating income or expense related to other real estate owned and repossessed collateral is included in operating expenses in the accompanying consolidated statements of income. Because of changing market conditions, there are inherent uncertainties in the assumptions with respect to the estimated fair value of other real estate owned and repossessed collateral. Because of these inherent uncertainties, the amount ultimately realized on other real estate owned and repossessed collateral may differ from the amounts reflected in the consolidated financial statements. |
Capitalized Servicing Rights | Capitalized Servicing Rights Capitalized servicing rights are included in “other assets” in the consolidated balance sheet. Servicing assets are initially recognized as separate assets at fair value when rights are acquired through purchase or through sale of financial assets with servicing retained. The Company's servicing rights accounted for under the fair value method are carried on the consolidated balance sheet at fair value with changes in fair value recorded in income in the period in which the change occurs. Changes in the fair value of servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. The Company’s servicing rights accounted for under the amortization method are initially recorded at fair value. Under that method, capitalized servicing rights are charged to expense in proportion to and over the period of estimated net servicing income. Fair value of the servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, prepayment speeds and default rates and losses. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, improvements, and equipment are carried at cost less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the shorter of the lease term, plus optional terms if certain conditions are met, or the estimated useful life of the asset. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Goodwill is assessed annually for impairment, and more frequently if events or changes in circumstances indicate that there may be an impairment. Adverse changes in the economic environment, declining operations, unanticipated competition, loss of key personnel, or other factors could result in a decline in the implied fair value of goodwill. If the implied fair value of goodwill is less than the carrying amount, a loss would be recognized in other non-interest expense to reduce the carrying amount to the implied fair value of goodwill. The Company performs an annual qualitative assessment of whether it is more likely than not that the reporting unit's fair value is less than its carrying amount. If the results of the qualitative assessment suggest goodwill impairment, the Company would perform a two-step impairment test through the application of various quantitative valuation methodologies. Step 1, used to identify instances of potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount, including goodwill, exceeds its fair value, the second step of the goodwill impairment analysis is performed to measure the amount of impairment loss, if any. Step 2 of the goodwill impairment analysis compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for the reporting unit exceeds the implied fair value of the reporting unit’s goodwill, an impairment loss is recognized in an amount equal to that excess. Subsequent reversals of goodwill impairment are prohibited. The Company may elect to bypass the qualitative assessment and begin with Step 1. |
Other Intangibles | Other Intangibles Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. The fair values of these assets are generally determined based on appraisals and are subsequently amortized on a straight-line basis or an accelerated basis over their estimated lives. Management assesses the recoverability of these intangible assets whenever events or changes in circumstances indicate that their carrying value may not be recoverable. If the carrying amount exceeds fair value, an impairment charge is recorded to income. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable for future years to differences between financial statement and tax bases of existing assets and liabilities. The effect of tax rate changes on deferred taxes is recognized in the income tax provision in the period that includes the enactment date. A tax valuation allowance is established, as needed, to reduce net deferred tax assets to the amount expected to be realized. In the event it becomes more likely than not that some or all of the deferred tax asset allowances will not be needed, the valuation allowance will be adjusted. In the ordinary course of business there is inherent uncertainty in quantifying the Company’s income tax positions. Income tax positions and recorded tax benefits are based upon management’s evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have determined the amount of the tax benefit to be recognized by estimating the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is more-likely-than-not that a tax benefit will not be sustained, no tax benefit has been recognized in the financial statements. Where applicable, associated interest and penalties have also been recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Insurance Commissions | Insurance Commissions Commission revenue is recognized as of the effective date of the insurance policy or the date the customer is billed, whichever is later, net of return commissions related to policy cancellations. In addition, the Company may receive additional performance commissions based on achieving certain sales and loss experience measures. Such commissions are recognized when determinable, which is generally when such commissions are received or when the Company receives data from the insurance companies that allows the reasonable estimation of these amounts. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. The fair value of restricted stock is recorded as unearned compensation. The deferred expense is amortized to compensation expense based on one of several permitted attribution methods over the longer of the required service period or performance period. For performance-based restricted stock awards, the Company estimates the degree to which performance conditions will be met to determine the number of shares that will vest and the related compensation expense. Compensation expense is adjusted in the period such estimates change. Income tax benefits and/or tax deficiencies related to stock compensation determined as the difference between compensation cost recognized for financial reporting purposes and the deduction for tax, are recognized in the income statement as income tax expense or benefit in the period in which they occur. |
Wealth Management | Wealth Management Wealth management assets held in a fiduciary or agent capacity are not included in the accompanying consolidated balance sheets because they are not assets of the Company. Fees earned from wealth management activities are amortized over the period of the service performed. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into interest rate swap agreements as part of the Company’s interest rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company’s intended use for the interest rate swap at inception, the Company designates the derivative as either an economic hedge of an asset or liability or a hedging instrument subject to the hedge accounting provisions of ASC 815, “Derivatives and Hedging.” Interest rate swaps designated as economic hedges are recorded at fair value within other assets or liabilities. Changes in the fair value of these derivatives are recorded directly through earnings. For interest rate swaps that management intends to apply the hedge accounting provisions of ASC 815, the Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking the various hedges. Additionally, the Company uses dollar offset or regression analysis at the hedge’s inception and for each reporting period thereafter, to assess whether the derivative used in its hedging transaction is expected to be and has been highly effective in offsetting changes in the fair value or cash flows of the hedged item. The Company discontinues hedge accounting when it is determined that a derivative is not expected to be or has ceased to be highly effective as a hedge, and then reflects changes in fair value of the derivative in earnings after termination of the hedge relationship. The Company has characterized its interest rate swaps that qualify under ASC 815 hedge accounting as cash flow hedges. Cash flow hedges are used to minimize the variability in cash flows of assets or liabilities, or forecasted transactions caused by interest rate fluctuations, and are recorded at fair value in other assets or liabilities within the Company’s balance sheets. Changes in the fair value of these cash flow hedges are initially recorded in accumulated other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings. Any hedge ineffectiveness assessed as part of the Company’s quarterly analysis is recorded directly to earnings. The Company enters into commitments to lend with borrowers, and forward commitments to sell loans or to-be-announced mortgage-backed bonds to investors to hedge against the inherent interest rate and pricing risk associated with selling loans. The commitments to lend generally terminate once the loan is funded, the lock period expires or the borrower decides not to contract for the loan. The forward commitments generally terminate once the loan is sold, the commitment period expires or the borrower decides not to contract for the loan. These commitments are considered derivatives which are accounted for by recognizing their estimated fair value on the Consolidated Balance Sheets as either a freestanding asset or liability. See Note 16 to the Consolidated Financial Statements for more information on commitments to lend and forward commitments. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company enters into off-balance sheet financial instruments, consisting primarily of credit related financial instruments. These financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. |
Fair Value Hierarchy | Fair Value Hierarchy The Company groups assets and liabilities that are measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using unobservable techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Employee Benefits | Employee Benefits The Company maintains an employer sponsored 401(k) plan to which participants may make contributions in the form of salary deferrals and the Company provides matching contributions in accordance with the terms of the plan. Contributions due under the terms of the defined contribution plans are accrued as earned by employees. Due to the Rome Bancorp acquisition in 2011, the Company inherited a noncontributory, qualified, defined benefit pension plan for certain employees who met age and service requirements; as well as other post-retirement benefits, principally health care and group life insurance. The Rome pension plan and postretirement benefits that were acquired in connection with the whole-bank acquisition in the second quarter of 2011 were frozen prior to the close of the transaction. The pension benefit in the form of a life annuity is based on the employee’s combined years of service, age, and compensation. The Company also has a long-term care post-retirement benefit plan for certain executives where upon disability, associated benefits are funded by insurance policies or paid directly by the Company. In order to measure the expense associated with the Plans, various assumptions are made including the discount rate, expected return on plan assets, anticipated mortality rates, and expected future healthcare costs. The assumptions are based on historical experience as well as current facts and circumstances. The Company uses a December 31 measurement date for its Plans. As of the measurement date, plan assets are determined based on fair value, generally representing observable market prices. The projected benefit obligation is primarily determined based on the present value of projected benefit distributions at an assumed discount rate. Net periodic pension benefit costs include interest costs based on an assumed discount rate, the expected return on plan assets based on actuarially derived market-related values, and the amortization of net actuarial losses. Net periodic postretirement benefit costs include service costs, interest costs based on an assumed discount rate, and the amortization of prior service credits and net actuarial gains. Differences between expected and actual results in each year are included in the net actuarial gain or loss amount, which is recognized in other comprehensive income. The net actuarial gain or loss in excess of a 10% corridor is amortized in net periodic benefit cost over the average remaining service period of active participants in the Plans. The prior service credit is amortized over the average remaining service period to full eligibility for participating employees expected to receive benefits. The Company recognizes in its statement of condition an asset for a plan’s overfunded status or a liability for a plan’s underfunded status. The Company also measures the Plans’ assets and obligations that determine its funded status as of the end of the fiscal year and recognizes those changes in other comprehensive income, net of tax. |
Operating Segments | Operating Segments The Company operates as one consolidated reportable segment. The chief operating decision-maker evaluates consolidated results and makes decisions for resource allocation on this same data. Management periodically reviews and redefines its segment reporting as internal reporting practices evolve and components of the business change. The consolidated financial statements reflect the financial results of the Company's one reportable operating segment. |
Recent Accounting Pronouncements and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles Effective January 1, 2017, the following new accounting guidance was adopted by the Company: • ASU No. 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships; • ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments; • ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting • ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments; and • ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities The adoption of these accounting standards did not have a material impact on the Company's financial statements. Future Application of Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This ASU provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. The standard permits the use of either the retrospective or cumulative effect transition method. This ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2017. This ASU impacts the Company’s wealth management fees, insurance commissions and fees, administrative services for customer deposit accounts, interchange fees, and sale of owned real estate properties. ASU 2014-09, as amended, became effective for the Company on January 1, 2018. The adoption of ASU 2014-09 on January 1, 2018 was not material to our 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 available-for-sale debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure certain non-marketable 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. ASU 2016-01 became effective for the Company on January 1, 2018. The adoption will increase the volatility of other income (expense), net, as a result of the re-measurement of our equity and cost method investments. The adoption of ASU 2016-01 on January 1, 2018 was not material to our 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. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, this is not expected to be material to the Company's results of operations or financial position. The Company continues to evaluate the extent of potential impact the new guidance will have 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. The Company expects the primary changes to be the application of the expected credit loss model to the financial statements. In addition, the Company expects the guidance to change the presentation of credit losses within the available-for-sale fixed maturities portfolio through an allowance method rather than as a direct write-down. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The allowance method for available-for-sale debt securities will allow the Company to record reversals of credit losses if the estimate of credit losses declines. The Company is in the process of identifying and implementing required changes to loan loss estimation models and processes and evaluating the impact of this new accounting guidance, which at the date of adoption is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment.” The ASU simplifies the test for goodwill impairment by eliminating the second step of the current two-step method. Under the new accounting guidance, entities will compare the fair value of a reporting unit with its carrying amount. If the carrying amount exceeds the reporting unit’s fair value, the entity is required to recognize an impairment charge for this amount. Current guidance requires an entity to proceed to a second step, whereby the entity would determine the fair value of its assets and liabilities. The new method applies to all reporting units. The performance of a qualitative assessment is still allowable. This accounting guidance is effective prospectively for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting the new accounting guidance, but it is not expected to have a material impact. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU No. 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the consolidated balance sheet as of the date of adoption. While the Company continues to assess all potential impacts of the standard, we currently expect adoption to have an immaterial impact on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income statement - Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. These amendments are effective for all entities for fiscal years beginning after December 15, 2018. For interim periods within those fiscal years, early adoption of the amendment is permitted including public business entities for reporting periods for which financial statements have not yet been issued. The Company will reclassify the stranded tax effect in accumulated other comprehensive income to retained earnings as required under the new accounting guidance beginning March 31, 2018. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Consideration 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: Fair Value As Recorded by (in thousands) As Acquired Adjustments the Company Consideration Paid: Company common stock issued to Commerce common shareholders $ 188,599 Company preferred stock issued to certain Commerce shareholders 40,633 Cash in lieu paid to Commerce shareholders 1 Total consideration paid $ 229,233 Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: Cash and short-term investments $ 374,611 $ — $ 374,611 Investment securities 115,274 (1,427 ) (a) 113,847 Loans, net 1,327,256 (86,505 ) (b) 1,240,751 Premises and equipment 8,931 5,346 (c) 14,277 Core deposit intangibles — 22,400 (d) 22,400 Deferred tax assets, net 7,956 26,580 (e) 34,536 Goodwill and other intangibles 11,233 (11,233 ) (f) — Other assets 52,709 (3,664 ) (g) 49,045 Deposits (1,710,872 ) (1,180 ) (h) (1,712,052 ) Borrowings (19,542 ) — (19,542 ) Other liabilities (5,086 ) 265 (4,821 ) Total identifiable net assets $ 162,470 $ (49,418 ) $ 113,052 Goodwill $ 116,181 ________________________________ Explanation of Certain Fair Value Adjustments (a) The adjustment represents the write down of the book value of securities to their estimated fair value at the date of acquisition. (b) The adjustment represents the write-off of $15.0 million in allowance for loan and lease losses and the write down of the book value of loans to their estimated fair value based on interest rates and expected cash flows as of the acquisition date, which includes an estimate of expected loan loss inherent in the portfolio. The valuation of the loans is provisional. Loans with evidence of credit deterioration at acquisition are accounted for under ASC 310-30 and had a book value of $163.1 million and had a fair value of $71.1 million . Non-impaired loans accounted for under ASC 310-20 had a book value of $1.18 billion and have a fair value of $1.17 billion . ASC 310-30 loans have a $10.8 million fair value adjustment that is accretable in earnings. ASC 310-20 loans have a $4.0 million fair value adjustment premium that is amortized over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The adjustment represents an increased fair value based on the appraised value of Commerce’s owned branches and headquarters comprised of $5.7 million for buildings and $0.7 million for land. This was offset by a $1.0 million reduction of the book value of furniture, fixtures, and equipment, to their estimated fair value and the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The adjustments will be depreciated over the remaining estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized over the estimated useful life of the deposit base ( 10 years ). (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) Represents the write-off of goodwill and intangible assets from a prior Commerce acquisition. (g) The adjustment includes a $3.5 million write-down of repossessed assets based on market report data. (h) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized over the estimated useful life of nine months. |
Schedule of Acquired Loan Portfolio | nformation about the Commerce Bank acquired loan portfolio subject to ASC 310-30 as of October 13, 2017 is as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 163,125 Contractual cash flows not expected to be collected (nonaccretable discount) (81,205 ) Expected cash flows at acquisition 81,920 Interest component of expected cash flows (accretable discount) (10,815 ) Fair value of acquired loans $ 71,105 |
Pro Forma Financial Information | Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) 2017 2016 Net interest income $ 344,797 $ 302,012 Non-interest income 134,818 77,192 Income available to common shareholders 77,340 78,859 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities available for sale ("AFS") and securities | The following is a summary of securities available for sale (“AFS”) and securities held to maturity (“HTM”): (In thousands) Amortized Gross Gross Fair Value December 31, 2017 Securities available for sale Debt securities: Municipal bonds and obligations $ 113,427 $ 5,012 $ (206 ) $ 118,233 Agency collateralized mortgage obligations 859,705 397 (8,944 ) 851,158 Agency mortgage-backed securities 218,926 279 (2,265 ) 216,940 Agency commercial mortgage-backed securities 64,025 41 (1,761 ) 62,305 Corporate bonds 110,076 882 (237 ) 110,721 Trust preferred securities 11,334 343 — 11,677 Other bonds and obligations 9,757 154 (31 ) 9,880 Total debt securities 1,387,250 7,108 (13,444 ) 1,380,914 Marketable equity securities 36,483 9,211 (509 ) 45,185 Total securities available for sale 1,423,733 16,319 (13,953 ) 1,426,099 Securities held to maturity Municipal bonds and obligations 270,310 8,675 (90 ) 278,895 Agency collateralized mortgage obligations 73,742 1,045 (486 ) 74,301 Agency mortgage-backed securities 7,892 — (164 ) 7,728 Agency commercial mortgage-backed securities 10,481 — (268 ) 10,213 Tax advantaged economic development bonds 34,357 596 (1,135 ) 33,818 Other bonds and obligations 321 — — 321 Total securities held to maturity 397,103 10,316 (2,143 ) 405,276 Total $ 1,820,836 $ 26,635 $ (16,096 ) $ 1,831,375 December 31, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 117,910 $ 2,955 $ (1,049 ) $ 119,816 Agency collateralized mortgage obligations 652,680 2,522 (3,291 ) 651,911 Agency mortgage-backed securities 230,308 557 (2,181 ) 228,684 Agency commercial mortgage-backed securities 65,673 229 (1,368 ) 64,534 Corporate bonds 56,320 408 (722 ) 56,006 Trust preferred securities 11,578 368 (59 ) 11,887 Other bonds and obligations 10,979 195 (16 ) 11,158 Total debt securities 1,145,448 7,234 (8,686 ) 1,143,996 Marketable equity securities 47,858 19,296 (1,613 ) 65,541 Total securities available for sale 1,193,306 26,530 (10,299 ) 1,209,537 Securities held to maturity Municipal bonds and obligations 203,463 3,939 (2,416 ) 204,986 Agency collateralized mortgage-backed securities 75,655 1,281 (411 ) 76,525 Agency mortgage-backed securities 9,102 — (243 ) 8,859 Agency commercial mortgage-backed securities 10,545 — (434 ) 10,111 Tax advantaged economic development bonds 35,278 1,596 — 36,874 Other bonds and obligations 325 — — 325 Total securities held to maturity 334,368 6,816 (3,504 ) 337,680 Total $ 1,527,674 $ 33,346 $ (13,803 ) $ 1,547,217 |
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 year-end 2017 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities and collateralized mortgage obligations 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 (In thousands) Amortized Fair Amortized Fair Within 1 year $ 622 $ 623 $ 1,261 $ 1,261 Over 1 year to 5 years 32,659 32,972 25,892 26,422 Over 5 years to 10 years 75,261 76,745 8,752 8,917 Over 10 years 136,052 140,171 269,083 276,434 Total bonds and obligations 244,594 250,511 304,988 313,034 Marketable equity securities 36,483 45,185 — — Mortgage-backed securities 1,142,656 1,130,403 92,115 92,242 Total $ 1,423,733 $ 1,426,099 $ 397,103 $ 405,276 |
Schedule of amortized cost and fair values of pledged securities | The total amortized cost and fair values of these pledged securities follows. Additionally, there is a blanket lien on certain securities to collateralize borrowings from the FHLBB, as discussed further in Note 12 - Borrowed Funds. 2017 2016 (In thousands) Amortized Fair Amortized Fair Securities pledged to swap counterparties $ 24,410 $ 24,240 $ 51,292 $ 51,290 Securities pledged for municipal deposits 210,382 214,513 147,950 148,435 Total $ 234,792 $ 238,753 $ 199,242 $ 199,725 |
Schedule of components of net realized gains and losses on the sale of AFS securities | The components of net realized gains and losses on the sale of AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income and into earnings: (In thousands) 2017 2016 2015 Gross realized gains $ 13,877 $ 2,762 $ 4,567 Gross realized losses (1,279 ) (3,313 ) (2,457 ) Net realized gains/(losses) $ 12,598 $ (551 ) $ 2,110 |
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 (In thousands) Gross Fair Gross Fair Gross Fair December 31, 2017 Securities available for sale Debt securities: Municipal bonds and obligations $ — $ — $ 206 $ 8,985 $ 206 $ 8,985 Agency collateralized mortgage obligations 6,849 655,479 2,095 80,401 8,944 735,880 Agency mortgage-backed securities 765 95,800 1,500 65,323 2,265 161,123 Agency commercial mortgage-back securities 334 17,379 1,427 39,268 1,761 56,647 Corporate bonds 1 328 236 15,769 237 16,097 Trust preferred securities — — — — — — Other bonds and obligations 11 1,096 20 2,004 31 3,100 Total debt securities 7,960 770,082 5,484 211,750 13,444 981,832 Marketable equity securities 509 3,731 — — 509 3,731 Total securities available for sale $ 8,469 $ 773,813 $ 5,484 $ 211,750 $ 13,953 $ 985,563 Securities held to maturity Municipal bonds and obligations 35 10,213 55 2,059 90 12,272 Agency collateralized mortgage obligations — — 486 12,946 486 12,946 Agency mortgage-backed securities — — 164 7,728 164 7,728 Agency commercial mortgage-back securities — — 268 10,213 268 10,213 Tax advantaged economic development bonds 1,135 7,305 — — 1,135 7,305 Total securities held to maturity 1,170 17,518 973 32,946 2,143 50,464 Total $ 9,639 $ 791,331 $ 6,457 $ 244,696 $ 16,096 $ 1,036,027 December 31, 2016 Securities available for sale Debt securities: Municipal bonds and obligations $ 1,049 $ 13,839 $ — $ — $ 1,049 $ 13,839 Agency collateralized mortgage obligations 3,291 319,448 — — 3,291 319,448 Agency mortgage-backed securities 2,153 130,766 28 2,061 2,181 132,827 Agency commercial mortgage-backed securities 1,368 44,860 — — 1,368 44,860 Corporate bonds 11 4,780 711 19,655 722 24,435 Trust preferred securities — — 59 1,204 59 1,204 Other bonds and obligations 15 3,014 1 27 16 3,041 Total debt securities 7,887 516,707 799 22,947 8,686 539,654 Marketable equity securities 157 6,600 1,456 5,927 1,613 12,527 Total securities available for sale $ 8,044 $ 523,307 $ 2,255 $ 28,874 $ 10,299 $ 552,181 Securities held to maturity Municipal bonds and obligations 2,416 69,308 — — 2,416 69,308 Agency collateralized mortgage obligations 411 14,724 — — 411 14,724 Agency mortgage-backed securities 243 8,859 — — 243 8,859 Agency commercial mortgage-back securities 434 10,111 — — 434 10,111 Total securities held to maturity 3,504 103,002 — — 3,504 103,002 Total $ 11,548 $ 626,309 $ 2,255 $ 28,874 $ 13,803 $ 655,183 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans: December 31, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction $ 181,371 $ 84,965 $ 266,336 $ 253,302 $ 34,207 $ 287,509 Single and multi-family 217,083 206,082 423,165 191,819 125,672 317,491 Other commercial real estate 1,819,253 755,988 2,575,241 1,481,223 530,215 2,011,438 Total commercial real estate 2,217,707 1,047,035 3,264,742 1,926,344 690,094 2,616,438 Commercial and industrial loans 1,182,569 621,370 1,803,939 908,102 153,936 1,062,038 Total commercial loans 3,400,276 1,668,405 5,068,681 2,834,446 844,030 3,678,476 Residential mortgages: 1-4 family 1,808,024 289,373 2,097,397 1,583,794 297,355 1,881,149 Construction 5,177 233 5,410 11,178 804 11,982 Total residential mortgages 1,813,201 289,606 2,102,807 1,594,972 298,159 1,893,131 Consumer loans: Home equity 294,954 115,227 410,181 313,521 80,279 393,800 Auto and other 603,767 113,902 717,669 478,368 106,012 584,380 Total consumer loans 898,721 229,129 1,127,850 791,889 186,291 978,180 Total loans $ 6,112,198 $ 2,187,140 $ 8,299,338 $ 5,221,307 $ 1,328,480 $ 6,549,787 |
Schedule of Total Unamortized Net Costs and Premiums Included in the Total Loans for Historical Loans | Total unamortized net costs and premiums included in the year-end total loans for business activity loans were the following: (In thousands) December 31, 2017 December 31, 2016 Unamortized net loan origination costs $ 24,669 $ 21,972 Unamortized net premium on purchased loans 4,311 4,849 Total unamortized net costs and premiums $ 28,980 $ 26,821 |
Schedule of 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 | The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality : (In thousands) 2017 2016 2015 Balance at beginning of period $ 8,738 $ 6,925 $ 2,541 Acquisitions 10,815 6,125 4,777 Reclassification from nonaccretable difference for loans with improved cash flows (23 ) 2,488 3,640 Changes in expected cash flows that do not affect nonaccretable difference (2,380 ) (3,018 ) — Reclassification to TDR — (185 ) — Accretion (5,589 ) (3,597 ) (4,033 ) Balance at end of period $ 11,561 $ 8,738 $ 6,925 |
Summary of Past Due Loans | The following is a summary of past due loans at December 31, 2017 and 2016: Business Activities Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Current Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 181,371 $ 181,371 $ — Single and multi-family — — 451 451 216,632 217,083 — Commercial real estate 1,925 48 5,023 6,996 1,812,257 1,819,253 457 Total 1,925 48 5,474 7,447 2,210,260 2,217,707 457 Commercial and industrial loans Total 4,031 1,912 6,023 11,966 1,170,603 1,182,569 128 Residential mortgages: 1-4 family 2,412 242 2,186 4,840 1,803,184 1,808,024 520 Construction — — — — 5,177 5,177 — Total 2,412 242 2,186 4,840 1,808,361 1,813,201 520 Consumer loans: Home equity 444 1,235 1,747 3,426 291,528 294,954 120 Auto and other 3,389 599 1,597 5,585 598,182 603,767 143 Total 3,833 1,834 3,344 9,011 889,710 898,721 263 Total $ 12,201 $ 4,036 $ 17,027 $ 33,264 $ 6,078,934 $ 6,112,198 $ 1,368 Business Activities Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Current Total Loans Past Due > December 31, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 253,302 $ 253,302 $ — Single and multi-family 618 110 624 1,352 190,467 191,819 155 Commercial real estate 481 2,243 4,212 6,936 1,474,287 1,481,223 — Total 1,099 2,353 4,836 8,288 1,918,056 1,926,344 155 Commercial and industrial loans Total 3,090 1,301 6,290 10,681 897,421 908,102 5 Residential mortgages: 1-4 family 1,393 701 4,179 6,273 1,577,521 1,583,794 1,956 Construction 10 — — 10 11,168 11,178 — Total 1,403 701 4,179 6,283 1,588,689 1,594,972 1,956 Consumer loans: Home equity 99 — 2,981 3,080 310,441 313,521 306 Auto and other 2,483 494 968 3,945 474,423 478,368 16 Total 2,582 494 3,949 7,025 784,864 791,889 322 Total $ 8,174 $ 4,849 $ 19,254 $ 32,277 $ 5,189,030 $ 5,221,307 $ 2,438 Acquired Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Acquired Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 7,655 $ 84,965 $ — Single and multi-family 671 — 203 874 2,846 206,082 — Commercial real estate 816 1,875 2,156 4,847 42,801 755,988 109 Total 1,487 1,875 2,359 5,721 53,302 1,047,035 109 Commercial and industrial loans Total 1,252 268 1,439 2,959 34,629 621,370 23 Residential mortgages: 1-4 family 957 2,581 1,247 4,785 6,974 289,373 30 Construction — — — — — 233 — Total 957 2,581 1,247 4,785 6,974 289,606 30 Consumer loans: Home equity 286 40 1,965 2,291 1,956 115,227 — Auto and other 346 135 430 911 483 113,902 38 Total 632 175 2,395 3,202 2,439 229,129 38 Total $ 4,328 $ 4,899 $ 7,440 $ 16,667 $ 97,344 $ 2,187,140 $ 200 Acquired Loans (in thousands) 30-59 Days 60-89 Days >90 Days Past Due Total Past Acquired Total Loans Past Due > December 31, 2016 Commercial real estate: Construction $ — $ — $ — $ — $ 47 $ 34,207 $ — Single and multi-family 2 — 437 439 4,726 125,672 — Commercial real estate 1,555 — 765 2,320 30,047 530,215 — Total 1,557 — 1,202 2,759 34,820 690,094 — Commercial and industrial loans: Total 1,850 15 1,262 3,127 3,369 153,936 24 Residential mortgages: 1-4 family 321 343 2,015 2,679 7,283 297,355 443 Construction — — — — — 804 — Total 321 343 2,015 2,679 7,283 298,159 443 Consumer loans: Home equity 753 — 870 1,623 957 80,279 353 Auto and other 542 314 1,686 2,542 387 106,012 791 Total 1,295 314 2,556 4,165 1,344 186,291 1,144 Total $ 5,023 $ 672 $ 7,035 $ 12,730 $ 46,816 $ 1,328,480 $ 1,611 |
