Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 07, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | BERKSHIRE HILLS BANCORP INC | |
Entity Central Index Key | 1,108,134 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,423,719 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 90,964 | $ 91,122 |
Short-term investments | 48,093 | 157,641 |
Total cash and cash equivalents | 139,057 | 248,763 |
Trading security, at fair value | 11,483 | 12,277 |
Marketable equity securities, at fair value | 59,726 | 45,185 |
Securities available for sale, at fair value | 1,393,250 | 1,380,914 |
Securities held to maturity (fair values of $377,486 and $405,276) | 379,905 | 397,103 |
Federal Home Loan Bank stock and other restricted securities | 75,530 | 63,085 |
Total securities | 1,919,894 | 1,898,564 |
Loans held for sale, at fair value | 149,182 | 153,620 |
Commercial real estate loans | 3,319,323 | 3,264,742 |
Commercial and industrial loans | 1,875,118 | 1,803,939 |
Residential mortgages | 2,397,192 | 2,102,807 |
Consumer loans | 1,118,333 | 1,127,850 |
Total loans | 8,709,966 | 8,299,338 |
Less: Allowance for loan losses | (55,925) | (51,834) |
Net loans | 8,654,041 | 8,247,504 |
Premises and equipment, net | 112,217 | 109,352 |
Goodwill | 519,128 | 519,287 |
Other intangible assets | 35,838 | 38,296 |
Cash surrender value of bank-owned life insurance policies | 193,121 | 191,221 |
Deferred tax assets, net | 53,679 | 47,061 |
Other assets | 125,806 | 117,083 |
Total assets | 11,901,963 | 11,570,751 |
Liabilities | ||
Demand deposits | 1,553,039 | 1,606,656 |
NOW and other deposits | 858,014 | 734,558 |
Money market deposits | 2,619,943 | 2,776,157 |
Savings deposits | 747,722 | 741,954 |
Time deposits | 3,060,034 | 2,890,205 |
Total deposits | 8,838,752 | 8,749,530 |
Short-term debt | 1,002,000 | 667,300 |
Long-term Federal Home Loan Bank advances | 272,342 | 380,436 |
Subordinated borrowings | 89,429 | 89,339 |
Total borrowings | 1,363,771 | 1,137,075 |
Other liabilities | 183,199 | 187,882 |
Total liabilities | 10,385,722 | 10,074,487 |
Shareholders’ equity | ||
Preferred Stock (Series B non-voting convertible preferred stock - $0.01 par value; 2,000,000 shares authorized, 521,607 shares issued and outstanding in 2018; 1,000,000 shares authorized, 521,607 shares issued and outstanding in 2017 | 40,633 | 40,633 |
Common stock ($.01 par value; 100,000,000 shares authorized and 46,211,894 shares issued and 45,420,276 shares outstanding in 2018; 50,000,000 shares authorized, 46,211,894 shares issued and 45,290,433 shares outstanding in 2017) | 460 | 460 |
Additional paid-in capital - common stock | 1,244,691 | 1,242,487 |
Unearned compensation | (10,096) | (6,531) |
Retained earnings | 283,256 | 239,179 |
Accumulated other comprehensive (loss) income | (21,266) | 4,161 |
Treasury stock, at cost (791,618 shares in 2018 and 921,461 shares in 2017) | (21,437) | (24,125) |
Total shareholders’ equity | 1,516,241 | 1,496,264 |
Total liabilities and shareholders’ equity | $ 11,901,963 | $ 11,570,751 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities held to maturity, fair value | $ 377,486 | $ 405,276 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 46,211,894 | 46,211,894 |
Common stock, shares outstanding (in shares) | 45,420,276 | 45,290,433 |
Treasury stock (in shares) | 791,618 | 921,461 |
Series B Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 521,607 | 521,607 |
Preferred stock, shares outstanding (in shares) | 521,607 | 521,607 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income | ||||
Loans | $ 101,649 | $ 71,983 | $ 194,484 | $ 140,926 |
Securities and other | 15,230 | 12,683 | 29,635 | 24,449 |
Total interest and dividend income | 116,879 | 84,666 | 224,119 | 165,375 |
Interest expense | ||||
Deposits | 17,768 | 9,971 | 33,093 | 19,069 |
Borrowings | 7,990 | 5,150 | 14,435 | 9,875 |
Total interest expense | 25,758 | 15,121 | 47,528 | 28,944 |
Net interest income | 91,121 | 69,545 | 176,591 | 136,431 |
Non-interest income | ||||
Other, net | 155 | (276) | 1,423 | (183) |
(Loss)/gain on securities, net | 718 | (1) | (784) | 12,569 |
(Loss)/gain on sale of business operations and other assets, net | (21) | 0 | 460 | 0 |
Loss on termination of hedges | 0 | 0 | 0 | (6,629) |
Total non-interest income | 30,030 | 32,798 | 59,550 | 67,555 |
Total net revenue | 121,151 | 102,343 | 236,141 | 203,986 |
Provision for loan losses | 6,532 | 4,889 | 12,107 | 9,984 |
Non-interest expense | ||||
Compensation and benefits | 41,134 | 36,997 | 83,318 | 73,116 |
Occupancy and equipment | 10,230 | 8,678 | 20,312 | 17,704 |
Technology and communications | 7,359 | 6,883 | 14,189 | 12,970 |
Marketing and promotion | 2,369 | 3,177 | 4,981 | 5,176 |
Professional services | 1,139 | 2,190 | 3,192 | 4,641 |
FDIC premiums and assessments | 1,411 | 1,588 | 2,606 | 2,886 |
Other real estate owned and foreclosures | 1 | 30 | 68 | 58 |
Amortization of intangible assets | 1,246 | 770 | 2,514 | 1,571 |
Acquisition, restructuring, and other expenses | 847 | 2,903 | 5,940 | 14,585 |
Other | 6,601 | 6,307 | 12,086 | 11,142 |
Total non-interest expense | 72,337 | 69,523 | 149,206 | 143,849 |
Income before income taxes | 42,282 | 27,931 | 74,828 | 50,153 |
Income tax expense | 8,251 | 8,237 | 15,549 | 14,999 |
Net income | 34,031 | 19,694 | 59,279 | 35,154 |
Preferred stock dividend | 229 | 0 | 459 | 0 |
Income available to common shareholders | $ 33,802 | $ 19,694 | $ 58,820 | $ 35,154 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.74 | $ 0.53 | $ 1.29 | $ 0.97 |
Diluted (in dollars per share) | $ 0.74 | $ 0.53 | $ 1.28 | $ 0.96 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 46,032 | 37,324 | 45,999 | 36,305 |
Diluted (in shares) | 46,215 | 37,474 | 46,206 | 36,466 |
Mortgage banking originations | ||||
Non-interest income | ||||
Total non-interest income | $ 10,195 | $ 16,281 | $ 20,342 | $ 28,959 |
Loan related income | ||||
Non-interest income | ||||
Total non-interest income | 6,549 | 5,275 | 11,987 | 9,454 |
Deposit related fees | ||||
Non-interest income | ||||
Total non-interest income | 7,605 | 6,645 | 15,671 | 12,849 |
Insurance commissions and fees | ||||
Non-interest income | ||||
Total non-interest income | 2,549 | 2,588 | 5,574 | 5,724 |
Wealth management fees | ||||
Non-interest income | ||||
Total non-interest income | 2,280 | 2,286 | 4,877 | 4,812 |
Total fee income | ||||
Non-interest income | ||||
Total non-interest income | $ 29,178 | $ 33,075 | $ 58,451 | $ 61,798 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 34,031 | $ 19,694 | $ 59,279 | $ 35,154 |
Other comprehensive income, before tax: | ||||
Changes in unrealized loss on debt securities available-for-sale | (7,840) | 3,927 | (27,002) | (5,505) |
Changes in unrealized loss on derivative hedges | 0 | 0 | 0 | 6,573 |
Income taxes related to other comprehensive income: | ||||
Changes in unrealized loss on debt securities available-for-sale | 2,001 | (1,455) | 6,932 | 2,086 |
Changes in unrealized gains on derivative hedges | 0 | 0 | 0 | (2,589) |
Total other comprehensive (loss)/income | (5,839) | 2,472 | (20,070) | 565 |
Total comprehensive income | $ 28,192 | $ 22,166 | $ 39,209 | $ 35,719 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred stock | Common stock | Additional paid-in capital | Unearned compensation | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock |
Balance (in shares) at Dec. 31, 2016 | 0 | 35,673 | ||||||
Balance at Beginning of Period at Dec. 31, 2016 | $ 1,093,298 | $ 0 | $ 366 | $ 898,989 | $ (6,374) | $ 217,494 | $ 9,766 | $ (26,943) |
Comprehensive income: | ||||||||
Net income | 35,154 | 35,154 | ||||||
Other comprehensive loss | 565 | 565 | ||||||
Total comprehensive income | 35,719 | 35,154 | 565 | |||||
Common stock issued (in shares) | 4,638 | |||||||
Common stock issued | 152,925 | $ 46 | 152,879 | |||||
Cash dividends declared on common shares | (15,024) | (15,024) | ||||||
Forfeited shares (in shares) | (10) | |||||||
Forfeited shares | 0 | 63 | 304 | (367) | ||||
Exercise of stock options (in shares) | 7 | |||||||
Exercise of stock options | 111 | (85) | 196 | |||||
Restricted stock grants (in shares) | 154 | |||||||
Restricted stock grants | 0 | 1,566 | (5,505) | 3,939 | ||||
Stock-based compensation | 2,524 | 2,524 | ||||||
Other, net (in shares) | (34) | |||||||
Other, net | (1,359) | (4) | (69) | (1,286) | ||||
Balance (in shares) at Jun. 30, 2017 | 40,428 | |||||||
Balance at End of Period at Jun. 30, 2017 | 1,268,194 | $ 412 | 1,053,493 | (9,051) | 237,470 | 10,331 | (24,461) | |
Balance at Beginning of Period at Mar. 31, 2017 | 7,859 | |||||||
Comprehensive income: | ||||||||
Net income | 19,694 | |||||||
Other comprehensive loss | 2,472 | |||||||
Total comprehensive income | 22,166 | |||||||
Balance (in shares) at Jun. 30, 2017 | 40,428 | |||||||
Balance at End of Period at Jun. 30, 2017 | 1,268,194 | $ 412 | 1,053,493 | (9,051) | 237,470 | 10,331 | (24,461) | |
Balance (in shares) at Dec. 31, 2017 | 522 | 45,290 | ||||||
Balance at Beginning of Period at Dec. 31, 2017 | 1,496,264 | $ 40,633 | $ 460 | 1,242,487 | (6,531) | 239,179 | 4,161 | (24,125) |
Comprehensive income: | ||||||||
Net income | 59,279 | 59,279 | ||||||
Other comprehensive loss | (20,070) | (20,070) | ||||||
Total comprehensive income | 39,209 | 59,279 | (20,070) | |||||
Cash dividends declared on common shares | (19,977) | (19,977) | ||||||
Cash dividends declared on preferred shares | (459) | (459) | ||||||
Forfeited shares (in shares) | (15) | |||||||
Forfeited shares | 0 | 88 | 478 | (566) | ||||
Exercise of stock options (in shares) | 8 | |||||||
Exercise of stock options | 101 | (123) | 224 | |||||
Restricted stock grants (in shares) | 181 | |||||||
Restricted stock grants | 0 | 2,100 | (6,841) | 4,741 | ||||
Stock-based compensation | 2,798 | 2,798 | ||||||
Other, net (in shares) | (44) | |||||||
Other, net | (1,695) | 16 | (1,711) | |||||
Balance (in shares) at Jun. 30, 2018 | 522 | 45,420 | ||||||
Balance at End of Period at Jun. 30, 2018 | 1,516,241 | $ 40,633 | $ 460 | 1,244,691 | (10,096) | 283,256 | (21,266) | (21,437) |
Balance at Beginning of Period at Mar. 31, 2018 | (15,427) | |||||||
Comprehensive income: | ||||||||
Net income | 34,031 | |||||||
Other comprehensive loss | (5,839) | |||||||
Total comprehensive income | 28,192 | |||||||
Balance (in shares) at Jun. 30, 2018 | 522 | 45,420 | ||||||
Balance at End of Period at Jun. 30, 2018 | 1,516,241 | $ 40,633 | $ 460 | $ 1,244,691 | $ (10,096) | 283,256 | (21,266) | $ (21,437) |
Comprehensive income: | ||||||||
Adoption of ASU | $ 0 | |||||||
Adoption of ASU | ASU 2016-01 | 6,253 | (6,253) | ||||||
Adoption of ASU | ASU 2018-02 | $ (896) | $ 896 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, cash dividends declared (in dollars per share) | $ 0.44 | $ 0.42 |
Preferred stock, cash dividends declared (in dollars per share) | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 59,279 | $ 35,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 12,107 | 9,984 |
Net amortization of securities | 1,460 | 1,332 |
Change in unamortized net loan costs and premiums | (1,520) | (158) |
Premises and equipment depreciation and amortization expense | 5,215 | 4,961 |
Stock-based compensation expense | 2,798 | 2,524 |
Accretion of purchase accounting entries, net | (11,114) | (7,971) |
Amortization of other intangibles | 2,514 | 1,571 |
Income from cash surrender value of bank-owned life insurance policies | (2,359) | (1,188) |
Securities losses (gains), net | 784 | (12,571) |
Originations of loans held for sale | (1,106,100) | (1,105,114) |
Proceeds from sale of loans held for sale | 1,130,880 | 1,108,264 |
Net gain on sale of loans and other mortgage banking income | (20,342) | (28,959) |
Loss on disposition of assets | 0 | 912 |
Loss on sale of real estate | 0 | (12) |
Amortization of interest in tax-advantaged projects | 2,100 | 2,782 |
Net change in other | (9,748) | 4,374 |
Net cash provided by operating activities | 65,954 | 15,885 |
Cash flows from investing activities: | ||
Net decrease in trading security | 329 | 311 |
Proceeds from sales of securities available for sale | 0 | 3,444 |
Proceeds from maturities, calls, and prepayments of securities available for sale | 93,049 | 88,821 |
Purchases of securities available for sale | (165,312) | (227,484) |
Proceeds from sales of marketable equity securities | 26,096 | 38,575 |
Purchases of marketable equity securities | (12,688) | (14,230) |
Proceeds from maturities, calls, and prepayments of securities held to maturity | 23,981 | 6,076 |
Purchases of securities held to maturity | (7,781) | (23,582) |
Net change in loans | (413,717) | (279,723) |
Proceeds from surrender of bank-owned life insurance | 459 | 310 |
Proceeds from sale of Federal Home Loan Bank stock | 28,673 | 68,672 |
Purchase of Federal Home Loan Bank stock | (41,118) | (76,433) |
Net investment in limited partnership tax credits | 2,464 | (756) |
Purchase of premises and equipment, net | (7,958) | (6,921) |
Payment to terminate cash flow hedges | 0 | 6,573 |
Proceeds from sale of other real estate | 1,600 | 274 |
Net cash (used) by investing activities | (471,923) | (416,073) |
Cash flows from financing activities: | ||
Net increase in deposits | 90,009 | 94,324 |
Proceeds from Federal Home Loan Bank advances and other borrowings | 2,287,896 | 3,841,600 |
Repayments of Federal Home Loan Bank advances and other borrowings | (2,061,307) | (3,683,292) |
Exercise of stock options | 101 | 111 |
Common and preferred stock cash dividends paid | (20,436) | (15,023) |
Common stock issued, net | 0 | 152,925 |
Acquisition contingent consideration paid | 0 | (1,700) |
Net cash provided by financing activities | 296,263 | 388,945 |
Net change in cash and cash equivalents | (109,706) | (11,243) |
Cash and cash equivalents at beginning of period | 248,763 | 113,075 |
Cash and cash equivalents at end of period | 139,057 | 101,832 |
Supplemental cash flow information: | ||
Interest paid on deposits | 32,160 | 19,398 |
Interest paid on borrowed funds | 14,202 | 10,021 |
Income taxes paid (refund), net | (2,446) | 6,339 |
Other non-cash changes: | ||
Other net comprehensive income | (20,070) | 565 |
Real estate owned acquired in settlement of loans | $ (1,600) | $ 390 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Boston, Massachusetts, and Berkshire Insurance Group, Inc. 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. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. Prior Period Acquisition T he Company completed the acquisition of Commerce Bancshares Corp. (“Commerce”), the parent company of Commerce Bank & Trust Company (“Commerce Bank”), at the close of business on October 13, 2017. With this acquisition, 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. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. 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 up to one year after the closing date of the acquisition as additional information relative to the closing date fair values become available. In the second quarter of 2018 the Company did not recognize a material measurement period adjustment. Management continues to review initial estimates on certain areas such as loan valuations and the deferred tax asset and the review will be completed in the third quarter of 2018. Recently Adopted Accounting Principles Effective January 1, 2018, the following new accounting guidance was adopted by the Company: • ASU No. 2014-09, Revenue from Contracts with Customers (additional information is disclosed in Note 14 - Revenue of the Consolidated Financial Statements); • ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The adoption of these accounting standards did not have a material impact on the Company's 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 (“AOCI”) 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 elected to early adopt ASU 2018-02 during the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from AOCI to retained earnings. The immaterial reclassification increased AOCI and decreased retained earnings by $896 thousand , with no net effect on total shareholders’ equity. Future Application of Accounting Pronouncements 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 identify a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the guidance. We will continue to review contracts up through the effective date and may identify additional leases or leases embedded in arrangements that will be within the scope of the new guidance. 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 does not expect adoption to have a material effect on our consolidated financial statements. 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 do not expect adoption to have a material impact on our consolidated financial statements. |
TRADING SECURITY
TRADING SECURITY | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
TRADING SECURITY | TRADING SECURITY The Company holds a tax advantaged economic development bond accounted for at fair value. The security had an amortized cost of $10.4 million and $10.8 million , and a fair value of $11.5 million and $12.3 million , at June 30, 2018 and December 31, 2017 , respectively. As discussed further in Note 11 - Derivative Financial Instruments and Hedging Activities, the Company 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 were no other securities in the trading portfolio at June 30, 2018 . |
SECURITIES AVAILABLE FOR SALE,
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES The Company adopted ASU-2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" in the first quarter of 2018. All changes in the fair value of marketable equity securities, including other-than-temporary impairment, are immediately recognized in earnings. The following is a summary of securities available for sale, held to maturity, and marketable equity securities: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018 Securities available for sale Debt securities: Municipal bonds and obligations $ 110,381 $ 2,475 $ (719 ) $ 112,137 Agency collateralized mortgage obligations 940,130 10 (24,923 ) 915,217 Agency mortgage-backed securities 190,872 45 (6,247 ) 184,670 Agency commercial mortgage-backed securities 62,930 — (3,417 ) 59,513 Corporate bonds 100,985 534 (457 ) 101,062 Trust preferred securities 11,266 348 — 11,614 Other bonds and obligations 9,042 44 (49 ) 9,037 Total securities available for sale 1,425,606 3,456 (35,812 ) 1,393,250 Securities held to maturity Municipal bonds and obligations 268,529 3,928 (3,066 ) 269,391 Agency collateralized mortgage obligations 72,754 169 (1,392 ) 71,531 Agency mortgage-backed securities 7,457 — (351 ) 7,106 Agency commercial mortgage-backed securities 10,449 — (532 ) 9,917 Tax advantaged economic development bonds 20,395 19 (1,194 ) 19,220 Other bonds and obligations 321 — — 321 Total securities held to maturity 379,905 4,116 (6,535 ) 377,486 Marketable equity securities 55,618 6,024 (1,916 ) 59,726 Total $ 1,861,129 $ 13,596 $ (44,263 ) $ 1,830,462 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 securities available for sale 1,387,250 7,108 (13,444 ) 1,380,914 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 Marketable equity securities 36,483 9,211 (509 ) 45,185 Total $ 1,820,836 $ 26,635 $ (16,096 ) $ 1,831,375 The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at June 30, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 265 $ 266 $ 2,251 $ 2,251 Over 1 year to 5 years 32,662 32,794 14,496 14,425 Over 5 years to 10 years 76,018 76,647 6,701 6,780 Over 10 years 122,729 124,143 265,797 265,476 Total bonds and obligations 231,674 233,850 289,245 288,932 Mortgage-backed securities 1,193,932 1,159,400 90,660 88,554 Total $ 1,425,606 $ 1,393,250 $ 379,905 $ 377,486 Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value June 30, 2018 Securities available for sale Debt securities: Municipal bonds and obligations $ 162 $ 5,805 $ 557 $ 8,600 $ 719 $ 14,405 Agency collateralized mortgage obligations 20,590 800,936 4,333 97,803 24,923 898,739 Agency mortgage-backed securities 3,074 119,032 3,173 62,416 6,247 181,448 Agency commercial mortgage-backed securities 351 13,421 3,066 46,092 3,417 59,513 Corporate bonds 457 61,521 — — 457 61,521 Other bonds and obligations 20 987 29 2,085 49 3,072 Total securities available for sale 24,654 1,001,702 11,158 216,996 35,812 1,218,698 Securities held to maturity Municipal bonds and obligations 2,885 117,250 181 1,936 3,066 119,186 Agency collateralized mortgage obligations 720 31,773 672 11,882 1,392 43,655 Agency mortgage-backed securities — — 351 7,106 351 7,106 Agency commercial mortgage-backed securities — — 532 9,917 532 9,917 Tax advantaged economic development bonds 1,194 15,514 — — 1,194 15,514 Total securities held to maturity 4,799 164,537 1,736 30,841 6,535 195,378 Total $ 29,453 $ 1,166,239 $ 12,894 $ 247,837 $ 42,347 $ 1,414,076 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-backed securities 334 17,379 1,427 39,268 1,761 56,647 Corporate bonds 1 328 236 15,769 237 16,097 Other bonds and obligations 11 1,096 20 2,004 31 3,100 Total securities available for sale 7,960 770,082 5,484 211,750 13,444 981,832 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-backed 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 $ 9,130 $ 787,600 $ 6,457 $ 244,696 $ 15,587 $ 1,032,296 Debt Securities The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of June 30, 2018 , prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at June 30, 2018 : AFS municipal bonds and obligations At June 30, 2018, 17 of the total 251 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 4.8% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. AFS collateralized mortgage obligations At June 30, 2018 , 237 out of the total 245 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 2.7% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS commercial and residential mortgage-backed securities At June 30, 2018 , 73 out of the total 100 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 3.9% 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 mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS corporate bonds At June 30, 2018 , 12 out of the total 20 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 0.7% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. AFS other bonds and obligations At June 30, 2018 , 6 out of the total 8 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 1.6% 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 the quarter. All securities are performing. HTM Municipal bonds and obligations At June 30, 2018 , 78 of the 227 securities in the Company’s portfolio of municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 2.5% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. HTM collateralized mortgage obligations At June 30, 2018 , 4 of the 9 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 4.7% 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 the quarter. All securities are performing. HTM commercial and residential mortgage-backed securities At June 30, 2018 , 2 out of a total of 2 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 4.9% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s residential mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM tax-advantaged economic development bonds At June 30, 2018, 3 out of the total 6 securities in the Company’s portfolio of tax advantaged economic development bonds were in unrealized loss positions. Aggregate unrealized losses represented 7.2% of the amortized cost of the securities in unrealized loss positions. One of the above mentioned tax advantaged economic bonds was downgraded to special mention during 2017. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2018 | |
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. 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 and Trust Company, 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. Acquired loans that are refinanced are transferred to business activity loans. Business activity and acquired loans are serviced, managed, and accounted for under the Company's same control environment. The following is a summary of total loans: June 30, 2018 December 31, 2017 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 345,896 $ 59,268 $ 405,164 $ 269,206 $ 84,965 $ 354,171 Single and multi-family 378,434 195,865 574,299 217,083 206,082 423,165 Other commercial real estate 1,644,666 695,194 2,339,860 1,731,418 755,988 2,487,406 Total commercial real estate 2,368,996 950,327 3,319,323 2,217,707 1,047,035 3,264,742 Commercial and industrial loans: 1,355,864 519,254 1,875,118 1,182,569 621,370 1,803,939 Total commercial loans 3,724,860 1,469,581 5,194,441 3,400,276 1,668,405 5,068,681 Residential mortgages: 1-4 family 2,129,976 259,734 2,389,710 1,808,024 289,373 2,097,397 Construction 7,289 193 7,482 5,177 233 5,410 Total residential mortgages 2,137,265 259,927 2,397,192 1,813,201 289,606 2,102,807 Consumer loans: Home equity 293,450 99,380 392,830 294,954 115,227 410,181 Auto and other 634,804 90,699 725,503 603,767 113,902 717,669 Total consumer loans 928,254 190,079 1,118,333 898,721 229,129 1,127,850 Total loans $ 6,790,379 $ 1,919,587 $ 8,709,966 $ 6,112,198 $ 2,187,140 $ 8,299,338 The carrying amount of the acquired loans at June 30, 2018 totaled $1.9 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 $70.8 million (and a note balance of $171.7 million ). These loans are evaluated for impairment through the periodic reforecasting of expected cash flows. Loans considered not credit-impaired at acquisition date had a carrying amount of $1.8 billion . At December 31, 2017, acquired loans maintained a carrying value of $2.2 billion and purchased credit-impaired loans totaled $97.3 million (note balance of $208.7 million). Loans considered not credit-impaired at acquisition date had a carrying amount of $2.1 billion . The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality : Three Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of period $ 10,392 $ 7,363 Accretion (2,195 ) (1,005 ) Net reclassifications from (to) nonaccretable difference (169 ) (85 ) Payments received, net (1,724 ) (506 ) Disposals — — Balance at end of period $ 6,304 $ 5,767 Six Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of period $ 11,561 $ 8,738 Accretion (4,918 ) (2,051 ) Net reclassifications from (to) nonaccretable difference 1,654 333 Payments received, net (1,912 ) (1,253 ) Disposals (81 ) — Balance at end of period $ 6,304 $ 5,767 The following is a summary of past due loans at June 30, 2018 and December 31, 2017: Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > June 30, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 345,896 $ 345,896 $ — Single and multi-family 314 — 433 747 377,687 378,434 9 Other commercial real estate 1,163 262 21,993 23,418 1,621,248 1,644,666 16,706 Total 1,477 262 22,426 24,165 2,344,831 2,368,996 16,715 Commercial and industrial loans: Total 2,272 114 2,528 4,914 1,350,950 1,355,864 42 Residential mortgages: 1-4 family 817 445 2,798 4,060 2,125,916 2,129,976 879 Construction — — — — 7,289 7,289 — Total 817 445 2,798 4,060 2,133,205 2,137,265 879 Consumer loans: Home equity 72 — 2,462 2,534 290,916 293,450 — Auto and other 2,766 478 1,667 4,911 629,893 634,804 49 Total 2,838 478 4,129 7,445 920,809 928,254 49 Total $ 7,404 $ 1,299 $ 31,881 $ 40,584 $ 6,749,795 $ 6,790,379 $ 17,685 Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 269,206 $ 269,206 $ — Single and multi-family — — 451 451 216,632 217,083 — Other commercial real estate 1,925 48 5,023 6,996 1,724,422 1,731,418 457 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 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > June 30, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 7,633 $ 59,268 $ — Single and multi-family 337 100 270 707 2,074 195,865 — Other commercial real estate 417 1,248 4,680 6,345 21,308 695,194 323 Total 754 1,348 4,950 7,052 31,015 950,327 323 Commercial and industrial loans: Total 446 260 1,543 2,249 32,297 519,254 — Residential mortgages: 1-4 family 1,318 241 1,494 3,053 5,054 259,734 216 Construction — — — — — 193 — Total 1,318 241 1,494 3,053 5,054 259,927 216 Consumer loans: Home equity 183 119 998 1,300 2,004 99,380 81 Auto and other 150 8 483 641 396 90,699 14 Total 333 127 1,481 1,941 2,400 190,079 95 Total $ 2,851 $ 1,976 $ 9,468 $ 14,295 $ 70,766 $ 1,919,587 $ 634 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 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 — Other 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 The following is summary information pertaining to non-accrual loans at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ — $ — $ — Single and multi-family 424 206 630 451 203 654 Other commercial real estate 5,287 3,493 8,780 4,566 2,047 6,613 Total 5,711 3,699 9,410 5,017 2,250 7,267 Commercial and industrial loans: Total 2,486 1,543 4,029 5,895 1,333 7,228 Residential mortgages: 1-4 family 1,919 1,278 3,197 1,666 1,217 2,883 Construction — — — — — — Total 1,919 1,278 3,197 1,666 1,217 2,883 Consumer loans: Home equity 2,462 917 3,379 1,627 1,965 3,592 Auto and other 1,618 469 2,087 1,454 392 1,846 Total 4,080 1,386 5,466 3,081 2,357 5,438 Total non-accrual loans $ 14,196 $ 7,906 $ 22,102 $ 15,659 $ 7,157 $ 22,816 _______________________________________ (1) At quarter end June 30, 2018 , acquired credit impaired loans accounted for $927 thousand of loans greater than 90 days past due that are not presented in the above table. (2) At December 31, 2017, acquired credit impaired loans accounted 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 June 30, 2018 and December 31, 2017 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2018 Loans receivable: Balance at end of period Individually evaluated for impairment $ 27,806 $ 2,340 $ 2,280 $ 1,835 $ 34,261 Collectively evaluated for impairment 2,341,190 1,353,524 2,134,985 926,419 6,756,118 Total $ 2,368,996 $ 1,355,864 $ 2,137,265 $ 928,254 $ 6,790,379 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2017 Loans receivable: Balance at