Summary of Information Pertaining to Non-accrual Loans | The following is summary information pertaining to non-accrual loans at year-end 2017 and 2016: December 31, 2017 December 31, 2016 (In thousands) Business Activities Acquired Loans (1) Total Business Activities Acquired Loans (2) Total Commercial real estate: Construction — — — — — — Single and multi-family 451 203 654 469 437 906 Other commercial real estate 4,566 2,047 6,613 4,212 765 4,977 Total 5,017 2,250 7,267 4,681 1,202 5,883 Commercial and industrial loans: Total 5,895 1,333 7,228 6,285 1,155 7,440 Residential mortgages: 1-4 family $ 1,666 $ 1,217 $ 2,883 $ 2,223 $ 1,572 $ 3,795 Construction — — — — — — Total 1,666 1,217 2,883 2,223 1,572 3,795 Consumer loans: Home equity 1,627 1,965 3,592 2,675 517 3,192 Auto and other 1,454 392 1,846 952 895 1,847 Total 3,081 2,357 5,438 3,627 1,412 5,039 Total non-accrual loans $ 15,659 $ 7,157 $ 22,816 $ 16,816 $ 5,341 $ 22,157 (1) At year-end 2017, acquired credit impaired loans account for $83 thousand of loans greater than 90 days past due that are not presented in the above table. (2) At year-end 2016, acquired credit impaired loans account for $83 thousand of loans greater than 90 days past due that are not presented in the above table. |
Schedule of Loans Evaluated for Impairment | Loans evaluated for impairment as of December 31, 2017 and 2016 were as follows: Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 33,732 $ 5,761 $ 3,872 $ — $ 43,365 Collectively evaluated 2,183,975 1,176,808 1,809,329 898,721 6,068,833 Total $ 2,217,707 $ 1,182,569 $ 1,813,201 $ 898,721 $ 6,112,198 Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 25,549 $ 5,705 $ 2,775 $ 2,703 $ 36,732 Collectively evaluated 1,900,795 902,397 1,592,197 789,186 5,184,575 Total $ 1,926,344 $ 908,102 $ 1,594,972 $ 791,889 $ 5,221,307 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 4,244 $ 421 $ 2,617 $ 27 $ 7,309 Purchased credit-impaired loans 53,302 34,629 6,974 2,439 97,344 Collectively evaluated 989,489 586,320 280,015 226,663 2,082,487 Total $ 1,047,035 $ 621,370 $ 289,606 $ 229,129 $ 2,187,140 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Loans receivable: Balance at end of year Individually evaluated for impairment $ 4,256 $ 635 $ 308 $ 406 $ 5,605 Purchased credit-impaired loans 34,820 3,369 7,283 1,344 46,816 Collectively evaluated 651,018 149,932 290,568 184,541 1,276,059 Total $ 690,094 $ 153,936 $ 298,159 $ 186,291 $ 1,328,480 |
Summary of Impaired Loans | The following is a summary of impaired loans at year-end 2017 and 2016 and for the years then ended: Business Activities Loans At December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - construction $ — $ — $ — Commercial real estate - single and multifamily 1,077 3,607 — Other commercial real estate 18,285 18,611 — Other commercial and industrial loans 2,060 2,629 — Residential mortgages - 1-4 family 660 1,075 — Consumer - home equity 867 1,504 — With an allowance recorded: Commercial real estate - construction $ 159 $ 159 $ 1 Commercial real estate - single and multifamily 159 171 1 Other commercial real estate 14,321 15,235 227 Other commercial and industrial loans 3,716 4,249 66 Residential mortgages - 1-4 family 1,344 1,446 130 Consumer - home equity 1,014 999 34 Consumer - other 17 17 1 Total Commercial real estate $ 34,001 $ 37,783 $ 229 Commercial and industrial 5,776 6,878 66 Residential mortgages 2,004 2,521 130 Consumer 1,898 2,520 35 Total impaired loans $ 43,679 $ 49,702 $ 460 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Business Activities Loans At December 31, 2016 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate $ 18,905 $ 18,905 $ — Other commercial and industrial loans 382 382 — Residential mortgages - 1-4 family 2,101 2,101 — Consumer - home equity 1,605 1,605 — With an allowance recorded: Commercial real estate - single and multifamily $ 179 $ 181 $ 2 Other commercial real estate 6,306 6,462 156 Other commercial and industrial loans 5,060 5,324 264 Residential mortgages - 1-4 family 538 674 136 Consumer - home equity 942 1,098 156 Total Commercial real estate $ 25,390 $ 25,548 $ 158 Commercial and industrial 5,442 5,706 264 Residential mortgages 2,639 2,775 136 Consumer 2,547 2,703 156 Total impaired loans $ 36,018 $ 36,732 $ 714 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Acquired Loans At December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 204 $ 290 $ — Other commercial real estate loans 1,123 2,794 — Other commercial and industrial loans 255 310 — Residential mortgages - 1-4 family 658 671 — Consumer - home equity 1,374 1,654 — Consumer - other 27 27 — With an allowance recorded: Commercial real estate - single and multifamily $ 887 $ 880 $ 18 Other commercial real estate loans 2,043 1,661 38 Other commercial and industrial loans 165 166 1 Residential mortgages - 1-4 family 166 185 9 Consumer - home equity 433 540 45 Total Commercial real estate $ 4,257 $ 5,625 $ 56 Commercial and industrial 420 476 1 Residential mortgages 824 856 9 Consumer 1,834 2,221 45 Total impaired loans $ 7,335 $ 9,178 $ 111 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Acquired Loans December 31, 2016 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 547 $ 547 $ — Residential mortgages - 1-4 family 208 208 — Consumer - home equity — — — Consumer - other — — — With an allowance recorded: Commercial real estate - single and multifamily $ 1,250 $ 1,358 $ 108 Other commercial real estate loans 2,209 2,351 142 Other Commercial and industrial loans 576 635 59 Residential mortgages - 1-4 family 89 100 11 Consumer - home equity 292 406 114 Total Commercial real estate $ 4,006 $ 4,256 $ 250 Commercial and industrial 576 635 59 Residential mortgages 297 308 11 Consumer 292 406 114 Total impaired loans $ 5,171 $ 5,605 $ 434 (1) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. |
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 December 31, 2017, 2016 and 2015: Business Activities Loans December 31, 2017 December 31, 2016 December 31, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ — $ — $ 2,245 $ 92 Commercial real estate - single and multifamily 341 214 36 1 60 — Other commercial real estate 20,867 1,123 6,463 1,155 12,487 302 Other commercial and industrial 4,437 265 3,349 131 3,870 177 Residential mortgages - 1-4 family 1,128 31 2,403 91 1,353 38 Consumer-home equity 1,291 30 612 5 442 13 Consumer-other 72 3 2 — — — With an allowance recorded: Commercial mortgages - construction $ 41 $ 3 $ — $ — $ — $ — Commercial real estate - single and multifamily 169 12 15 6 — — Other commercial real estate 11,372 520 7,576 349 3,214 132 Other commercial and industrial 3,251 267 2,002 225 810 37 Residential mortgages - 1-4 family 1,289 59 682 26 1,704 72 Consumer-home equity 1,007 29 999 35 83 — Consumer - other 4 1 103 4 112 4 Total Commercial real estate $ 32,790 $ 1,872 $ 14,090 $ 1,511 $ 18,006 $ 526 Commercial and industrial 7,688 532 5,351 356 4,680 214 Residential mortgages 2,417 90 3,085 117 3,057 110 Consumer loans 2,374 63 1,716 44 637 17 Total impaired loans $ 45,269 $ 2,557 $ 24,242 $ 2,028 $ 26,380 $ 867 Acquired Loans December 31, 2017 December 31, 2016 December 31, 2015 (in thousands) Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest Average Recorded Cash Basis Interest With no related allowance: Commercial real estate - construction $ — $ — $ — $ — $ 445 $ 60 Commercial real estate - single and multifamily 342 82 — — 2,014 57 Other commercial real estate 487 239 521 20 1,721 37 Other commercial and industrial 581 43 492 9 — — Residential mortgages - 1-4 family 390 28 293 12 463 6 Consumer - home equity 773 22 — — 152 5 Consumer - other 7 1 105 1 59 5 With an allowance recorded: Commercial real estate - construction $ — $ — $ — $ — $ — $ — Commercial real estate - single and multifamily 903 47 1,064 115 623 33 Other commercial real estate 1,719 91 2,618 165 1,384 96 Other commercial and industrial 47 13 369 17 31 3 Residential mortgages - 1-4 family 173 9 214 25 304 9 Consumer - home equity 400 21 — — 195 7 Total Commercial real estate $ 3,451 $ 459 $ 4,203 $ 300 $ 6,187 $ 283 Commercial and industrial 628 56 861 26 31 3 Residential mortgages 563 37 507 37 767 15 Consumer loans 1,180 44 105 1 406 17 Total impaired loans $ 5,822 $ 596 $ 5,676 $ 364 $ 7,391 $ 318 |
Schedule of Recorded Investment and Number of Modifications for TDRs Identified During the Period | The following tables disclose the recorded investment and number of modifications for TDRs for the prior years where a concession was made and the borrower subsequently defaulted in the respective reporting period. For the year ended 2017, there were three loans that were restructured that had subsequently defaulted during the period. For the period ended 2016, there were no loans that were restructured that had subsequently defaulted during the period. For the year ended 2015, there were eight loans that were restructured that had subsequently defaulted during the period. Modifications that subsequently defaulted for the twelve months ending December 31, 2017 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Single and multifamily — $ — Commercial - Other 1 113 Commercial and industrial - Other 2 492 Residential - 1-4 Family — — 3 $ 605 Modifications that subsequently defaulted for the twelve months ending December 31, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Single and multifamily 1 $ — Commercial - Other 1 373 Commercial and industrial - Other 4 6,579 Residential - 1-4 Family 2 169 8 $ 7,121 The following tables include the recorded investment and number of modifications for modified loans identified during the years-ended December 31, 2017, 2016, and 2015 respectively. The tables include 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 year-ended December 31, 2017 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the year-ended December 31, 2016 were attributable to interest rate concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 1 $ 235 $ 235 Commercial - Other 15 13,445 11,718 Commercial and industrial - Other 12 3,507 3,507 Residential - 1-4 Family 4 331 314 Consumer - Home Equity 3 122 122 35 $ 17,640 $ 15,896 Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Single and multifamily 5 $ 437 $ 437 Commercial - Other 5 16,651 16,651 Commercial and industrial - Other 4 555 555 Residential - 1-4 Family 2 5 5 Consumer - Home Equity 1 117 117 17 $ 17,765 $ 17,765 Modifications by Class Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 123 $ 123 Commercial - Single and multifamily 2 307 307 Commercial - Other 4 8,577 7,274 Commercial and industrial - Other 6 9,041 8,904 Consumer - Other 1 999 999 14 $ 19,047 $ 17,607 |
Schedule of TDR Activity | The following table presents the Company’s TDR activity in 2017 and 2016: (In thousands) 2017 2016 2015 Balance at beginning of year $ 33,829 $ 22,048 $ 16,714 Principal payments (3,213 ) (5,870 ) (5,460 ) TDR status change (1) — 2,235 — Other reductions (2) (4,522 ) (2,349 ) (3,160 ) Newly identified TDRs 15,896 17,765 13,954 Balance at end of year $ 41,990 $ 33,829 $ 22,048 ________________________________ (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, charge-offs to loans, and other loan sale payoffs. |
LOAN LOSS ALLOWANCE (Tables)
LOAN LOSS ALLOWANCE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Activity in the Allowance for Loan Losses | Activity in the allowance for loan losses for 2017, 2016, and 2015 was as follows: Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Charged-off loans 3,875 3,373 806 3,470 11,524 Recoveries on charged-off loans 170 179 270 270 889 Provision for loan losses 4,050 7,597 2,151 3,528 17,326 Balance at end of year $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Individually evaluated for impairment 229 66 130 35 460 Collectively evaluated 16,614 13,784 9,290 5,772 45,460 Total $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Business Activities Loans (In thousands) Commercial real estate Commercial Residential Consumer Total Balance at beginning of year $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Charged-off loans 2,127 4,620 2,036 1,722 10,505 Recoveries on charged-off loans 243 123 159 267 792 Provision for loan losses 3,791 6,559 2,069 1,949 14,368 Balance at end of year $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Individually evaluated for impairment 158 264 136 156 714 Collectively evaluated 16,340 9,183 7,669 5,323 38,515 Total $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Business Activities Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 14,740 $ 5,246 $ 6,864 $ 5,945 $ 32,795 Charged-off loans 6,865 2,358 1,215 1,183 11,621 Recoveries on charged-off loans 164 169 141 285 759 Provision for loan losses 6,552 4,328 1,823 (62 ) 12,641 Balance at end of year $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Individually evaluated for impairment 149 21 153 103 426 Collectively evaluated 14,442 7,364 7,460 4,882 34,148 Total $ 14,591 $ 7,385 $ 7,613 $ 4,985 $ 34,574 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Charged-off loans 771 844 797 648 3,060 Recoveries on charged-off loans 65 245 43 153 506 Provision for loan losses 2,259 560 586 294 3,699 Balance at end of year $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Individually evaluated for impairment 56 1 9 45 111 Collectively evaluated 3,800 1,124 589 290 5,803 Total $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 Charged-off loans 977 1,095 829 620 3,521 Recoveries on charged-off loans 61 266 144 91 562 Provision for loan losses 1,316 663 475 540 2,994 Balance at end of year $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Individually evaluated for impairment 250 59 11 114 434 Collectively evaluated 2,053 1,105 755 422 4,335 Total $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Acquired Loans (In thousands) Commercial Commercial Residential Consumer Total Balance at beginning of year $ 790 $ 1,093 $ 615 $ 369 $ 2,867 Charged-off loans 681 752 642 992 3,067 Recoveries on charged-off loans 418 289 64 78 849 Provision for loan losses 1,376 700 939 1,070 4,085 Balance at end of year $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 Individually evaluated for impairment 43 — 30 25 98 Purchased credit-impaired loans 42 — — — 42 Collectively evaluated 1,818 1,330 946 500 4,594 Total $ 1,903 $ 1,330 $ 976 $ 525 $ 4,734 |
Schedule of Loans by Risk Rating | The following tables present the Company’s loans by risk rating at year-end 2017 and 2016: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Grade: Pass $ 181,371 $ 253,302 $ 214,289 $ 189,310 $ 1,775,091 $ 1,434,762 $ 2,170,751 $ 1,877,374 Special mention — — 504 334 12,999 5,827 13,503 6,161 Substandard — — 2,290 2,175 31,163 40,598 33,453 42,773 Doubtful — — — — — 36 — 36 Total $ 181,371 $ 253,302 $ 217,083 $ 191,819 $ 1,819,253 $ 1,481,223 $ 2,217,707 $ 1,926,344 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial (In thousands) 2017 2016 Grade: Pass $ 1,156,240 $ 890,974 Special mention 12,806 123 Substandard 11,123 13,825 Doubtful 2,400 3,180 Total $ 1,182,569 $ 908,102 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) 2017 2016 2017 2016 2017 2016 Grade: Pass $ 1,805,596 $ 1,578,913 $ 5,177 $ 11,178 $ 1,810,773 $ 1,590,091 Special mention 242 701 — — 242 701 Substandard 2,186 4,179 — — 2,186 4,179 Total $ 1,808,024 $ 1,583,793 $ 5,177 $ 11,178 $ 1,813,201 $ 1,594,971 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer (In thousands) 2017 2016 2017 2016 2017 2016 Performing $ 293,327 $ 310,846 $ 602,313 $ 477,416 $ 895,640 $ 788,262 Nonperforming 1,627 2,675 1,454 952 3,081 3,627 Total $ 294,954 $ 313,521 $ 603,767 $ 478,368 $ 898,721 $ 791,889 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) 2017 2016 2017 2016 2017 2016 2017 2016 Grade: Pass $ 76,611 $ 33,461 $ 203,624 $ 119,414 $ 684,846 $ 496,562 $ 965,081 $ 649,437 Special mention — — 603 907 22,070 1,622 22,673 2,529 Substandard 8,354 746 1,855 5,351 49,072 32,031 59,281 38,128 Total $ 84,965 $ 34,207 $ 206,082 $ 125,672 $ 755,988 $ 530,215 $ 1,047,035 $ 690,094 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial (In thousands) 2017 2016 Grade: Pass $ 606,922 $ 147,102 Special mention 1,241 1,260 Substandard 13,207 5,574 Total $ 621,370 $ 153,936 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) 2017 2016 2017 2016 2017 2016 Grade: Pass $ 281,160 $ 294,983 $ 233 $ 804 $ 281,393 $ 295,787 Special mention 2,704 343 — — 2,704 343 Substandard 5,509 2,029 — — 5,509 2,029 Total $ 289,373 $ 297,355 $ 233 $ 804 $ 289,606 $ 298,159 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer (In thousands) 2017 2016 2017 2016 2017 2016 Performing $ 113,262 $ 79,762 $ 113,510 $ 105,117 $ 226,772 $ 184,879 Nonperforming 1,965 517 392 895 2,357 1,412 Total $ 115,227 $ 80,279 $ 113,902 $ 106,012 $ 229,129 $ 186,291 |
Summary of Information About Total Loans Rated Special Mention or Lower | The following table summarizes information about total loans rated Special Mention or lower. 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. December 31, 2017 December 31, 2016 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 15,659 $ 7,240 $ 22,899 $ 16,816 $ 5,424 $ 22,240 Substandard Accruing 36,846 73,412 110,258 51,125 44,177 95,302 Total Classified 52,505 80,652 133,157 67,941 49,601 117,542 Special Mention 28,387 26,802 55,189 7,479 4,323 11,802 Total Criticized $ 80,892 $ 107,454 $ 188,346 $ 75,420 $ 53,924 $ 129,344 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Year-end premises and equipment are summarized as follows: (In thousands) 2017 2016 Estimated Useful Land $ 14,177 $ 10,563 N/A Buildings and improvements 99,821 85,319 5 - 39 years Furniture and equipment 49,600 42,693 3 - 7 years Construction in process 5,177 4,084 Premises and equipment, gross 168,775 142,659 Accumulated depreciation and amortization (59,423 ) (49,444 ) Premises and equipment, net $ 109,352 $ 93,215 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Increase in Goodwill and Goodwill by Reporting Units | The activity impacting goodwill in 2017 and 2016 is as follows: (In thousands) 2017 2016 Balance, beginning of the period $ 403,106 $ 323,943 Goodwill acquired and adjusted: Commerce Bank 116,181 — 44 Business Capital — 15,892 Ronald N. Lazzaro, PC — 5,492 First Choice Bank — 58,036 Adjustments (1) — (257 ) Balance, end of the period $ 519,287 $ 403,106 ______________________________________________________________________________________________________ (1) In 2016, goodwill related to the Hampden and Firestone acquisitions was adjusted since acquisition dates to reflect new information available during the one-year measurement period. |
Schedule of Components of Other Intangible Assets | The components of other intangible assets are as follows: (In thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets December 31, 2017 Non-maturity deposits (core deposit intangible) $ 66,923 $ (33,024 ) $ 33,899 Insurance contracts 7,558 (7,526 ) 32 All other intangible assets 7,810 (3,445 ) 4,365 Total $ 82,291 $ (43,995 ) $ 38,296 December 31, 2016 Non-maturity deposits (core deposit intangible) $ 44,523 $ (30,099 ) $ 14,424 Insurance contracts 7,558 (7,504 ) 54 All other intangible assets 7,866 (2,899 ) 4,967 Total $ 59,947 $ (40,502 ) $ 19,445 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Summary of Other Assets | Year-end other assets are summarized as follows: (In thousands) 2017 2016 Capitalized servicing rights $ 16,361 $ 11,524 Accrued interest receivable 33,739 26,113 Accrued federal and state tax receivable (1) 33,101 19,076 Derivative assets 19,308 21,617 Assets held for sale 1,392 — Other 13,182 20,127 Total other assets $ 117,083 $ 98,457 (1) Accrued federal and state tax receivable as of December 31, 2017 includes $4.3 million of New York State refundable tax credits from investment in historical tax credit partnerships in New York State. This balance was $5.9 million at year-end 2016. |
Schedule of Mortgage Servicing Rights Activity | Servicing rights activity was as follows: (In thousands) 2017 2016 Balance at beginning of year $ 11,524 $ 5,187 Acquired from 44 Business Capital — 3,489 Acquired from First Choice Bank (1) — 696 Additions 7,604 4,116 Amortization (2,446 ) (1,964 ) Change in fair value (221 ) — Allowance adjustment (100 ) — Balance at end of year $ 16,361 $ 11,524 (1) Amounts acquired from First Choice Bank are accounted for at fair value. The balance as of December 31, 2017 and December 31, 2016 were $3.8 million and $0.8 million , respectively. |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Summary of Time Deposits | A summary of year-end time deposits is as follows: (In thousands) 2017 2016 Maturity date: Within 1 year $ 1,790,056 $ 1,316,973 Over 1 year to 2 years 546,381 582,764 Over 2 years to 3 years 268,897 142,160 Over 3 years to 4 years 161,314 150,388 Over 4 years to 5 years 121,400 137,845 Over 5 years 2,157 3,413 Total $ 2,890,205 $ 2,333,543 Account balances: Less than $100,000 $ 733,785 $ 656,055 $100,000 or more 2,156,420 1,677,488 Total $ 2,890,205 $ 2,333,543 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at December 31, 2017 and 2016 are summarized, as follows: 2017 2016 (in thousands, except rates) Principal Weighted Principal Weighted Short-term borrowings: Advances from the FHLBB $ 667,300 1.48 % $ 1,072,044 0.71 % Other Borrowings — — 10,000 2.42 Total short-term borrowings: 667,300 1.48 1,082,044 0.72 Long-term borrowings: Advances from the FHLBB 380,436 1.54 142,792 1.53 Subordinated notes 73,875 7.00 73,697 7.00 Junior subordinated notes 15,464 3.30 15,464 2.77 Total long-term borrowings: 469,775 2.46 231,953 3.35 Total $ 1,137,075 1.88 % $ 1,313,997 1.19 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLBB advances at year-end 2017 is as follows: 2017 (In thousands) Amount Weighted Fixed rate advances maturing: 2018 $ 836,115 1.43 % 2019 150,082 1.64 2020 54,101 2.04 2021 220 3.21 2022 and beyond 7,218 2.64 Total fixed rate advances $ 1,047,736 1.50 Total FHLBB advances $ 1,047,736 1.50 % |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | Year-end other liabilities are summarized as follows: December 31, (In thousands) 2017 2016 Derivative liabilities $ 15,838 $ 24,420 Capital lease obligation 11,323 11,639 Asset purchase settlement payable 70,637 29,158 Employee benefits liability 27,093 17,972 Level lease liability 5,766 6,997 Accrued interest payable 6,813 4,394 Customer transaction clearing accounts 9,118 1,786 Other 41,294 36,789 Total other liabilities $ 187,882 $ 133,155 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of changes in the Projected Benefit Obligation and Plan Assets | Information regarding the post-retirement plan is as follows: December 31, (In thousands) 2017 2016 Change in accumulated postretirement benefit obligation: Accumulated post-retirement benefit obligation at beginning of year $ 3,249 $ 3,039 Service Cost 35 32 Interest cost 131 129 Participant contributions 46 47 Actuarial loss (gain) 326 130 Benefits paid (94 ) (128 ) Accumulated post-retirement benefit obligation at end of year $ 3,693 $ 3,249 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Contributions by employer 48 81 Contributions by participant 46 47 Benefits paid (94 ) (128 ) Fair value of plan assets at end of year $ — $ — Information regarding the pension plan is as follows: December 31, (In thousands) 2017 2016 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,126 $ 6,585 Service Cost 66 76 Interest cost 237 267 Actuarial gain 309 (308 ) Benefits paid (324 ) (318 ) Settlements (61 ) (176 ) Projected benefit obligation at end of year 6,353 6,126 Accumulated benefit obligation 6,353 6,126 Change in fair value of plan assets: Fair value of plan assets at plan beginning of year 5,121 5,211 Actual return on plan assets 710 404 Benefits paid (324 ) (318 ) Settlements (61 ) (176 ) Fair value of plan assets at end of year 5,446 5,121 Underfunded status $ 907 $ 1,005 |
Schedule of Amounts Recognized in Statement of Financial Position | Amounts Recognized in Consolidated Balance Sheet Other Liabilities $ 3,693 $ 3,249 Amounts Recognized in Consolidated Balance Sheet Other Liabilities $ 907 $ 1,005 |
Schedule of Net Periodic Cost | Net periodic post-retirement cost is comprised of the following: December 31, (In thousands) 2017 2016 Service cost $ 35 $ 32 Interest costs 131 129 Amortization of net prior service credit 83 83 Amortization of net actuarial loss — — Net periodic post-retirement costs $ 249 $ 244 Net periodic pension cost is comprised of the following: December 31, (In thousands) 2017 2016 Service Cost $ 66 $ 76 Interest Cost 237 267 Expected return on plan assets (346 ) (361 ) Amortization of unrecognized actuarial loss 100 163 Net periodic pension costs $ 57 $ 145 |
Schedule of Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive Income | Changes in plan assets and benefit obligations recognized in accumulated other comprehensive income are as follows: December 31, (In thousands) 2017 2016 Amortization of actuarial (loss) $ (100 ) $ (163 ) Actuarial (gain) loss (54 ) (351 ) Total recognized in accumulated other comprehensive income (154 ) (514 ) Total recognized in net periodic pension cost recognized and other comprehensive income $ (97 ) $ (369 ) Changes in benefit obligations recognized in accumulated other comprehensive income are as follows: December 31, (In thousands) 2017 2016 Amortization of actuarial loss $ — $ — Amortization of prior service credit (83 ) (83 ) Net actuarial (gain) loss 199 (126 ) Total recognized in accumulated other comprehensive income 116 (209 ) Accrued post-retirement liability recognized $ 1,918 $ 1,718 |
Schedule of Principal Actuarial Assumptions | The principal actuarial assumptions used were as follows: December 31, 2017 2016 Projected benefit obligation Discount rate 3.510 % 3.980 % Net periodic pension cost Discount rate 3.980 % 4.170 % Long term rate of return on plan assets 7.000 % 7.000 % |
Schedule of Fair Values of the Plan's Assets by Asset Category and Level Within the Fair Value Hierarchy | The fair values of the Plan’s assets by category and level within the fair value hierarchy are as follows at December 31, 2017: December 31, 2017 Asset Category (In thousands) Total Level 1 Level 2 Equity Mutual Funds: Large-Cap $ 1,820 $ — $ 1,820 Mid-Cap 439 — 439 Small-Cap 438 — 438 International 893 — 893 Fixed Income Funds Fixed Income - US Core 1,308 — 1,308 Intermediate Duration 437 — 437 Cash Equivalents - money market 111 29 82 Total $ 5,446 $ 29 $ 5,417 The fair values of the Plan’s assets by category and level within the fair value hierarchy are as follows at December 31, 2016: December 31, 2016 Asset Category (In thousands) Total Level 1 Level 2 Equity Mutual Funds: Large-Cap $ 1,624 $ — $ 1,624 Mid-Cap 401 — 401 Small-Cap 415 — 415 International 757 — 757 Fixed Income Funds Fixed Income - US Core 1,378 — 1,378 Intermediate Duration 472 — 472 Cash Equivalents - money market 74 30 44 Total $ 5,121 $ 30 $ 5,091 |
Schedule of Estimated Benefit Payments | Estimated benefit payments under the Company’s pension plans over the next ten years at December 31, 2017 are as follows: Year Payments (In thousands) 2018 343 2019 380 2020 372 2021 361 2022 386 2023 - 2027 1,792 Estimated benefit payments under the post-retirement benefit plan over the next ten years at December 31, 2017 are as follows: Year Payments (In thousands) 2018 103 2019 103 2020 102 2021 106 2022 109 2023 - 2027 548 |
Schedule of Amounts in Accumulated Other Comprehensive Income That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost | The amounts in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit cost are as follows: December 31, (In thousands) 2017 2016 Net prior service cost (credit) $ 1,576 $ 1,659 Net actuarial (gain) loss 199 (126 ) Total recognized in accumulated other comprehensive income $ 1,775 $ 1,533 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Tax Expense | The components of the Company’s provision for income taxes for the years ended December 31, 2017, 2016, and 2015 were, as follows: (In thousands) 2017 2016 2015 Current: Federal tax expense $ 11,686 $ 6,758 $ 4,696 State tax expense 1,112 1,101 (1,631 ) Total current expense 12,798 7,859 3,065 Deferred: Federal tax expense 29,824 9,438 2,023 State tax expense 1,805 1,591 (24 ) Total deferred tax expense (1) 31,629 11,029 1,999 Change in valuation allowance 75 (104 ) — Total income tax expense $ 44,502 $ 18,784 $ 5,064 (1) 2017 Deferred tax expense of $31.6 million includes an $18.1 million charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017. |
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2017, 2016, and 2015: 2017 2016 2015 (In thousands, except rates) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 34,912 35.0 % $ 27,108 35.0 % $ 19,104 35.0 % Increase (decrease) resulting from: State taxes, net of federal tax benefit 2,232 2.2 1,675 2.2 (974 ) (1.8 ) Tax exempt income - investments, net (5,395 ) (5.4 ) (3,849 ) (5.0 ) (3,463 ) (6.3 ) Bank-owned life insurance (1,556 ) (1.6 ) (1,364 ) (1.8 ) (1,284 ) (2.4 ) Non-deductible merger costs 368 0.4 542 0.7 422 0.8 Non-deductible goodwill on disposal operations sale — — — — 313 0.6 Tax credits, net of basis reduction (4,656 ) (4.7 ) (6,225 ) (8.0 ) (8,308 ) (15.2 ) Change in valuation allowance 75 0.1 125 0.2 — — Impact of federal tax reform enactment 18,145 18.2 — — — — Other, net 377 0.4 772 1.0 (746 ) (1.4 ) Effective tax rate $ 44,502 44.6 % $ 18,784 24.3 % $ 5,064 9.3 % |
Schedule of Components of Deferred Tax Assets and Liabilities | As of December 31, 2017 and 2016, significant components of the Company’s deferred tax assets and liabilities were, as follows: (In thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 14,578 $ 17,747 Tax credit carryforwards 4,100 4,100 Unrealized capital loss on tax credit investments 6,502 6,999 Employee benefit plans 4,983 7,813 Purchase accounting adjustments 37,843 23,520 Net operating loss carryforwards 1,374 2,643 Other 2,332 4,997 Deferred tax assets, net before valuation allowances 71,712 67,819 Valuation allowance (200 ) (125 ) Deferred tax assets, net of valuation allowances $ 71,512 $ 67,694 Deferred tax liabilities: Net unrealized gain on swaps, securities available for sale, and pension in OCI $ (1,888 ) $ (5,884 ) Premises and equipment (1,126 ) (2,519 ) Loan servicing rights (2,174 ) (4,546 ) Deferred loan fees (3,900 ) — Intangible amortization (15,001 ) (11,543 ) Other (362 ) (2,074 ) Deferred tax liabilities $ (24,451 ) $ (26,566 ) Deferred tax assets, net $ 47,061 $ 41,128 |
Schedule of Components of the Valuation Allowance on Deferred Tax Asset | The components of the Company’s valuation allowance on its deferred tax asset, net as of December 31, 2017 and 2016 were, as follows: (in thousands) 2017 2016 State tax basis difference, net of Federal tax benefit $ (200 ) $ (125 ) Valuation allowances $ (200 ) $ (125 ) |
Schedule of Changes in Unrecognized Tax Benefits | The following table presents changes in unrecognized tax benefits for the years ended December 31, 2017, 2016, and 2015: (In thousands) 2017 2016 2015 Unrecognized tax benefits at January 1 $ 460 $ 307 $ 553 Increase in gross amounts of tax positions related to prior years — 270 — Decrease in gross amounts of tax positions related to prior years (156 ) — — Decrease due to settlement with taxing authority — — — Increase in gross amounts of tax positions related to current year — — — Decrease due to lapse in statute of limitations — (117 ) (246 ) Unrecognized tax benefits at December 31 $ 304 $ 460 $ 307 |
DERIVATIVE INSTRUMENTS AND HE46