end of year Individually evaluated for impairment $ 33,732 $ 5,761 $ 3,872 $ — $ 43,365 Collectively evaluated for impairment 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 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2018 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 5,601 $ 864 $ 765 $ 815 $ 8,045 Purchased credit-impaired loans 31,015 32,297 5,054 2,400 70,766 Collectively evaluated for impairment 913,711 486,093 254,108 186,864 1,840,776 Total $ 950,327 $ 519,254 $ 259,927 $ 190,079 $ 1,919,587 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2017 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 for impairment 989,489 586,320 280,015 226,663 2,082,487 Total $ 1,047,035 $ 621,370 $ 289,606 $ 229,129 $ 2,187,140 The following is a summary of impaired loans at June 30, 2018 and December 31, 2017: Business Activities Loans June 30, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ — $ — $ — Other commercial real estate loans 26,609 32,123 — Commercial and industrial loans 908 2,180 — Residential mortgages - 1-4 family 904 1,541 — Consumer - home equity 1,776 2,410 — Consumer - other — — — With an allowance recorded: Commercial real estate - single and multifamily $ 306 $ 323 $ 1 Other commercial real estate loans 1,430 1,423 14 Commercial and industrial loans 1,453 1,434 70 Residential mortgages - 1-4 family 1,395 1,440 109 Consumer - home equity 43 52 — Consumer - other 15 15 1 Total Commercial real estate $ 28,345 $ 33,869 $ 15 Commercial and industrial loans 2,361 3,614 70 Residential mortgages 2,299 2,981 109 Consumer 1,834 2,477 1 Total impaired loans $ 34,839 $ 42,941 $ 195 (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. These amounts are components of total loans and other assets on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Business Activities Loans December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 1,077 $ 3,607 $ — Other commercial real estate loans 18,285 18,611 — 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 loans 14,321 15,235 227 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 loans 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. Acquired Loans June 30, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 167 $ 261 $ — Other commercial real estate loans 2,501 5,556 — Commercial and industrial loans 521 597 — Residential mortgages - 1-4 family 696 707 — Consumer - home equity 501 959 — Consumer - other 13 15 — With an allowance recorded: Commercial real estate - single and multifamily $ 759 $ 756 $ 10 Other commercial real estate loans 2,201 2,211 22 Commercial and industrial loans 348 347 9 Residential mortgages - 1-4 family 76 76 6 Consumer - home equity 301 360 11 Total x Commercial real estate $ 5,628 $ 8,784 $ 32 Commercial and industrial loans 869 944 9 Residential mortgages 772 783 6 Consumer 815 1,334 11 Total impaired loans $ 8,084 $ 11,845 $ 58 (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, 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 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 loans 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. The following is a summary of the average recorded investment and interest income recognized on impaired loans as of June 30, 2018 and 2017: Business Activities Loans Six Months Ended Six Months Ended (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Commercial real estate - single and multifamily $ — $ — $ 99 $ — Other commercial real estate loans 29,092 326 22,362 473 Commercial and industrial loans 4,467 201 1,251 16 Residential mortgages - 1-4 family 942 26 1,870 11 Consumer - home equity 1,754 4 90 — Consumer - other — — — — With an allowance recorded: Commercial real estate - single and multifamily $ 310 $ 8 $ 171 $ 8 Other commercial real estate loans 1,476 39 10,056 119 Commercial and industrial loans 1,279 83 6,902 131 Residential mortgages - 1-4 family 1,409 32 636 7 Consumer - home equity 45 1 2,371 17 Consumer - other 16 — — — Total Commercial real estate $ 30,878 $ 373 $ 32,688 $ 600 Commercial and industrial loans 5,746 284 8,153 147 Residential mortgages 2,351 58 2,506 18 Consumer loans 1,815 5 2,461 17 Total impaired loans $ 40,790 $ 720 $ 45,808 $ 782 Acquired Loans Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Commercial real estate - single and multifamily $ 182 $ 9 $ 396 $ 43 Other commercial real estate loans 2,124 102 269 49 Commercial and industrial loans 349 27 298 1 Residential mortgages - 1-4 family 1,505 6 393 6 Consumer - home equity 760 — 771 — Consumer - other 17 1 — — With an allowance recorded: Commercial real estate - single and multifamily $ 765 $ 20 $ 905 $ 12 Other commercial real estate loans 2,255 69 1,482 19 Commercial and industrial loans 287 17 328 8 Residential mortgages - 1-4 family 77 2 94 1 Consumer - home equity 320 5 390 5 Consumer - other — — — — Total Other commercial real estate loans $ 5,326 $ 200 $ 3,052 $ 123 Commercial and industrial loans 636 44 626 9 Residential mortgages 1,582 8 487 7 Consumer loans 1,097 6 1,161 5 Total impaired loans $ 8,641 $ 258 $ 5,326 $ 144 Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months . TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following tables include the recorded investment and number of modifications identified during the three and six months ended June 30, 2018 and June 30, 2017. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. There were no modifications made during the three months ended June 30, 2018. The modifications for the six months ended June 30, 2018 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the three and six months ended June 30, 2017 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended June 30, 2018 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial — $ — $ — Residential - 1-4 Family — — — Total — $ — $ — Six Months Ended June 30, 2018 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial 4 $ 1,995 $ 1,924 Residential - 1-4 Family 1 118 118 Total 5 $ 2,113 $ 2,042 Three Months Ended June 30, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 9 $ 10,613 $ 9,385 Commercial and industrial - Other 4 1,793 1,793 Residential - 1-4 Family — — — Consumer Home Equity — — — Total 13 $ 12,406 $ 11,178 Six Months Ended June 30, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 15 $ 13,445 $ 11,718 Commercial and industrial - Other 5 1,817 1,817 Residential - 1-4 Family 2 205 188 Consumer Home Equity 1 53 53 Total 23 $ 15,520 $ 13,776 The following table discloses the recorded investments and numbers of modifications for TDRs where a concession has been made within the previous 12 months, that then defaulted in the respective reporting period. For the three and six months ended June 30, 2018, there were two loans that were restructured that had subsequently defaulted during the period. Modifications that Subsequently Defaulted Three Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 5,992 Commercial and industrial - Other 1 $ 1,065 Modifications that Subsequently Defaulted Six Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 5,992 Commercial and industrial - Other 1 $ 1,065 Modifications that Subsequently Defaulted Three Months Ended June 30, 2017 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other — $ — Commercial and industrial - Other — $ — Modifications that Subsequently Defaulted Six Months Ended June 30, 2017 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 113 Commercial and industrial - Other 1 $ 101 The following table presents the Company’s TDR activity for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of the period $ 43,105 $ 34,699 Principal payments (2,511 ) (266 ) TDR status change (1) — — Other reductions/increases (2) (7,088 ) (1,055 ) Newly identified TDRs — 11,178 Balance at end of the period $ 33,506 $ 44,556 Six Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of the period $ 41,990 $ 33,829 Principal payments (3,150 ) (1,154 ) TDR status change (1) — — Other reductions/increases (2) (7,376 ) (1,895 ) Newly identified TDRs 2,042 13,776 Balance at end of the period $ 33,506 $ 44,556 _________________________________ (1) TDR status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement. (2) Other reductions classification consists of transfer to other real estate owned and charge-offs and advances to loans. The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs. As of June 30, 2018 , 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 June 30, 2018 and December 31, 2017 totaled $3.8 million and $4.9 million , respectively. |
LOAN LOSS ALLOWANCE
LOAN LOSS ALLOWANCE | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOAN LOSS ALLOWANCE | LOAN LOSS ALLOWANCE Activity in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017 was as follows: At or for the three months ended June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 17,841 $ 13,229 $ 8,598 $ 7,609 $ 47,277 Charged-off loans 1,392 1,706 27 837 3,962 Recoveries on charged-off loans 26 447 6 135 614 Provision/(releases) for loan losses 2,676 2,685 853 171 6,385 Balance at end of period $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At or for the six months ended June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Charged-off loans 1,498 2,596 27 1,777 5,898 Recoveries on charged-off loans 49 491 6 209 755 Provision/(releases) for loan losses 3,757 2,910 31 2,839 9,537 Balance at end of period $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At or for the three months ended June 30, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,280 $ 11,850 $ 7,863 $ 5,470 $ 41,463 Charged-off loans 1,393 581 278 631 2,883 Recoveries on charged-off loans — 55 14 87 156 Provision/(releases) for loan losses 1,046 1,306 512 1,295 4,159 Balance at end of period $ 15,933 $ 12,630 $ 8,111 $ 6,221 $ 42,895 At or for the six months ended June 30, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Charged-off loans 1,516 1,851 513 1,317 5,197 Recoveries on charged-off loans 57 71 29 172 329 Provision/(releases) for loan losses 894 4,963 790 1,887 8,534 Balance at end of period $ 15,933 $ 12,630 $ 8,111 $ 6,221 $ 42,895 At or for the three months ended June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,995 $ 1,243 $ 1,046 $ 298 $ 6,582 Charged-off loans 972 — 622 164 1,758 Recoveries on charged-off loans 259 66 11 304 640 Provision/(releases) for loan losses 100 (182 ) 183 46 147 Balance at end of period $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At or for the six months ended June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Charged-off loans 1,712 155 1,053 693 3,613 Recoveries on charged-off loans 265 95 36 344 740 Provision/(releases) for loan losses 973 62 1,037 498 2,570 Balance at end of period $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At or for the three months ended June 30, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 2,128 $ 1,054 $ 706 $ 453 $ 4,341 Charged-off loans 94 43 71 340 548 Recoveries on charged-off loans 13 (56 ) (2 ) (14 ) (59 ) Provision/(releases) for loan losses 309 59 57 305 730 Balance at end of period $ 2,356 $ 1,014 $ 690 $ 404 $ 4,464 At or for the six months ended June 30, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Charged-off loans 670 481 215 491 1,857 Recoveries on charged-off loans 22 1 38 41 102 Provision/(releases) for loan losses 701 330 101 318 1,450 Balance at end of period $ 2,356 $ 1,014 $ 690 $ 404 $ 4,464 The following tables present a summary of the allowance for loan losses as of June 30, 2018 and December 31, 2017: At June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 15 70 109 1 195 Collectively evaluated for impairment 19,136 14,585 9,321 7,077 50,119 Total $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At December 31, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 229 66 130 35 460 Collectively evaluated for impairment 16,614 13,784 9,290 5,772 45,460 Total 16,843 13,850 9,420 5,807 45,920 At June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 32 9 6 11 58 Purchased credit-impaired loans — — — — — Collectively evaluated for impairment 3,350 1,118 612 473 5,553 Total $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At December 31, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 56 1 9 45 111 Collectively evaluated for impairment 3,800 1,124 589 290 5,803 Total 3,856 1,125 598 335 5,914 Credit Quality Information Business Activities Loans Credit Quality Analysis The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential credit problems and are evaluated closely by management. Substandard and non-accruing loans are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annually, semiannually or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60 - 89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. Home equity loans are risk rated based on the same rating system as the Company’s residential mortgages. Ratings for other consumer loans, including auto loans, are based on a two rating system. Loans that are current within 119 days are rated Performing while loans delinquent for 120 days or more are rated Non-performing. Other consumer loans are placed on non-accrual at such time as they become Non-performing. Acquired Loans Credit Quality Analysis Upon acquiring a loan portfolio, the Company's internal loan review function assigns risk ratings to the acquired loans, utilizing the same methodology as it does with business activities loans. This may differ from the risk rating policy of the predecessor bank. Loans which are rated Substandard or worse according to the rating process outlined below are deemed to be credit impaired loans accounted for under ASC 310-30, regardless of whether they are classified as performing or non-performing. The Bank utilizes an eleven grade internal loan rating system for each of its acquired commercial real estate, construction and commercial loans as outlined in the Credit Quality Information section of this Note. The ratings system is similar to loans originated through business activities. The Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450-20 ( Loss Contingencies ) by collectively evaluating these loans for an allowance for loan loss. The Company applies a methodology similar to the methodology prescribed for business activities loans, which includes the application of environmental factors to each category of loans. The methodology to collectively evaluate the acquired loans outside the scope of ASC 310-30 includes the application of a number of environmental factors that reflect management’s best estimate of the level of incremental credit losses that might be recognized given current conditions. This is reviewed as part of the allowance for loan loss adequacy analysis. As the loan portfolio matures and environmental factors change, the loan portfolio will be reassessed each quarter to determine an appropriate reserve allowance. Additionally, the Company considers the need for a reserve for acquired loans accounted for outside of the scope of ASC 310-30 under ASC 310-20. At acquisition date, the Bank determined a fair value mark with credit and interest rate components. Under the Company’s model, the impairment evaluation process involves comparing the carrying value of acquired loans, including the entire unamortized premium or discount, to the calculated reserve allowance. If necessary, the Company books a reserve to account for shortfalls identified through this calculation. Fair value marks are not bifurcated when evaluating for impairment. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time for ASC 310-30 loans. At June 30, 2018 , the allowance for loan losses related to acquired loans under ASC 310-30 and ASC 310-20 was $5.6 million using the above mentioned criteria. The following tables present the Company’s loans by risk rating at June 30, 2018 and December 31, 2017: 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) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 345,896 $ 269,206 $ 375,907 $ 214,289 $ 1,566,673 $ 1,687,256 $ 2,288,476 $ 2,170,751 Special mention — — 459 504 33,235 12,999 33,694 13,503 Substandard — — 2,068 2,290 44,758 31,163 46,826 33,453 Total $ 345,896 $ 269,206 $ 378,434 $ 217,083 $ 1,644,666 $ 1,731,418 $ 2,368,996 $ 2,217,707 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2018 December 31, 2017 Grade: Pass $ 1,325,226 $ 1,156,240 Special mention 14,697 12,806 Substandard 15,941 11,123 Doubtful — 2,400 Total $ 1,355,864 $ 1,182,569 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 2,126,733 $ 1,805,596 $ 7,289 $ 5,177 $ 2,134,022 $ 1,810,773 Special mention 445 242 — — 445 242 Substandard 2,798 2,186 — — 2,798 2,186 Total $ 2,129,976 $ 1,808,024 $ 7,289 $ 5,177 $ 2,137,265 $ 1,813,201 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 31, 2018 December 31, 2017 June 31, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Performing $ 290,988 $ 293,327 $ 633,185 $ 602,313 $ 924,173 $ 895,640 Nonperforming 2,462 1,627 1,619 1,454 4,081 3,081 Total $ 293,450 $ 294,954 $ 634,804 $ 603,767 $ 928,254 $ 898,721 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 Grade: Pass $ 50,934 $ 76,611 $ 191,132 $ 203,624 $ 641,490 $ 684,846 $ 883,556 $ 965,081 Special mention — — — 603 9,734 22,070 9,734 22,673 Substandard 8,334 8,354 4,733 1,855 43,970 49,072 57,037 59,281 Total $ 59,268 $ 84,965 $ 195,865 $ 206,082 $ 695,194 $ 755,988 $ 950,327 $ 1,047,035 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2018 December 31, 2017 Grade: Pass $ 500,636 $ 606,922 Special mention 1,128 1,241 Substandard 17,490 13,207 Total $ 519,254 $ 621,370 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 255,272 $ 281,160 $ 193 $ 233 $ 255,465 $ 281,393 Special mention 268 2,704 — — 268 2,704 Substandard 4,194 5,509 — — 4,194 5,509 Total $ 259,734 $ 289,373 $ 193 $ 233 $ 259,927 $ 289,606 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Performing $ 98,464 $ 113,262 $ 90,230 $ 113,510 $ 188,694 $ 226,772 Nonperforming 916 1,965 469 392 1,385 2,357 Total $ 99,380 $ 115,227 $ 90,699 $ 113,902 $ 190,079 $ 229,129 The following table summarizes information about total loans rated Special Mention or lower as of June 30, 2018 and December 31, 2017. The table below includes consumer loans that are special mention and substandard accruing that are classified in the above table as performing based on payment activity. June 30, 2018 December 31, 2017 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 14,196 $ 8,833 $ 23,029 $ 15,659 $ 7,240 $ 22,899 Substandard Accruing 55,498 71,527 127,025 36,846 73,412 110,258 Total Classified 69,694 80,360 150,054 52,505 80,652 133,157 Special Mention 49,314 11,380 60,694 28,387 26,802 55,189 Total Criticized $ 119,008 $ 91,740 $ 210,748 $ 80,892 $ 107,454 $ 188,346 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) June 30, December 31, Time less than $100,000 $ 707,398 $ 733,785 Time $100,000 through $250,000 1,906,803 1,717,050 Time more than $250,000 445,833 439,370 Total time deposits $ 3,060,034 $ 2,890,205 Included in total deposits are brokered deposits of $1.3 billion and $1.1 billion at June 30, 2018 and December 31, 2017 , respectively. Included in total deposits are reciprocal deposits of $94.0 million and $99.8 million at June 30, 2018 and December 31, 2017 , respectively. |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at June 30, 2018 and December 31, 2017 are summarized, as follows: June 30, 2018 December 31, 2017 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ 1,002,000 2.11 % $ 667,300 1.48 % Total short-term borrowings: 1,002,000 2.11 667,300 1.48 Long-term borrowings: Advances from the FHLB and other borrowings 272,342 1.69 380,436 1.54 Subordinated borrowings 73,965 7.00 73,875 7.00 Junior subordinated borrowings 15,464 4.18 15,464 3.30 Total long-term borrowings: 361,771 2.88 469,775 2.46 Total $ 1,363,771 2.32 % $ 1,137,075 1.88 % Short-term debt includes Federal Home Loan Bank (“FHLB”) advances with an original maturity of less than one year and a short-term line-of-credit drawdown through a correspondent bank. The Bank also maintains a $3.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended June 30, 2018 and 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 took place for the periods ended June 30, 2018 and December 31, 2017 . Long-term FHLB advances consist of advances with an original maturity of more than one year. The advances outstanding at June 30, 2018 include no callable advances and amortizing advances totaling $1.3 million . The advances outstanding at December 31, 2017 include no callable advances and amortizing advances totaling $1.4 million . All FHLB 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 FHLB advances as of June 30, 2018 is as follows: June 30, 2018 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2018 $ 1,063,993 2.07 % 2019 150,079 1.64 2020 53,371 2.04 2021 213 2.71 2022 and beyond 6,686 2.64 Total FHLB advances $ 1,274,342 2.02 % The Company did not have variable-rate FHLB advances for the periods ended June 30, 2018 and December 31, 2017 . In September 2012, the Company issued fifteen year subordinated notes in the amount of $75.0 million at a discount of 1.15% . The interest rate is fixed at 6.875% for the first ten years. After ten years , the notes become callable and convert to an interest rate of three-month LIBOR rate plus 5.113% . The subordinated note includes reduction to the note principal balance of $522 thousand and $583 thousand for unamortized debt issuance costs as of June 30, 2018 and December 31 2017, 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 4.18% and 3.30% at June 30, 2018 and December 31, 2017 , respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements. |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL RATIOS AND STOCKHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows: June 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 12.8 % N/A 12.4 % N/A Common equity tier 1 capital to risk weighted assets 11.3 N/A 11.0 N/A Tier 1 capital to risk weighted assets 11.5 N/A 11.2 N/A Tier 1 capital to average assets 9.1 N/A 9.0 N/A Bank Total capital to risk weighted assets 12.0 % 8.0 % 11.2 % 8.0 % Common equity tier 1 capital to risk weighted assets 11.1 4.5 10.3 4.5 Tier 1 capital to risk weighted assets 11.1 6.0 10.3 6.0 Tier 1 capital to average assets 8.8 4.0 8.3 4.0 At each date shown, the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity Tier 1 capital to risk weighted assets. The Bank's Common equity Tier 1 capital to risk weighted assets exceeds 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, increased to 1.25% on January 1, 2017, increased to 1.875% on January 1, 2018 and will increase to 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 June 30, 2018 , the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at June 30, 2018 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 1.875% . Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is as follows: (In thousands) June 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding loss on AFS securities $ (25,347 ) $ 10,034 Net unrealized holding loss on pension plans (3,048 ) (3,048 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities 6,326 (4,026 ) Net unrealized holding loss on pension plans 803 1,201 Accumulated other comprehensive (loss)/income $ (21,266 ) $ 4,161 The following table presents the components of other comprehensive income for the three and six months ended June 30, 2018 and 2017 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: x Net unrealized (losses) arising during the period $ (7,839 ) $ 2,001 $ (5,838 ) Less: reclassification adjustment for gains realized in net income 1 — 1 Net unrealized holding (loss) on AFS securities (7,840 ) 2,001 (5,839 ) Other comprehensive (loss) $ (7,840 ) $ 2,001 $ (5,839 ) Three Months Ended June 30, 2017 Net unrealized holding gain on AFS securities: Net unrealized gains arising during the period $ 3,926 $ (1,455 ) $ 2,471 Less: reclassification adjustment for losses realized in net income (1 ) — (1 ) Net unrealized holding gain on AFS securities 3,927 (1,455 ) 2,472 Other comprehensive income $ 3,927 $ (1,455 ) $ 2,472 (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: x Net unrealized (losses) arising during the period $ (27,001 ) $ 6,932 $ (20,069 ) Less: reclassification adjustment for gains realized in net income 1 — $ 1 Net unrealized holding (loss) on AFS securities (27,002 ) 6,932 $ (20,070 ) Other comprehensive (loss) $ (27,002 ) $ 6,932 $ (20,070 ) Less: reclassification related to adoption of ASU 2016-01 8,379 (2,126 ) 6,253 Less: reclassification related to adoption of ASU 2018-02 — (896 ) (896 ) Total change to accumulated other comprehensive (loss) (35,381 ) 9,954 (25,427 ) Six Months Ended June 30, 2017 Net unrealized holding gain on AFS securities: Net unrealized gains arising during the period $ 7,064 $ (2,627 ) $ 4,437 Less: reclassification adjustment for gains realized in net income 12,569 (4,713 ) 7,856 Net unrealized holding (loss) on AFS securities (5,505 ) 2,086 (3,419 ) Net unrealized 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 unrealized gain on cash flow hedging derivatives 6,573 (2,589 ) 3,984 Other comprehensive income $ 1,068 $ (503 ) $ 565 The following table presents the changes in each component of accumulated other comprehensive (loss) income, for the three and six months ended June 30, 2018 and 2017 : (In thousands) Net unrealized holding gain on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding loss on pension plans Total Three Months Ended June 30, 2018 Balance at Beginning of Period $ (13,182 ) $ — $ (2,245 ) $ (15,427 ) Other comprehensive loss before reclassifications (5,838 ) — — (5,838 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 1 — — 1 Total other comprehensive (loss) (5,839 ) — — (5,839 ) Balance at End of Period $ (19,021 ) $ — $ (2,245 ) $ (21,266 ) Three Months Ended June 30, 2017 Balance at Beginning of Period $ 9,649 $ — $ (1,790 ) $ 7,859 Other comprehensive gain before reclassifications 2,471 — — 2,471 Less: amounts reclassified from accumulated other comprehensive income (loss) (1 ) — — (1 ) Total other comprehensive income 2,472 — — 2,472 Balance at End of Period $ 12,121 $ — $ (1,790 ) $ 10,331 Six Months Ended June 30, 2018 Balance at Beginning of Period $ 6,008 $ — $ (1,847 ) $ 4,161 Other comprehensive (loss) before reclassifications (20,069 ) — — (20,069 ) Less: amounts reclassified from accumulated other comprehensive income 1 — — 1 Total other comprehensive (loss) (20,070 ) — — (20,070 ) Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 $ 4,959 $ — $ 398 $ 5,357 Balance at End of Period $ (19,021 ) $ — $ (2,245 ) $ (21,266 ) Six Months Ended June 30, 2017 Balance at Beginning of Period $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Other comprehensive gain (loss) before reclassifications 4,437 (269 ) — 4,168 Less: amounts reclassified from accumulated other comprehensive income 7,856 (4,253 ) — 3,603 Total other comprehensive (loss) income (3,419 ) 3,984 — 565 Balance at End of Period $ 12,121 $ — $ (1,790 ) $ 10,331 The following table presents the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2018 and 2017 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (In thousands) 2018 2017 is Presented Realized gains on AFS securities: $ 1 $ (1 ) Non-interest income — — Tax expense 1 (1 ) Net of tax Realized (losses) on cash flow hedging derivatives: — — Interest expense — — Non-interest expense — — Tax benefit — — Net of tax Total reclassifications for the period $ 1 $ (1 ) Net of tax Affected Line Item in the Six Months Ended June 30, Statement where Net Income (In thousands) 2018 2017 is Presented Realized gains on AFS securities: $ 1 $ 12,569 Non-interest income — (4,713 ) Tax expense 1 7,856 Net of tax Realized (losses) on cash flow hedging derivatives: — (393 ) Interest expense — (6,629 ) Non-interest expense — 2,769 Tax benefit — (4,253 ) Net of tax Total reclassifications for the period $ 1 $ 3,603 Net of tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2018 2017 2018 2017 Net income $ 34,031 $ 19,694 $ 59,279 $ 35,154 Average number of common shares issued 46,212 38,720 46,212 37,731 Less: average number of treasury shares 788 943 828 981 Less: average number of unvested stock award shares 435 453 428 445 Plus: average participating preferred shares 1,043 — 1,043 — Average number of basic shares outstanding 46,032 37,324 45,999 36,305 Plus: dilutive effect of unvested stock award shares 152 106 176 116 Plus: dilutive effect of stock options outstanding 31 44 31 45 Average number of diluted shares outstanding 46,215 37,474 46,206 36,466 Earnings per common share: Basic $ 0.74 $ 0.53 $ 1.29 $ 0.97 Diluted $ 0.74 $ 0.53 $ 1.28 $ 0.96 For the six months ended June 30, 2018 , 252 thousand shares of restricted stock and 33 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. For the six months ended June 30, 2017 , 327 thousand shares of restricted stock and 48 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2018 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2017 418 $ 29.68 76 $ 13.59 Granted 181 37.81 — — Stock options exercised — — (8 ) 12.46 Stock awards vested (150 ) 28.65 — — Forfeited (15 ) 32.93 — — Expired — — (11 ) 22.61 June 30, 2018 434 $ 33.18 57 $ 10.61 Exercisable options at June 30, 2018 57 $ 10.61 During the six months ended June 30, 2018 and 2017 , proceeds from stock option exercises totaled $101 thousand and $111 thousand , respectively. During the six months ended June 30, 2018 , there were 150 thousand shares issued in connection with vested stock awards. During the six months ended June 30, 2017 , there were 133 thousand shares issued in connection with vested stock awards. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $2.8 million and $2.5 million during the six months ended June 30, 2018 and 2017 , respectively. Stock-based compensation expense is recognized over the requisite service period for all awards. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of June 30, 2018 , the Company held derivatives with a total notional amount of $3.0 billion . The Company had economic hedges and non-hedging derivatives totaling $2.7 billion and $0.3 billion , respectively, which are not designated as hedges for accounting purposes with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $2.2 billion , risk participation agreements with dealer banks of $0.2 billion , and $0.3 billion in forward commitment contracts. As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management/Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at June 30, 2018 . The Company pledged collateral to derivative counterparties in the form of cash totaling $6.9 million and securities with an amortized cost of $14.3 million and a fair value of $13.9 million as of June 30, 2018 . The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. Information about derivative assets and liabilities at June 30, 2018 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ — 0 — % — % $ — Total cash flow hedges — — Economic hedges: Interest rate swap on tax advantaged economic development bond 10,426 11.4 2.35 % 5.09 % (1,175 ) Interest rate swaps on loans with commercial loan customers 1,094,198 6.3 3.90 % 4.40 % 16,744 Reverse interest rate swaps on loans with commercial loan customers 1,094,198 6.3 4.40 % 3.90 % (16,403 ) Risk participation agreements with dealer banks 183,986 6.2 (3 ) Forward sale commitments 338,884 0.2 (658 ) Total economic hedges 2,721,692 (1,495 ) Non-hedging derivatives: Commitments to lend 289,750 0.2 7,285 Total non-hedging derivatives 289,750 7,285 Total $ 3,011,442 $ 5,790 Information about derivative assets and liabilities at December 31, 2017 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB 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 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 initiated and subsequently 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 three and six months ended June 30, 2017 . Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Interest rate swaps on FHLB borrowings: Unrealized (loss) recognized in accumulated other comprehensive loss $ — $ — $ — $ (449 ) Less: reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense — — — (393 ) Less: reclassification of unrealized (loss) from accumulated other comprehensive income to other non-interest expense — — — (6,629 ) Net tax (expense) benefit on items recognized in accumulated other comprehensive income — — — (2,589 ) Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ — $ — $ — $ 3,984 Economic hedges As of June 30, 2018 , the Company has an interest rate swap with a $10.4 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 $332 thousand as of June 30, 2018 . The interest income and expense on these mirror image swaps exactly offset each other. The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings. The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings. The Company uses the following types of forward sale commitments contracts: • Best efforts loan sales, • Mandatory delivery loan sales, and • To Be Announced (“TBA”) mortgage-backed securities sales. A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked. A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer. The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis. Non-hedging derivatives The Company enters into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in noninterest income in the Company’s consolidated statements of income. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 163 $ 2 $ 474 $ 124 Interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income 5,270 (3,810 ) 19,939 (1,682 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income (5,270 ) 3,810 (19,939 ) 1,682 Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income 95 (114 ) 332 (276 ) Risk participation agreements: Unrealized gain recognized in other non-interest income 7 23 23 5 Forward commitments: Unrealized (loss) gain recognized in other non-interest income (658 ) 975 (1,567 ) (276 ) Realized gain (loss) in other non-interest income 1,077 238 4,999 (2,668 ) Non-hedging derivatives Commitments to lend Unrealized gain recognized in other non-interest income $ 7,285 $ 7,375 $ 13,816 $ 15,436 Realized gain in other non-interest income 2,491 7,693 3,094 16,467 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 $18.6 million and $1.1 million as of June 30, 2018 and December 31, 2017 , respectively. The Company had net asset positions with its commercial banking counterparties totaling $4.5 million and $8.6 million as of June 30, 2018 and December 31, 2017 , respectively. The Company had net liability positions with its financial institution counterparties totaling $3.1 million and $5.9 million as of June 30, 2018 and December 31, 2017 , respectively. The Company had net liability positions with its commercial banking counterparties totaling $20.9 million and $5.4 million as of June 30, 2018 and December 31, 2017 . The collateral posted by the Company that covered liability positions was $6.9 million and $5.9 million as of June 30, 2018 and December 31, 2017 , respectively. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2018 and December 31, 2017 : Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount June 30, 2018 Interest Rate Swap Agreements: Institutional counterparties $ 20,015 $ (1,386 ) $ 18,629 $ — $ — $ 18,629 Commercial counterparties 4,546 — 4,546 — — 4,546 Total $ 24,561 $ (1,386 ) $ 23,175 $ — $ — $ 23,175 Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount June 30, 2018 Interest Rate Swap Agreements: Institutional counterparties $ (4,468 ) $ 1,404 $ (3,064 ) $ — $ 6,853 $ 3,789 Commercial counterparties (21,058 ) 109 (20,949 ) — — (20,949 ) Total $ (25,526 ) $ 1,513 $ (24,013 ) $ — $ 6,853 $ (17,160 ) Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 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 Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 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 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value. Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,483 $ 11,483 Securities available for sale: Municipal bonds and obligations — 112,137 — 112,137 Agency collateralized mortgage obligations — 915,217 — 915,217 Agency residential mortgage-backed securities — 184,670 — 184,670 Agency commercial mortgage-backed securities — 59,513 — 59,513 Corporate bonds — 101,062 — 101,062 Trust preferred securities — 11,614 — 11,614 Other bonds and obligations — 9,037 — 9,037 Marketable equity securities 59,163 563 — 59,726 Loans held for sale — 149,182 — 149,182 Derivative assets — 26,031 7,285 33,316 Capitalized servicing rights — — 7,839 7,839 Derivative liabilities 658 26,869 — 27,527 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 12,277 $ 12,277 Securities available for sale: 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 Capitalized servicing rights — — 3,834 3,834 Derivative liabilities 104 15,715 19 15,838 There were no transfers between levels during the six months ended June 30, 2018 or June 30, 2017. 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 and Marketable Equity Securities . Marketable equity 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 and marketable equity 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. June 30, 2018 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 59,726 $ 55,618 $ 4,108 December 31, 2017 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 45,185 $ 36,483 $ 8,702 Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets. Aggregate Fair Value June 30, 2018 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 149,182 $ 145,723 $ 3,459 Aggregate Fair Value December 31, 2017 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 153,620 $ 149,022 $ 4,598 The changes in fair value of loans held for sale for the three and six months ended June 30, 2018 , were gains of $1.3 million and losses of $1.1 million , respectively. The changes in fair value of loans held for sale for the three and six months ended June 30, 2017, were gains of $1.7 million and $2.3 million , respectively. The changes in fair value are included in mortgage banking originations in the Consolidated Statements of Income. 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 June 30, 2018 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company 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 specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, these commitments 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 the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the 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 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. These capitalized servicing rights are included in other assets on the consolidated balance sheet. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2018 and 2017 . Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend Commitments Rights Three Months Ended June 30, 2018 March 31, 2018 $ 11,795 $ 6,531 $ — $ 5,705 Unrealized (loss) gain, net recognized in other non-interest income (148 ) 12,787 — 339 Paydown of trading security (164 ) — — — Transfers to held for sale loans — (12,033 ) — — Additions to servicing rights — — — 1,795 June 30, 2018 $ 11,483 $ 7,285 $ — $ 7,839 Six Months Ended June 30, 2018 December 31, 2017 $ 12,277 $ 5,259 $ 19 $ 3,834 Unrealized (loss) gain, net recognized in other non-interest income (465 ) 25,000 (19 ) 804 Paydown of trading security (329 ) — — — Transfers to held for sale loans — (22,974 ) — — Additions to servicing rights $ — $ — $ — $ 3,201 June 30, 2018 $ 11,483 $ 7,285 $ — $ 7,839 Unrealized gains (losses) relating to instruments still held at June 30, 2018 $ 1,056 $ 7,285 $ — $ — Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend Commitments Rights Three Months Ended June 30, 2017 March 31, 2017 $ 12,966 $ 8,061 $ (22 ) $ 976 Unrealized gain (loss), net recognized in other non-interest income 27 16,515 34 (68 ) Paydown of trading security (156 ) — — — Transfers to held for sale loans — (17,202 ) — — Additions to servicing rights — — — 660 June 30, 2017 $ 12,837 $ 7,374 $ 12 $ 1,568 Six Months Ended June 30, 2017 December 31, 2016 $ 13,229 $ 4,738 $ 100 $ 798 Unrealized (loss) gain, net recognized in other non-interest income (79 ) 33,817 (88 ) (70 ) Paydown of trading security (313 ) — — — Transfers to held for sale loans — (31,181 ) — — Additions to servicing rights $ — $ — $ — $ 840 June 30, 2017 $ 12,837 $ 7,374 $ 12 $ 1,568 Unrealized gains (losses) relating to instruments still held at June 30, 2017 $ 1,736 $ 7,374 $ 12 $ — Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant Unobservable Input (In thousands) June 30, 2018 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,483 Discounted Cash Flow Discount Rate 3.32 % Commitments to lend 7,285 Historical Trend Closing Ratio 83.54 % Pricing Model Origination Costs, per loan $ 3,063 Forward commitments — Historical Trend Closing Ratio 83.54 % Pricing Model Origination Costs, per loan $ 3,063 Capitalized servicing rights 7,839 Discounted cash flow Constant Prepayment Rate (CPR) 8.00 % Discount Rate 9.96 % Total $ 26,607 Fair Value Significant Unobservable Input (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 12,277 Discounted Cash Flow Discount Rate 2.74 % Commitments to lend 5,259 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Forward commitments 19 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 Non-Recurring Fair Value Measurements The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis. June 30, 2018 December 31, 2017 Fair Value Measurement Date as of June 30, 2018 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Impaired loans $ 8,075 $ 23,853 June 2018 Capitalized servicing rights 12,129 12,527 June 2018 Total $ 20,204 $ 36,380 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) June 30, 2018 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 8,075 Fair Value of Collateral Discounted Cash Flow - Loss Severity 38.39% to 0.02% (2.79%) Appraised Value $2.80 to $1,387 ($603.90) Capitalized servicing rights 12,129 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.27% to 10.90% (9.62%) Discount Rate 10.00% to 13.12% (11.64%) Total $ 20,204 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 23,853 Fair Value of Collateral Discounted Cash Flow - loss severity 38.72% to 0.21% (3.40%) Appraised Value $10.9 to $5,967 ($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%) Total $ 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. There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended June 30, 2018 and December 31, 2017 . Impaired loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Capitalized loan servicing rights . A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. Other real estate owned (“OREO”). OREO results from the foreclosure process on residential or commercial loans issued by the Bank. Upon assuming the real estate, the Company records the property at the fair value of the asset less the estimated sales costs. Thereafter, OREO properties are recorded at the lower of cost or fair value less the estimated sales costs. OREO fair values are primarily determined based on Level 3 data including comparable sales and appraisals. Summary of Estimated Fair Values of Financial Instruments The following tables summarize the estimated fair values, and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. June 30, 2018 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 139,057 $ 139,057 $ 139,057 $ — $ — Trading security 11,483 11,483 — — 11,483 Marketable equity securities 59,726 59,726 59,163 563 — Securities available for sale 1,393,250 1,393,250 — 1,393,250 — Securities held to maturity 379,905 377,486 — 358,265 19,221 FHLB bank stock and restricted securities 75,530 N/A N/A N/A N/A Net loans 8,654,041 8,796,933 — — 8,796,933 Loans held for sale 149,182 149,182 — 149,182 — Accrued interest receivable 36,017 36,017 — 36,017 — Cash surrender value of bank-owned life insurance policies 193,121 193,121 — 193,121 — Derivative assets 33,316 33,316 — 26,031 7,285 Assets held for sale 1,070 1,070 — 1,070 — Financial Liabilities Total deposits $ 8,838,752 $ 8,809,947 $ — $ 8,809,947 $ — Short-term debt 1,002,000 1,001,944 — 1,001,944 — Long-term Federal Home Loan Bank advances 272,342 270,112 — 270,112 — Subordinated borrowings 89,429 97,006 — 97,006 — Derivative liabilities 27,527 27,527 658 26,869 — December 31, 2017 Carrying Fair (In thousands) Amount Value 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 Marketable equity securities 45,185 45,185 44,851 334 — Securities available for sale and other 1,380,914 1,380,914 — 1,380,914 — Securities held to maturity 397,103 405,276 — 371,458 33,818 FHLB bank stock and restricted securities 63,085 N/A N/A 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 Federal Home Loan Bank advances 380,436 378,766 — 378,766 — Subordinated borrowings 89,339 97,414 — 97,414 — Derivative liabilities 15,838 15,838 104 15,715 19 Other than as discussed above, the following methods and assumptions were used by management to estimate the fair value of significant classes of financial instruments for which it is practicable to estimate that value. Cash and cash equivalents. Carrying value is assumed to represent fair value for cash and cash equivalents that have original maturities of ninety days or less. FHLB bank stock and restricted securities. It is not practical to determine fair value due to the restricted nature of the securities. Cash surrender value of life insurance policies. Carrying value approximates fair value. Loans, net. In accordance with recent accounting guidance, the fair value of loans as of June 30, 2018 was measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Accrued interest receivable. Carrying value approximates fair value. Deposits. The fair value of demand, non-interest bearing checking, savings and money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using market rates offered for deposits of similar remaining maturities. Borrowed funds. The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings. Such funds include all categories of debt and debentures in the table above. Subordinated borrowings. The Company utilizes a pricing service along with internal models to estimate the valuation of its junior subordinated debentures. The junior subordinated debentures re-price every ninety days. Off-balance-sheet financial instruments. Off-balance-sheet financial instruments include standby letters of credit and other financial guarantees and commitments considered immaterial to the Company’s financial statements. |
NET INTEREST INCOME AFTER PROVI
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift, Interest [Abstract] | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES Presented below is net interest income after provision for loan losses for the three and six months ended June 30, 2018 and 2017, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Net interest income $ 91,121 $ 69,545 $ 176,591 $ 136,431 Provision for loan losses 6,532 4,889 12,107 9,984 Net interest income after provision for loan losses $ 84,589 $ 64,656 $ 164,484 $ 126,447 |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers,” and all subsequent ASU’s that modified Topic 606 on January 1, 2018. A cumulative effect adjustment to opening retained earnings was not deemed necessary as the implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Topic 606 requires the Company to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue recognition under Topic 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. The Company does not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation. The value of unsatisfied performance obligations for contracts with an original expected length of one year or less are not disclosed. The Company recognizes incremental costs of obtaining contracts as an expense when incurred for contracts with a term of one year or less. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new standard. Topic 606 is applicable to non-interest revenue streams such as wealth management fees, insurance commissions and fees, administrative services for customer deposit accounts, interchange fees, and sale of owned real estate properties. Non-interest income streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts. Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Company's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The Company may, from time to time, waive certain fees (e.g., NSF fee) for customers but generally do not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. Insurance Commissions and Fees. 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. Policy cancellation is a variable consideration that is not deemed significant and thus, does not impact the amount of revenue recognized. 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. Wealth Management Fees. Wealth management fees is primarily comprised of fees earned from consultative investment management, trust administration, tax return preparation, and financial planning. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based on the daily accrual of the market value of the investment accounts and the applicable fee rate. Interchange Fees. Interchange fees are transaction fees paid to the card-issuing bank to cover handling costs, fraud and bad debt costs, and the risk involved in approving the payment. Due to the day-to-day nature of these fees they are settled on a daily basis and are accounted for as they are received. Gains/Losses on Sales of OREO. The sale of OREO and other nonfinancial assets are accounted for with the derecognition of the asset in question once a contract exists and control of the asset has been transferred to the buyer. The gain or loss on the sale is calculated as the difference between the carrying value of the asset and the transaction price. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2018 and 2017. Three months ended Six months ended June 30, June 30, (In thousands) 2018 2017 2018 2017 Non-interest income In-scope of Topic 606: Service charges on deposit accounts $ 4,923 $ 4,156 $ 10,338 $ 8,196 Insurance revenue 2,549 2,588 5,574 5,724 Wealth management fees 2,280 2,286 4,877 4,812 Interchange income 2,391 1,920 4,281 3,668 Non-interest income (in-scope of Topic 606) 12,143 10,950 25,070 22,400 Non-interest income (out-of-scope of Topic 606) 17,887 21,848 34,480 45,155 Total non-interest income $ 30,030 $ 32,798 $ 59,550 $ 67,555 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The consolidated financial statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Boston, Massachusetts, and Berkshire Insurance Group, Inc. 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. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Prior Period Acquisition | Prior Period Acquisition T he Company completed the acquisition of Commerce Bancshares Corp. (“Commerce”), the parent company of Commerce Bank & Trust Company (“Commerce Bank”), at the close of business on October 13, 2017. With this acquisition, 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. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. 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 up to one year after the closing date of the acquisition as additional information relative to the closing date fair values become available. In the second quarter of 2018 the Company did not recognize a material measurement period adjustment. Management continues to review initial estimates on certain areas such as loan valuations and the deferred tax asset and the review will be completed in the third quarter of 2018. |
Recently Adopted Accounting Principles and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles Effective January 1, 2018, the following new accounting guidance was adopted by the Company: • ASU No. 2014-09, Revenue from Contracts with Customers (additional information is disclosed in Note 14 - Revenue of the Consolidated Financial Statements); • ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The adoption of these accounting standards did not have a material impact on the Company's 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 (“AOCI”) 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 elected to early adopt ASU 2018-02 during the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from AOCI to retained earnings. The immaterial reclassification increased AOCI and decreased retained earnings by $896 thousand , with no net effect on total shareholders’ equity. Future Application of Accounting Pronouncements 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 identify a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the guidance. We will continue to review contracts up through the effective date and may identify additional leases or leases embedded in arrangements that will be within the scope of the new guidance. 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 does not expect adoption to have a material effect on our consolidated financial statements. 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 do not expect adoption to have a material impact on our consolidated financial statements. |
Revenue | REVENUE The Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers,” and all subsequent ASU’s that modified Topic 606 on January 1, 2018. A cumulative effect adjustment to opening retained earnings was not deemed necessary as the implementation of the new standard did not have a material impact on the measurement or recognition of revenue. Topic 606 requires the Company to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Revenue recognition under Topic 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. The Company does not have any material significant payment terms as payment is received at or shortly after the satisfaction of the performance obligation. The value of unsatisfied performance obligations for contracts with an original expected length of one year or less are not disclosed. The Company recognizes incremental costs of obtaining contracts as an expense when incurred for contracts with a term of one year or less. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new standard. Topic 606 is applicable to non-interest revenue streams such as wealth management fees, insurance commissions and fees, administrative services for customer deposit accounts, interchange fees, and sale of owned real estate properties. Non-interest income streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts. Service charges on deposit accounts consist of monthly service fees (i.e. business analysis fees and consumer service charges) and other deposit account related fees. The Company's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The Company may, from time to time, waive certain fees (e.g., NSF fee) for customers but generally do not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. Insurance Commissions and Fees. 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. Policy cancellation is a variable consideration that is not deemed significant and thus, does not impact the amount of revenue recognized. 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. Wealth Management Fees. Wealth management fees is primarily comprised of fees earned from consultative investment management, trust administration, tax return preparation, and financial planning. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based on the daily accrual of the market value of the investment accounts and the applicable fee rate. Interchange Fees. Interchange fees are transaction fees paid to the card-issuing bank to cover handling costs, fraud and bad debt costs, and the risk involved in approving the payment. Due to the day-to-day nature of these fees they are settled on a daily basis and are accounted for as they are received. Gains/Losses on Sales of OREO. The sale of OREO and other nonfinancial assets are accounted for with the derecognition of the asset in question once a contract exists and control of the asset has been transferred to the buyer. The gain or loss on the sale is calculated as the difference between the carrying value of the asset and the transaction price. |
SECURITIES AVAILABLE FOR SALE24
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities available for sale (AFS) and held to maturity | The following is a summary of securities available for sale, held to maturity, and marketable equity securities: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018 Securities available for sale Debt securities: Municipal bonds and obligations $ 110,381 $ 2,475 $ (719 ) $ 112,137 Agency collateralized mortgage obligations 940,130 10 (24,923 ) 915,217 Agency mortgage-backed securities 190,872 45 (6,247 ) 184,670 Agency commercial mortgage-backed securities 62,930 — (3,417 ) 59,513 Corporate bonds 100,985 534 (457 ) 101,062 Trust preferred securities 11,266 348 — 11,614 Other bonds and obligations 9,042 44 (49 ) 9,037 Total securities available for sale 1,425,606 3,456 (35,812 ) 1,393,250 Securities held to maturity Municipal bonds and obligations 268,529 3,928 (3,066 ) 269,391 Agency collateralized mortgage obligations 72,754 169 (1,392 ) 71,531 Agency mortgage-backed securities 7,457 — (351 ) 7,106 Agency commercial mortgage-backed securities 10,449 — (532 ) 9,917 Tax advantaged economic development bonds 20,395 19 (1,194 ) 19,220 Other bonds and obligations 321 — — 321 Total securities held to maturity 379,905 4,116 (6,535 ) 377,486 Marketable equity securities 55,618 6,024 (1,916 ) 59,726 Total $ 1,861,129 $ 13,596 $ (44,263 ) $ 1,830,462 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 securities available for sale 1,387,250 7,108 (13,444 ) 1,380,914 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 Marketable equity securities 36,483 9,211 (509 ) 45,185 Total $ 1,820,836 $ 26,635 $ (16,096 ) $ 1,831,375 June 30, 2018 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 59,726 $ 55,618 $ 4,108 December 31, 2017 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 45,185 $ 36,483 $ 8,702 |
Schedule of amortized cost and estimated fair value of available for sale (AFS) and held to maturity (HTM) securities, segregated by contractual maturity | The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at June 30, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 265 $ 266 $ 2,251 $ 2,251 Over 1 year to 5 years 32,662 32,794 14,496 14,425 Over 5 years to 10 years 76,018 76,647 6,701 6,780 Over 10 years 122,729 124,143 265,797 265,476 Total bonds and obligations 231,674 233,850 289,245 288,932 Mortgage-backed securities 1,193,932 1,159,400 90,660 88,554 Total $ 1,425,606 $ 1,393,250 $ 379,905 $ 377,486 |