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-hedging Derivative Assets and Liabilities | Information about interest rate swap agreements and non-hedging derivative assets and liabilities at December 31, 2017 follows: Notional Amount Weighted Average Maturity Weighted Average Rate Estimated Fair Value Asset (Liability) December 31, 2017 Received Contract pay rate (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLBB borrowings $ — 0 — % — % $ — Total cash flow hedges — — Economic hedges: Interest rate swap on tax advantaged economic development bond 10,755 11.9 1.73 % 5.09 % (1,649 ) Interest rate swaps on loans with commercial loan customers 943,795 5.9 3.26 % 4.25 % (3,195 ) Reverse interest rate swaps on loans with commercial loan customers 943,795 5.9 4.25 % 3.26 % 3,204 Risk participation agreements with dealer banks 142,054 8.4 (26 ) Forward sale commitments 276,572 0.2 (123 ) Total economic hedges 2,316,971 (1,789 ) Non-hedging derivatives: Commitments to lend 193,966 0.2 5,259 Total non-hedging derivatives 193,966 5,259 Total $ 2,510,937 $ 3,470 Information about interest rate swap agreements and non-hedging derivative asset and liabilities at December 31, 2016 follows: Notional Amount Weighted Average Maturity Weighted Average Rate Estimated Fair Value Asset (Liability) December 31, 2016 Received Contract pay rate (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 2.3 0.63 % 2.29 % $ (6,573 ) Total cash flow hedges 300,000 (6,573 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 11,386 12.9 0.98 % 5.09 % (2,021 ) Interest rate swaps on loans with commercial loan customers 668,541 6.2 2.43 % 4.21 % (6,752 ) Reverse interest rate swaps on loans with commercial loan customers 668,541 6.2 4.21 % 2.43 % 7,077 Risk participation agreements with dealer banks 83,360 11.6 5 Forward sale commitments 259,889 0.2 722 Total economic hedges 1,691,717 (969 ) Non-hedging derivatives: Commitments to lend 208,145 0.2 4,738 Total non-hedging derivatives 208,145 4,738 Total $ 2,199,862 $ (2,804 ) |
Schedule of Amounts Included in the Consolidated Statements of income and in Other 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: Years Ended December 31, (In thousands) 2017 2016 2015 Interest rate swaps on FHLBB borrowings: Unrealized (loss) recognized in accumulated other comprehensive loss $ (449 ) $ (2,023 ) $ (5,232 ) Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense (393 ) (3,981 ) — Less: reclassification of unrealized (loss) from accumulated other (6,629 ) — — Net tax effect on items recognized in accumulated other comprehensive income (2,589 ) (835 ) 2,094 Other comprehensive income recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 3,984 $ 1,123 $ (3,138 ) |
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: Years Ended December 31, (In thousands) 2017 2016 2015 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 371 $ (75 ) $ (344 ) Interest rate swaps on loans with commercial loan customers: Unrealized gain recognized in other non-interest income 3,557 1,312 (4,852 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized (loss) recognized in other non-interest income (3,557 ) (1,312 ) 4,852 (Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income (316 ) 338 (51 ) Risk Participation Agreements: Unrealized (loss) recognized in other non-interest income (31 ) (61 ) (36 ) Forward Commitments: Unrealized gain (loss) recognized in non-interest income (123 ) (1,176 ) (247 ) Realized (loss) in non-interest income (1,764 ) (3,705 ) 45 Non-hedging derivatives Commitments to lend: Unrealized gain recognized in non-interest income $ 5,259 $ 8,373 $ 2,436 Realized gain in non-interest income 50,879 3,650 1,899 |
Schedule of Assets Subject to an Enforceable Master Netting Arrangement | The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2017 and December 31, 2016 : Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts of Assets Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2017 Interest Rate Swap Agreements: Institutional counterparties $ 2,692 $ (1,622 ) $ 1,070 $ — $ — $ 1,070 Commercial counterparties 8,577 — 8,577 — — 8,577 Total $ 11,269 $ (1,622 ) $ 9,647 $ — $ — $ 9,647 Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts of Assets Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2016 Interest Rate Swap Agreements: Institutional counterparties $ 49 $ — $ 49 $ — $ — $ 49 Commercial counterparties 11,461 — 11,461 — — 11,461 Total $ 11,510 $ — $ 11,510 $ — $ — $ 11,510 |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts of Liabilities Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2017 Interest Rate Swap Agreements: Institutional counterparties $ (8,777 ) $ 2,835 $ (5,942 ) $ 3,982 $ 1,960 $ — Commercial counterparties (5,375 ) 2 (5,373 ) — — (5,373 ) Total $ (14,152 ) $ 2,837 $ (11,315 ) $ 3,982 $ 1,960 $ (5,373 ) Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts of Liabilities Gross Amounts Not Offset in the Statements Financial Cash (in thousands) Net Amount As of December 31, 2016 Interest Rate Swap Agreements: Institutional counterparties $ (20,077 ) $ 4,689 $ (15,388 ) $ 14,738 $ 650 $ — Commercial counterparties (4,407 ) 23 (4,384 ) — — (4,384 ) Total $ (24,484 ) $ 4,712 $ (19,772 ) $ 14,738 $ 650 $ (4,384 ) |
OTHER COMMITMENTS, CONTINGENC47
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments Outstanding Whose Contract Amounts Represent Credit Risk | A summary of financial instruments outstanding whose contract amounts represent credit risk is as follows at year-end: (In thousands) 2017 2016 Commitments to originate new loans $ 244,252 $ 243,519 Unused funds on commercial and other lines of credit 678,567 574,043 Unadvanced funds on home equity lines of credit 297,367 281,621 Unadvanced funds on construction and real estate loans 360,472 320,635 Standby letters of credit 13,613 14,939 Lease obligation 11,323 11,639 Total $ 1,605,594 $ 1,446,396 |
SHAREHOLDERS' EQUITY AND EARN48
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | The Company and Bank’s actual and required capital amounts were as follows: Minimum Capital Requirement Minimum to be Well Capitalized Under Prompt Corrective Action Provisions Actual (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Company (Consolidated) Total capital to risk-weighted assets $ 1,063,843 12.43 % $ 684,692 8.00 % $ 855,865 N/A Common Equity Tier 1 Capital to risk weighted assets 942,389 11.01 385,139 4.50 556,312 N/A Tier 1 capital to risk-weighted assets 954,103 11.15 513,519 6.00 684,692 N/A Tier 1 capital to average assets 954,103 9.01 342,346 4.00 427,932 N/A Bank Total capital to risk-weighted assets $ 954,172 11.17 % $ 683,103 8.00 % $ 853,879 10.00 % Common Equity Tier 1 Capital to risk weighted assets 881,324 10.32 384,245 4.50 555,021 6.50 Tier 1 capital to risk-weighted assets 881,324 10.32 512,327 6.00 683,103 8.00 Tier 1 capital to average assets 881,324 8.32 341,552 4.00 426,939 5.00 December 31, 2016 Company (Consolidated) Total capital to risk-weighted assets $ 803,618 11.87 % $ 541,603 8.00 % $ 677,004 N/A Common Equity Tier 1 Capital to risk weighted assets 670,120 9.90 304,652 4.50 440,053 N/A Tier 1 capital to risk-weighted assets 681,500 10.07 406,202 6.00 541,603 N/A Tier 1 capital to average assets 681,500 7.88 270,802 4.00 338,502 N/A Bank Total capital to risk-weighted assets $ 756,792 11.21 % $ 539,893 8.00 % $ 674,866 10.00 % Common Equity Tier 1 Capital to risk weighted assets 672,244 9.96 303,690 4.50 438,663 6.50 Tier 1 capital to risk-weighted assets 672,244 9.96 404,920 6.00 539,893 8.00 Tier 1 capital to average assets 672,244 7.84 269,920 4.00 337,433 5.00 |
Schedule of Components of Accumulated Other Comprehensive Loss | Year-end components of accumulated other comprehensive income/(loss) are as follows: (In thousands) 2017 2016 Other accumulated comprehensive income/(loss), before tax: Net unrealized holding gain on AFS securities $ 10,034 $ 25,176 Net (loss) on effective cash flow hedging derivatives — (6,573 ) Net unrealized holding (loss) on pension plans (3,048 ) (2,954 ) Income taxes related to items of accumulated other comprehensive income/(loss): Net unrealized holding (gain) on AFS securities (4,026 ) (9,636 ) Net loss on effective cash flow hedging derivatives — 2,589 Net unrealized holding loss on pension plans 1,201 1,164 Accumulated other comprehensive income/(loss) $ 4,161 $ 9,766 |
Schedule of Components of Other Comprehensive Loss | The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2017, 2016, and 2015: (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2017 Net unrealized holding gain on AFS securities: Net unrealized (loss) arising during the period $ (2,544 ) $ 1,075 $ (1,469 ) Less: reclassification adjustment for gains realized in net income 12,598 (4,535 ) 8,063 Net unrealized holding (loss) on AFS securities (15,142 ) 5,610 (9,532 ) Net loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period (449 ) 180 (269 ) Less: reclassification adjustment for (losses) realized in net income (7,022 ) 2,769 (4,253 ) Net gain on cash flow hedging derivatives 6,573 (2,589 ) 3,984 Net unrealized holding (loss) on pension plans Net unrealized (loss) arising during the period (311 ) 124 (187 ) Less: reclassification adjustment for losses realized in net income (217 ) 87 (130 ) Net unrealized holding (loss) on pension plans (94 ) 37 (57 ) Other Comprehensive Income(Loss) $ (8,663 ) $ 3,058 $ (5,605 ) (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2016 Net unrealized holding gain on AFS securities: Net unrealized gain arising during the period $ 18,308 $ (6,979 ) $ 11,329 Less: reclassification adjustment for (losses) realized in net income (551 ) 220 (331 ) Net unrealized holding gain on AFS securities 18,859 (7,199 ) 11,660 Net (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (2,022 ) 754 (1,268 ) Less: reclassification adjustment for (losses) realized in net income (3,981 ) 1,589 (2,392 ) Net gain on cash flow hedging derivatives 1,959 (835 ) 1,124 Net unrealized holding gain on pension plans Net unrealized gain arising during the period 351 (155 ) 196 Less: reclassification adjustment for (losses) realized in net income (164 ) 73 (91 ) Net unrealized holding gain on pension plans 515 (228 ) 287 Other Comprehensive Income $ 21,333 $ (8,262 ) $ 13,071 (In thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2015 Net unrealized holding gain on AFS securities: Net unrealized loss arising during the period $ (7,567 ) $ 2,793 $ (4,774 ) Less: reclassification adjustment for gains realized in net income 2,110 (847 ) 1,263 Net unrealized holding loss on AFS securities (9,677 ) 3,640 (6,037 ) Net (loss) on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,232 ) 2,094 (3,138 ) Less: reclassification adjustment for (losses) realized in net income — — — Net (loss) on cash flow hedging derivatives (5,232 ) 2,094 (3,138 ) Net unrealized holding (loss) on pension plans Net unrealized (loss) arising during the period (1,436 ) 572 (864 ) Less: reclassification adjustment for (losses) realized in net income (259 ) 104 (155 ) Net unrealized holding (loss) on pension plans (1,177 ) 468 (709 ) Other Comprehensive Loss $ (16,086 ) $ 6,202 $ (9,884 ) |
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 years ended December 31, 2017 , 2016 , and 2015: (in thousands) Net unrealized holding gain (loss) on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding gain (loss) on pension plans Total Year Ended December 31, 2017 Balance at Beginning of Year $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Other comprehensive gain (loss) before reclassifications (1,469 ) (269 ) (187 ) (1,925 ) Amounts reclassified from accumulated other comprehensive income 8,063 (4,253 ) (130 ) 3,680 Total Other Comprehensive (Loss) Income (9,532 ) 3,984 (57 ) (5,605 ) Balance at End of Period $ 6,008 $ — $ (1,847 ) $ 4,161 Year Ended December 31, 2016 Balance at Beginning of Year $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) Other comprehensive gain (loss) before reclassifications 11,329 (1,268 ) 196 10,257 Amounts reclassified from accumulated other comprehensive income (331 ) (2,392 ) (91 ) (2,814 ) Total Other Comprehensive Income 11,660 1,124 287 13,071 Balance at End of Period $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Year Ended December 31, 2015 Balance at Beginning of Year $ 9,916 $ (1,969 ) $ (1,368 ) $ 6,579 Other comprehensive gain (loss) Before reclassifications (4,774 ) (3,138 ) (864 ) (8,776 ) Amounts reclassified from accumulated other comprehensive income 1,263 — (155 ) 1,108 Total Other Comprehensive (Loss) (6,037 ) (3,138 ) (709 ) (9,884 ) Balance at End of Period $ 3,880 $ (5,108 ) $ (2,077 ) $ (3,305 ) |
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 years ended December 31, 2017 , 2016 , and 2015: Affected Line Item in the Years Ended December 31, (in thousands) 2017 2016 2015 Realized (losses) gains on AFS securities: $ 12,598 $ (551 ) $ 2,110 Non-interest income (4,535 ) 220 (847 ) Tax expense 8,063 (331 ) 1,263 Realized (losses) on cash flow hedging derivatives: (393 ) — — Interest expense (6,629 ) — — Non-interest income — (3,981 ) — Non-interest expense 2,769 1,589 — Tax benefit (4,253 ) (2,392 ) — Realized (losses) on pension plans (217 ) (164 ) (259 ) Non-interest expense 87 73 104 Tax expense (130 ) (91 ) (155 ) Total reclassifications for the period $ 3,680 $ (2,814 ) $ 1,108 |
Schedule of Earnings Per Share | Earnings per common share has been computed based on the following (average diluted shares outstanding is calculated using the treasury stock method): Years Ended December 31, (In thousands, except per share data) 2017 2016 2015 Net income $ 55,247 $ 58,670 $ 49,518 Average number of common shares issued 40,627 32,604 30,074 Less: average number of treasury shares 963 1,116 1,215 Less: average number of unvested stock award shares 437 500 466 Plus: average participating preferred shares 229 — — Average number of basic common shares outstanding 39,456 30,988 28,393 Plus: dilutive effect of unvested stock award shares 202 122 106 Plus: dilutive effect of stock options outstanding 37 57 65 Average number of diluted common shares outstanding 39,695 31,167 28,564 Basic earning per common share $ 1.40 $ 1.89 $ 1.74 Diluted earnings per common share $ 1.39 $ 1.88 $ 1.73 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity in the Stock Award and Stock Option Plans | A summary of activity in the Company’s stock compensation plans is shown below: Non-vested Stock Stock Options Outstanding (Shares in thousands) Number of Shares Weighted- Average Number of Shares Weighted- Average Exercise Price Balance, December 31, 2016 448 $ 26.28 109 $ 15.72 Granted 161 35.84 — — Stock options exercised — — (19 ) 17.74 Stock awards vested (174 ) 25.68 — — Forfeited (17 ) 30.04 — — Expired — — (14 ) 29.35 Balance, December 31, 2017 418 $ 29.68 76 $ 13.59 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Summary of 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 assets and liabilities measured at fair value on a recurring basis as of year-end 2017 and 2016 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2017 (In thousands) Level 1 Level 2 Level 3 Total Trading security $ — $ — $ 12,277 $ 12,277 Available-for-sale securities: Municipal bonds and obligations — 118,233 — 118,233 Agency collateralized mortgage obligations — 851,158 — 851,158 Agency residential mortgage-backed securities — 216,940 — 216,940 Agency commercial mortgage-backed securities — 62,305 — 62,305 Corporate bonds — 110,721 — 110,721 Trust preferred securities — 11,677 — 11,677 Other bonds and obligations — 9,880 — 9,880 Marketable equity securities 44,851 334 — 45,185 Loans held for sale — 153,620 — 153,620 Derivative assets — 14,049 5,259 19,308 Other assets — — 3,834 3,834 Derivative liabilities 104 15,715 19 15,838 December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Trading security $ — $ — $ 13,229 $ 13,229 Available-for-sale securities: Municipal bonds and obligations — 119,816 — 119,816 Agency collateralized mortgage obligations — 651,911 — 651,911 Agency residential mortgage-backed securities — 228,684 — 228,684 Agency commercial mortgage-backed securities — 64,534 — 64,534 Corporate bonds — 56,006 — 56,006 Trust preferred securities — 11,887 — 11,887 Other bonds and obligations — 11,158 — 11,158 Marketable equity securities 62,284 3,257 — 65,541 Loans held for sale — 120,673 — 120,673 Derivative assets 622 16,157 4,838 21,617 Other assets — — 798 798 Derivative liabilities — 24,420 — 24,420 |
Schedule of loans held for sale | Aggregate Aggregate Aggregate Fair Value December 31, 2017 (In thousands) Loans Held for Sale $ 153,620 $ 149,022 $ 4,598 Aggregate Aggregate Aggregate Fair Value December 31, 2016 (In thousands) Loans Held for Sale $ 120,673 $ 118,178 $ 2,495 |
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 that were measured at fair value on a recurring basis at year-end 2017 and 2016 : Assets (Liabilities) (In thousands) Trading Securities Available for Sale Commitments to Lend Forward Capitalized Servicing Rights Balance as of December 31, 2015 $ 14,189 $ 708 $ 323 $ 9 $ — Amounts acquired from First Choice Bank — — 3,900 — 696 Unrealized (loss) gain, net recognized in other non-interest income (362 ) — 13,563 91 102 Unrealized gain included in accumulated other comprehensive loss — — — — — Transfers to Level 2 — (708 ) — — — Paydown of trading security (598 ) — — — — Transfers to loans held for sale — — (13,048 ) — — Balance as of December 31, 2016 $ 13,229 $ — $ 4,738 $ 100 $ 798 Unrealized (loss) gain, net recognized in other non-interest income (320 ) — 63,894 (81 ) (221 ) Unrealized gain included in accumulated other comprehensive loss — — — — — Transfers to Level 2 — — — — — Paydown of trading security (632 ) — — — — Transfers to loans held for sale — — (63,373 ) — — Additions to servicing rights — — — — 3,257 Balance as of December 31, 2017 $ 12,277 $ — $ 5,259 $ 19 $ 3,834 Unrealized gains (losses) relating to instruments still held at December 31, 2017 $ 1,522 $ — $ 5,259 $ 19 $ (221 ) Unrealized gains relating to instruments still held at December 31, 2016 $ 1,843 $ — $ 4,738 $ 100 $ 102 |
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 on a non-recurring basis. December 31, 2017 Fair Value Measurements as of December 31, 2017 (In thousands) Level 3 Level 3 Inputs Assets Impaired loans $ 23,853 December 2017 Capitalized servicing rights 12,527 December 2017 Other real estate owned — — Total $ 36,380 December 31, 2016 Fair Value Measurements as of December 31, 2016 (In thousands) Level 3 Level 3 Assets Impaired loans $ 17,761 December 2016 Capitalized servicing rights 10,726 December 2016 Other real estate owned 151 Feb. 2016 - July 2016 Total $ 28,638 |
Summary of applicable non-recurring fair value measurements | 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. December 31, 2017 Carrying Fair (In thousands) Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 248,763 $ 248,763 $ 248,763 $ — $ — Trading security 12,277 12,277 — — 12,277 Securities available for sale 1,426,099 1,426,099 44,850 1,381,249 — Securities held to maturity 397,103 405,276 — 371,458 33,818 FHLB stock and restricted equity securities 63,085 N/A — N/A — Net loans 8,247,504 8,422,034 — — 8,422,034 Loans held for sale 153,620 153,620 — 153,620 — Accrued interest receivable 33,739 33,739 — 33,739 — Derivative assets 19,308 19,308 — 14,049 5,259 Assets held for sale 1,392 1,392 — 1,392 — Financial Liabilities Total deposits 8,749,530 8,731,527 — 8,731,527 — Short-term debt 667,300 667,246 — 667,246 — Long-term FHLB advances 380,436 378,766 — 378,766 — Subordinated notes 89,339 97,414 — 97,414 — Derivative liabilities 15,838 15,838 104 15,715 19 December 31, 2016 Carrying Fair (In thousands) Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 113,075 $ 113,075 $ 113,075 $ — $ — Trading security 13,229 13,229 — — 13,229 Securities available for sale 1,209,537 1,209,537 62,284 1,147,253 — Securities held to maturity 334,368 337,680 — 300,806 36,874 FHLB stock and restricted equity securities 71,112 N/A — N/A — Net loans 6,505,789 6,532,745 — — 6,532,745 Loans held for sale 120,673 120,673 — 120,673 — Accrued interest receivable 26,113 26,113 — 26,113 — Derivative assets 21,617 21,617 622 16,157 4,838 Assets held for sale 322 322 — 322 — Financial Liabilities Total deposits 6,622,092 6,624,108 — 6,624,108 — Short-term debt 1,082,044 1,081,996 — 1,081,996 — Long-term FHLB advances 142,792 143,151 — 143,151 — Subordinated notes 89,161 96,973 — 96,973 — Derivative liabilities 24,420 24,420 — 24,420 — |
Recurring | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Schedule of quantitative information about the significant unobservable inputs within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 recurring assets/(liabilities) as of December 31, 2017 and 2016 are as follows: Fair Value Significant Unobservable Input Value (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Assets Trading Security $ 12,277 Discounted Cash Flow Discount Rate 2.74 % Forward Commitments 19 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Commitments to Lend 5,259 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Capitalized Servicing Rights 3,834 Discounted cash flow Constant prepayment rate (CPR) 10.00 % Discount rate 10.95 % Total $ 21,389 Fair Value Significant (In thousands) December 31, 2016 Valuation Techniques Unobservable Inputs Assets Trading Security $ 13,229 Discounted Cash Flow Discount Rate 2.62 % Forward Commitments 100 Historical Trend Closing Ratio 80.36 % Commitments to Lend 4,738 Pricing Model Origination Costs, per loan $ 3.692 Historical Trend Closing Ratio 80.36 % Capitalized Servicing Rights 798 Pricing Model Origination Costs, per loan $ 3.692 Discounted cash flow Constant prepayment rate (CPR) 10.40 % Discount rate 11.00 % Total $ 18,865 |
Non-recurring | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Schedule of quantitative information about the significant unobservable inputs within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2017 and 2016 are as follows: (in thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 23,853 Fair value of collateral Loss severity 38.72% to 0.21% (3.40%) Appraised value $10.9 to $5967 ($2,197) Capitalized servicing rights 12,527 Discounted cash flow Constant prepayment rate (CPR) 7.78% to 12.78% (10.38%) Discount rate 10.00% to 13.28% (11.72%) Other real estate owned — Fair value of collateral Appraised value — Total Assets $ 36,380 (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. (in thousands) December 31, 2016 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 17,761 Fair value of collateral Loss severity 0% to 88.70% (9.73%) Appraised value $0 to $2,192 ($1,026) Capitalized servicing rights 10,726 Discounted cash flow Constant prepayment rate (CPR) 7.35% to 14.28% (10.44%) Discount rate 10.00% to 14.00% (11.77%) Other real estate owned 151 Fair value of collateral Appraised value $101 to $129 ($122) Total Assets $ 28,638 (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. |
CONDENSED FINANCIAL STATEMENT51
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, (In thousands) 2017 2016 Assets Cash due from Berkshire Bank $ 83,380 $ 43,018 Investment in subsidiaries 1,470,859 1,127,706 Securities available for sale, at fair value 21,827 23,651 Other assets 12,138 1,372 Total assets $ 1,588,204 $ 1,195,747 Liabilities and Shareholders’ Equity Short term debt $ — $ 10,000 Subordinated notes 89,339 89,161 Accrued expenses 2,601 3,288 Shareholders’ equity 1,496,264 1,093,298 Total liabilities and shareholders’ equity $ 1,588,204 $ 1,195,747 |
Schedule of Condensed Statements of Income | CONDENSED STATEMENTS OF INCOME Years Ended December 31, (In thousands) 2017 2016 2015 Income: Dividends from subsidiaries $ 39,000 $ 33,000 $ 34,000 Other 5,864 4,072 2,763 Total income 44,864 37,072 36,763 Interest expense 5,338 5,743 5,674 Non-interest expenses 6,042 3,740 3,670 Total expense 11,380 9,483 9,344 Income before income taxes and equity in undistributed income of subsidiaries 33,484 27,589 27,419 Income tax benefit (1,783 ) (2,123 ) (2,518 ) Income before equity in undistributed income of subsidiaries 35,267 29,712 29,937 Equity in undistributed income of subsidiaries 19,980 28,958 19,581 Net income 55,247 58,670 49,518 Preferred stock dividend 219 — — Income available to common shareholders $ 55,028 $ 58,670 $ 49,518 |
Schedule of Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (In thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 55,247 $ 58,670 $ 49,518 Adjustments to reconcile net income to net cash (used) provided by operating activities: Equity in undistributed income of subsidiaries (19,980 ) (28,958 ) (19,581 ) Other, net (7,964 ) 1,988 10,904 Net cash provided by operating activities 27,303 31,700 40,841 Cash flows from investing activities: Advances to subsidiaries (100,000 ) — — Acquisitions, net of cash paid — — (3,293 ) Purchase of securities (1,057 ) (18,016 ) (18 ) Sale of securities 2,101 — — Other, net 1,508 9,728 — Net cash (used) in investing activities (97,448 ) (8,288 ) (3,311 ) Cash flows from financing activities: Proceed from issuance of short term debt — 9,349 — Repayment of short term debt (9,822 ) — (9,935 ) Net proceeds from common stock 153,313 3,712 — Net proceeds from preferred stock — — — Net proceeds from reissuance of treasury stock — — 240 Payment to repurchase common stock — (4,632 ) (550 ) Common stock cash dividends paid (33,022 ) (24,916 ) (21,903 ) Preferred stock cash dividends paid (219 ) — — Other, net 257 11 167 Net cash provided provided/(used) by financing activities 110,507 (16,476 ) (31,981 ) Net change in cash and cash equivalents 40,362 6,936 5,549 Cash and cash equivalents at beginning of year 43,018 36,082 30,533 Cash and cash equivalents at end of year $ 83,380 $ 43,018 $ 36,082 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Quarterly results of operations were as follows: 2017 2016 (In thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 105,823 $ 89,060 $ 84,666 $ 80,709 $ 72,434 $ 70,511 $ 69,018 $ 68,476 Interest expense 19,457 17,062 15,121 13,823 13,276 12,540 11,577 10,779 Net interest income 86,366 71,998 69,545 66,886 59,158 57,971 57,441 57,697 Non-interest income 29,298 28,836 32,798 34,757 16,725 18,941 14,555 15,630 Total revenue 115,664 100,834 102,343 101,643 75,883 76,912 71,996 73,327 Provision for loan losses 6,141 4,900 4,889 5,095 4,100 4,734 4,522 4,006 Non-interest expense 90,041 65,820 69,523 74,326 61,090 48,844 46,268 47,100 Income before income taxes 19,482 30,114 27,931 22,222 10,693 23,334 21,206 22,221 Income tax expense (1) 22,292 7,211 8,237 6,762 362 6,953 5,249 6,220 Net (loss)/income $ (2,810 ) $ 22,903 $ 19,694 $ 15,460 $ 10,331 $ 16,381 $ 15,957 $ 16,001 Basic (loss)/earnings per common share $ (0.06 ) $ 0.57 $ 0.53 $ 0.44 $ 0.32 $ 0.53 $ 0.52 $ 0.52 Diluted (loss)/earnings per share $ (0.06 ) $ 0.57 $ 0.53 $ 0.44 $ 0.32 $ 0.53 $ 0.52 $ 0.52 Weighted average common shares outstanding: Basic 45,122 39,984 37,324 35,280 32,185 30,621 30,605 30,511 Diluted 45,122 40,145 37,474 35,452 32,381 30,811 30,765 30,688 (1) 2017 income tax expense includes $18.1 million charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017. |
NET INTEREST INCOME AFTER PRO53
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 years ended 2017, 2016, and 2015, respectively: Years Ended December 31, (In thousands) 2017 2016 2015 Net interest income $ 294,795 $ 232,267 $ 213,849 Provision for loan losses 21,025 17,362 16,726 Net interest income after provision for loan losses 273,770 214,905 197,123 Total non-interest income 125,689 65,851 54,288 Total non-interest expense 299,710 203,302 196,829 Income from continuing operations before income taxes 99,749 77,454 54,582 Income tax expense 44,502 18,784 5,064 Net income $ 55,247 $ 58,670 $ 49,518 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Accounting Policies [Abstract] | |
Number of days until which automobile loans accrue, after which they are charged off | 120 days |
Minimum number of days past due for loans excluding automobile loans on which interest is generally not accrued | 90 days |
Threshold percentage of amortization of net actuarial gain or loss in net periodic benefit cost over the average remaining service period of active participants in the Plans | 10.00% |
Number of reportable segments (segment) | 1 |
Number of operating segments (segment) | 1 |
ACQUISITIONS - COMMERCE NARATIV
ACQUISITIONS - COMMERCE NARATIVE (Details) $ / shares in Units, $ in Millions | Oct. 13, 2017USD ($)banking_office$ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2016shares |
Business Acquisition [Line Items] | |||
Common stock, shares outstanding (shares) | 45,290,433 | 35,672,817 | |
Commerce Bank | |||
Business Acquisition [Line Items] | |||
Number of branch banking offices | banking_office | 16 | ||
Common stock, shares outstanding (shares) | 6,328,000 | ||
Commerce Bank | Common Stock for Common Stock | |||
Business Acquisition [Line Items] | |||
Equity interest, share exchange ratio | 0.93 | ||
Commerce Bank | Common Stock for Series B Preferred Stock | |||
Business Acquisition [Line Items] | |||
Equity interest, share exchange ratio | 0.465 | ||
Commerce Bank | Preferred Stock for Common Stock | |||
Business Acquisition [Line Items] | |||
Equity interest, share exchange ratio | 2 | ||
Commerce Bank | Common Stock | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest issued (shares) | 4,842,000 | ||
Equity issued, value | $ | $ 188.6 | ||
Share price (USD per share) | $ / shares | $ 38.95 | ||
Commerce Bank | Preferred Stock | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest issued (shares) | 522,000 | ||
Equity issued, value | $ | $ 40.6 | ||
Commerce Bancshares 2010 Long-Term Incentive Plan | |||
Business Acquisition [Line Items] | |||
Share price pursuant to merger (USD per share) | $ / shares | $ 34 |
ACQUISITIONS - COMMERCE BANK AC
ACQUISITIONS - COMMERCE BANK ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Thousands | Oct. 13, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Goodwill | $ 116,181 | $ 519,287 | $ 403,106 | $ 323,943 | |
Loans | 8,299,338 | 6,549,787 | |||
Accretable yield | $ 11,561 | $ 8,738 | $ 6,925 | $ 2,541 | |
Commerce Bank | |||||
Consideration paid: | |||||
Cash in lieu paid to Commerce shareholders | 1 | ||||
Total consideration paid | 229,233 | ||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Cash and short-term investments | 374,611 | ||||
Investment securities | 113,847 | ||||
Loans, net | 1,240,751 | ||||
Premises and equipment | 14,277 | ||||
Core deposit intangibles | 22,400 | ||||
Deferred tax assets, net | 34,536 | ||||
Goodwill and other intangibles | 0 | ||||
Other assets | 49,045 | ||||
Deposits | (1,712,052) | ||||
Borrowings | (19,542) | ||||
Other liabilities | (4,821) | ||||
Total identifiable net assets | 113,052 | ||||
Allowance for loan and lease losses | 15,000 | ||||
Accretable yield | $ 10,815 | ||||
Estimated useful life of deposits | 10 years | ||||
Write-down of repossessed assets | $ 3,500 | ||||
Commerce Bank | Performing | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Loans | 1,180,000 | ||||
Loans acquired | 1,170,000 | ||||
Commerce Bank | Impaired loan | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Loans | 163,100 | ||||
Loans acquired | 71,100 | ||||
Accretable yield | 10,800 | ||||
Fair value adjustment, amortized into income | 4,000 | ||||
As Acquired | Commerce Bank | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Cash and short-term investments | 374,611 | ||||
Investment securities | 115,274 | ||||
Loans, net | 1,327,256 | ||||
Premises and equipment | 8,931 | ||||
Core deposit intangibles | 0 | ||||
Deferred tax assets, net | 7,956 | ||||
Goodwill and other intangibles | 11,233 | ||||
Other assets | 52,709 | ||||
Deposits | (1,710,872) | ||||
Borrowings | (19,542) | ||||
Other liabilities | (5,086) | ||||
Total identifiable net assets | 162,470 | ||||
Fair Value Adjustment | Commerce Bank | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Cash and short-term investments | 0 | ||||
Investment securities | (1,427) | ||||
Loans, net | (86,505) | ||||
Premises and equipment | 5,346 | ||||
Core deposit intangibles | 22,400 | ||||
Deferred tax assets, net | 26,580 | ||||
Goodwill and other intangibles | (11,233) | ||||
Other assets | (3,664) | ||||
Deposits | (1,180) | ||||
Borrowings | 0 | ||||
Other liabilities | 265 | ||||
Total identifiable net assets | (49,418) | ||||
Common stock | Commerce Bank | |||||
Consideration paid: | |||||
Company common stock issued | 188,599 | ||||
Preferred Stock | Commerce Bank | |||||
Consideration paid: | |||||
Company common stock issued | 40,633 | ||||
Buildings | Commerce Bank | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Premises and equipment | 5,700 | ||||
Land | Commerce Bank | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Premises and equipment | 700 | ||||
Furniture, fixtures and equipment | Commerce Bank | |||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||||
Reduction in book value | $ 1,000 |
ACQUISITIONS - COMMERCE BANK LO
ACQUISITIONS - COMMERCE BANK LOAN PORTOFOLIO ACQUIRED (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Oct. 13, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Interest component of expected cash flows (accretable discount) | $ (11,561) | $ (8,738) | $ (6,925) | $ (2,541) | |
Commerce Bank | |||||
Business Acquisition [Line Items] | |||||
Gross contractual receivable amounts at acquisition | $ 163,125 | ||||
Contractual cash flows not expected to be collected (nonaccretable discount) | (81,205) | ||||