Schedule of securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions | Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value June 30, 2018 Securities available for sale Debt securities: Municipal bonds and obligations $ 162 $ 5,805 $ 557 $ 8,600 $ 719 $ 14,405 Agency collateralized mortgage obligations 20,590 800,936 4,333 97,803 24,923 898,739 Agency mortgage-backed securities 3,074 119,032 3,173 62,416 6,247 181,448 Agency commercial mortgage-backed securities 351 13,421 3,066 46,092 3,417 59,513 Corporate bonds 457 61,521 — — 457 61,521 Other bonds and obligations 20 987 29 2,085 49 3,072 Total securities available for sale 24,654 1,001,702 11,158 216,996 35,812 1,218,698 Securities held to maturity Municipal bonds and obligations 2,885 117,250 181 1,936 3,066 119,186 Agency collateralized mortgage obligations 720 31,773 672 11,882 1,392 43,655 Agency mortgage-backed securities — — 351 7,106 351 7,106 Agency commercial mortgage-backed securities — — 532 9,917 532 9,917 Tax advantaged economic development bonds 1,194 15,514 — — 1,194 15,514 Total securities held to maturity 4,799 164,537 1,736 30,841 6,535 195,378 Total $ 29,453 $ 1,166,239 $ 12,894 $ 247,837 $ 42,347 $ 1,414,076 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-backed securities 334 17,379 1,427 39,268 1,761 56,647 Corporate bonds 1 328 236 15,769 237 16,097 Other bonds and obligations 11 1,096 20 2,004 31 3,100 Total securities available for sale 7,960 770,082 5,484 211,750 13,444 981,832 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-backed 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 $ 9,130 $ 787,600 $ 6,457 $ 244,696 $ 15,587 $ 1,032,296 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans: June 30, 2018 December 31, 2017 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 345,896 $ 59,268 $ 405,164 $ 269,206 $ 84,965 $ 354,171 Single and multi-family 378,434 195,865 574,299 217,083 206,082 423,165 Other commercial real estate 1,644,666 695,194 2,339,860 1,731,418 755,988 2,487,406 Total commercial real estate 2,368,996 950,327 3,319,323 2,217,707 1,047,035 3,264,742 Commercial and industrial loans: 1,355,864 519,254 1,875,118 1,182,569 621,370 1,803,939 Total commercial loans 3,724,860 1,469,581 5,194,441 3,400,276 1,668,405 5,068,681 Residential mortgages: 1-4 family 2,129,976 259,734 2,389,710 1,808,024 289,373 2,097,397 Construction 7,289 193 7,482 5,177 233 5,410 Total residential mortgages 2,137,265 259,927 2,397,192 1,813,201 289,606 2,102,807 Consumer loans: Home equity 293,450 99,380 392,830 294,954 115,227 410,181 Auto and other 634,804 90,699 725,503 603,767 113,902 717,669 Total consumer loans 928,254 190,079 1,118,333 898,721 229,129 1,127,850 Total loans $ 6,790,379 $ 1,919,587 $ 8,709,966 $ 6,112,198 $ 2,187,140 $ 8,299,338 |
Schedule of Activity in the Accretable Yield for the Acquired Loan Portfolio that Falls Under the Review of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer | The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality : Three Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of period $ 10,392 $ 7,363 Accretion (2,195 ) (1,005 ) Net reclassifications from (to) nonaccretable difference (169 ) (85 ) Payments received, net (1,724 ) (506 ) Disposals — — Balance at end of period $ 6,304 $ 5,767 Six Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of period $ 11,561 $ 8,738 Accretion (4,918 ) (2,051 ) Net reclassifications from (to) nonaccretable difference 1,654 333 Payments received, net (1,912 ) (1,253 ) Disposals (81 ) — Balance at end of period $ 6,304 $ 5,767 |
Summary of Past Due Loans | The following is a summary of past due loans at June 30, 2018 and December 31, 2017: Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > June 30, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 345,896 $ 345,896 $ — Single and multi-family 314 — 433 747 377,687 378,434 9 Other commercial real estate 1,163 262 21,993 23,418 1,621,248 1,644,666 16,706 Total 1,477 262 22,426 24,165 2,344,831 2,368,996 16,715 Commercial and industrial loans: Total 2,272 114 2,528 4,914 1,350,950 1,355,864 42 Residential mortgages: 1-4 family 817 445 2,798 4,060 2,125,916 2,129,976 879 Construction — — — — 7,289 7,289 — Total 817 445 2,798 4,060 2,133,205 2,137,265 879 Consumer loans: Home equity 72 — 2,462 2,534 290,916 293,450 — Auto and other 2,766 478 1,667 4,911 629,893 634,804 49 Total 2,838 478 4,129 7,445 920,809 928,254 49 Total $ 7,404 $ 1,299 $ 31,881 $ 40,584 $ 6,749,795 $ 6,790,379 $ 17,685 Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2017 Commercial real estate: Construction $ — $ — $ — $ — $ 269,206 $ 269,206 $ — Single and multi-family — — 451 451 216,632 217,083 — Other commercial real estate 1,925 48 5,023 6,996 1,724,422 1,731,418 457 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 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > June 30, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 7,633 $ 59,268 $ — Single and multi-family 337 100 270 707 2,074 195,865 — Other commercial real estate 417 1,248 4,680 6,345 21,308 695,194 323 Total 754 1,348 4,950 7,052 31,015 950,327 323 Commercial and industrial loans: Total 446 260 1,543 2,249 32,297 519,254 — Residential mortgages: 1-4 family 1,318 241 1,494 3,053 5,054 259,734 216 Construction — — — — — 193 — Total 1,318 241 1,494 3,053 5,054 259,927 216 Consumer loans: Home equity 183 119 998 1,300 2,004 99,380 81 Auto and other 150 8 483 641 396 90,699 14 Total 333 127 1,481 1,941 2,400 190,079 95 Total $ 2,851 $ 1,976 $ 9,468 $ 14,295 $ 70,766 $ 1,919,587 $ 634 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 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 — Other 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 |
Summary of Information Pertaining to Non-Accrual Loans | The following is summary information pertaining to non-accrual loans at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ — $ — $ — Single and multi-family 424 206 630 451 203 654 Other commercial real estate 5,287 3,493 8,780 4,566 2,047 6,613 Total 5,711 3,699 9,410 5,017 2,250 7,267 Commercial and industrial loans: Total 2,486 1,543 4,029 5,895 1,333 7,228 Residential mortgages: 1-4 family 1,919 1,278 3,197 1,666 1,217 2,883 Construction — — — — — — Total 1,919 1,278 3,197 1,666 1,217 2,883 Consumer loans: Home equity 2,462 917 3,379 1,627 1,965 3,592 Auto and other 1,618 469 2,087 1,454 392 1,846 Total 4,080 1,386 5,466 3,081 2,357 5,438 Total non-accrual loans $ 14,196 $ 7,906 $ 22,102 $ 15,659 $ 7,157 $ 22,816 _______________________________________ (1) At quarter end June 30, 2018 , acquired credit impaired loans accounted for $927 thousand of loans greater than 90 days past due that are not presented in the above table. (2) At December 31, 2017, acquired credit impaired loans accounted 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 June 30, 2018 and December 31, 2017 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2018 Loans receivable: Balance at end of period Individually evaluated for impairment $ 27,806 $ 2,340 $ 2,280 $ 1,835 $ 34,261 Collectively evaluated for impairment 2,341,190 1,353,524 2,134,985 926,419 6,756,118 Total $ 2,368,996 $ 1,355,864 $ 2,137,265 $ 928,254 $ 6,790,379 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2017 Loans receivable: Balance at end of year Individually evaluated for impairment $ 33,732 $ 5,761 $ 3,872 $ — $ 43,365 Collectively evaluated for impairment 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 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2018 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 5,601 $ 864 $ 765 $ 815 $ 8,045 Purchased credit-impaired loans 31,015 32,297 5,054 2,400 70,766 Collectively evaluated for impairment 913,711 486,093 254,108 186,864 1,840,776 Total $ 950,327 $ 519,254 $ 259,927 $ 190,079 $ 1,919,587 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2017 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 for impairment 989,489 586,320 280,015 226,663 2,082,487 Total $ 1,047,035 $ 621,370 $ 289,606 $ 229,129 $ 2,187,140 |
Summary of Impaired Loans | The following is a summary of impaired loans at June 30, 2018 and December 31, 2017: Business Activities Loans June 30, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ — $ — $ — Other commercial real estate loans 26,609 32,123 — Commercial and industrial loans 908 2,180 — Residential mortgages - 1-4 family 904 1,541 — Consumer - home equity 1,776 2,410 — Consumer - other — — — With an allowance recorded: Commercial real estate - single and multifamily $ 306 $ 323 $ 1 Other commercial real estate loans 1,430 1,423 14 Commercial and industrial loans 1,453 1,434 70 Residential mortgages - 1-4 family 1,395 1,440 109 Consumer - home equity 43 52 — Consumer - other 15 15 1 Total Commercial real estate $ 28,345 $ 33,869 $ 15 Commercial and industrial loans 2,361 3,614 70 Residential mortgages 2,299 2,981 109 Consumer 1,834 2,477 1 Total impaired loans $ 34,839 $ 42,941 $ 195 (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. These amounts are components of total loans and other assets on the Consolidated Balance Sheet. (2) The Unpaid Principal Balance represents the customer's legal obligation to the Company. Business Activities Loans December 31, 2017 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 1,077 $ 3,607 $ — Other commercial real estate loans 18,285 18,611 — 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 loans 14,321 15,235 227 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 loans 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. Acquired Loans June 30, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Commercial real estate - single and multifamily $ 167 $ 261 $ — Other commercial real estate loans 2,501 5,556 — Commercial and industrial loans 521 597 — Residential mortgages - 1-4 family 696 707 — Consumer - home equity 501 959 — Consumer - other 13 15 — With an allowance recorded: Commercial real estate - single and multifamily $ 759 $ 756 $ 10 Other commercial real estate loans 2,201 2,211 22 Commercial and industrial loans 348 347 9 Residential mortgages - 1-4 family 76 76 6 Consumer - home equity 301 360 11 Total x Commercial real estate $ 5,628 $ 8,784 $ 32 Commercial and industrial loans 869 944 9 Residential mortgages 772 783 6 Consumer 815 1,334 11 Total impaired loans $ 8,084 $ 11,845 $ 58 (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, 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 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 loans 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. |
Summary of the Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following is a summary of the average recorded investment and interest income recognized on impaired loans as of June 30, 2018 and 2017: Business Activities Loans Six Months Ended Six Months Ended (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Commercial real estate - single and multifamily $ — $ — $ 99 $ — Other commercial real estate loans 29,092 326 22,362 473 Commercial and industrial loans 4,467 201 1,251 16 Residential mortgages - 1-4 family 942 26 1,870 11 Consumer - home equity 1,754 4 90 — Consumer - other — — — — With an allowance recorded: Commercial real estate - single and multifamily $ 310 $ 8 $ 171 $ 8 Other commercial real estate loans 1,476 39 10,056 119 Commercial and industrial loans 1,279 83 6,902 131 Residential mortgages - 1-4 family 1,409 32 636 7 Consumer - home equity 45 1 2,371 17 Consumer - other 16 — — — Total Commercial real estate $ 30,878 $ 373 $ 32,688 $ 600 Commercial and industrial loans 5,746 284 8,153 147 Residential mortgages 2,351 58 2,506 18 Consumer loans 1,815 5 2,461 17 Total impaired loans $ 40,790 $ 720 $ 45,808 $ 782 Acquired Loans Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Commercial real estate - single and multifamily $ 182 $ 9 $ 396 $ 43 Other commercial real estate loans 2,124 102 269 49 Commercial and industrial loans 349 27 298 1 Residential mortgages - 1-4 family 1,505 6 393 6 Consumer - home equity 760 — 771 — Consumer - other 17 1 — — With an allowance recorded: Commercial real estate - single and multifamily $ 765 $ 20 $ 905 $ 12 Other commercial real estate loans 2,255 69 1,482 19 Commercial and industrial loans 287 17 328 8 Residential mortgages - 1-4 family 77 2 94 1 Consumer - home equity 320 5 390 5 Consumer - other — — — — Total Other commercial real estate loans $ 5,326 $ 200 $ 3,052 $ 123 Commercial and industrial loans 636 44 626 9 Residential mortgages 1,582 8 487 7 Consumer loans 1,097 6 1,161 5 Total impaired loans $ 8,641 $ 258 $ 5,326 $ 144 |
Schedule of Recorded Investment and Number of Modifications for TDRs Identified During the Period | The following tables include the recorded investment and number of modifications identified during the three and six months ended June 30, 2018 and June 30, 2017. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. There were no modifications made during the three months ended June 30, 2018. The modifications for the six months ended June 30, 2018 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. The modifications for the three and six months ended June 30, 2017 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended June 30, 2018 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial — $ — $ — Residential - 1-4 Family — — — Total — $ — $ — Six Months Ended June 30, 2018 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial and industrial 4 $ 1,995 $ 1,924 Residential - 1-4 Family 1 118 118 Total 5 $ 2,113 $ 2,042 Three Months Ended June 30, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 9 $ 10,613 $ 9,385 Commercial and industrial - Other 4 1,793 1,793 Residential - 1-4 Family — — — Consumer Home Equity — — — Total 13 $ 12,406 $ 11,178 Six Months Ended June 30, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Other 15 $ 13,445 $ 11,718 Commercial and industrial - Other 5 1,817 1,817 Residential - 1-4 Family 2 205 188 Consumer Home Equity 1 53 53 Total 23 $ 15,520 $ 13,776 The following table discloses the recorded investments and numbers of modifications for TDRs where a concession has been made within the previous 12 months, that then defaulted in the respective reporting period. For the three and six months ended June 30, 2018, there were two loans that were restructured that had subsequently defaulted during the period. Modifications that Subsequently Defaulted Three Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 5,992 Commercial and industrial - Other 1 $ 1,065 Modifications that Subsequently Defaulted Six Months Ended June 30, 2018 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 5,992 Commercial and industrial - Other 1 $ 1,065 Modifications that Subsequently Defaulted Three Months Ended June 30, 2017 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other — $ — Commercial and industrial - Other — $ — Modifications that Subsequently Defaulted Six Months Ended June 30, 2017 (Dollars in thousands) Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 113 Commercial and industrial - Other 1 $ 101 |
Schedule of TDR Activity | The following table presents the Company’s TDR activity for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of the period $ 43,105 $ 34,699 Principal payments (2,511 ) (266 ) TDR status change (1) — — Other reductions/increases (2) (7,088 ) (1,055 ) Newly identified TDRs — 11,178 Balance at end of the period $ 33,506 $ 44,556 Six Months Ended June 30, (In thousands) 2018 2017 Balance at beginning of the period $ 41,990 $ 33,829 Principal payments (3,150 ) (1,154 ) TDR status change (1) — — Other reductions/increases (2) (7,376 ) (1,895 ) Newly identified TDRs 2,042 13,776 Balance at end of the period $ 33,506 $ 44,556 _________________________________ (1) TDR status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement. (2) Other reductions classification consists of transfer to other real estate owned and charge-offs and advances to loans. |
LOAN LOSS ALLOWANCE (Tables)