Expected cash flows at acquisition | 81,920 | ||||
Interest component of expected cash flows (accretable discount) | (10,815) | ||||
Fair value of acquired loans | $ 71,105 |
ACQUISITIONS - PRO FORMA NARRAT
ACQUISITIONS - PRO FORMA NARRATIVE (Details) - USD ($) shares in Thousands | Oct. 13, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Business acquisition, pro forma estimated tax rate (percent) | 40.00% | ||
Commerce Bank | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 17,800,000 | $ 0 | |
Common stock | Commerce Bank | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest issued (shares) | 4,842 | ||
Preferred Stock | Commerce Bank | |||
Business Acquisition [Line Items] | |||
Business acquisition, equity interest issued (shares) | 522 |
ACQUISITIONS - PRO FORMA INFORM
ACQUISITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Net interest income | $ 344,797 | $ 302,012 |
Non-interest income | 134,818 | 77,192 |
Income available to common shareholders | $ 77,340 | $ 78,859 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CASH AND CASH EQUIVALENTS | ||
Short-term investments | $ 248,763 | $ 113,075 |
Reserve requirement, included in cash and equivalents | 20,400 | 17,000 |
Short-term investments pledged as collateral | ||
CASH AND CASH EQUIVALENTS | ||
Short-term investments | $ 2,100 | $ 900 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trading Securities [Abstract] | |||
Amortized cost | $ 10,800 | $ 11,400 | |
Fair value | 12,277 | 13,229 | |
Unrealized gains (losses) | $ (300) | $ (400) | $ (200) |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | $ 1,387,250 | $ 1,145,448 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 7,108 | 7,234 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (13,444) | (8,686) |
Available-for-sale securities, debt securities | 1,380,914 | 1,143,996 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 36,483 | 47,858 |
Available-for-sale equity securities, accumulated gross unrealized gain, before tax | 9,211 | 19,296 |
Available-for-sale equity securities, accumulated gross unrealized loss, before tax | (509) | (1,613) |
Available-for-sale securities, equity securities | 45,185 | 65,541 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Available-for-sale securities, amortized cost basis | 1,423,733 | 1,193,306 |
Available-for-sale securities, accumulated gross unrealized gain, before tax | 16,319 | 26,530 |
Available-for-sale securities, accumulated gross unrealized loss, before tax | (13,953) | (10,299) |
Available-for-securities | 1,426,099 | 1,209,537 |
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 397,103 | 334,368 |
Held-to-maturity securities, accumulated unrecognized holding gain | 10,316 | 6,816 |
Held-to-maturity securities, accumulated unrecognized holding loss | (2,143) | (3,504) |
Held-to-maturity securities, fair value | 405,276 | 337,680 |
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||
Held to maturity and available for sale securities amortized cost | 1,820,836 | 1,527,674 |
Held to maturity and available for sale securities, gross unrealized gain | 26,635 | 33,346 |
Held to maturity and available for sale securities, gross unrealized losses | (16,096) | (13,803) |
Available for sale securities and held to maturity securities | 1,831,375 | 1,547,217 |
Municipal bonds and obligations | ||
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 270,310 | 203,463 |
Held-to-maturity securities, accumulated unrecognized holding gain | 8,675 | 3,939 |
Held-to-maturity securities, accumulated unrecognized holding loss | (90) | (2,416) |
Held-to-maturity securities, fair value | 278,895 | 204,986 |
Agency collateralized mortgage obligations | ||
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 73,742 | 75,655 |
Held-to-maturity securities, accumulated unrecognized holding gain | 1,045 | 1,281 |
Held-to-maturity securities, accumulated unrecognized holding loss | (486) | (411) |
Held-to-maturity securities, fair value | 74,301 | 76,525 |
Tax advantaged economic development bonds | ||
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 34,357 | 35,278 |
Held-to-maturity securities, accumulated unrecognized holding gain | 596 | 1,596 |
Held-to-maturity securities, accumulated unrecognized holding loss | (1,135) | 0 |
Held-to-maturity securities, fair value | 33,818 | 36,874 |
Other bonds and obligations | ||
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 321 | 325 |
Held-to-maturity securities, accumulated unrecognized holding gain | 0 | 0 |
Held-to-maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Held-to-maturity securities, fair value | 321 | 325 |
Municipal bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 113,427 | 117,910 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 5,012 | 2,955 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (206) | (1,049) |
Available-for-sale securities, debt securities | 118,233 | 119,816 |
Agency collateralized mortgage obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 859,705 | 652,680 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 397 | 2,522 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (8,944) | (3,291) |
Available-for-sale securities, debt securities | 851,158 | 651,911 |
Agency mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 218,926 | 230,308 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 279 | 557 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (2,265) | (2,181) |
Available-for-sale securities, debt securities | 216,940 | 228,684 |
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 7,892 | 9,102 |
Held-to-maturity securities, accumulated unrecognized holding gain | 0 | 0 |
Held-to-maturity securities, accumulated unrecognized holding loss | (164) | (243) |
Held-to-maturity securities, fair value | 7,728 | 8,859 |
Agency commercial mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 64,025 | 65,673 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 41 | 229 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (1,761) | (1,368) |
Available-for-sale securities, debt securities | 62,305 | 64,534 |
Held-to-maturity Securities, Unclassified [Abstract] | ||
Held-to-maturity securities | 10,481 | 10,545 |
Held-to-maturity securities, accumulated unrecognized holding gain | 0 | 0 |
Held-to-maturity securities, accumulated unrecognized holding loss | (268) | (434) |
Held-to-maturity securities, fair value | 10,213 | 10,111 |
Corporate bonds | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 110,076 | 56,320 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 882 | 408 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (237) | (722) |
Available-for-sale securities, debt securities | 110,721 | 56,006 |
Trust preferred securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 11,334 | 11,578 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 343 | 368 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | 0 | (59) |
Available-for-sale securities, debt securities | 11,677 | 11,887 |
Other bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 9,757 | 10,979 |
Available-for-sale debt securities, accumulated gross unrealized gain, before tax | 154 | 195 |
Available-for-sale debt securities, accumulated gross unrealized loss, before tax | (31) | (16) |
Available-for-sale securities, debt securities | $ 9,880 | $ 11,158 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investment Holdings [Line Items] | |||
Held-to-maturity securities, unrecognized holding gain | $ | $ 7,700 | $ 9,000 | |
Proceeds from sales of securities available for sale | $ | 188,921 | 421,843 | $ 41,169 |
Available-for-sale securities, accumulated gross unrealized loss before tax | $ | 13,953 | 10,299 | |
Securities available for sale, at fair value | $ | 1,426,099 | 1,209,537 | |
Level 2 | |||
Investment Holdings [Line Items] | |||
Securities available for sale, at fair value | $ | $ 1,381,249 | 1,147,253 | |
Municipal bonds and obligations | |||
Investment Holdings [Line Items] | |||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 0.70% | ||
Number of HTM investment securities in unrealized loss positions (security) | 12 | ||
Number of securities in the portfolio of HTM (security) | 231 | ||
Collateralized mortgage obligations | |||
Investment Holdings [Line Items] | |||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 3.60% | ||
Number of HTM investment securities in unrealized loss positions (security) | 1 | ||
Number of securities in the portfolio of HTM (security) | 9 | ||
Mortgage-backed Securities | |||
Investment Holdings [Line Items] | |||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 2.40% | ||
Number of HTM investment securities in unrealized loss positions (security) | 2 | ||
Number of securities in the portfolio of HTM (security) | 2 | ||
Debt securities | Municipal bonds and obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 6 | ||
Available for sale securities portfolio, number of securities (security) | 260 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 2.30% | ||
Debt securities | Collateralized mortgage obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 179 | ||
Available for sale securities portfolio, number of securities (security) | 234 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 1.20% | ||
Debt securities | Mortgage-backed Securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 58 | ||
Available for sale securities portfolio, number of securities (security) | 103 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 1.80% | ||
Debt securities | Corporate bonds | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 1 | ||
Available for sale securities portfolio, number of securities (security) | 20 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 1.50% | ||
Debt securities | Other bonds and obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 6 | ||
Available for sale securities portfolio, number of securities (security) | 9 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 1.00% | ||
Debt securities | Tax advantaged economic development bonds | |||
Investment Holdings [Line Items] | |||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 13.40% | ||
Number of HTM investment securities in unrealized loss positions (security) | 1 | ||
Number of securities in the portfolio of HTM (security) | 7 | ||
Marketable equity securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale securities in an unrealized loss position (security) | 2 | ||
Available for sale securities portfolio, number of securities (security) | 20 | ||
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 11.30% | ||
Net unrealized holding gain on AFS securities | |||
Investment Holdings [Line Items] | |||
Other accumulated comprehensive income/(loss), before tax | $ | $ 10,034 | 25,176 | |
Income tax benefit related to items of accumulated other comprehensive income/(loss) | $ | 4,026 | 9,636 | |
Net unrealized holding gain on AFS securities | Securities Available for Sale | |||
Investment Holdings [Line Items] | |||
Other accumulated comprehensive income/(loss), before tax | $ | $ 2,300 | $ 16,200 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 622 | |
Over 1 year to 5 years | 32,659 | |
Over 5 years to 10 years | 75,261 | |
Over 10 years | 136,052 | |
Total bonds and obligations | 244,594 | |
Marketable equity securities | 36,483 | $ 47,858 |
Mortgage-backed securities | 1,142,656 | |
Available-for-sale securities, amortized cost basis | 1,423,733 | 1,193,306 |
Available for sale, Fair Value | ||
Within 1 year | 623 | |
Over 1 year to 5 years | 32,972 | |
Over 5 years to 10 years | 76,745 | |
Over 10 years | 140,171 | |
Total bonds and obligations | 250,511 | |
Marketable equity securities | 45,185 | 65,541 |
Mortgage-backed securities | 1,130,403 | |
Available-for-securities | 1,426,099 | 1,209,537 |
Held to maturity, Amortized Cost | ||
Within 1 year | 1,261 | |
Over 1 year to 5 years | 25,892 | |
Over 5 years to 10 years | 8,752 | |
Over 10 years | 269,083 | |
Total bonds and obligations | 304,988 | |
Mortgage-backed securities | 92,115 | |
Held-to-maturity securities | 397,103 | 334,368 |
Held to maturity, Fair Value | ||
Within 1 year | 1,261 | |
Over 1 year to 5 years | 26,422 | |
Over 5 years to 10 years | 8,917 | |
Over 10 years | 276,434 | |
Total bonds and obligations | 313,034 | |
Mortgage-backed securities | 92,242 | |
Held-to-maturity securities | $ 405,276 | $ 337,680 |
SECURITIES - Pledged Securities
SECURITIES - Pledged Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortized Cost | |||
Securities pledged to swap counterparties | $ 24,410 | $ 51,292 | |
Securities pledged for municipal deposits | 210,382 | 147,950 | |
Securities pledged, amortized cost | 234,792 | 199,242 | |
Fair Value | |||
Securities pledged to swap counterparties | 24,240 | 51,290 | |
Securities pledged for municipal deposits | 214,513 | 148,435 | |
Securities pledged, fair value | 238,753 | 199,725 | |
Components of net realized gains and losses on the sale of AFS securities | |||
Gross realized gains | 13,877 | 2,762 | $ 4,567 |
Gross realized losses | (1,279) | (3,313) | (2,457) |
Net realized gains/(losses) | $ 12,598 | $ (551) | $ 2,110 |
SECURITIES - Reclassifications
SECURITIES - Reclassifications out of AOCI into Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | $ 8,469 | $ 8,044 |
Less Than Twelve Months, Fair Value | 773,813 | 523,307 |
Over Twelve Months, Gross Unrealized Losses | 5,484 | 2,255 |
Over Twelve Months, Fair Value | 211,750 | 28,874 |
Total Gross Unrealized Losses | 13,953 | 10,299 |
Total Fair Value | 985,563 | 552,181 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 1,170 | 3,504 |
Less Than Twelve Months, Fair Value | 17,518 | 103,002 |
Over Twelve Months, Gross Unrealized Losses | 973 | 0 |
Over Twelve Months, Fair Value | 32,946 | 0 |
Total Gross Unrealized Losses | 2,143 | 3,504 |
Total Fair Value | 50,464 | 103,002 |
Securities available for sale and held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 9,639 | 11,548 |
Less Than Twelve Months, Fair Value | 791,331 | 626,309 |
Over Twelve Months, Gross Unrealized Losses | 6,457 | 2,255 |
Over Twelve Months, Fair Value | 244,696 | 28,874 |
Total Gross Unrealized Losses | 16,096 | 13,803 |
Total Fair Value | 1,036,027 | 655,183 |
Debt securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 7,960 | 7,887 |
Less Than Twelve Months, Fair Value | 770,082 | 516,707 |
Over Twelve Months, Gross Unrealized Losses | 5,484 | 799 |
Over Twelve Months, Fair Value | 211,750 | 22,947 |
Total Gross Unrealized Losses | 13,444 | 8,686 |
Total Fair Value | 981,832 | 539,654 |
Debt securities | Municipal bonds and obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 1,049 |
Less Than Twelve Months, Fair Value | 0 | 13,839 |
Over Twelve Months, Gross Unrealized Losses | 206 | 0 |
Over Twelve Months, Fair Value | 8,985 | 0 |
Total Gross Unrealized Losses | 206 | 1,049 |
Total Fair Value | 8,985 | 13,839 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 35 | 2,416 |
Less Than Twelve Months, Fair Value | 10,213 | 69,308 |
Over Twelve Months, Gross Unrealized Losses | 55 | 0 |
Over Twelve Months, Fair Value | 2,059 | 0 |
Total Gross Unrealized Losses | 90 | 2,416 |
Total Fair Value | 12,272 | 69,308 |
Debt securities | Agency collateralized mortgage obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 6,849 | 3,291 |
Less Than Twelve Months, Fair Value | 655,479 | 319,448 |
Over Twelve Months, Gross Unrealized Losses | 2,095 | 0 |
Over Twelve Months, Fair Value | 80,401 | 0 |
Total Gross Unrealized Losses | 8,944 | 3,291 |
Total Fair Value | 735,880 | 319,448 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 411 |
Less Than Twelve Months, Fair Value | 0 | 14,724 |
Over Twelve Months, Gross Unrealized Losses | 486 | 0 |
Over Twelve Months, Fair Value | 12,946 | 0 |
Total Gross Unrealized Losses | 486 | 411 |
Total Fair Value | 12,946 | 14,724 |
Debt securities | Agency residential mortgage-backed securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 765 | 2,153 |
Less Than Twelve Months, Fair Value | 95,800 | 130,766 |
Over Twelve Months, Gross Unrealized Losses | 1,500 | 28 |
Over Twelve Months, Fair Value | 65,323 | 2,061 |
Total Gross Unrealized Losses | 2,265 | 2,181 |
Total Fair Value | 161,123 | 132,827 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 243 |
Less Than Twelve Months, Fair Value | 0 | 8,859 |
Over Twelve Months, Gross Unrealized Losses | 164 | 0 |
Over Twelve Months, Fair Value | 7,728 | 0 |
Total Gross Unrealized Losses | 164 | 243 |
Total Fair Value | 7,728 | 8,859 |
Debt securities | Agency commercial mortgage-backed securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 334 | 1,368 |
Less Than Twelve Months, Fair Value | 17,379 | 44,860 |
Over Twelve Months, Gross Unrealized Losses | 1,427 | 0 |
Over Twelve Months, Fair Value | 39,268 | 0 |
Total Gross Unrealized Losses | 1,761 | 1,368 |
Total Fair Value | 56,647 | 44,860 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 434 |
Less Than Twelve Months, Fair Value | 0 | 10,111 |
Over Twelve Months, Gross Unrealized Losses | 268 | 0 |
Over Twelve Months, Fair Value | 10,213 | 0 |
Total Gross Unrealized Losses | 268 | 434 |
Total Fair Value | 10,213 | 10,111 |
Debt securities | Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 1,135 | |
Less Than Twelve Months, Fair Value | 7,305 | |
Over Twelve Months, Gross Unrealized Losses | 0 | |
Over Twelve Months, Fair Value | 0 | |
Total Gross Unrealized Losses | 1,135 | |
Total Fair Value | 7,305 | |
Debt securities | Corporate bonds | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 1 | 11 |
Less Than Twelve Months, Fair Value | 328 | 4,780 |
Over Twelve Months, Gross Unrealized Losses | 236 | 711 |
Over Twelve Months, Fair Value | 15,769 | 19,655 |
Total Gross Unrealized Losses | 237 | 722 |
Total Fair Value | 16,097 | 24,435 |
Debt securities | Trust preferred securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 0 | 59 |
Over Twelve Months, Fair Value | 0 | 1,204 |
Total Gross Unrealized Losses | 0 | 59 |
Total Fair Value | 0 | 1,204 |
Debt securities | Other bonds and obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 11 | 15 |
Less Than Twelve Months, Fair Value | 1,096 | 3,014 |
Over Twelve Months, Gross Unrealized Losses | 20 | 1 |
Over Twelve Months, Fair Value | 2,004 | 27 |
Total Gross Unrealized Losses | 31 | 16 |
Total Fair Value | 3,100 | 3,041 |
Marketable equity securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 509 | 157 |
Less Than Twelve Months, Fair Value | 3,731 | 6,600 |
Over Twelve Months, Gross Unrealized Losses | 0 | 1,456 |
Over Twelve Months, Fair Value | 0 | 5,927 |
Total Gross Unrealized Losses | 509 | 1,613 |
Total Fair Value | $ 3,731 | $ 12,527 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 8,299,338 | $ 6,549,787 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,068,681 | 3,678,476 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,264,742 | 2,616,438 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 266,336 | 287,509 |
Commercial real estate | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 423,165 | 317,491 |
Commercial real estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,575,241 | 2,011,438 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,803,939 | 1,062,038 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,102,807 | 1,893,131 |
Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,410 | 11,982 |
Residential | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,097,397 | 1,881,149 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,127,850 | 978,180 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 410,181 | 393,800 |
Consumer | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 717,669 | 584,380 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,112,198 | 5,221,307 |
Business Activities Loans | Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,400,276 | 2,834,446 |
Business Activities Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,217,707 | 1,926,344 |
Business Activities Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 181,371 | 253,302 |
Business Activities Loans | Commercial real estate | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 217,083 | 191,819 |
Business Activities Loans | Commercial real estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,819,253 | 1,481,223 |
Business Activities Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,182,569 | 908,102 |
Business Activities Loans | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,813,201 | 1,594,972 |
Business Activities Loans | Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,177 | 11,178 |
Business Activities Loans | Residential | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,808,024 | 1,583,794 |
Business Activities Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 898,721 | 791,889 |
Business Activities Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 294,954 | 313,521 |
Business Activities Loans | Consumer | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 603,767 | 478,368 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,187,140 | 1,328,480 |
Acquired Loans | Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,668,405 | 844,030 |
Acquired Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,047,035 | 690,094 |
Acquired Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 84,965 | 34,207 |
Acquired Loans | Commercial real estate | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 206,082 | 125,672 |
Acquired Loans | Commercial real estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 755,988 | 530,215 |
Acquired Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 621,370 | 153,936 |
Acquired Loans | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 289,606 | 298,159 |
Acquired Loans | Residential | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 233 | 804 |
Acquired Loans | Residential | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 289,373 | 297,355 |
Acquired Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 229,129 | 186,291 |
Acquired Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 115,227 | 80,279 |
Acquired Loans | Consumer | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 113,902 | $ 106,012 |
LOANS - Unamortized Net Costs a
LOANS - Unamortized Net Costs and Premiums (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Unamortized net loan origination costs | $ 24,669 | $ 21,972 |
Unamortized net premium on purchased loans | 4,311 | 4,849 |
Total unamortized net costs and premiums | $ 28,980 | $ 26,821 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Participating serving loans | $ 1,800,000,000 | $ 500,000,000 | |
Payments to acquire loans and leases held-for-investment | 500,900,000 | 190,800,000 | |
Proceeds from sale of loans and leases held-for-investment | 514,500,000 | 307,700,000 | |
Gain (loss) on sales of loans, net | 11,700,000 | 8,000,000 | $ 6,000,000 |
Loans | 8,299,338,000 | 6,549,787,000 | |
Loans pledged as collateral | 350,700,000 | ||
Due to related parties | 50,800,000 | 38,700,000 | |
Loans receivable, related parties | 44,100,000 | 25,600,000 | |
Non-accrual loans | 22,816,000 | 22,157,000 | |
Additional funds committed amount | $ 0 | ||
Borrower's sustained repayment performance period | 6 months | ||
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 2,187,140,000 | 1,328,480,000 | |
Acquired credit impaired loans | 97,300,000 | 46,800,000 | |
Non-accrual loans | 7,157,000 | 5,341,000 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 3,264,742,000 | 2,616,438,000 | |
Non-accrual loans | 7,267,000 | 5,883,000 | |
Commercial real estate | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,047,035,000 | 690,094,000 | |
Acquired credit impaired loans | 53,300,000 | 34,800,000 | |
Non-accrual loans | 2,250,000 | 1,202,000 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,803,939,000 | 1,062,038,000 | |
Non-accrual loans | 7,228,000 | 7,440,000 | |
Commercial and industrial | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 621,370,000 | 153,936,000 | |
Acquired credit impaired loans | 34,600,000 | 3,400,000 | |
Non-accrual loans | 1,333,000 | 1,155,000 | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,102,807,000 | 1,893,131,000 | |
Non-accrual loans | 2,883,000 | 3,795,000 | |
Repossessed assets | 151,000 | ||
Residential | Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Collateral for residential mortgage loans | 4,900,000 | 4,800,000 | |
Residential | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 289,606,000 | 298,159,000 | |
Acquired credit impaired loans | 7,000,000 | 7,300,000 | |
Non-accrual loans | 1,217,000 | 1,572,000 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,127,850,000 | 978,180,000 | |
Non-accrual loans | 5,438,000 | 5,039,000 | |
Consumer | Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 229,129,000 | 186,291,000 | |
Acquired credit impaired loans | 2,400,000 | 1,300,000 | |
Non-accrual loans | 2,357,000 | 1,412,000 | |
Total Loans | 6512 Operators of Nonresidential Buildings | Credit Concentration Risk | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 1,300,000,000 | $ 1,100,000,000 | |
Concentration risk, percentage | 15.80% | 16.80% |
LOANS - Accretable Yield (Detai
LOANS - Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 8,738 | $ 6,925 | $ 2,541 |
Acquisitions | 10,815 | 6,125 | 4,777 |
Reclassification from nonaccretable difference for loans with improved cash flows | (23) | 2,488 | 3,640 |
Changes in expected cash flows that do not affect nonaccretable difference | (2,380) | (3,018) | 0 |
Reclassification to TDR | 0 | (185) | 0 |
Accretion | (5,589) | (3,597) | (4,033) |
Balance at end of period | $ 11,561 | $ 8,738 | $ 6,925 |
LOANS - Summary of Past Due Loa
LOANS - Summary of Past Due Loans for Business Activities Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 8,299,338 | $ 6,549,787 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,264,742 | 2,616,438 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 266,336 | 287,509 |
Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 423,165 | 317,491 |
Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,575,241 | 2,011,438 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,803,939 | 1,062,038 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,102,807 | 1,893,131 |
Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 5,410 | 11,982 |
Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,097,397 | 1,881,149 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,127,850 | 978,180 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 410,181 | 393,800 |
Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 717,669 | 584,380 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 33,264 | 32,277 |
Current | 6,078,934 | 5,189,030 |
Total loans | 6,112,198 | 5,221,307 |
Past Due greater than 90 days and Accruing | 1,368 | 2,438 |
Business Activities Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 12,201 | 8,174 |
Business Activities Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,036 | 4,849 |
Business Activities Loans | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17,027 | 19,254 |
Business Activities Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,447 | 8,288 |
Current | 2,210,260 | 1,918,056 |
Total loans | 2,217,707 | 1,926,344 |
Past Due greater than 90 days and Accruing | 457 | 155 |
Business Activities Loans | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 181,371 | 253,302 |
Total loans | 181,371 | 253,302 |
Past Due greater than 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 | 451 | 1,352 |
Current | 216,632 | 190,467 |
Total loans | 217,083 | 191,819 |
Past Due greater than 90 days and Accruing | 0 | 155 |
Business Activities Loans | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,996 | 6,936 |
Current | 1,812,257 | 1,474,287 |
Total loans | 1,819,253 | 1,481,223 |
Past Due greater than 90 days and Accruing | 457 | 0 |
Business Activities Loans | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,925 | 1,099 |
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 | 0 | 618 |
Business Activities Loans | Commercial real estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,925 | 481 |
Business Activities Loans | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | 2,353 |
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 | 110 |
Business Activities Loans | Commercial real estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | 2,243 |
Business Activities Loans | Commercial real estate | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,474 | 4,836 |
Business Activities Loans | Commercial real estate | 90 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate | 90 Days Past Due | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 451 | 624 |
Business Activities Loans | Commercial real estate | 90 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,023 | 4,212 |
Business Activities Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,966 | 10,681 |
Current | 1,170,603 | 897,421 |
Total loans | 1,182,569 | 908,102 |
Past Due greater than 90 days and Accruing | 128 | 5 |
Business Activities Loans | Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,031 | 3,090 |
Business Activities Loans | Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,912 | 1,301 |
Business Activities Loans | Commercial and industrial | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,023 | 6,290 |
Business Activities Loans | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,840 | 6,283 |
Current | 1,808,361 | 1,588,689 |
Total loans | 1,813,201 | 1,594,972 |
Past Due greater than 90 days and Accruing | 520 | 1,956 |
Business Activities Loans | Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 10 |
Current | 5,177 | 11,168 |
Total loans | 5,177 | 11,178 |
Past Due greater than 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,840 | 6,273 |
Current | 1,803,184 | 1,577,521 |
Total loans | 1,808,024 | 1,583,794 |
Past Due greater than 90 days and Accruing | 520 | 1,956 |
Business Activities Loans | Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,412 | 1,403 |
Business Activities Loans | Residential | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 10 |
Business Activities Loans | Residential | 30-59 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,412 | 1,393 |
Business Activities Loans | Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 242 | 701 |
Business Activities Loans | Residential | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential | 60-89 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 242 | 701 |
Business Activities Loans | Residential | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,186 | 4,179 |
Business Activities Loans | Residential | 90 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential | 90 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,186 | 4,179 |
Business Activities Loans | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,011 | 7,025 |
Current | 889,710 | 784,864 |
Total loans | 898,721 | 791,889 |
Past Due greater than 90 days and Accruing | 263 | 322 |
Business Activities Loans | Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,426 | 3,080 |
Current | 291,528 | 310,441 |
Total loans | 294,954 | 313,521 |
Past Due greater than 90 days and Accruing | 120 | 306 |
Business Activities Loans | Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,585 | 3,945 |
Current | 598,182 | 474,423 |
Total loans | 603,767 | 478,368 |
Past Due greater than 90 days and Accruing | 143 | 16 |
Business Activities Loans | Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,833 | 2,582 |
Business Activities Loans | Consumer | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 444 | 99 |
Business Activities Loans | Consumer | 30-59 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,389 | 2,483 |
Business Activities Loans | Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,834 | 494 |
Business Activities Loans | Consumer | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,235 | 0 |
Business Activities Loans | Consumer | 60-89 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 599 | 494 |
Business Activities Loans | Consumer | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,344 | 3,949 |
Business Activities Loans | Consumer | 90 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,747 | 2,981 |
Business Activities Loans | Consumer | 90 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,597 | $ 968 |
LOANS - Summary of Past Due L72
LOANS - Summary of Past Due Loans for Acquired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 22,816 | $ 22,157 |
Total loans | 8,299,338 | 6,549,787 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,267 | 5,883 |
Total loans | 3,264,742 | 2,616,438 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans | 266,336 | 287,509 |
Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 654 | 906 |
Total loans | 423,165 | 317,491 |
Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 6,613 | 4,977 |
Total loans | 2,575,241 | 2,011,438 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,228 | 7,440 |
Total loans | 1,803,939 | 1,062,038 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,883 | 3,795 |
Total loans | 2,102,807 | 1,893,131 |
Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total loans | 5,410 | 11,982 |
Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,883 | 3,795 |
Total loans | 2,097,397 | 1,881,149 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 5,438 | 5,039 |
Total loans | 1,127,850 | 978,180 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 3,592 | 3,192 |
Total loans | 410,181 | 393,800 |
Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,846 | 1,847 |
Total loans | 717,669 | 584,380 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 7,157 | 5,341 |
Total Past Due | 16,667 | 12,730 |
Acquired Credit Impaired | 97,344 | 46,816 |
Total loans | 2,187,140 | 1,328,480 |
Past Due greater than 90 days and Accruing | 200 | 1,611 |
Acquired Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,250 | 1,202 |
Total Past Due | 5,721 | 2,759 |
Acquired Credit Impaired | 53,302 | 34,820 |
Total loans | 1,047,035 | 690,094 |
Past Due greater than 90 days and Accruing | 109 | 0 |
Acquired Loans | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 7,655 | 47 |
Total loans | 84,965 | 34,207 |
Past Due greater than 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 203 | 437 |
Total Past Due | 874 | 439 |
Acquired Credit Impaired | 2,846 | 4,726 |
Total loans | 206,082 | 125,672 |
Past Due greater than 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,047 | 765 |
Total Past Due | 4,847 | 2,320 |
Acquired Credit Impaired | 42,801 | 30,047 |
Total loans | 755,988 | 530,215 |
Past Due greater than 90 days and Accruing | 109 | |
Acquired Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,333 | 1,155 |
Total Past Due | 2,959 | 3,127 |
Acquired Credit Impaired | 34,629 | 3,369 |
Total loans | 621,370 | 153,936 |
Past Due greater than 90 days and Accruing | 23 | 24 |
Acquired Loans | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,217 | 1,572 |
Total Past Due | 4,785 | 2,679 |
Acquired Credit Impaired | 6,974 | 7,283 |
Total loans | 289,606 | 298,159 |
Past Due greater than 90 days and Accruing | 30 | 443 |
Acquired Loans | Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 0 | 0 |
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total loans | 233 | 804 |
Past Due greater than 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,217 | 1,572 |
Total Past Due | 4,785 | 2,679 |
Acquired Credit Impaired | 6,974 | 7,283 |
Total loans | 289,373 | 297,355 |
Past Due greater than 90 days and Accruing | 30 | 443 |
Acquired Loans | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 2,357 | 1,412 |
Total Past Due | 3,202 | 4,165 |
Acquired Credit Impaired | 2,439 | 1,344 |
Total loans | 229,129 | 186,291 |
Past Due greater than 90 days and Accruing | 38 | 1,144 |
Acquired Loans | Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 1,965 | 517 |
Total Past Due | 2,291 | 1,623 |
Acquired Credit Impaired | 1,956 | 957 |
Total loans | 115,227 | 80,279 |
Past Due greater than 90 days and Accruing | 0 | 353 |
Acquired Loans | Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 392 | 895 |
Total Past Due | 911 | 2,542 |
Acquired Credit Impaired | 483 | 387 |
Total loans | 113,902 | 106,012 |
Past Due greater than 90 days and Accruing | 38 | 791 |
Acquired Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,328 | 5,023 |
Acquired Loans | 30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,487 | 1,557 |
Acquired Loans | 30-59 Days Past Due | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 30-59 Days Past Due | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 671 | 2 |
Acquired Loans | 30-59 Days Past Due | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 816 | 1,555 |
Acquired Loans | 30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,252 | 1,850 |
Acquired Loans | 30-59 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 957 | 321 |
Acquired Loans | 30-59 Days Past Due | Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 30-59 Days Past Due | Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 957 | 321 |
Acquired Loans | 30-59 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 632 | 1,295 |
Acquired Loans | 30-59 Days Past Due | Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 286 | 753 |
Acquired Loans | 30-59 Days Past Due | Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 346 | 542 |
Acquired Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,899 | 672 |
Acquired Loans | 60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,875 | 0 |
Acquired Loans | 60-89 Days Past Due | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 60-89 Days Past Due | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 60-89 Days Past Due | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,875 | 0 |
Acquired Loans | 60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 268 | 15 |
Acquired Loans | 60-89 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,581 | 343 |
Acquired Loans | 60-89 Days Past Due | Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 60-89 Days Past Due | Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,581 | 343 |
Acquired Loans | 60-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 175 | 314 |
Acquired Loans | 60-89 Days Past Due | Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40 | 0 |
Acquired Loans | 60-89 Days Past Due | Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 135 | 314 |
Acquired Loans | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,440 | 7,035 |
Acquired Loans | 90 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,359 | 1,202 |
Acquired Loans | 90 Days Past Due | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 90 Days Past Due | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 203 | 437 |
Acquired Loans | 90 Days Past Due | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,156 | 765 |
Acquired Loans | 90 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,439 | 1,262 |
Acquired Loans | 90 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,247 | 2,015 |
Acquired Loans | 90 Days Past Due | Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | 90 Days Past Due | Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,247 | 2,015 |
Acquired Loans | 90 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,395 | 2,556 |
Acquired Loans | 90 Days Past Due | Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,965 | 870 |
Acquired Loans | 90 Days Past Due | Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 430 | 1,686 |
Acquired Impaired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 83 | $ 83 |
LOANS - Non-accrual Loans (Deta
LOANS - Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ 22,816 | $ 22,157 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 15,659 | 16,816 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 7,157 | 5,341 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 7,267 | 5,883 |
Commercial real estate | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 5,017 | 4,681 |
Commercial real estate | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 2,250 | 1,202 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Commercial real estate | Construction | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Commercial real estate | Construction | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 654 | 906 |
Commercial real estate | Single and multi-family | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 451 | 469 |
Commercial real estate | Single and multi-family | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 203 | 437 |
Commercial real estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 6,613 | 4,977 |
Commercial real estate | Other | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 4,566 | 4,212 |
Commercial real estate | Other | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 2,047 | 765 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 7,228 | 7,440 |
Commercial and industrial | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 5,895 | 6,285 |
Commercial and industrial | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,333 | 1,155 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 2,883 | 3,795 |
Residential | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,666 | 2,223 |
Residential | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,217 | 1,572 |
Residential | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Residential | Construction | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Residential | Construction | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Residential | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 2,883 | 3,795 |
Residential | 1-4 family | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,666 | 2,223 |
Residential | 1-4 family | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,217 | 1,572 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 5,438 | 5,039 |
Consumer | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 3,081 | 3,627 |
Consumer | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 2,357 | 1,412 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 3,592 | 3,192 |
Consumer | Home equity | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,627 | 2,675 |
Consumer | Home equity | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,965 | 517 |
Consumer | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,846 | 1,847 |
Consumer | Auto and other | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | 1,454 | 952 |
Consumer | Auto and other | Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ 392 | $ 895 |
LOANS - Loans Evaluated for Imp
LOANS - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses | ||
Total loans | $ 8,299,338 | $ 6,549,787 |
Business Activities Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 43,365 | 36,732 |
Collectively evaluated | 6,068,833 | 5,184,575 |
Total loans | 6,112,198 | 5,221,307 |
Acquired Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 7,309 | 5,605 |
Purchased credit-impaired loans | 97,344 | 46,816 |
Collectively evaluated | 2,082,487 | 1,276,059 |
Total loans | 2,187,140 | 1,328,480 |
Commercial real estate | ||
Allowance for loan losses | ||
Total loans | 3,264,742 | 2,616,438 |
Commercial real estate | Business Activities Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 33,732 | 25,549 |
Collectively evaluated | 2,183,975 | 1,900,795 |
Total loans | 2,217,707 | 1,926,344 |
Commercial real estate | Acquired Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 4,244 | 4,256 |
Purchased credit-impaired loans | 53,302 | 34,820 |
Collectively evaluated | 989,489 | 651,018 |
Total loans | 1,047,035 | 690,094 |
Commercial and industrial | ||
Allowance for loan losses | ||
Total loans | 1,803,939 | 1,062,038 |
Commercial and industrial | Business Activities Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 5,761 | 5,705 |
Collectively evaluated | 1,176,808 | 902,397 |
Total loans | 1,182,569 | 908,102 |
Commercial and industrial | Acquired Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 421 | 635 |
Purchased credit-impaired loans | 34,629 | 3,369 |
Collectively evaluated | 586,320 | 149,932 |
Total loans | 621,370 | 153,936 |
Residential mortgages | ||
Allowance for loan losses | ||
Total loans | 2,102,807 | 1,893,131 |
Residential mortgages | Business Activities Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 3,872 | 2,775 |
Collectively evaluated | 1,809,329 | 1,592,197 |
Total loans | 1,813,201 | 1,594,972 |
Residential mortgages | Acquired Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 2,617 | 308 |
Purchased credit-impaired loans | 6,974 | 7,283 |
Collectively evaluated | 280,015 | 290,568 |
Total loans | 289,606 | 298,159 |
Consumer | ||
Allowance for loan losses | ||
Total loans | 1,127,850 | 978,180 |
Consumer | Business Activities Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 0 | 2,703 |
Collectively evaluated | 898,721 | 789,186 |
Total loans | 898,721 | 791,889 |
Consumer | Acquired Loans | ||
Allowance for loan losses | ||
Individually evaluated for impairment | 27 | 406 |
Purchased credit-impaired loans | 2,439 | 1,344 |
Collectively evaluated | 226,663 | 184,541 |
Total loans | $ 229,129 | $ 186,291 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Business Activities Loans | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | $ 43,679 | $ 36,018 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 49,702 | 36,732 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 460 | 714 |
Business Activities Loans | Commercial real estate | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 34,001 | 25,390 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 37,783 | 25,548 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 229 | 158 |
Business Activities Loans | Commercial real estate | Construction | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 0 | |
With an allowance recorded | 159 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 0 | |
With an allowance recorded | 159 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 1 | |
Business Activities Loans | Commercial real estate | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 18,285 | 18,905 |
With an allowance recorded | 14,321 | 6,306 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 18,611 | 18,905 |
With an allowance recorded | 15,235 | 6,462 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 227 | 156 |
Business Activities Loans | Commercial real estate | Single and multi-family | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 1,077 | |
With an allowance recorded | 159 | 179 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 3,607 | |
With an allowance recorded | 171 | 181 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 1 | 2 |
Business Activities Loans | Commercial and industrial | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 5,776 | 5,442 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 6,878 | 5,706 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 66 | 264 |
Business Activities Loans | Commercial and industrial | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 2,060 | 382 |
With an allowance recorded | 3,716 | 5,060 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 2,629 | 382 |
With an allowance recorded | 4,249 | 5,324 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 66 | 264 |
Business Activities Loans | Residential | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 2,004 | 2,639 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 2,521 | 2,775 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 130 | 136 |
Business Activities Loans | Residential | 1-4 family | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 660 | 2,101 |
With an allowance recorded | 1,344 | 538 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 1,075 | 2,101 |
With an allowance recorded | 1,446 | 674 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 130 | 136 |
Business Activities Loans | Consumer | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 1,898 | 2,547 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 2,520 | 2,703 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 35 | 156 |
Business Activities Loans | Consumer | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With an allowance recorded | 17 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With an allowance recorded | 17 | |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 1 | |
Business Activities Loans | Consumer | Home equity | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 867 | 1,605 |
With an allowance recorded | 1,014 | 942 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 1,504 | 1,605 |
With an allowance recorded | 999 | 1,098 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 34 | 156 |
Acquired Loans | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 7,335 | 5,171 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 9,178 | 5,605 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 111 | 434 |
Acquired Loans | Commercial real estate | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 4,257 | 4,006 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 5,625 | 4,256 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 56 | 250 |
Acquired Loans | Commercial real estate | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 1,123 | 547 |
With an allowance recorded | 2,043 | 2,209 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 2,794 | 547 |
With an allowance recorded | 1,661 | 2,351 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 38 | 142 |
Acquired Loans | Commercial real estate | Single and multi-family | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 204 | |
With an allowance recorded | 887 | 1,250 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 290 | |
With an allowance recorded | 880 | 1,358 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 18 | 108 |
Acquired Loans | Commercial and industrial | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 420 | 576 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 476 | 635 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 1 | 59 |
Acquired Loans | Commercial and industrial | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 255 | |
With an allowance recorded | 165 | 576 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 310 | |
With an allowance recorded | 166 | 635 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 1 | 59 |
Acquired Loans | Residential | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 824 | 297 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 856 | 308 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 9 | 11 |
Acquired Loans | Residential | 1-4 family | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 658 | 208 |
With an allowance recorded | 166 | 89 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 671 | 208 |
With an allowance recorded | 185 | 100 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 9 | 11 |
Acquired Loans | Consumer | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Total | 1,834 | 292 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Total | 2,221 | 406 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | 45 | 114 |
Acquired Loans | Consumer | Other | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 27 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 27 | 0 |
Acquired Loans | Consumer | Home equity | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no related allowance | 1,374 | 0 |
With an allowance recorded | 433 | 292 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
With no related allowance | 1,654 | 0 |
With an allowance recorded | 540 | 406 |
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||
Related Allowance | $ 45 | $ 114 |
LOANS - Summary of Average Reco
LOANS - Summary of Average Recorded Investment and Interst Income Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Activities Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | $ 45,269 | $ 24,242 | $ 26,380 |
Cash Basis Interest Income Recognized | 2,557 | 2,028 | 867 |
Business Activities Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 32,790 | 14,090 | 18,006 |
Cash Basis Interest Income Recognized | 1,872 | 1,511 | 526 |
Business Activities Loans | Commercial real estate | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 0 | 0 | 2,245 |
Cash basis interest income recognized, with no related allowance | 0 | 0 | 92 |
Average recorded investment with related allowance | 41 | 0 | 0 |
Cash basis interest income recognized, with related allowance | 3 | 0 | 0 |
Business Activities Loans | Commercial real estate | Single and multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 341 | 36 | 60 |
Cash basis interest income recognized, with no related allowance | 214 | 1 | 0 |
Average recorded investment with related allowance | 169 | 15 | 0 |
Cash basis interest income recognized, with related allowance | 12 | 6 | 0 |
Business Activities Loans | Commercial real estate | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 20,867 | 6,463 | 12,487 |
Cash basis interest income recognized, with no related allowance | 1,123 | 1,155 | 302 |
Average recorded investment with related allowance | 11,372 | 7,576 | 3,214 |
Cash basis interest income recognized, with related allowance | 520 | 349 | 132 |
Business Activities Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 7,688 | 5,351 | 4,680 |
Cash Basis Interest Income Recognized | 532 | 356 | 214 |
Business Activities Loans | Commercial and industrial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 4,437 | 3,349 | 3,870 |
Cash basis interest income recognized, with no related allowance | 265 | 131 | 177 |
Average recorded investment with related allowance | 3,251 | 2,002 | 810 |
Cash basis interest income recognized, with related allowance | 267 | 225 | 37 |
Business Activities Loans | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 2,417 | 3,085 | 3,057 |
Cash Basis Interest Income Recognized | 90 | 117 | 110 |
Business Activities Loans | Residential | 1-4 family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 1,128 | 2,403 | 1,353 |
Cash basis interest income recognized, with no related allowance | 31 | 91 | 38 |
Average recorded investment with related allowance | 1,289 | 682 | 1,704 |
Cash basis interest income recognized, with related allowance | 59 | 26 | 72 |
Business Activities Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 2,374 | 1,716 | 637 |
Cash Basis Interest Income Recognized | 63 | 44 | 17 |
Business Activities Loans | Consumer | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 72 | 2 | 0 |
Cash basis interest income recognized, with no related allowance | 3 | 0 | 0 |
Average recorded investment with related allowance | 4 | 103 | 112 |
Cash basis interest income recognized, with related allowance | 1 | 4 | 4 |
Business Activities Loans | Consumer | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 1,291 | 612 | 442 |
Cash basis interest income recognized, with no related allowance | 30 | 5 | 13 |
Average recorded investment with related allowance | 1,007 | 999 | 83 |
Cash basis interest income recognized, with related allowance | 29 | 35 | 0 |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 5,822 | 5,676 | 7,391 |
Cash Basis Interest Income Recognized | 596 | 364 | 318 |
Acquired Loans | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 3,451 | 4,203 | 6,187 |
Cash Basis Interest Income Recognized | 459 | 300 | 283 |
Acquired Loans | Commercial real estate | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 0 | 0 | 445 |
Cash basis interest income recognized, with no related allowance | 0 | 0 | 60 |
Average recorded investment with related allowance | 0 | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 | 0 |
Acquired Loans | Commercial real estate | Single and multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 342 | 0 | 2,014 |
Cash basis interest income recognized, with no related allowance | 82 | 0 | 57 |
Average recorded investment with related allowance | 903 | 1,064 | 623 |
Cash basis interest income recognized, with related allowance | 47 | 115 | 33 |
Acquired Loans | Commercial real estate | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 487 | 521 | 1,721 |
Cash basis interest income recognized, with no related allowance | 239 | 20 | 37 |
Average recorded investment with related allowance | 1,719 | 2,618 | 1,384 |
Cash basis interest income recognized, with related allowance | 91 | 165 | 96 |
Acquired Loans | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 628 | 861 | 31 |
Cash Basis Interest Income Recognized | 56 | 26 | 3 |
Acquired Loans | Commercial and industrial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 581 | 492 | 0 |
Cash basis interest income recognized, with no related allowance | 43 | 9 | 0 |
Average recorded investment with related allowance | 47 | 369 | 31 |
Cash basis interest income recognized, with related allowance | 13 | 17 | 3 |
Acquired Loans | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 563 | 507 | 767 |
Cash Basis Interest Income Recognized | 37 | 37 | 15 |
Acquired Loans | Residential | 1-4 family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 390 | 293 | 463 |
Cash basis interest income recognized, with no related allowance | 28 | 12 | 6 |
Average recorded investment with related allowance | 173 | 214 | 304 |
Cash basis interest income recognized, with related allowance | 9 | 25 | 9 |
Acquired Loans | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 1,180 | 105 | 406 |
Cash Basis Interest Income Recognized | 44 | 1 | 17 |
Acquired Loans | Consumer | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 7 | 105 | 59 |
Cash basis interest income recognized, with no related allowance | 1 | 1 | 5 |
Acquired Loans | Consumer | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average recorded investment, with no related allowance | 773 | 0 | 152 |
Cash basis interest income recognized, with no related allowance | 22 | 0 | 5 |
Average recorded investment with related allowance | 400 | 0 | 195 |
Cash basis interest income recognized, with related allowance | $ 21 | $ 0 | $ 7 |
LOANS - Modifications by Class
LOANS - Modifications by Class (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)modification | Dec. 31, 2016USD ($)modification | Dec. 31, 2015USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 35 | 17 | 14 |
Pre-Modification Outstanding Recorded Investment | $ 17,640 | $ 17,765 | $ 19,047 |
Post-Modification Outstanding Recorded Investment | $ 15,896 | $ 17,765 | $ 17,607 |
Commercial loans | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 123 | ||
Post-Modification Outstanding Recorded Investment | $ 123 | ||
Commercial loans | Single and multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 1 | 5 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 235 | $ 437 | $ 307 |
Post-Modification Outstanding Recorded Investment | $ 235 | $ 437 | $ 307 |
Commercial loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 15 | 5 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 13,445 | $ 16,651 | $ 8,577 |
Post-Modification Outstanding Recorded Investment | $ 11,718 | $ 16,651 | $ 7,274 |
Commercial and industrial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 12 | 4 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 3,507 | $ 555 | $ 9,041 |
Post-Modification Outstanding Recorded Investment | $ 3,507 | $ 555 | $ 8,904 |
Residential | 1-4 family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 4 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 331 | $ 5 | |
Post-Modification Outstanding Recorded Investment | $ 314 | $ 5 | |
Consumer | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 999 | ||
Post-Modification Outstanding Recorded Investment | $ 999 | ||
Consumer | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of modifications (modification) | modification | 3 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 122 | $ 117 | |
Post-Modification Outstanding Recorded Investment | $ 122 | $ 117 |
LOANS - Modifications that Subs
LOANS - Modifications that Subsequently Defaulted (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016contract | Dec. 31, 2015USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modifications that subsequently defaulted, number of contracts (contract) | contract | 3 | 0 | 8 |
Modifications that subsequently defaulted, recorded investment | $ | $ 605 | $ 7,121 | |
Commercial loans | Single and multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modifications that subsequently defaulted, number of contracts (contract) | contract | 0 | 1 | |
Modifications that subsequently defaulted, recorded investment | $ | $ 0 | $ 0 | |
Commercial loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modifications that subsequently defaulted, number of contracts (contract) | contract | 1 | 1 | |
Modifications that subsequently defaulted, recorded investment | $ | $ 113 | $ 373 | |
Commercial and industrial | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modifications that subsequently defaulted, number of contracts (contract) | contract | 2 | 4 | |
Modifications that subsequently defaulted, recorded investment | $ | $ 492 | $ 6,579 | |
Residential | 1-4 family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modifications that subsequently defaulted, number of contracts (contract) | contract | 0 | 2 | |
Modifications that subsequently defaulted, recorded investment | $ | $ 0 | $ 169 |
LOANS - Summary of TDR Activity
LOANS - Summary of TDR Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | |||
Balance at beginning of year | $ 33,829 | $ 22,048 | $ 16,714 |
Principal payments | (3,213) | (5,870) | (5,460) |
TDR status change | 0 | 2,235 | 0 |
Other reductions | (4,522) | (2,349) | (3,160) |
Newly identified TDRs | 15,896 | 17,765 | 13,954 |
Balance at end of year | $ 41,990 | $ 33,829 | $ 22,048 |
LOAN LOSS ALLOWANCE (Details)
LOAN LOSS ALLOWANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | $ 43,998 | $ 43,998 | ||||||||||||
Provision for loan losses | $ 6,141 | $ 4,900 | $ 4,889 | 5,095 | $ 4,100 | $ 4,734 | $ 4,522 | $ 4,006 | 21,025 | $ 17,362 | $ 16,726 | |||
Balance at end of year | 51,834 | 43,998 | 51,834 | 43,998 | ||||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Total | 51,834 | 43,998 | 43,998 | 43,998 | 43,998 | $ 51,834 | $ 43,998 | |||||||
Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 39,229 | 34,574 | 39,229 | 34,574 | 32,795 | |||||||||
Charged-off loans | 11,524 | 10,505 | 11,621 | |||||||||||
Recoveries on charged-off loans | 889 | 792 | 759 | |||||||||||
Provision for loan losses | 17,326 | 14,368 | 12,641 | |||||||||||
Balance at end of year | 45,920 | 39,229 | 45,920 | 39,229 | 34,574 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 460 | 714 | $ 426 | |||||||||||
Collectively evaluated | 45,460 | 38,515 | 34,148 | |||||||||||
Total | 45,920 | 39,229 | 39,229 | 34,574 | 39,229 | 34,574 | 32,795 | 45,920 | 39,229 | 34,574 | ||||
Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 4,769 | 4,734 | 4,769 | 4,734 | 2,867 | |||||||||
Charged-off loans | 3,060 | 3,521 | 3,067 | |||||||||||
Recoveries on charged-off loans | 506 | 562 | 849 | |||||||||||
Provision for loan losses | 3,699 | 2,994 | 4,085 | |||||||||||
Balance at end of year | 5,914 | 4,769 | 5,914 | 4,769 | 4,734 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 111 | 434 | 98 | |||||||||||
Purchased credit-impaired loans | 42 | |||||||||||||
Collectively evaluated | 5,803 | 4,335 | 4,594 | |||||||||||
Total | 5,914 | 4,769 | 4,769 | 4,734 | 4,769 | 4,734 | 2,867 | 5,914 | 4,769 | 4,734 | ||||
Commercial real estate | Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 16,498 | 14,591 | 16,498 | 14,591 | 14,740 | |||||||||
Charged-off loans | 3,875 | 2,127 | 6,865 | |||||||||||
Recoveries on charged-off loans | 170 | 243 | 164 | |||||||||||
Provision for loan losses | 4,050 | 3,791 | 6,552 | |||||||||||
Balance at end of year | 16,843 | 16,498 | 16,843 | 16,498 | 14,591 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 229 | 158 | 149 | |||||||||||
Collectively evaluated | 16,614 | 16,340 | 14,442 | |||||||||||
Total | 16,843 | 16,498 | 16,498 | 14,591 | 16,498 | 14,591 | 14,740 | 16,843 | 16,498 | 14,591 | ||||
Commercial real estate | Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 2,303 | 1,903 | 2,303 | 1,903 | 790 | |||||||||
Charged-off loans | 771 | 977 | 681 | |||||||||||
Recoveries on charged-off loans | 65 | 61 | 418 | |||||||||||
Provision for loan losses | 2,259 | 1,316 | 1,376 | |||||||||||
Balance at end of year | 3,856 | 2,303 | 3,856 | 2,303 | 1,903 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 56 | 250 | 43 | |||||||||||
Purchased credit-impaired loans | 42 | |||||||||||||
Collectively evaluated | 3,800 | 2,053 | 1,818 | |||||||||||
Total | 3,856 | 2,303 | 2,303 | 1,903 | 2,303 | 1,903 | 790 | 3,856 | 2,303 | 1,903 | ||||
Commercial and industrial | Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 9,447 | 7,385 | 9,447 | 7,385 | 5,246 | |||||||||
Charged-off loans | 3,373 | 4,620 | 2,358 | |||||||||||
Recoveries on charged-off loans | 179 | 123 | 169 | |||||||||||
Provision for loan losses | 7,597 | 6,559 | 4,328 | |||||||||||
Balance at end of year | 13,850 | 9,447 | 13,850 | 9,447 | 7,385 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 66 | 264 | 21 | |||||||||||
Collectively evaluated | 13,784 | 9,183 | 7,364 | |||||||||||
Total | 13,850 | 9,447 | 9,447 | 7,385 | 9,447 | 7,385 | 5,246 | 13,850 | 9,447 | 7,385 | ||||
Commercial and industrial | Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 1,164 | 1,330 | 1,164 | 1,330 | 1,093 | |||||||||
Charged-off loans | 844 | 1,095 | 752 | |||||||||||
Recoveries on charged-off loans | 245 | 266 | 289 | |||||||||||
Provision for loan losses | 560 | 663 | 700 | |||||||||||
Balance at end of year | 1,125 | 1,164 | 1,125 | 1,164 | 1,330 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 1 | 59 | 0 | |||||||||||
Purchased credit-impaired loans | 0 | |||||||||||||
Collectively evaluated | 1,124 | 1,105 | 1,330 | |||||||||||
Total | 1,125 | 1,164 | 1,164 | 1,330 | 1,164 | 1,330 | 1,093 | 1,125 | 1,164 | 1,330 | ||||
Residential mortgages | Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 7,805 | 7,613 | 7,805 | 7,613 | 6,864 | |||||||||
Charged-off loans | 806 | 2,036 | 1,215 | |||||||||||
Recoveries on charged-off loans | 270 | 159 | 141 | |||||||||||
Provision for loan losses | 2,151 | 2,069 | 1,823 | |||||||||||
Balance at end of year | 9,420 | 7,805 | 9,420 | 7,805 | 7,613 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 130 | 136 | 153 | |||||||||||
Collectively evaluated | 9,290 | 7,669 | 7,460 | |||||||||||
Total | 9,420 | 7,805 | 7,805 | 7,613 | 7,805 | 7,613 | 6,864 | 9,420 | 7,805 | 7,613 | ||||
Residential mortgages | Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 766 | 976 | 766 | 976 | 615 | |||||||||
Charged-off loans | 797 | 829 | 642 | |||||||||||
Recoveries on charged-off loans | 43 | 144 | 64 | |||||||||||
Provision for loan losses | 586 | 475 | 939 | |||||||||||
Balance at end of year | 598 | 766 | 598 | 766 | 976 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 9 | 11 | 30 | |||||||||||
Purchased credit-impaired loans | 0 | |||||||||||||
Collectively evaluated | 589 | 755 | 946 | |||||||||||
Total | 598 | 766 | 766 | 976 | 766 | 976 | 615 | 598 | 766 | 976 | ||||
Consumer | Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 5,479 | 4,985 | 5,479 | 4,985 | 5,945 | |||||||||
Charged-off loans | 3,470 | 1,722 | 1,183 | |||||||||||
Recoveries on charged-off loans | 270 | 267 | 285 | |||||||||||
Provision for loan losses | 3,528 | 1,949 | (62) | |||||||||||
Balance at end of year | 5,807 | 5,479 | 5,807 | 5,479 | 4,985 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 35 | 156 | 103 | |||||||||||
Collectively evaluated | 5,772 | 5,323 | 4,882 | |||||||||||
Total | 5,807 | 5,479 | 5,479 | 4,985 | 5,479 | 4,985 | 5,945 | 5,807 | 5,479 | 4,985 | ||||
Consumer | Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of year | 536 | 525 | 536 | 525 | 369 | |||||||||
Charged-off loans | 648 | 620 | 992 | |||||||||||
Recoveries on charged-off loans | 153 | 91 | 78 | |||||||||||
Provision for loan losses | 294 | 540 | 1,070 | |||||||||||
Balance at end of year | 335 | 536 | 335 | 536 | 525 | |||||||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||||||||||||
Individually evaluated for impairment | 45 | 114 | 25 | |||||||||||
Purchased credit-impaired loans | 0 | |||||||||||||
Collectively evaluated | 290 | 422 | 500 | |||||||||||
Total | $ 335 | $ 536 | $ 536 | $ 525 | $ 536 | $ 525 | $ 369 | $ 335 | $ 536 | $ 525 |
LOAN LOSS ALLOWANCE - Narrative
LOAN LOSS ALLOWANCE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017grade | |
Business Activities Loans | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of grades in internal loan rating system (grade) | 3 |
Business Activities Loans | Residential | Mortgages | Pass | |
Financing Receivable, Recorded Investment [Line Items] | |
Period within which loans are current, based on which risk rating is assigned | 59 days |
Business Activities Loans | Residential | Mortgages | Special mention | Minimum | |
Financing Receivable, Recorded Investment [Line Items] | |
Delinquency period of loans based on which risk rating is assigned | 60 days |
Business Activities Loans | Residential | Mortgages | Special mention | Maximum | |
Financing Receivable, Recorded Investment [Line Items] | |
Delinquency period of loans based on which risk rating is assigned | 89 days |
Business Activities Loans | Residential | Mortgages | Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Delinquency period of loans based on which risk rating is assigned | 90 days |
Other | Consumer | |
Financing Receivable, Recorded Investment [Line Items] | |
Number of grades in internal loan rating system (grade) | 2 |
Other | Consumer | Performing | |
Financing Receivable, Recorded Investment [Line Items] | |
Period within which loans are current, based on which risk rating is assigned | 119 days |
Other | Consumer | Nonperforming | |
Financing Receivable, Recorded Investment [Line Items] | |
Delinquency period of loans based on which risk rating is assigned | 120 days |
LOAN LOSS ALLOWANCE - Loans by
LOAN LOSS ALLOWANCE - Loans by Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 8,299,338 | $ 6,549,787 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55,189 | 11,802 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 110,258 | 95,302 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,264,742 | 2,616,438 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 266,336 | 287,509 |
Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 423,165 | 317,491 |
Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,575,241 | 2,011,438 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,803,939 | 1,062,038 |
Residential mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,102,807 | 1,893,131 |
Residential mortgages | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,410 | 11,982 |
Residential mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,097,397 | 1,881,149 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,127,850 | 978,180 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 410,181 | 393,800 |
Consumer loans | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 717,669 | 584,380 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,112,198 | 5,221,307 |
Business Activities Loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 28,387 | 7,479 |
Business Activities Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,846 | 51,125 |
Business Activities Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,217,707 | 1,926,344 |
Business Activities Loans | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 181,371 | 253,302 |
Business Activities Loans | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 217,083 | 191,819 |
Business Activities Loans | Commercial real estate | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,819,253 | 1,481,223 |
Business Activities Loans | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,819,253 | 1,481,223 |
Business Activities Loans | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,170,751 | 1,877,374 |
Business Activities Loans | Commercial real estate | Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 181,371 | 253,302 |
Business Activities Loans | Commercial real estate | Pass | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 214,289 | 189,310 |
Business Activities Loans | Commercial real estate | Pass | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,775,091 | 1,434,762 |
Business Activities Loans | Commercial real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,503 | 6,161 |
Business Activities Loans | Commercial real estate | Special mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Commercial real estate | Special mention | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 504 | 334 |
Business Activities Loans | Commercial real estate | Special mention | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,999 | 5,827 |
Business Activities Loans | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33,453 | 42,773 |
Business Activities Loans | Commercial real estate | Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Commercial real estate | Substandard | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,290 | 2,175 |
Business Activities Loans | Commercial real estate | Substandard | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 31,163 | 40,598 |
Business Activities Loans | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 36 |
Business Activities Loans | Commercial real estate | Doubtful | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Commercial real estate | Doubtful | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Commercial real estate | Doubtful | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 36 |
Business Activities Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,182,569 | 908,102 |
Business Activities Loans | Commercial and industrial | Business loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,182,569 | 908,102 |
Business Activities Loans | Commercial and industrial | Business loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,156,240 | 890,974 |
Business Activities Loans | Commercial and industrial | Business loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,806 | 123 |
Business Activities Loans | Commercial and industrial | Business loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,123 | 13,825 |
Business Activities Loans | Commercial and industrial | Business loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,400 | 3,180 |
Business Activities Loans | Residential mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,813,201 | 1,594,972 |
Business Activities Loans | Residential mortgages | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,177 | 11,178 |
Business Activities Loans | Residential mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,808,024 | 1,583,794 |
Business Activities Loans | Residential mortgages | Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,813,201 | 1,594,971 |
Business Activities Loans | Residential mortgages | Mortgages | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,177 | 11,178 |
Business Activities Loans | Residential mortgages | Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,808,024 | 1,583,793 |
Business Activities Loans | Residential mortgages | Mortgages | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,810,773 | 1,590,091 |
Business Activities Loans | Residential mortgages | Mortgages | Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,177 | 11,178 |
Business Activities Loans | Residential mortgages | Mortgages | Pass | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,805,596 | 1,578,913 |
Business Activities Loans | Residential mortgages | Mortgages | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 242 | 701 |
Business Activities Loans | Residential mortgages | Mortgages | Special mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Residential mortgages | Mortgages | Special mention | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 242 | 701 |
Business Activities Loans | Residential mortgages | Mortgages | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,186 | 4,179 |
Business Activities Loans | Residential mortgages | Mortgages | Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Activities Loans | Residential mortgages | Mortgages | Substandard | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,186 | 4,179 |
Business Activities Loans | Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 898,721 | 791,889 |
Business Activities Loans | Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 294,954 | 313,521 |
Business Activities Loans | Consumer loans | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 603,767 | 478,368 |
Business Activities Loans | Consumer loans | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 895,640 | 788,262 |
Business Activities Loans | Consumer loans | Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 293,327 | 310,846 |
Business Activities Loans | Consumer loans | Performing | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 602,313 | 477,416 |
Business Activities Loans | Consumer loans | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,081 | 3,627 |
Business Activities Loans | Consumer loans | Nonperforming | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,627 | 2,675 |
Business Activities Loans | Consumer loans | Nonperforming | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,454 | 952 |
Acquired Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,187,140 | 1,328,480 |
Acquired Loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 26,802 | 4,323 |
Acquired Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,412 | 44,177 |
Acquired Loans | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,047,035 | 690,094 |
Acquired Loans | Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 84,965 | 34,207 |
Acquired Loans | Commercial real estate | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 206,082 | 125,672 |
Acquired Loans | Commercial real estate | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 755,988 | 530,215 |
Acquired Loans | Commercial real estate | Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 755,988 | 530,215 |
Acquired Loans | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 965,081 | 649,437 |
Acquired Loans | Commercial real estate | Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 76,611 | 33,461 |
Acquired Loans | Commercial real estate | Pass | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 203,624 | 119,414 |
Acquired Loans | Commercial real estate | Pass | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 684,846 | 496,562 |
Acquired Loans | Commercial real estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,673 | 2,529 |
Acquired Loans | Commercial real estate | Special mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquired Loans | Commercial real estate | Special mention | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 603 | 907 |
Acquired Loans | Commercial real estate | Special mention | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,070 | 1,622 |
Acquired Loans | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 59,281 | 38,128 |
Acquired Loans | Commercial real estate | Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,354 | 746 |
Acquired Loans | Commercial real estate | Substandard | Single and multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,855 | 5,351 |
Acquired Loans | Commercial real estate | Substandard | Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 49,072 | 32,031 |
Acquired Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 621,370 | 153,936 |
Acquired Loans | Commercial and industrial | Business loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 621,370 | 153,936 |
Acquired Loans | Commercial and industrial | Business loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 606,922 | 147,102 |
Acquired Loans | Commercial and industrial | Business loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,241 | 1,260 |
Acquired Loans | Commercial and industrial | Business loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 13,207 | 5,574 |
Acquired Loans | Residential mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 289,606 | 298,159 |
Acquired Loans | Residential mortgages | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 233 | 804 |
Acquired Loans | Residential mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 289,373 | 297,355 |
Acquired Loans | Residential mortgages | Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 289,606 | 298,159 |
Acquired Loans | Residential mortgages | Mortgages | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 233 | 804 |
Acquired Loans | Residential mortgages | Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 289,373 | 297,355 |
Acquired Loans | Residential mortgages | Mortgages | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 281,393 | 295,787 |
Acquired Loans | Residential mortgages | Mortgages | Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 233 | 804 |
Acquired Loans | Residential mortgages | Mortgages | Pass | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 281,160 | 294,983 |
Acquired Loans | Residential mortgages | Mortgages | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,704 | 343 |
Acquired Loans | Residential mortgages | Mortgages | Special mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquired Loans | Residential mortgages | Mortgages | Special mention | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,704 | 343 |
Acquired Loans | Residential mortgages | Mortgages | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,509 | 2,029 |
Acquired Loans | Residential mortgages | Mortgages | Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Acquired Loans | Residential mortgages | Mortgages | Substandard | 1-4 family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,509 | 2,029 |
Acquired Loans | Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 229,129 | 186,291 |
Acquired Loans | Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 115,227 | 80,279 |
Acquired Loans | Consumer loans | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 113,902 | 106,012 |
Acquired Loans | Consumer loans | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 226,772 | 184,879 |
Acquired Loans | Consumer loans | Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 113,262 | 79,762 |
Acquired Loans | Consumer loans | Performing | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 113,510 | 105,117 |
Acquired Loans | Consumer loans | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,357 | 1,412 |
Acquired Loans | Consumer loans | Nonperforming | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,965 | 517 |
Acquired Loans | Consumer loans | Nonperforming | Auto and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 392 | $ 895 |
LOAN LOSS ALLOWANCE- Summary of
LOAN LOSS ALLOWANCE- Summary of Loans Rated Special Mention or Lower (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 8,299,338 | $ 6,549,787 |
Non-Accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,899 | 22,240 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 110,258 | 95,302 |
Total Classified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 133,157 | 117,542 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55,189 | 11,802 |
Total Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 188,346 | 129,344 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,112,198 | 5,221,307 |
Business Activities Loans | Non-Accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15,659 | 16,816 |
Business Activities Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,846 | 51,125 |
Business Activities Loans | Total Classified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 52,505 | 67,941 |
Business Activities Loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 28,387 | 7,479 |
Business Activities Loans | Total Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 80,892 | 75,420 |
Acquired Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,187,140 | 1,328,480 |
Acquired Loans | Non-Accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,240 | 5,424 |
Acquired Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,412 | 44,177 |
Acquired Loans | Total Classified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 80,652 | 49,601 |
Acquired Loans | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 26,802 | 4,323 |
Acquired Loans | Total Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 107,454 | $ 53,924 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premises and equipment | |||
Premises and equipment, gross | $ 168,775 | $ 142,659 | |
Accumulated depreciation and amortization | (59,423) | (49,444) | |
Premises and equipment, net | 109,352 | 93,215 | |
Depreciation and amortization expense | 9,916 | 8,393 | $ 8,594 |
Land | |||
Premises and equipment | |||
Premises and equipment, gross | 14,177 | 10,563 | |
Buildings and improvements | |||
Premises and equipment | |||
Premises and equipment, gross | $ 99,821 | 85,319 | |
Buildings and improvements | Minimum | |||
Premises and equipment | |||
Estimated Useful Life | 5 years | ||
Buildings and improvements | Maximum | |||
Premises and equipment | |||
Estimated Useful Life | 39 years | ||
Furniture and equipment | |||
Premises and equipment | |||
Premises and equipment, gross | $ 49,600 | 42,693 | |
Furniture and equipment | Minimum | |||
Premises and equipment | |||
Estimated Useful Life | 3 years | ||
Furniture and equipment | Maximum | |||
Premises and equipment | |||
Estimated Useful Life | 7 years | ||
Construction in process | |||
Premises and equipment | |||
Premises and equipment, gross | $ 5,177 | $ 4,084 |
GOODWILL AND OTHER INTANGIBLE85
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)acquisition | Dec. 31, 2016USD ($)acquisition | Dec. 31, 2015USD ($) | Dec. 31, 2011acquisition | |
Finite-Lived Intangible Assets [Line Items] | ||||
Number of significant acquisitions completed (acquisition) | acquisition | 1 | 3 | 2 | |
Goodwill, impairment | $ 0 | $ 0 | $ 0 | |
Amortization of intangible assets | 3,493,000 | 2,927,000 | 3,563,000 | |
Finite-lived intangible assets, amortization expense, 2018 | 4,900,000 | |||
Finite-lived intangible assets, amortization expense, 2019 | 4,700,000 | |||
Finite-lived intangible assets, amortization expense, 2020 | 4,400,000 | |||
Finite-lived intangible assets, amortization expense, 2021 | 4,200,000 | |||
Finite-lived intangible assets, amortization expense, 2022 | 4,100,000 | |||
Finite-lived intangible assets, amortization expense, thereafter | 16,000,000 | |||
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 4 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible asset, useful life | 15 years |
GOODWILL AND OTHER INTANGIBLE86
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Balance, beginning of the period | $ 403,106 | $ 323,943 |
Adjustments | 0 | (257) |
Goodwill, Ending Balance | 519,287 | 403,106 |
Commerce Bank | ||
Goodwill | ||
Goodwill acquired | 116,181 | 0 |
44 Business Capital | ||
Goodwill | ||
Goodwill acquired | 0 | 15,892 |
Ronald N. Lazzaro, PC | ||
Goodwill | ||
Goodwill acquired | 0 | 5,492 |
First Choice Bank | ||
Goodwill | ||
Goodwill acquired | $ 0 | $ 58,036 |
GOODWILL AND OTHER INTANGIBLE87
GOODWILL AND OTHER INTANGIBLES - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 82,291 | $ 59,947 |
Accumulated Amortization | (43,995) | (40,502) |
Net Intangible Assets | 38,296 | 19,445 |
Non-maturity deposits (core deposit intangible) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 66,923 | 44,523 |
Accumulated Amortization | (33,024) | (30,099) |
Net Intangible Assets | 33,899 | 14,424 |
Insurance contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 7,558 | 7,558 |
Accumulated Amortization | (7,526) | (7,504) |
Net Intangible Assets | 32 | 54 |
All other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 7,810 | 7,866 |
Accumulated Amortization | (3,445) | (2,899) |
Net Intangible Assets | $ 4,365 | $ 4,967 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | |||
Capitalized servicing rights | $ 16,361 | $ 11,524 | $ 5,187 |
Accrued interest receivable | 33,739 | 26,113 | |
Accrued federal and state tax receivable | 33,101 | 19,076 | |
Derivative assets | 19,308 | 21,617 | |
Assets held for sale | 1,392 | 0 | |
Other | 13,182 | 20,127 | |
Total other assets | 117,083 | 98,457 | |
State and Local Jurisdiction | New York | |||
Operating Loss Carryforwards [Line Items] | |||
Accrued federal and state tax receivable | $ 4,300 | $ 5,900 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Mortgage loans sold and serviced for others | $ 1,800 | $ 1,300 | $ 800 |
Servicing fees | $ 4.6 | $ 3.2 | $ 1.7 |
Weighted average discount rate (as a percent) | 10.40% | ||
Minimum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Pre-payment speed (as a percent) | 7.78% | ||
Maximum | |||
Servicing Asset at Amortized Cost [Line Items] | |||
Pre-payment speed (as a percent) | 12.78% |
OTHER ASSETS - Mortgage Servici
OTHER ASSETS - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage servicing rights activity | ||
Balance at beginning of year | $ 11,524 | $ 5,187 |
Additions | 7,604 | 4,116 |
Amortization | (2,446) | (1,964) |
Change in fair value | (221) | 0 |
Allowance adjustment | (100) | 0 |
Balance at end of year | 16,361 | 11,524 |
44 Business Capital | ||
Mortgage servicing rights activity | ||
Additions | 0 | 3,489 |
First Choice Bank | ||
Mortgage servicing rights activity | ||
Additions | 0 | 696 |
Servicing asset at fair value | $ 3,800 | $ 800 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Maturity date: | ||
Within 1 year | $ 1,790,056 | $ 1,316,973 |
Over 1 year to 2 years | 546,381 | 582,764 |
Over 2 years to 3 years | 268,897 | 142,160 |
Over 3 years to 4 years | 161,314 | 150,388 |
Over 4 years to 5 years | 121,400 | 137,845 |
Over 5 years | 2,157 | 3,413 |
Total | 2,890,205 | 2,333,543 |
Less than $100,000 | 733,785 | 656,055 |
$100,000 or more | $ 2,156,420 | $ 1,677,488 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Brokered deposits | $ 1,200,000 | $ 900,000 |
Reciprocal deposits | 99,800 | 113,400 |
Time deposits | 2,890,205 | 2,333,543 |
Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Time deposits | $ 36,000 | $ 17,200 |
BORROWED FUNDS (Details)
BORROWED FUNDS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Borrowings and junior subordinated debentures | ||
Short-term borrowings | $ 667,300 | $ 1,082,044 |
Long-term borrowings | 469,775 | 231,953 |
Total borrowings | $ 1,137,075 | $ 1,313,997 |
Weighted average rate on short-term borrowings (percent) | 1.48% | 0.72% |
Weighted average rate on long-term borrowings (percent) | 2.46% | 3.35% |
Weighted average interest rate (percent) | 1.88% | 1.19% |
Advances from the FHLBB | ||
Borrowings and junior subordinated debentures | ||
Short-term borrowings | $ 667,300 | $ 1,072,044 |
Long-term borrowings | $ 380,436 | $ 142,792 |
Weighted average rate on short-term borrowings (percent) | 1.48% | 0.71% |
Weighted average rate on long-term borrowings (percent) | 1.54% | 1.53% |
Other Borrowings | ||
Borrowings and junior subordinated debentures | ||
Short-term borrowings | $ 0 | $ 10,000 |
Weighted average rate on short-term borrowings (percent) | 0.00% | 2.42% |
Subordinated notes | ||
Borrowings and junior subordinated debentures | ||
Long-term borrowings | $ 73,875 | $ 73,697 |
Weighted average rate on long-term borrowings (percent) | 7.00% | 7.00% |
Junior subordinated notes | ||
Borrowings and junior subordinated debentures | ||
Long-term borrowings | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings (percent) | 3.30% | 2.77% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings and junior subordinated debentures | |||
Line of credit | $ 3,000,000 | ||
Short-term borrowings | 667,300,000 | $ 1,082,044,000 | |
Long-term borrowings | 469,775,000 | 231,953,000 | |
Variable-rate FHLB advances | 0 | ||
Advances from the FHLBB | |||
Borrowings and junior subordinated debentures | |||
Outstanding balance, line of credit | 0 | 0 | |
Short-term borrowings | 667,300,000 | 1,072,044,000 | |
Long-term borrowings | 380,436,000 | 142,792,000 | |
Federal Reserve Bank Advances | |||
Borrowings and junior subordinated debentures | |||
Short-term borrowings | 0 | 0 | |
Federal Home Loan Bank Certificates And Obligations F H L B Callable Advances | |||
Borrowings and junior subordinated debentures | |||
Long-term borrowings | 11,000,000 | ||
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Borrowings and junior subordinated debentures | |||
Long-term borrowings | 1,400,000 | 1,200,000 | |
Subordinated notes | |||
Borrowings and junior subordinated debentures | |||
Long-term borrowings | 73,875,000 | 73,697,000 | |
Maturity period | 15 years | ||
Principal amount of debt issued | $ 75,000,000 | ||
Discount rate (percent) | 1.15% | ||
Fixed interest rate (percent) | 6.875% | ||
Maturity period with fixed interest rate | 10 years | ||
Subordinated notes | Three-month LIBOR rate | |||
Borrowings and junior subordinated debentures | |||
Interest rate margin (percent) | 5.113% | ||
Unamortized debt issuance costs | 583,000 | 706,000 | |
Junior subordinated notes | |||
Borrowings and junior subordinated debentures | |||
Long-term borrowings | $ 15,464,000 | $ 15,464,000 | |
Junior subordinated notes | Trust I | |||
Borrowings and junior subordinated debentures | |||
Common stock of trust (percent) | 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 (percent) | 3.30% | 2.77% | |
Period up to which interest payments can be deferred | 5 years | ||
Junior subordinated notes | LIBOR | Trust I | |||
Borrowings and junior subordinated debentures | |||
Interest rate margin (percent) | 1.85% |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLBB Advances (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Principal | |
Total FHLBB advances | $ 1,047,736 |
Fixed rate advances | |
Principal | |
2,018 | 836,115 |
2,019 | 150,082 |
2,020 | 54,101 |
2,021 | 220 |
2022 and beyond | 7,218 |
Total FHLBB advances | $ 1,047,736 |
Weighted Average | |
Weighted Average Rate (percent) | |
Total FHLBB advances (percent) | 1.50% |
Weighted Average | Fixed rate advances | |
Weighted Average Rate (percent) | |
2018 (percent) | 1.43% |
2019 (percent) | 1.64% |
2020 (percent) | 2.04% |
2021 (percent) | 3.21% |
2022 and beyond (percent) | 2.64% |
Total FHLBB advances (percent) | 1.50% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Derivative liabilities | $ 15,838 | $ 24,420 |
Capital lease obligation | 11,323 | 11,639 |
Asset purchase settlement payable | 70,637 | 29,158 |
Employee benefits liability | 27,093 | 17,972 |
Level lease liability | 5,766 | 6,997 |
Accrued interest payable | 6,813 | 4,394 |
Customer transaction clearing accounts | 9,118 | 1,786 |
Other | 41,294 | 36,789 |
Total other liabilities | $ 187,882 | $ 133,155 |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS - Narrative (Details) | Aug. 01, 2014USD ($) | Dec. 31, 2017USD ($)acquisitionemployee | Dec. 31, 2016USD ($)acquisition | Dec. 31, 2015USD ($) | Dec. 31, 2011acquisition | Oct. 31, 2017USD ($) | Apr. 30, 2015USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Expense under the plan | $ 3,400,000 | $ 3,900,000 | $ 3,600,000 | ||||
Number of significant acquisitions completed (acquisition) | acquisition | 1 | 3 | 2 | ||||
Hampden Bancorp Inc | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Split-dollar agreement, accrued liability | $ 1,200,000 | $ 1,200,000 | $ 860,000 | ||||
Commerce Bank | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Split-dollar agreement, accrued liability | $ 2,800,000 | $ 2,700,000 | |||||
Fixed Income Funds | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocation (percent) | 34.00% | ||||||
Marketable equity securities | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocation (percent) | 65.00% | ||||||
Cash and Cash Equivalents | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocation (percent) | 1.00% | ||||||
Pension Plans | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Number of employees participation (employee) | employee | 0 | ||||||
Net actuarial (gain) loss | $ 1,300,000 | 1,500,000 | |||||
Expected cash contributions by employer | 0 | ||||||
Amount expected to be amortized from other comprehensive income into net periodic pension cost over the next fiscal year | 83,000 | ||||||
Defined benefit plan, fair value of plan assets | 5,446,000 | 5,121,000 | 5,211,000 | ||||
Transfers between Level 1, 2, and 3 | $ 0 | $ 0 | |||||
Discount rate (percent) | 3.98% | 4.17% | |||||
Pension Plans | Level 3 | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Defined benefit plan, fair value of plan assets | $ 0 | $ 0 | |||||
Pension Plans | Fixed Income Funds | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Defined benefit plan, fair value of plan assets | 1,308,000 | 1,378,000 | |||||
Postretirement Benefits | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Net actuarial (gain) loss | 199,000 | (126,000) | |||||
Amount expected to be amortized from other comprehensive income into net periodic pension cost over the next fiscal year | 83,000 | ||||||
Defined benefit plan, fair value of plan assets | $ 0 | $ 0 | 0 | ||||
Prior service cost of long-term care plan participants | $ 558,000 | ||||||
Discount rate (percent) | 3.44% | 3.91% | |||||
Assumed health care cost trend rate (percent) | 7.75% | ||||||
Assumed health care cost trend rate in 2020 (percent) | 3.89% | ||||||
Supplemental Employee Retirement Plan | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Eligible age for retirement plan | 62 years | ||||||
Accrued liability for other plans | $ 8,300,000 | $ 7,400,000 | |||||
Other plans expense | 968,000 | 917,000 | $ 752,000 | ||||
Supplemental Employee Retirement Plan | Hampden Bancorp Inc | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Accrued liability for other plans | $ 1,100,000 | $ 1,200,000 | $ 1,400,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | Aug. 01, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 6,126 | $ 6,585 | |
Service Cost | 66 | 76 | |
Interest cost | 237 | 267 | |
Actuarial loss (gain) | 309 | (308) | |
Benefits paid | (324) | (318) | |
Settlements | (61) | (176) | |
Projected benefit obligation at end of year | 6,353 | 6,126 | |
Accumulated benefit obligation | 6,353 | 6,126 | |
Change in fair value of plan assets: | |||
Fair value of plan assets at plan beginning of year | 5,121 | 5,211 | |
Actual return on plan assets | 710 | 404 | |
Benefits paid | (324) | (318) | |
Settlements | (61) | (176) | |
Fair value of plan assets at end of year | 5,446 | 5,121 | |
Funded status of the plan | |||
Underfunded status | 907 | 1,005 | |
Postretirement Benefits | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 3,249 | 3,039 | |
Prior service cost of long-term care plan participants | $ 558 | ||
Service Cost | 35 | 32 | |
Interest cost | 131 | 129 | |
Participant contributions | 46 | 47 | |
Actuarial loss (gain) | 326 | 130 | |
Benefits paid | (94) | (128) | |
Projected benefit obligation at end of year | 3,693 | 3,249 | |
Change in fair value of plan assets: | |||
Fair value of plan assets at plan beginning of year | 0 | 0 | |
Benefits paid | (94) | (128) | |
Contributions by employer | 48 | 81 | |
Contributions by participant | 46 | 47 | |
Fair value of plan assets at end of year | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Amoun
EMPLOYEE BENEFIT PLANS - Amounts Recognized in Consolidated Balance Sheet (Details) - Other Liabilities - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plans, liabilities | $ 907 | $ 1,005 |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plans, liabilities | $ 3,693 | $ 3,249 |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | $ 66 | $ 76 |
Interest cost | 237 | 267 |
Expected return on plan assets | (346) | (361) |
Amortization of unrecognized actuarial loss | 100 | 163 |
Net periodic pension costs | 57 | 145 |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | 35 | 32 |
Interest cost | 131 | 129 |
Amortization of unrecognized actuarial loss | 0 | 0 |
Amortization of net prior service credit | 83 | 83 |
Net periodic pension costs | $ 249 | $ 244 |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Change in Plan Assets and Benefit Obligations Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Amortization of actuarial (loss) | $ (100) | $ (163) |
Actuarial (gain) loss | (54) | (351) |
Total recognized in accumulated other comprehensive income | (154) | (514) |
Total recognized in net periodic pension cost recognized and other comprehensive income | (97) | (369) |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Amortization of actuarial (loss) | 0 | 0 |
Actuarial (gain) loss | 199 | (126) |
Amortization of prior service credit | (83) | (83) |
Total recognized in accumulated other comprehensive income | 116 | (209) |
Accrued post-retirement liability recognized | $ 1,918 | $ 1,718 |
EMPLOYEE BENEFIT PLANS - Princi
EMPLOYEE BENEFIT PLANS - Principal Actuarial Assumptions(Details) - Pension Plans | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation, discount rate | 3.51% | 3.98% |
Net periodic pension cost, discount rate | 3.98% | 4.17% |
Net periodic pension cost, long term rate of return on plan assets | 7.00% | 7.00% |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Values of the Plan's Assets by Category and Level (Details 6) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 5,446 | $ 5,121 | $ 5,211 |
Equity Mutual Funds | Large-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,820 | 1,624 | |
Equity Mutual Funds | Mid-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 439 | 401 | |
Equity Mutual Funds | Small-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 438 | 415 | |
Equity Mutual Funds | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 893 | 757 | |
Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,308 | 1,378 | |
Intermediate Duration | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 472 | |
Cash Equivalents - money market | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 111 | 74 | |
Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 29 | 30 | |
Level 1 | Equity Mutual Funds | Large-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Equity Mutual Funds | Mid-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Equity Mutual Funds | Small-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Equity Mutual Funds | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Intermediate Duration | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
Level 1 | Cash Equivalents - money market | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 29 | 30 | |
Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 5,417 | 5,091 | |
Level 2 | Equity Mutual Funds | Large-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,820 | 1,624 | |
Level 2 | Equity Mutual Funds | Mid-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 439 | 401 | |
Level 2 | Equity Mutual Funds | Small-Cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 438 | 415 | |
Level 2 | Equity Mutual Funds | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 893 | 757 | |
Level 2 | Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 1,308 | 1,378 | |
Level 2 | Intermediate Duration | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | 437 | 472 | |
Level 2 | Cash Equivalents - money market | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 82 | $ 44 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Benefit Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | $ 343 |
2,019 | 380 |
2,020 | 372 |
2,021 | 361 |
2,022 | 386 |
2023 - 2027 | 1,792 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | 103 |
2,019 | 103 |
2,020 | 102 |
2,021 | 106 |
2,022 | 109 |
2023 - 2027 | $ 548 |
EMPLOYEE BENEFIT PLANS - Post-r
EMPLOYEE BENEFIT PLANS - Post-retirement Plan (Details) - Postretirement Benefits - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net prior service cost (credit) | $ 1,576 | $ 1,659 |
Net actuarial (gain) loss | 199 | (126) |
Total recognized in accumulated other comprehensive income | $ 1,775 | $ 1,533 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal tax expense | $ 11,686 | $ 6,758 | $ 4,696 | ||||||||
State tax expense | 1,112 | 1,101 | (1,631) | ||||||||
Total current expense | 12,798 | 7,859 | 3,065 | ||||||||
Deferred: | |||||||||||
Federal tax expense | 29,824 | 9,438 | 2,023 | ||||||||
State tax expense | 1,805 | 1,591 | (24) | ||||||||
Total deferred tax expense (1) | 31,629 | 11,029 | 1,999 | ||||||||
Change in valuation allowance | 75 | (104) | 0 | ||||||||
Income tax expense | $ 22,292 | $ 7,211 | $ 8,237 | $ 6,762 | $ 362 | $ 6,953 | $ 5,249 | $ 6,220 | $ 44,502 | $ 18,784 | $ 5,064 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Deferred tax expense | $ 31,629 | $ 11,029 | $ 1,999 |
Write down of net deferred tax asset | 18,100 | ||
Decrease in net deferred tax assets | 5,900 | ||
Deferred tax benefit recognized due to decrease in goodwill | 34,500 | ||
Deferred tax benefit recognized due to increase in equity | 3,100 | ||
Increase in valuation allowance | 75 | ||
State tax basis, net of Federal tax benefit (of 35%) | 200 | $ 125 | |
Net operating loss carryforwards | 1,400 | ||
Alternative minimum tax credit carryforward amount | 4,000 | ||
Internal Revenue Service (IRS) | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 6,500 | ||
State and Local Jurisdiction | New York | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 3,300 | ||
State and Local Jurisdiction | Connecticut | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 13,900 |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Statutory tax rate | $ 34,912 | $ 27,108 | $ 19,104 | ||||||||
State taxes, net of federal tax benefit | 2,232 | 1,675 | (974) | ||||||||
Tax exempt income - investments, net | (5,395) | (3,849) | (3,463) | ||||||||
Bank-owned life insurance | (1,556) | (1,364) | (1,284) | ||||||||
Non-deductible merger costs | 368 | 542 | 422 | ||||||||
Non-deductible goodwill on disposal operations sale | 0 | 0 | 313 | ||||||||
Tax credits, net of basis reduction | (4,656) | (6,225) | (8,308) | ||||||||
Change in valuation allowance | 75 | 125 | 0 | ||||||||
Impact of federal tax reform enactment | 18,145 | 0 | 0 | ||||||||
Other, net | 377 | 772 | (746) | ||||||||
Income tax expense | $ 22,292 | $ 7,211 | $ 8,237 | $ 6,762 | $ 362 | $ 6,953 | $ 5,249 | $ 6,220 | $ 44,502 | $ 18,784 | $ 5,064 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Statutory tax rate (percent) | 35.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal tax benefit (percent) | 2.20% | 2.20% | (1.80%) | ||||||||
Tax exempt income - investments, net (percent) | (5.40%) | (5.00%) | (6.30%) | ||||||||
Bank-owned life insurance (percent) | (1.60%) | (1.80%) | (2.40%) | ||||||||
Non-deductible merger costs (percent) | 0.40% | 0.70% | 0.80% | ||||||||
Non-deductible goodwill on disposal operations sale (percent) | 0.00% | 0.00% | 0.60% | ||||||||
Tax credits, net of basis reduction (percent) | (4.70%) | (8.00%) | (15.20%) | ||||||||
Change in valuation allowance (percent) | 0.10% | 0.20% | 0.00% | ||||||||
Impact of federal tax reform enactment (percent) | 18.20% | 0.00% | 0.00% | ||||||||
Other, net (percent) | 0.40% | 1.00% | (1.40%) | ||||||||
Effective tax rate (percent) | 44.60% | 24.30% | 9.30% |
INCOME TAXES - Deferred Tax Lia
INCOME TAXES - Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 14,578 | $ 17,747 |
Tax credit carryforwards | 4,100 | 4,100 |
Unrealized capital loss on tax credit investments | 6,502 | 6,999 |
Employee benefit plans | 4,983 | 7,813 |
Purchase accounting adjustments | 37,843 | 23,520 |
Net operating loss carryforwards | 1,374 | 2,643 |
Other | 2,332 | 4,997 |
Deferred tax assets, net before valuation allowances | 71,712 | 67,819 |
Valuation allowance | (200) | (125) |
Deferred tax assets, net of valuation allowances | 71,512 | 67,694 |
Deferred tax liabilities: | ||
Net unrealized gain on swaps, securities available for sale, and pension in OCI | (1,888) | (5,884) |
Premises and equipment | (1,126) | (2,519) |
Loan servicing rights | (2,174) | (4,546) |
Deferred loan fees | (3,900) | 0 |
Intangible amortization | (15,001) | (11,543) |
Other | (362) | (2,074) |
Deferred tax liabilities | (24,451) | (26,566) |
Deferred tax assets, net | $ 47,061 | $ 41,128 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
State tax basis difference, net of Federal tax benefit | $ (200) | $ (125) | |
Valuation allowances | $ 200 | $ 125 | |
Federal tax rate (percent) | 35.00% | 35.00% | 35.00% |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at January 1 | $ 460 | $ 307 | $ 553 |
Increase in gross amounts of tax positions related to prior years | 0 | 270 | 0 |
Decrease in gross amounts of tax positions related to prior years | (156) | 0 | 0 |
Decrease due to settlement with taxing authority | 0 | 0 | 0 |
Increase in gross amounts of tax positions related to current year | 0 | 0 | 0 |
Decrease due to lapse in statute of limitations | 0 | (117) | (246) |
Unrecognized tax benefits at December 31 | $ 304 | $ 460 | $ 307 |
DERIVATIVE INSTRUMENTS AND H112
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | Feb. 07, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($)contract | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | $ 2,510,937 | $ 2,199,862 | $ 2,510,937 | $ 2,199,862 | ||||||||
Cash pledged as collateral to derivative counterparties | 2,100 | 900 | 2,100 | 900 | ||||||||
Amortized cost of securities pledged as collateral to derivative counterparties | 24,400 | 47,800 | 24,400 | 47,800 | ||||||||
Fair value of securities as pledged collateral to derivative counterparties | 24,400 | 47,900 | 24,400 | 47,900 | ||||||||
Interest expense | 19,457 | $ 17,062 | $ 15,121 | $ 13,823 | 13,276 | $ 12,540 | $ 11,577 | $ 10,779 | 65,463 | 48,172 | $ 33,181 | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges | ||||||||||||
Derivative [Line Items] | ||||||||||||
Interest expense | $ 6,600 | |||||||||||
Interest Rate Swap | ||||||||||||
Derivative [Line Items] | ||||||||||||
Cash pledged as collateral to derivative counterparties | 1,960 | 650 | 1,960 | 650 | ||||||||
Amount of collateral posted for the net liability positions | 5,900 | 19,800 | 5,900 | 19,800 | ||||||||
Interest Rate Swap | Commercial counterparties | ||||||||||||
Derivative [Line Items] | ||||||||||||
Cash pledged as collateral to derivative counterparties | 0 | 0 | 0 | 0 | ||||||||
Derivative asset, fair value, amount offset against collateral | 8,600 | 11,500 | 8,600 | 11,500 | ||||||||
Amount of collateral posted for the net liability positions | 5,400 | 4,400 | 5,400 | 4,400 | ||||||||
Interest Rate Swap | Financial institutions counterparties | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative asset, fair value, amount offset against collateral | 1,100 | 49 | 1,100 | 49 | ||||||||
Amount of collateral posted for the net liability positions | 5,900 | 15,400 | 5,900 | 15,400 | ||||||||
Non-hedging derivatives | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 193,966 | 208,145 | 193,966 | 208,145 | ||||||||
Cash Flow Hedging | ||||||||||||
Derivative [Line Items] | ||||||||||||
Durations of derivative instruments | 3 years | |||||||||||
Cash Flow Hedging | Interest Rate Swap | ||||||||||||
Derivative [Line Items] | ||||||||||||
Number of derivative contracts (contract) | contract | 6 | |||||||||||
Cash Flow Hedging | Interest Rate Swap | FHLBB borrowings | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | $ 300,000 | $ 300,000 | ||||||||||
Interest expense | 393 | 3,981 | $ 0 | |||||||||
Cash Flow Hedging | Hedging derivatives | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 0 | 300,000 | 0 | 300,000 | ||||||||
Cash Flow Hedging | Hedging derivatives | Interest Rate Swap | FHLBB borrowings | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 0 | 0 | ||||||||||
Economic Hedging | ||||||||||||
Derivative [Line Items] | ||||||||||||
Credit valuation adjustments | $ (316) | $ (316) | ||||||||||
Economic Hedging | Tax advantaged economic development bonds | ||||||||||||
Derivative [Line Items] | ||||||||||||
Fixed rate of interest (percent) | 5.09% | 5.09% | ||||||||||
Maturity period | 21 years | |||||||||||
Economic Hedging | Interest Rate Swap | Tax advantaged economic development bonds | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | $ 10,800 | $ 10,800 | ||||||||||
Economic Hedging | Hedging derivatives | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 2,316,971 | 1,691,717 | 2,316,971 | 1,691,717 | ||||||||
Economic Hedging | Hedging derivatives | Interest Rate Swap | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 1,900,000 | 1,900,000 | ||||||||||
Economic Hedging | Hedging derivatives | Interest Rate Swap | Tax advantaged economic development bonds | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 10,755 | 11,386 | 10,755 | 11,386 | ||||||||
Economic Hedging | Hedging derivatives | Risk Participation Agreements | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | 142,054 | 83,360 | 142,054 | 83,360 | ||||||||
Economic Hedging | Hedging derivatives | Forward Commitments | ||||||||||||
Derivative [Line Items] | ||||||||||||
Derivative, notional amount | $ 276,572 | $ 259,889 | $ 276,572 | $ 259,889 |
DERIVATIVE INSTRUMENTS AND H113
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Feb. 07, 2017 | |
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 2,510,937 | $ 2,199,862 | ||
Estimated Fair Value Asset (Liability) | 3,470 | (2,804) | ||
Cash flow hedges | Interest rate swap | FHLBB borrowings | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 300,000 | $ 300,000 | ||
Economic hedges | Interest rate swap | Tax advantaged economic development bonds | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | 10,800 | |||
Hedging derivatives | Cash flow hedges | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | 0 | 300,000 | ||
Estimated Fair Value Asset (Liability) | 0 | (6,573) | ||
Hedging derivatives | Cash flow hedges | Interest rate swap | FHLBB borrowings | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 0 | |||
Weighted Average Maturity | 0 years | |||
Derivative, weighted average rate, received (percent) | 0.00% | |||
Derivative, weighted average rate, paid (percent) | 0.00% | |||
Estimated Fair Value Asset (Liability) | $ 0 | |||
Hedging derivatives | Cash flow hedges | Forward starting interest rate swap | FHLBB borrowings | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 300,000 | |||
Weighted Average Maturity | 2 years 3 months 18 days | |||
Derivative, weighted average rate, received (percent) | 0.63% | |||
Derivative, weighted average rate, paid (percent) | 2.29% | |||
Estimated Fair Value Asset (Liability) | $ (6,573) | |||
Hedging derivatives | Economic hedges | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | 2,316,971 | 1,691,717 | ||
Estimated Fair Value Asset (Liability) | (1,789) | (969) | ||
Hedging derivatives | Economic hedges | Interest rate swap | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | 1,900,000 | |||
Hedging derivatives | Economic hedges | Interest rate swap | Tax advantaged economic development bonds | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 10,755 | $ 11,386 | ||
Weighted Average Maturity | 11 years 10 months 24 days | 12 years 10 months 24 days | ||
Derivative, weighted average rate, received (percent) | 1.73% | 0.98% | ||
Derivative, weighted average rate, paid (percent) | 5.09% | 5.09% | ||
Estimated Fair Value Asset (Liability) | $ (1,649) | $ (2,021) | ||
Hedging derivatives | Economic hedges | Interest rate swap | Commercial loan | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 943,795 | $ 668,541 | ||
Weighted Average Maturity | 5 years 10 months 24 days | 6 years 2 months 12 days | ||
Derivative, weighted average rate, received (percent) | 3.26% | 2.43% | ||
Derivative, weighted average rate, paid (percent) | 4.25% | 4.21% | ||
Estimated Fair Value Asset (Liability) | $ (3,195) | $ (6,752) | ||
Hedging derivatives | Economic hedges | Reverse interest rate swaps | Commercial loan | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 943,795 | $ 668,541 | ||
Weighted Average Maturity | 5 years 10 months 24 days | 6 years 2 months 12 days | ||
Derivative, weighted average rate, received (percent) | 4.25% | 4.21% | ||
Derivative, weighted average rate, paid (percent) | 3.26% | 2.43% | ||
Estimated Fair Value Asset (Liability) | $ 3,204 | $ 7,077 | ||
Hedging derivatives | Economic hedges | Risk participation agreements | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 142,054 | $ 83,360 | ||
Weighted Average Maturity | 8 years 4 months 24 days | 11 years 7 months 6 days | ||
Estimated Fair Value Asset (Liability) | $ (26) | $ 5 | ||
Hedging derivatives | Economic hedges | Forward sale commitments | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 276,572 | $ 259,889 | ||
Weighted Average Maturity | 2 months 12 days | 2 months 12 days | ||
Estimated Fair Value Asset (Liability) | $ (123) | $ 722 | ||
Non-hedging derivatives | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | 193,966 | 208,145 | ||
Estimated Fair Value Asset (Liability) | 5,259 | 4,738 | ||
Non-hedging derivatives | Commitments to lend | ||||
Offsetting Assets [Line Items] | ||||
Notional Amount | $ 193,966 | $ 208,145 | ||
Weighted Average Maturity | 2 months 12 days | 2 months 12 days | ||
Estimated Fair Value Asset (Liability) | $ 5,259 | $ 4,738 |
DERIVATIVE INSTRUMENTS AND H114
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Amounts included in Consolidated Statements of Income and in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||||||||
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | $ (19,457) | $ (17,062) | $ (15,121) | $ (13,823) | $ (13,276) | $ (12,540) | $ (11,577) | $ (10,779) | $ (65,463) | $ (48,172) | $ (33,181) |
Interest Rate Swap | Cash Flow Hedging | |||||||||||
Derivative [Line Items] | |||||||||||
Other comprehensive income recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | 3,984 | 1,123 | (3,138) | ||||||||
FHLBB borrowings | Interest Rate Swap | Cash Flow Hedging | |||||||||||
Derivative [Line Items] | |||||||||||
Unrealized (loss) recognized in accumulated other comprehensive loss | (449) | (2,023) | (5,232) | ||||||||
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | (393) | (3,981) | 0 | ||||||||
Net tax effect on items recognized in accumulated other comprehensive income | (2,589) | (835) | 2,094 | ||||||||
Other Non-interest Expense | FHLBB borrowings | Interest Rate Swap | Cash Flow Hedging | |||||||||||
Derivative [Line Items] | |||||||||||
Less: reclassification of unrealized (loss) from accumulated other comprehensive income to other non-interest expense | $ (6,629) | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS AND H115
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hedging derivatives | Economic Hedging | Interest Rate Swap | Industrial Revenue Bond | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | $ 371 | $ (75) | $ (344) |
Hedging derivatives | Economic Hedging | Interest Rate Swap | Commercial loan | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | 3,557 | 1,312 | (4,852) |
Hedging derivatives | Economic Hedging | Reverse Interest Rate Swaps | Commercial loan | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | (3,557) | (1,312) | 4,852 |
(Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income | (316) | 338 | (51) |
Hedging derivatives | Economic Hedging | Risk Participation Agreements | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | (31) | (61) | (36) |
Hedging derivatives | Economic Hedging | Forward Commitments | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | (123) | (1,176) | (247) |
Realized gain (loss) in other non-interest income | (1,764) | (3,705) | 45 |
Non-hedging derivatives | Commitments to lend | |||
Derivative [Line Items] | |||
Unrealized gain (loss) recognized in other non-interest income | 5,259 | 8,373 | 2,436 |
Realized gain (loss) in other non-interest income | $ 50,879 | $ 3,650 | $ 1,899 |
DERIVATIVE INSTRUMENTS AND H116
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Statements of Condition | $ 19,308 | $ 21,617 |
Interest Rate Swap | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 11,269 | 11,510 |
Gross Amounts Offset in the Statements of Condition | (1,622) | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 9,647 | 11,510 |
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 | 9,647 | 11,510 |
Interest Rate Swap | Institutional counterparties | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 2,692 | 49 |
Gross Amounts Offset in the Statements of Condition | (1,622) | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 1,070 | 49 |
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 | 1,070 | 49 |
Interest Rate Swap | Commercial counterparties | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets | 8,577 | 11,461 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 8,577 | 11,461 |
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 | $ 8,577 | $ 11,461 |
DERIVATIVE INSTRUMENTS AND H117
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | ||
Net Amounts of Liabilities Presented in the Statement of Condition | $ (15,838) | $ (24,420) |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 2,100 | 900 |
Interest Rate Swap | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (14,152) | (24,484) |
Gross Amounts Offset in the Statements of Condition | 2,837 | 4,712 |
Net Amounts of Liabilities Presented in the Statement of Condition | (11,315) | (19,772) |
Gross amounts not offset in the Statements of Condition, financial instruments | 3,982 | 14,738 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 1,960 | 650 |
Net Amount | (5,373) | (4,384) |
Interest Rate Swap | Institutional counterparties | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (8,777) | (20,077) |
Gross Amounts Offset in the Statements of Condition | 2,835 | 4,689 |
Net Amounts of Liabilities Presented in the Statement of Condition | (5,942) | (15,388) |
Gross amounts not offset in the Statements of Condition, financial instruments | 3,982 | 14,738 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 1,960 | 650 |
Net Amount | 0 | 0 |
Interest Rate Swap | Commercial counterparties | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | (5,375) | (4,407) |
Gross Amounts Offset in the Statements of Condition | 2 | 23 |
Net Amounts of Liabilities Presented in the Statement of Condition | (5,373) | (4,384) |
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 | $ (5,373) | $ (4,384) |
OTHER COMMITMENTS, CONTINGEN118
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial commitments whose contractual amount represents credit risk | ||
Total | $ 1,605,594 | $ 1,446,396 |
Commitments to originate new loans | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | 244,252 | 243,519 |
Unused funds on commercial and other lines of credit | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | 678,567 | 574,043 |
Unadvanced funds on home equity lines of credit | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | 297,367 | 281,621 |
Unadvanced funds on construction and real estate loans | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | 360,472 | 320,635 |
Standby letters of credit | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | 13,613 | 14,939 |
Lease obligation | ||
Financial commitments whose contractual amount represents credit risk | ||
Total | $ 11,323 | $ 11,639 |
OTHER COMMITMENTS, CONTINGEN119
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Future minimum rental payments | |||
2,018 | $ 12,800 | ||
2,019 | 10,800 | ||
2,020 | 9,300 | ||
2,021 | 8,300 | ||
2,022 | 7,600 | ||
Thereafter | $ 47,600 | ||
Extendable term | 20 years | ||
Total rent expense | $ 12,000 | $ 8,300 | $ 7,500 |
Lease Obligations | |||
2,018 | 647 | ||
2,019 | 646 | ||
2,020 | 644 | ||
2,021 | 612 | ||
2,022 | 583 | ||
Thereafter | 5,000 | ||
Future obligations required under the financing lease | |||
2,018 | 86 | ||
2,019 | 86 | ||
2,020 | 86 | ||
2,021 | 86 | ||
2,022 | 87 | ||
Thereafter | $ 1,500 | ||
Employment agreement term | 3 years | ||
Number of senior executives which entered into an employment agreement with the Company | employee | 1 |
SHAREHOLDERS' EQUITY AND EAR120
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Capital [Abstract] | ||
Total capital to risk-weighted assets, actual amount | $ 1,063,843 | $ 803,618 |
Total capital to risk-weighted assets, actual percent | 12.43% | 11.87% |
Total capital to risk-weighted assets, minimum capital requirement, amount | $ 684,692 | $ 541,603 |
Total capital to risk-weighted assets, minimum capital requirement, percent | 8.00% | 8.00% |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 855,865 | $ 677,004 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets, Amount | $ 942,389 | $ 670,120 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 11.01% | 9.90% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets, Amount | $ 385,139 | $ 304,652 |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 4.50% | 4.50% |
Common Entity Tier 1 Capital To Risk Weighted Assets, Capital Required to be Well Capitalized | $ 556,312 | $ 440,053 |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital risk-weighted assets, amount | $ 954,103 | $ 681,500 |
Tier 1 capital risk-weighted assets, percent | 11.15% | 10.07% |
Tier 1 capital risk-weighted assets, minimum capital requirement, amount | $ 513,519 | $ 406,202 |
Tier 1 capital risk-weighted assets, minimum capital requirement, percent | 6.00% | 6.00% |
Tier 1 capital risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 684,692 | $ 541,603 |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, amount | $ 954,103 | $ 681,500 |
Tier 1 capital to average assets, percent | 9.01% | 7.88% |
Tier 1 capital to average assets, minimum capital requirement, amount | $ 342,346 | $ 270,802 |
Tier 1 capital to average assets, minimum capital requirement, percent | 4.00% | 4.00% |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 427,932 | $ 338,502 |
Subsidiaries | ||
Capital [Abstract] | ||
Total capital to risk-weighted assets, actual amount | $ 954,172 | $ 756,792 |
Total capital to risk-weighted assets, actual percent | 11.17% | 11.21% |
Total capital to risk-weighted assets, minimum capital requirement, amount | $ 683,103 | $ 539,893 |
Total capital to risk-weighted assets, minimum capital requirement, percent | 8.00% | 8.00% |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 853,879 | $ 674,866 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, percent | 10.00% | 10.00% |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets, Amount | $ 881,324 | $ 672,244 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.32% | 9.96% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets, Amount | $ 384,245 | $ 303,690 |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 4.50% | 4.50% |
Common Entity Tier 1 Capital To Risk Weighted Assets, Capital Required to be Well Capitalized | $ 555,021 | $ 438,663 |
Common Entity Tier 1 Capital To Risk Weighted Assets, Capital Required to be Well Capitalized, Percent | 6.50% | 6.50% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital risk-weighted assets, amount | $ 881,324 | $ 672,244 |
Tier 1 capital risk-weighted assets, percent | 10.32% | 9.96% |
Tier 1 capital risk-weighted assets, minimum capital requirement, amount | $ 512,327 | $ 404,920 |
Tier 1 capital risk-weighted assets, minimum capital requirement, percent | 6.00% | 6.00% |
Tier 1 capital risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 683,103 | $ 539,893 |
Tier 1 capital risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions, percent | 8.00% | 8.00% |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, amount | $ 881,324 | $ 672,244 |
Tier 1 capital to average assets, percent | 8.32% | 7.84% |
Tier 1 capital to average assets, minimum capital requirement, amount | $ 341,552 | $ 269,920 |
Tier 1 capital to average assets, minimum capital requirement, percent | 4.00% | 4.00% |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provisions, amount | $ 426,939 | $ 337,433 |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provisions, percent | 5.00% | 5.00% |
SHAREHOLDERS' EQUITY AND EAR121
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Preferred Stock (Details) - Series B Convertible Preferred Stock - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||
Right to receive (shares) | 0.465 | |
Shares issued upon conversion (shares) | 2 | |
Preferred stock outstanding (shares) | 521,607 | 0 |
Preferred stock issued (shares) | 521,607 | 0 |
SHAREHOLDERS' EQUITY AND EAR122
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive (loss) income | $ 4,161 | $ 9,766 | $ (3,305) | $ 6,579 |
Net unrealized holding gain on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income/(loss), before tax | 10,034 | 25,176 | ||
Income taxes related to items of accumulated other comprehensive income/(loss) | (4,026) | (9,636) | ||
Accumulated other comprehensive (loss) income | 6,008 | 15,540 | 3,880 | 9,916 |
Net (loss) on effective cash flow hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income/(loss), before tax | 0 | (6,573) | ||
Income taxes related to items of accumulated other comprehensive income/(loss) | 0 | 2,589 | ||
Accumulated other comprehensive (loss) income | 0 | (3,984) | (5,108) | (1,969) |
Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income/(loss), before tax | (3,048) | (2,954) | ||
Income taxes related to items of accumulated other comprehensive income/(loss) | 1,201 | 1,164 | ||
Accumulated other comprehensive (loss) income | $ (1,847) | $ (1,790) | $ (2,077) | $ (1,368) |
SHAREHOLDERS' EQUITY AND EAR123
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, net of tax | $ (1,925) | $ 10,257 | $ (8,776) |
Less: reclassification adjustment for (losses) gains realized in net income, net of tax | 3,680 | (2,814) | 1,108 |
Total other comprehensive income (loss), before tax | (8,663) | 21,333 | (16,086) |
Total income tax (expense) benefit related to other comprehensive income (loss) | 3,058 | (8,262) | 6,202 |
Total other comprehensive income (loss) | (5,605) | 13,071 | (9,884) |
Net unrealized holding (loss) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (2,544) | 18,308 | (7,567) |
Other comprehensive income (loss) before reclassifications, tax | 1,075 | (6,979) | 2,793 |
Other comprehensive income (loss), before reclassifications, net of tax | (1,469) | 11,329 | (4,774) |
Less: reclassification adjustment for (losses) realized in net income, before tax | 12,598 | (551) | 2,110 |
Less: reclassification adjustment for (losses) gains realized in net income, tax | (4,535) | 220 | (847) |
Less: reclassification adjustment for (losses) gains realized in net income, net of tax | 8,063 | (331) | 1,263 |
Total other comprehensive income (loss), before tax | (15,142) | 18,859 | (9,677) |
Total income tax (expense) benefit related to other comprehensive income (loss) | 5,610 | (7,199) | 3,640 |
Total other comprehensive income (loss) | (9,532) | 11,660 | (6,037) |
Net (loss) on cash flow hedging derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (449) | (2,022) | (5,232) |
Other comprehensive income (loss) before reclassifications, tax | 180 | 754 | 2,094 |
Other comprehensive income (loss), before reclassifications, net of tax | (269) | (1,268) | (3,138) |
Less: reclassification adjustment for (losses) realized in net income, before tax | (7,022) | (3,981) | 0 |
Less: reclassification adjustment for (losses) gains realized in net income, tax | 2,769 | 1,589 | 0 |
Less: reclassification adjustment for (losses) gains realized in net income, net of tax | (4,253) | (2,392) | 0 |
Total other comprehensive income (loss), before tax | 6,573 | 1,959 | (5,232) |
Total income tax (expense) benefit related to other comprehensive income (loss) | (2,589) | (835) | 2,094 |
Total other comprehensive income (loss) | 3,984 | 1,124 | (3,138) |
Net unrealized holding (loss) on pension plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), before reclassifications, before tax | (311) | 351 | (1,436) |
Other comprehensive income (loss) before reclassifications, tax | 124 | (155) | 572 |
Other comprehensive income (loss), before reclassifications, net of tax | (187) | 196 | (864) |
Less: reclassification adjustment for (losses) realized in net income, before tax | (217) | (164) | (259) |
Less: reclassification adjustment for (losses) gains realized in net income, tax | 87 | 73 | 104 |
Less: reclassification adjustment for (losses) gains realized in net income, net of tax | (130) | (91) | (155) |
Total other comprehensive income (loss), before tax | (94) | 515 | (1,177) |
Total income tax (expense) benefit related to other comprehensive income (loss) | 37 | (228) | 468 |
Total other comprehensive income (loss) | $ (57) | $ 287 | $ (709) |
SHAREHOLDERS' EQUITY AND EAR124
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Year | $ 9,766 | $ (3,305) | $ 6,579 |
Other comprehensive gain (loss) before reclassifications | (1,925) | 10,257 | (8,776) |
Amounts reclassified from accumulated other comprehensive income | 3,680 | (2,814) | 1,108 |
Total other comprehensive income (loss) | (5,605) | 13,071 | (9,884) |
Balance at End of Period | 4,161 | 9,766 | (3,305) |
Net unrealized holding (loss) on AFS securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Year | 15,540 | 3,880 | 9,916 |
Other comprehensive gain (loss) before reclassifications | (1,469) | 11,329 | (4,774) |
Amounts reclassified from accumulated other comprehensive income | 8,063 | (331) | 1,263 |
Total other comprehensive income (loss) | (9,532) | 11,660 | (6,037) |
Balance at End of Period | 6,008 | 15,540 | 3,880 |
Net (loss) on effective cash flow hedging derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Year | (3,984) | (5,108) | (1,969) |
Other comprehensive gain (loss) before reclassifications | (269) | (1,268) | (3,138) |
Amounts reclassified from accumulated other comprehensive income | (4,253) | (2,392) | 0 |
Total other comprehensive income (loss) | 3,984 | 1,124 | (3,138) |
Balance at End of Period | 0 | (3,984) | (5,108) |
Net unrealized holding (loss) on pension plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at Beginning of Year | (1,790) | (2,077) | (1,368) |
Other comprehensive gain (loss) before reclassifications | (187) | 196 | (864) |
Amounts reclassified from accumulated other comprehensive income | (130) | (91) | (155) |
Total other comprehensive income (loss) | (57) | 287 | (709) |
Balance at End of Period | $ (1,847) | $ (1,790) | $ (2,077) |
SHAREHOLDERS' EQUITY AND EAR125
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Non-interest income | $ 29,298 | $ 28,836 | $ 32,798 | $ 34,757 | $ 16,725 | $ 18,941 | $ 14,555 | $ 15,630 | $ 125,689 | $ 65,851 | $ 54,288 |
Income tax expense (benefit) | (22,292) | (7,211) | (8,237) | (6,762) | (362) | (6,953) | (5,249) | (6,220) | (44,502) | (18,784) | (5,064) |
Interest expense | (19,457) | (17,062) | (15,121) | (13,823) | (13,276) | (12,540) | (11,577) | (10,779) | (65,463) | (48,172) | (33,181) |
Non-interest expense | $ 86,366 | $ 71,998 | $ 69,545 | $ 66,886 | $ 59,158 | $ 57,971 | $ 57,441 | $ 57,697 | 294,795 | 232,267 | 213,849 |
Income available to common shareholders | 55,028 | 58,670 | 49,518 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income available to common shareholders | 3,680 | (2,814) | 1,108 | ||||||||
Realized (gains) on AFS securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Non-interest income | 12,598 | (551) | 2,110 | ||||||||
Income tax expense (benefit) | (4,535) | 220 | (847) | ||||||||
Income available to common shareholders | 8,063 | (331) | 1,263 | ||||||||
Realized (losses) on cash flow hedging derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Non-interest income | (6,629) | 0 | 0 | ||||||||
Income tax expense (benefit) | 2,769 | 1,589 | 0 | ||||||||
Interest expense | (393) | 0 | 0 | ||||||||
Non-interest expense | 0 | (3,981) | 0 | ||||||||
Income available to common shareholders | (4,253) | (2,392) | 0 | ||||||||
Realized (losses) on pension plans | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense (benefit) | 87 | 73 | 104 | ||||||||
Non-interest expense | (217) | (164) | (259) | ||||||||
Income available to common shareholders | $ (130) | $ (91) | $ (155) |
SHAREHOLDERS' EQUITY AND EAR126
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share Basic and Diluted [Line Items] | |||||||||||
Net income | $ (2,810) | $ 22,903 | $ 19,694 | $ 15,460 | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 55,247 | $ 58,670 | $ 49,518 |
Average number of common shares issued (shares) | 40,627 | 32,604 | 30,074 | ||||||||
Less: average number of treasury shares (shares) | 963 | 1,116 | 1,215 | ||||||||
Less: average number of unvested stock award shares (shares) | 437 | 500 | 466 | ||||||||
Plus: average participating preferred shares (shares) | 229 | 0 | 0 | ||||||||
Average number of basic common shares outstanding (shares) | 45,122 | 39,984 | 37,324 | 35,280 | 32,185 | 30,621 | 30,605 | 30,511 | 39,456 | 30,988 | 28,393 |
Average number of diluted common shares outstanding (shares) | 45,122 | 40,145 | 37,474 | 35,452 | 32,381 | 30,811 | 30,765 | 30,688 | 39,695 | 31,167 | 28,564 |
Basic earnings per common share (USD per share) | $ (0.06) | $ 0.57 | $ 0.53 | $ 0.44 | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 1.40 | $ 1.89 | $ 1.74 |
Diluted earnings per common share (USD per share) | $ (0.06) | $ 0.57 | $ 0.53 | $ 0.44 | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 1.39 | $ 1.88 | $ 1.73 |
Restricted Stock | |||||||||||
Earnings Per Share Basic and Diluted [Line Items] | |||||||||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (shares) | 202 | 122 | 106 | ||||||||
Employee Stock Option | |||||||||||
Earnings Per Share Basic and Diluted [Line Items] | |||||||||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (shares) | 37 | 57 | 65 |
SHAREHOLDERS' EQUITY AND EAR127
SHAREHOLDERS' EQUITY AND EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (shares) | 55 | 52 | 200 |
STOCK-BASED COMPENSATION PLA128
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost | $ 5,300,000 | $ 4,600,000 | $ 4,700,000 |
Total recognized tax benefit | $ 2,000,000 | $ 1,800,000 | $ 1,900,000 |
Weighted average fair value of stock awards granted (USD per share) | $ 35.84 | $ 26.81 | $ 26.66 |
Vesting period | 5 years | ||
Total fair value of awards vested | $ 4,400,000 | $ 4,400,000 | $ 3,400,000 |
Expected weighted-average period for recognition of unrecognized compensation | 2 years | ||
Unrecognized stock-based compensation expense | $ 6,500,000 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost | 0 | 0 | 0 |
Total recognized tax benefit | $ 0 | 0 | 0 |
Vesting period | 5 years | ||
Contractual life | 10 years | ||
Weighted average remaining contractual term for options outstanding | 2 years | ||
Total intrinsic value | $ 362,700 | 879,600 | 210,000 |
Unrecognized stock-based compensation expense | $ 0 | $ 0 | $ 0 |
2013 Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized under the plan (shares) | 1,030,000 | ||
Number of shares available for grant under the plan (shares) | 383,000 | ||
2013 Equity Compensation Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares counted against the share limit for each stock granted (percent) | 300.00% | ||
2013 Equity Compensation Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares counted against the share limit for each stock granted (percent) | 100.00% | ||
2011 Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized under the plan (shares) | 1,400,000 | ||
Number of shares available for grant under the plan (shares) | 6,000 | ||
2011 Equity Compensation Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares counted against the share limit for each stock granted (percent) | 300.00% | ||
2011 Equity Compensation Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares counted against the share limit for each stock granted (percent) | 100.00% |
STOCK-BASED COMPENSATION PLA129
STOCK-BASED COMPENSATION PLANS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock | |||
Non-vested Stock Awards Outstanding, Number of Shares | |||
Balance at the beginning of the period (in shares) | 448,000 | ||
Granted (in shares) | 161,000 | ||
Stock awards vested (in shares) | (174,000) | ||
Forfeited (in shares) | (17,000) | ||
Balance at the end of the period (in shares) | 418,000 | 448,000 | |
Non-vested Stock Awards Outstanding, Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (USD per share) | $ 26.28 | ||
Granted (USD per share) | 35.84 | $ 26.81 | $ 26.66 |
Stock awards vested (USD per share) | 25.68 | ||
Forfeited (USD per share) | 30.04 | ||
Balance at the end of the period (USD per share) | $ 29.68 | $ 26.28 | |
Employee Stock Option | |||
Stock Options Outstanding, Number of Shares | |||
Balance at the beginning of the period (shares) | 109,000 | ||
Granted (shares) | 0 | ||
Exercised (shares) | (19,000) | ||
Forfeited (shares) | 0 | ||
Expired (shares) | (14,000) | ||
Balance at the end of the period (shares) | 76,000 | 109,000 | |
Stock Options Outstanding, Weighted-Average Exercise Price | |||
Balance at the beginning of the period (USD per share) | $ 15.72 | ||
Granted (USD per share) | 0 | ||
Exercised (USD per share) | 17.74 | ||
Forfeited (USD per share) | 0 | ||
Expired (USD per share) | 29.35 | ||
Balance at the end of the period (USD per share) | $ 13.59 | $ 15.72 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | $ 12,277 | $ 13,229 |
Available-for-securities | 1,426,099 | 1,209,537 |
Other assets | 117,083 | 98,457 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 12,277 | 13,229 |
Available-for-securities | 1,426,099 | 1,209,537 |
Loans held for sale | 153,620 | 120,673 |
Derivative assets | 19,308 | 21,617 |
Derivative liabilities | 15,838 | 24,420 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Available-for-securities | 44,850 | 62,284 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 622 |
Derivative liabilities | 104 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Available-for-securities | 1,381,249 | 1,147,253 |
Loans held for sale | 153,620 | 120,673 |
Derivative assets | 14,049 | 16,157 |
Derivative liabilities | 15,715 | 24,420 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 12,277 | 13,229 |
Available-for-securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 5,259 | 4,838 |
Derivative liabilities | 19 | 0 |
Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 12,277 | 13,229 |
Loans held for sale | 153,620 | 120,673 |
Derivative assets | 19,308 | 21,617 |
Other assets | 3,834 | 798 |
Derivative liabilities | 15,838 | 24,420 |
Recurring | Fair Value | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 118,233 | 119,816 |
Recurring | Fair Value | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 851,158 | 651,911 |
Recurring | Fair Value | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 216,940 | 228,684 |
Recurring | Fair Value | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 62,305 | 64,534 |
Recurring | Fair Value | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 110,721 | 56,006 |
Recurring | Fair Value | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 11,677 | 11,887 |
Recurring | Fair Value | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 9,880 | 11,158 |
Recurring | Fair Value | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 45,185 | 65,541 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 622 |
Other assets | 0 | 0 |
Derivative liabilities | 104 | 0 |
Recurring | Level 1 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 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] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 44,851 | 62,284 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 153,620 | 120,673 |
Derivative assets | 14,049 | 16,157 |
Other assets | 0 | 0 |
Derivative liabilities | 15,715 | 24,420 |
Recurring | Level 2 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 118,233 | 119,816 |
Recurring | Level 2 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 851,158 | 651,911 |
Recurring | Level 2 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 216,940 | 228,684 |
Recurring | Level 2 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 62,305 | 64,534 |
Recurring | Level 2 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 110,721 | 56,006 |
Recurring | Level 2 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 11,677 | 11,887 |
Recurring | Level 2 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 9,880 | 11,158 |
Recurring | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 334 | 3,257 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 12,277 | 13,229 |
Loans held for sale | 0 | 0 |
Derivative assets | 5,259 | 4,838 |
Other assets | 3,834 | 798 |
Derivative liabilities | 19 | 0 |
Recurring | Level 3 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 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] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | 0 | 0 |
Recurring | Level 3 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)securitytransfer | Dec. 31, 2016USD ($)transfer | Dec. 31, 2015transfer | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of transfers from Level 3 to Level 2 | transfer | 1 | ||
Value of transfer from Level 3 to Level 2 | $ 708 | ||
Junior subordinated debentures re-price period | 90 days | ||
Origination of loans held for sale | $ 2,400,000 | ||
Sales of loans originated as held for sale | 2,300,000 | ||
Loans Held for Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (losses) in fair value of loans held for sale included in earnings | $ 2,100 | $ 2,200 | |
Trading Security | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities in the portfolio (security) | security | 1 | ||
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of transfers from Level 3 to Level 2 | transfer | 0 | 0 |
FAIR VALUE MEASUREMENTS - Loans
FAIR VALUE MEASUREMENTS - Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans Held for Sale | ||
Aggregate Unpaid Principal | $ 1,392 | $ 0 |
Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 153,620 | 120,673 |
Aggregate Unpaid Principal | 1,392 | 322 |
Recurring | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 153,620 | 120,673 |
Recurring | Level 2 | Loans Held for Sale | ||
Loans Held for Sale | ||
Aggregate Fair Value | 153,620 | 120,673 |
Aggregate Unpaid Principal | 149,022 | 118,178 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 4,598 | $ 2,495 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Level 3 assets that were measured at fair value on a recurring basis | |||
Transfers to Level 2 | $ (708) | ||
Paydown of trading security | $ 1,678 | 4,052 | $ 3,010 |
Forward Commitments | |||
Liabilities | |||
Balance at the beginning of the period | 100 | 9 | |
Unrealized (loss) gain, net recognized in other non-interest income | (81) | 91 | |
Balance at the end of the period | 19 | 100 | 9 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 19 | 100 | |
Capitalized servicing rights | |||
Liabilities | |||
Balance at the beginning of the period | 798 | 0 | |
Unrealized (loss) gain, net recognized in other non-interest income | (221) | 102 | |
Paydown of trading security | 3,257 | ||
Balance at the end of the period | 3,834 | 798 | 0 |
Unrealized gains (losses) relating to instruments still held at the end of the period | (221) | 102 | |
Capitalized servicing rights | First Choice Bank | |||
Liabilities | |||
Amounts acquired from First Choice Bank | 696 | ||
Trading Security | |||
Changes in Level 3 assets that were measured at fair value on a recurring basis | |||
Balance at the beginning of the period | 13,229 | 14,189 | |
Unrealized (loss) gain, net recognized in other non-interest income | (320) | (362) | |
Paydown of trading security | (632) | (598) | |
Balance at the end of the period | 12,277 | 13,229 | 14,189 |
Liabilities | |||
Unrealized gains (losses) relating to instruments still held at the end of the period | 1,522 | 1,843 | |
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 | 708 | |
Transfers to Level 2 | (708) | ||
Balance at the end of the period | 0 | 0 | 708 |
Liabilities | |||
Unrealized gains (losses) relating to instruments still held at the end of the period | 0 | 0 | |
Commitments to lend | |||
Changes in Level 3 assets that were measured at fair value on a recurring basis | |||
Balance at the beginning of the period | 4,738 | 323 | |
Unrealized (loss) gain, net recognized in other non-interest income | 63,894 | 13,563 | |
Transfers to loans held for sale | (63,373) | (13,048) | |
Balance at the end of the period | 5,259 | 4,738 | $ 323 |
Liabilities | |||
Unrealized gains (losses) relating to instruments still held at the end of the period | $ 5,259 | 4,738 | |
Commitments to lend | First Choice Bank | |||
Changes in Level 3 assets that were measured at fair value on a recurring basis | |||
Amounts acquired from First Choice Bank | $ 3,900 |
FAIR VALUE MEASUREMENTS - Signi
FAIR VALUE MEASUREMENTS - Significant Unobservable Inputs for Recurring Assets (Details) - Level 3 - Recurring - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 21,389,000 | $ 18,865,000 |
Trading Security | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 12,277,000 | $ 13,229,000 |
Trading Security | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate (percent) | 2.74% | 2.62% |
Securities Available for Sale | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 100,000 | |
Securities Available for Sale | Pricing Model | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Median Peer Price/ Tangible Book Value Percentage Multiple (percent) | 80.36% | |
Commitments to Lend | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 19,000 | $ 4,738,000 |
Commitments to Lend | Pricing Model | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Origination Costs, per loan | $ 3,692,000 | $ 0.8036 |
Commitments to Lend | Pricing Model | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Closing Ratio (percent) | 81.53% | 369200.00% |
Commitments to lend | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 5,259,000 | $ 798,000 |
Commitments to lend | Pricing Model | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Origination Costs, per loan | $ 3,692,000 | $ 0.1040 |
Commitments to lend | Pricing Model | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Closing Ratio (percent) | 81.53% | 369200.00% |
Capitalized servicing rights | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets measured on recurring basis | $ 3,834,000 | |
Capitalized servicing rights | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount Rate (percent) | 10.95% | 11.00% |
Constant prepayment rate (percent) | 10.00% |
FAIR VALUE MEASUREMENTS - Non-r
FAIR VALUE MEASUREMENTS - Non-recurring Fair Value Measurements (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 36,380 | $ 28,638 |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | 23,853 | 17,761 |
Capitalized servicing rights | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | 12,527 | 10,726 |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 0 | $ 151 |
FAIR VALUE MEASUREMENTS - Si136
FAIR VALUE MEASUREMENTS - Significant Unobservable Inputs for Non-recurring Assets (Details) - Non-recurring - Level 3 - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 36,380,000 | $ 28,638,000 |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | 23,853,000 | 17,761,000 |
Impaired loans | Fair value of collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 23,853,000 | $ 17,761,000 |
Impaired loans | Fair value of collateral | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (percent) | 0.21% | 0.00% |
Appraised value | $ 10,900 | $ 0 |
Impaired loans | Fair value of collateral | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (percent) | 38.72% | 88.70% |
Appraised value | $ 5,967,000 | $ 2,192,000 |
Impaired loans | Fair value of collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity (percent) | 3.40% | 9.73% |
Appraised value | $ 2,197,000 | $ 1,026,000 |
Capitalized servicing rights | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | 12,527,000 | 10,726,000 |
Capitalized servicing rights | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 12,527,000 | $ 10,726,000 |
Capitalized servicing rights | Discounted Cash Flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (percent) | 7.78% | 7.35% |
Discount Rate (percent) | 10.00% | 10.00% |
Capitalized servicing rights | Discounted Cash Flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (percent) | 12.78% | 14.28% |
Discount Rate (percent) | 13.28% | 14.00% |
Capitalized servicing rights | Discounted Cash Flow | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Constant prepayment rate (percent) | 10.38% | 10.44% |
Discount Rate (percent) | 11.72% | 11.77% |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 0 | $ 151,000 |
Other real estate owned | Fair value of collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, fair value | $ 0 | 151,000 |
Other real estate owned | Fair value of collateral | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised value | 101,000 | |
Other real estate owned | Fair value of collateral | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised value | 129,000 | |
Other real estate owned | Fair value of collateral | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraised value | $ 122,000 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets | ||
Trading security | $ 12,277 | $ 13,229 |
Securities available for sale, at fair value | 1,426,099 | 1,209,537 |
Securities held to maturity | 405,276 | 337,680 |
FHLB stock and restricted equity securities | 63,085 | 71,112 |
Accrued interest receivable | 33,739 | 26,113 |
Assets held for sale | 1,392 | 0 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 248,763 | 113,075 |
Trading security | 0 | 0 |
Securities available for sale, at fair value | 44,850 | 62,284 |
Securities held to maturity | 0 | 0 |
FHLB stock and restricted equity securities | 0 | 0 |
Net loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 622 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term FHLB advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Derivative liabilities | 104 | 0 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 0 | 0 |
Securities available for sale, at fair value | 1,381,249 | 1,147,253 |
Securities held to maturity | 371,458 | 300,806 |
Net loans | 0 | 0 |
Loans held for sale | 153,620 | 120,673 |
Accrued interest receivable | 33,739 | 26,113 |
Derivative assets | 14,049 | 16,157 |
Assets held for sale | 1,392 | 322 |
Financial Liabilities | ||
Total deposits | 8,731,527 | 6,624,108 |
Short-term debt | 667,246 | 1,081,996 |
Long-term FHLB advances | 378,766 | 143,151 |
Subordinated notes | 97,414 | 96,973 |
Derivative liabilities | 15,715 | 24,420 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 12,277 | 13,229 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 33,818 | 36,874 |
FHLB stock and restricted equity securities | 0 | 0 |
Net loans | 8,422,034 | 6,532,745 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 5,259 | 4,838 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term FHLB advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Derivative liabilities | 19 | 0 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 248,763 | 113,075 |
Trading security | 12,277 | 13,229 |
Securities available for sale, at fair value | 1,426,099 | 1,209,537 |
Securities held to maturity | 397,103 | 334,368 |
FHLB stock and restricted equity securities | 63,085 | 71,112 |
Net loans | 8,247,504 | 6,505,789 |
Loans held for sale | 153,620 | 120,673 |
Accrued interest receivable | 33,739 | 26,113 |
Derivative assets | 19,308 | 21,617 |
Assets held for sale | 1,392 | 322 |
Financial Liabilities | ||
Total deposits | 8,749,530 | 6,622,092 |
Short-term debt | 667,300 | 1,082,044 |
Long-term FHLB advances | 380,436 | 142,792 |
Subordinated notes | 89,339 | 89,161 |
Derivative liabilities | 15,838 | 24,420 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 248,763 | 113,075 |
Trading security | 12,277 | 13,229 |
Securities available for sale, at fair value | 1,426,099 | 1,209,537 |
Securities held to maturity | 405,276 | 337,680 |
Net loans | 8,422,034 | 6,532,745 |
Loans held for sale | 153,620 | 120,673 |
Accrued interest receivable | 33,739 | 26,113 |
Derivative assets | 19,308 | 21,617 |
Assets held for sale | 1,392 | 322 |
Financial Liabilities | ||
Total deposits | 8,731,527 | 6,624,108 |
Short-term debt | 667,246 | 1,081,996 |
Long-term FHLB advances | 378,766 | 143,151 |
Subordinated notes | 97,414 | 96,973 |
Derivative liabilities | $ 15,838 | $ 24,420 |
CONDENSED FINANCIAL STATEMEN138
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash due from Berkshire Bank | $ 91,122 | $ 71,494 | ||
Securities available for sale, at fair value | 1,426,099 | 1,209,537 | ||
Other assets | 117,083 | 98,457 | ||
Total assets | 11,570,751 | 9,162,542 | ||
Liabilities and Shareholders’ Equity | ||||
Short-term debt | 667,300 | 1,082,044 | ||
Subordinated notes | 89,339 | 89,161 | ||
Shareholders’ equity | 1,496,264 | 1,093,298 | $ 887,189 | $ 709,287 |
Total liabilities and shareholders’ equity | 11,570,751 | 9,162,542 | ||
Reportable legal entity | Berkshire Hills Bancorp | ||||
Condensed balance sheets | ||||
Intercompany subordinated notes | 35,000 | |||
Assets | ||||
Cash due from Berkshire Bank | 83,380 | 43,018 | ||
Investment in subsidiaries | 1,470,859 | 1,127,706 | ||
Securities available for sale, at fair value | 21,827 | 23,651 | ||
Other assets | 12,138 | 1,372 | ||
Total assets | 1,588,204 | 1,195,747 | ||
Liabilities and Shareholders’ Equity | ||||
Short-term debt | 0 | 10,000 | ||
Subordinated notes | 89,339 | 89,161 | ||
Accrued expenses | 2,601 | 3,288 | ||
Shareholders’ equity | 1,496,264 | 1,093,298 | ||
Total liabilities and shareholders’ equity | $ 1,588,204 | $ 1,195,747 |
CONDENSED FINANCIAL STATEMEN139
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income: | |||||||||||
Total net revenue | $ 115,664 | $ 100,834 | $ 102,343 | $ 101,643 | $ 75,883 | $ 76,912 | $ 71,996 | $ 73,327 | $ 420,484 | $ 298,118 | $ 268,137 |
Interest expense | 19,457 | 17,062 | 15,121 | 13,823 | 13,276 | 12,540 | 11,577 | 10,779 | 65,463 | 48,172 | 33,181 |
Income tax benefit | 22,292 | 7,211 | 8,237 | 6,762 | 362 | 6,953 | 5,249 | 6,220 | 44,502 | 18,784 | 5,064 |
Net income | $ (2,810) | $ 22,903 | $ 19,694 | $ 15,460 | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | 55,247 | 58,670 | 49,518 |
Preferred stock dividend | 219 | 0 | 0 | ||||||||
Income available to common shareholders | 55,028 | 58,670 | 49,518 | ||||||||
Reportable legal entity | Berkshire Hills Bancorp | |||||||||||
Income: | |||||||||||
Dividends from subsidiaries | 39,000 | 33,000 | 34,000 | ||||||||
Other | 5,864 | 4,072 | 2,763 | ||||||||
Total net revenue | 44,864 | 37,072 | 36,763 | ||||||||
Interest expense | 5,338 | 5,743 | 5,674 | ||||||||
Non-interest expenses | 6,042 | 3,740 | 3,670 | ||||||||
Total expense | 11,380 | 9,483 | 9,344 | ||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 33,484 | 27,589 | 27,419 | ||||||||
Income tax benefit | (1,783) | (2,123) | (2,518) | ||||||||
Income before equity in undistributed income of subsidiaries | 35,267 | 29,712 | 29,937 | ||||||||
Equity in undistributed income of subsidiaries | 19,980 | 28,958 | 19,581 | ||||||||
Net income | 55,247 | 58,670 | 49,518 | ||||||||
Preferred stock dividend | 219 | 0 | 0 | ||||||||
Income available to common shareholders | $ 55,028 | $ 58,670 | $ 49,518 |
CONDENSED FINANCIAL STATEMEN140
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed statements of cash flows | |||||||||||
Net income | $ (2,810) | $ 22,903 | $ 19,694 | $ 15,460 | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 55,247 | $ 58,670 | $ 49,518 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | |||||||||||
Other, net | 19,254 | 3,309 | 4,458 | ||||||||
Net cash provided by operating activities | 78,091 | 98,142 | 86,288 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash paid | 374,611 | (48,180) | 74,324 | ||||||||
Other, net | (5,102) | (7,616) | (5,105) | ||||||||
Net cash used in investing activities | (282,903) | (207,595) | (454,492) | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from common stock | 152,985 | 0 | 0 | ||||||||
Payment to repurchase common stock | 0 | 0 | (550) | ||||||||
Cash dividends paid | (33,241) | (24,916) | (21,903) | ||||||||
Net cash provided by financing activities | 340,500 | 118,966 | 400,012 | ||||||||
Net change in cash and cash equivalents | 135,688 | 9,513 | 31,808 | ||||||||
Cash and cash equivalents at beginning of year | 113,075 | 113,075 | |||||||||
Cash and cash equivalents at end of year | 248,763 | 113,075 | 248,763 | 113,075 | |||||||
Reportable legal entity | Berkshire Hills Bancorp | |||||||||||
Condensed statements of cash flows | |||||||||||
Net income | 55,247 | 58,670 | 49,518 | ||||||||
Adjustments to reconcile net income to net cash (used) provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiaries | (19,980) | (28,958) | (19,581) | ||||||||
Other, net | (7,964) | 1,988 | 10,904 | ||||||||
Net cash provided by operating activities | 27,303 | 31,700 | 40,841 | ||||||||
Cash flows from investing activities: | |||||||||||
Advances to subsidiaries | (100,000) | 0 | 0 | ||||||||
Acquisitions, net of cash paid | 0 | 0 | (3,293) | ||||||||
Purchase of securities | (1,057) | (18,016) | (18) | ||||||||
Sale of securities | 2,101 | 0 | 0 | ||||||||
Other, net | 1,508 | 9,728 | 0 | ||||||||
Net cash used in investing activities | (97,448) | (8,288) | (3,311) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceed from issuance of short term debt | 0 | 9,349 | 0 | ||||||||
Repayment of short term debt | (9,822) | 0 | (9,935) | ||||||||
Net proceeds from common stock | 153,313 | 3,712 | 0 | ||||||||
Net proceeds from preferred stock | 0 | 0 | 0 | ||||||||
Net proceeds from reissuance of treasury stock | 0 | 0 | 240 | ||||||||
Payment to repurchase common stock | 0 | (4,632) | (550) | ||||||||
Cash dividends paid | (33,022) | (24,916) | (21,903) | ||||||||
Preferred stock cash dividends paid | (219) | 0 | 0 | ||||||||
Other, net | 257 | 11 | 167 | ||||||||
Net cash provided by financing activities | 110,507 | (16,476) | (31,981) | ||||||||
Net change in cash and cash equivalents | 40,362 | 6,936 | 5,549 | ||||||||
Cash and cash equivalents at beginning of year | $ 43,018 | $ 36,082 | 43,018 | 36,082 | 30,533 | ||||||
Cash and cash equivalents at end of year | $ 83,380 | $ 43,018 | $ 83,380 | $ 43,018 | $ 36,082 |
QUARTERLY DATA (UNAUDITED) (Det
QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 105,823 | $ 89,060 | $ 84,666 | $ 80,709 | $ 72,434 | $ 70,511 | $ 69,018 | $ 68,476 | $ 360,258 | $ 280,439 | $ 247,030 |
Interest expense | 19,457 | 17,062 | 15,121 | 13,823 | 13,276 | 12,540 | 11,577 | 10,779 | 65,463 | 48,172 | 33,181 |
Net interest income | 86,366 | 71,998 | 69,545 | 66,886 | 59,158 | 57,971 | 57,441 | 57,697 | 294,795 | 232,267 | 213,849 |
Total non-interest income | 29,298 | 28,836 | 32,798 | 34,757 | 16,725 | 18,941 | 14,555 | 15,630 | 125,689 | 65,851 | 54,288 |
Total net revenue | 115,664 | 100,834 | 102,343 | 101,643 | 75,883 | 76,912 | 71,996 | 73,327 | 420,484 | 298,118 | 268,137 |
Provision for loan losses | 6,141 | 4,900 | 4,889 | 5,095 | 4,100 | 4,734 | 4,522 | 4,006 | 21,025 | 17,362 | 16,726 |
Non-interest expense | 90,041 | 65,820 | 69,523 | 74,326 | 61,090 | 48,844 | 46,268 | 47,100 | 299,710 | 203,302 | 196,829 |
Income from continuing operations before income taxes | 19,482 | 30,114 | 27,931 | 22,222 | 10,693 | 23,334 | 21,206 | 22,221 | 99,749 | 77,454 | 54,582 |
Income tax expense | 22,292 | 7,211 | 8,237 | 6,762 | 362 | 6,953 | 5,249 | 6,220 | 44,502 | 18,784 | 5,064 |
Net (loss)/income | $ (2,810) | $ 22,903 | $ 19,694 | $ 15,460 | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 55,247 | $ 58,670 | $ 49,518 |
Basic (loss)/earnings per common share (USD per share) | $ (0.06) | $ 0.57 | $ 0.53 | $ 0.44 | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 1.40 | $ 1.89 | $ 1.74 |
Diluted (loss)/earnings per share (USD per share) | $ (0.06) | $ 0.57 | $ 0.53 | $ 0.44 | $ 0.32 | $ 0.53 | $ 0.52 | $ 0.52 | $ 1.39 | $ 1.88 | $ 1.73 |
Weighted average common shares outstanding: | |||||||||||
Basic (shares) | 45,122 | 39,984 | 37,324 | 35,280 | 32,185 | 30,621 | 30,605 | 30,511 | 39,456 | 30,988 | 28,393 |
Diluted (shares) | 45,122 | 40,145 | 37,474 | 35,452 | 32,381 | 30,811 | 30,765 | 30,688 | 39,695 | 31,167 | 28,564 |
Write down of net deferred tax asset | $ 18,100 |
NET INTEREST INCOME AFTER PR142
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Banking and Thrift, Interest [Abstract] | |||||||||||
Net interest income | $ 86,366 | $ 71,998 | $ 69,545 | $ 66,886 | $ 59,158 | $ 57,971 | $ 57,441 | $ 57,697 | $ 294,795 | $ 232,267 | $ 213,849 |
Provision for loan losses | 6,141 | 4,900 | 4,889 | 5,095 | 4,100 | 4,734 | 4,522 | 4,006 | 21,025 | 17,362 | 16,726 |
Net interest income after provision for loan losses | 273,770 | 214,905 | 197,123 | ||||||||
Total non-interest income | 29,298 | 28,836 | 32,798 | 34,757 | 16,725 | 18,941 | 14,555 | 15,630 | 125,689 | 65,851 | 54,288 |
Total non-interest expense | 90,041 | 65,820 | 69,523 | 74,326 | 61,090 | 48,844 | 46,268 | 47,100 | 299,710 | 203,302 | 196,829 |
Income from continuing operations before income taxes | 19,482 | 30,114 | 27,931 | 22,222 | 10,693 | 23,334 | 21,206 | 22,221 | 99,749 | 77,454 | 54,582 |
Income tax expense | 22,292 | 7,211 | 8,237 | 6,762 | 362 | 6,953 | 5,249 | 6,220 | 44,502 | 18,784 | 5,064 |
Net income | $ (2,810) | $ 22,903 | $ 19,694 | $ 15,460 | $ 10,331 | $ 16,381 | $ 15,957 | $ 16,001 | $ 55,247 | $ 58,670 | $ 49,518 |