LOAN LOSS ALLOWANCE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Activity in the Allowance for Loan Losses | Activity in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017 was as follows: At or for the three months ended June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 17,841 $ 13,229 $ 8,598 $ 7,609 $ 47,277 Charged-off loans 1,392 1,706 27 837 3,962 Recoveries on charged-off loans 26 447 6 135 614 Provision/(releases) for loan losses 2,676 2,685 853 171 6,385 Balance at end of period $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At or for the six months ended June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,843 $ 13,850 $ 9,420 $ 5,807 $ 45,920 Charged-off loans 1,498 2,596 27 1,777 5,898 Recoveries on charged-off loans 49 491 6 209 755 Provision/(releases) for loan losses 3,757 2,910 31 2,839 9,537 Balance at end of period $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At or for the three months ended June 30, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,280 $ 11,850 $ 7,863 $ 5,470 $ 41,463 Charged-off loans 1,393 581 278 631 2,883 Recoveries on charged-off loans — 55 14 87 156 Provision/(releases) for loan losses 1,046 1,306 512 1,295 4,159 Balance at end of period $ 15,933 $ 12,630 $ 8,111 $ 6,221 $ 42,895 At or for the six months ended June 30, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 16,498 $ 9,447 $ 7,805 $ 5,479 $ 39,229 Charged-off loans 1,516 1,851 513 1,317 5,197 Recoveries on charged-off loans 57 71 29 172 329 Provision/(releases) for loan losses 894 4,963 790 1,887 8,534 Balance at end of period $ 15,933 $ 12,630 $ 8,111 $ 6,221 $ 42,895 At or for the three months ended June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,995 $ 1,243 $ 1,046 $ 298 $ 6,582 Charged-off loans 972 — 622 164 1,758 Recoveries on charged-off loans 259 66 11 304 640 Provision/(releases) for loan losses 100 (182 ) 183 46 147 Balance at end of period $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At or for the six months ended June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,856 $ 1,125 $ 598 $ 335 $ 5,914 Charged-off loans 1,712 155 1,053 693 3,613 Recoveries on charged-off loans 265 95 36 344 740 Provision/(releases) for loan losses 973 62 1,037 498 2,570 Balance at end of period $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At or for the three months ended June 30, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 2,128 $ 1,054 $ 706 $ 453 $ 4,341 Charged-off loans 94 43 71 340 548 Recoveries on charged-off loans 13 (56 ) (2 ) (14 ) (59 ) Provision/(releases) for loan losses 309 59 57 305 730 Balance at end of period $ 2,356 $ 1,014 $ 690 $ 404 $ 4,464 At or for the six months ended June 30, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 2,303 $ 1,164 $ 766 $ 536 $ 4,769 Charged-off loans 670 481 215 491 1,857 Recoveries on charged-off loans 22 1 38 41 102 Provision/(releases) for loan losses 701 330 101 318 1,450 Balance at end of period $ 2,356 $ 1,014 $ 690 $ 404 $ 4,464 The following tables present a summary of the allowance for loan losses as of June 30, 2018 and December 31, 2017: At June 30, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 15 70 109 1 195 Collectively evaluated for impairment 19,136 14,585 9,321 7,077 50,119 Total $ 19,151 $ 14,655 $ 9,430 $ 7,078 $ 50,314 At December 31, 2017 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 229 66 130 35 460 Collectively evaluated for impairment 16,614 13,784 9,290 5,772 45,460 Total 16,843 13,850 9,420 5,807 45,920 At June 30, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 32 9 6 11 58 Purchased credit-impaired loans — — — — — Collectively evaluated for impairment 3,350 1,118 612 473 5,553 Total $ 3,382 $ 1,127 $ 618 $ 484 $ 5,611 At December 31, 2017 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 56 1 9 45 111 Collectively evaluated for impairment 3,800 1,124 589 290 5,803 Total 3,856 1,125 598 335 5,914 |
Schedule of Loans by Risk Rating | The following tables present the Company’s loans by risk rating at June 30, 2018 and December 31, 2017: 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) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 345,896 $ 269,206 $ 375,907 $ 214,289 $ 1,566,673 $ 1,687,256 $ 2,288,476 $ 2,170,751 Special mention — — 459 504 33,235 12,999 33,694 13,503 Substandard — — 2,068 2,290 44,758 31,163 46,826 33,453 Total $ 345,896 $ 269,206 $ 378,434 $ 217,083 $ 1,644,666 $ 1,731,418 $ 2,368,996 $ 2,217,707 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2018 December 31, 2017 Grade: Pass $ 1,325,226 $ 1,156,240 Special mention 14,697 12,806 Substandard 15,941 11,123 Doubtful — 2,400 Total $ 1,355,864 $ 1,182,569 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 2,126,733 $ 1,805,596 $ 7,289 $ 5,177 $ 2,134,022 $ 1,810,773 Special mention 445 242 — — 445 242 Substandard 2,798 2,186 — — 2,798 2,186 Total $ 2,129,976 $ 1,808,024 $ 7,289 $ 5,177 $ 2,137,265 $ 1,813,201 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 31, 2018 December 31, 2017 June 31, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Performing $ 290,988 $ 293,327 $ 633,185 $ 602,313 $ 924,173 $ 895,640 Nonperforming 2,462 1,627 1,619 1,454 4,081 3,081 Total $ 293,450 $ 294,954 $ 634,804 $ 603,767 $ 928,254 $ 898,721 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Real Estate Total commercial real estate (In thousands) June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 June 30,2018 December 31, 2017 Grade: Pass $ 50,934 $ 76,611 $ 191,132 $ 203,624 $ 641,490 $ 684,846 $ 883,556 $ 965,081 Special mention — — — 603 9,734 22,070 9,734 22,673 Substandard 8,334 8,354 4,733 1,855 43,970 49,072 57,037 59,281 Total $ 59,268 $ 84,965 $ 195,865 $ 206,082 $ 695,194 $ 755,988 $ 950,327 $ 1,047,035 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2018 December 31, 2017 Grade: Pass $ 500,636 $ 606,922 Special mention 1,128 1,241 Substandard 17,490 13,207 Total $ 519,254 $ 621,370 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Grade: Pass $ 255,272 $ 281,160 $ 193 $ 233 $ 255,465 $ 281,393 Special mention 268 2,704 — — 268 2,704 Substandard 4,194 5,509 — — 4,194 5,509 Total $ 259,734 $ 289,373 $ 193 $ 233 $ 259,927 $ 289,606 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Performing $ 98,464 $ 113,262 $ 90,230 $ 113,510 $ 188,694 $ 226,772 Nonperforming 916 1,965 469 392 1,385 2,357 Total $ 99,380 $ 115,227 $ 90,699 $ 113,902 $ 190,079 $ 229,129 |
Summary of Information About Total Loans Rated Special Mention or Lower | The following table summarizes information about total loans rated Special Mention or lower as of June 30, 2018 and December 31, 2017. The table below includes consumer loans that are special mention and substandard accruing that are classified in the above table as performing based on payment activity. June 30, 2018 December 31, 2017 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 14,196 $ 8,833 $ 23,029 $ 15,659 $ 7,240 $ 22,899 Substandard Accruing 55,498 71,527 127,025 36,846 73,412 110,258 Total Classified 69,694 80,360 150,054 52,505 80,652 133,157 Special Mention 49,314 11,380 60,694 28,387 26,802 55,189 Total Criticized $ 119,008 $ 91,740 $ 210,748 $ 80,892 $ 107,454 $ 188,346 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
Summary of Time Deposits | A summary of time deposits is as follows: (In thousands) June 30, December 31, Time less than $100,000 $ 707,398 $ 733,785 Time $100,000 through $250,000 1,906,803 1,717,050 Time more than $250,000 445,833 439,370 Total time deposits $ 3,060,034 $ 2,890,205 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at June 30, 2018 and December 31, 2017 are summarized, as follows: June 30, 2018 December 31, 2017 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ 1,002,000 2.11 % $ 667,300 1.48 % Total short-term borrowings: 1,002,000 2.11 667,300 1.48 Long-term borrowings: Advances from the FHLB and other borrowings 272,342 1.69 380,436 1.54 Subordinated borrowings 73,965 7.00 73,875 7.00 Junior subordinated borrowings 15,464 4.18 15,464 3.30 Total long-term borrowings: 361,771 2.88 469,775 2.46 Total $ 1,363,771 2.32 % $ 1,137,075 1.88 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLB advances as of June 30, 2018 is as follows: June 30, 2018 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2018 $ 1,063,993 2.07 % 2019 150,079 1.64 2020 53,371 2.04 2021 213 2.71 2022 and beyond 6,686 2.64 Total FHLB advances $ 1,274,342 2.02 % |
CAPITAL RATIOS AND SHAREHOLDE29
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | The actual and required capital ratios were as follows: June 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 12.8 % N/A 12.4 % N/A Common equity tier 1 capital to risk weighted assets 11.3 N/A 11.0 N/A Tier 1 capital to risk weighted assets 11.5 N/A 11.2 N/A Tier 1 capital to average assets 9.1 N/A 9.0 N/A Bank Total capital to risk weighted assets 12.0 % 8.0 % 11.2 % 8.0 % Common equity tier 1 capital to risk weighted assets 11.1 4.5 10.3 4.5 Tier 1 capital to risk weighted assets 11.1 6.0 10.3 6.0 Tier 1 capital to average assets 8.8 4.0 8.3 4.0 |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income is as follows: (In thousands) June 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding loss on AFS securities $ (25,347 ) $ 10,034 Net unrealized holding loss on pension plans (3,048 ) (3,048 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities 6,326 (4,026 ) Net unrealized holding loss on pension plans 803 1,201 Accumulated other comprehensive (loss)/income $ (21,266 ) $ 4,161 |
Schedule of Components of Other Comprehensive Income | The following table presents the components of other comprehensive income for the three and six months ended June 30, 2018 and 2017 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: x Net unrealized (losses) arising during the period $ (7,839 ) $ 2,001 $ (5,838 ) Less: reclassification adjustment for gains realized in net income 1 — 1 Net unrealized holding (loss) on AFS securities (7,840 ) 2,001 (5,839 ) Other comprehensive (loss) $ (7,840 ) $ 2,001 $ (5,839 ) Three Months Ended June 30, 2017 Net unrealized holding gain on AFS securities: Net unrealized gains arising during the period $ 3,926 $ (1,455 ) $ 2,471 Less: reclassification adjustment for losses realized in net income (1 ) — (1 ) Net unrealized holding gain on AFS securities 3,927 (1,455 ) 2,472 Other comprehensive income $ 3,927 $ (1,455 ) $ 2,472 (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: x Net unrealized (losses) arising during the period $ (27,001 ) $ 6,932 $ (20,069 ) Less: reclassification adjustment for gains realized in net income 1 — $ 1 Net unrealized holding (loss) on AFS securities (27,002 ) 6,932 $ (20,070 ) Other comprehensive (loss) $ (27,002 ) $ 6,932 $ (20,070 ) Less: reclassification related to adoption of ASU 2016-01 8,379 (2,126 ) 6,253 Less: reclassification related to adoption of ASU 2018-02 — (896 ) (896 ) Total change to accumulated other comprehensive (loss) (35,381 ) 9,954 (25,427 ) Six Months Ended June 30, 2017 Net unrealized holding gain on AFS securities: Net unrealized gains arising during the period $ 7,064 $ (2,627 ) $ 4,437 Less: reclassification adjustment for gains realized in net income 12,569 (4,713 ) 7,856 Net unrealized holding (loss) on AFS securities (5,505 ) 2,086 (3,419 ) Net unrealized 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 unrealized gain on cash flow hedging derivatives 6,573 (2,589 ) 3,984 Other comprehensive income $ 1,068 $ (503 ) $ 565 |
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 (loss) income, for the three and six months ended June 30, 2018 and 2017 : (In thousands) Net unrealized holding gain on AFS Securities Net loss on effective cash flow hedging derivatives Net unrealized holding loss on pension plans Total Three Months Ended June 30, 2018 Balance at Beginning of Period $ (13,182 ) $ — $ (2,245 ) $ (15,427 ) Other comprehensive loss before reclassifications (5,838 ) — — (5,838 ) Less: amounts reclassified from accumulated other comprehensive income (loss) 1 — — 1 Total other comprehensive (loss) (5,839 ) — — (5,839 ) Balance at End of Period $ (19,021 ) $ — $ (2,245 ) $ (21,266 ) Three Months Ended June 30, 2017 Balance at Beginning of Period $ 9,649 $ — $ (1,790 ) $ 7,859 Other comprehensive gain before reclassifications 2,471 — — 2,471 Less: amounts reclassified from accumulated other comprehensive income (loss) (1 ) — — (1 ) Total other comprehensive income 2,472 — — 2,472 Balance at End of Period $ 12,121 $ — $ (1,790 ) $ 10,331 Six Months Ended June 30, 2018 Balance at Beginning of Period $ 6,008 $ — $ (1,847 ) $ 4,161 Other comprehensive (loss) before reclassifications (20,069 ) — — (20,069 ) Less: amounts reclassified from accumulated other comprehensive income 1 — — 1 Total other comprehensive (loss) (20,070 ) — — (20,070 ) Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 $ 4,959 $ — $ 398 $ 5,357 Balance at End of Period $ (19,021 ) $ — $ (2,245 ) $ (21,266 ) Six Months Ended June 30, 2017 Balance at Beginning of Period $ 15,540 $ (3,984 ) $ (1,790 ) $ 9,766 Other comprehensive gain (loss) before reclassifications 4,437 (269 ) — 4,168 Less: amounts reclassified from accumulated other comprehensive income 7,856 (4,253 ) — 3,603 Total other comprehensive (loss) income (3,419 ) 3,984 — 565 Balance at End of Period $ 12,121 $ — $ (1,790 ) $ 10,331 |
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 (loss) income for the three and six months ended June 30, 2018 and 2017 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (In thousands) 2018 2017 is Presented Realized gains on AFS securities: $ 1 $ (1 ) Non-interest income — — Tax expense 1 (1 ) Net of tax Realized (losses) on cash flow hedging derivatives: — — Interest expense — — Non-interest expense — — Tax benefit — — Net of tax Total reclassifications for the period $ 1 $ (1 ) Net of tax Affected Line Item in the Six Months Ended June 30, Statement where Net Income (In thousands) 2018 2017 is Presented Realized gains on AFS securities: $ 1 $ 12,569 Non-interest income — (4,713 ) Tax expense 1 7,856 Net of tax Realized (losses) on cash flow hedging derivatives: — (393 ) Interest expense — (6,629 ) Non-interest expense — 2,769 Tax benefit — (4,253 ) Net of tax Total reclassifications for the period $ 1 $ 3,603 Net of tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2018 2017 2018 2017 Net income $ 34,031 $ 19,694 $ 59,279 $ 35,154 Average number of common shares issued 46,212 38,720 46,212 37,731 Less: average number of treasury shares 788 943 828 981 Less: average number of unvested stock award shares 435 453 428 445 Plus: average participating preferred shares 1,043 — 1,043 — Average number of basic shares outstanding 46,032 37,324 45,999 36,305 Plus: dilutive effect of unvested stock award shares 152 106 176 116 Plus: dilutive effect of stock options outstanding 31 44 31 45 Average number of diluted shares outstanding 46,215 37,474 46,206 36,466 Earnings per common share: Basic $ 0.74 $ 0.53 $ 1.29 $ 0.97 Diluted $ 0.74 $ 0.53 $ 1.28 $ 0.96 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity in the Stock Award and Stock Option Plans | A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2018 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2017 418 $ 29.68 76 $ 13.59 Granted 181 37.81 — — Stock options exercised — — (8 ) 12.46 Stock awards vested (150 ) 28.65 — — Forfeited (15 ) 32.93 — — Expired — — (11 ) 22.61 June 30, 2018 434 $ 33.18 57 $ 10.61 Exercisable options at June 30, 2018 57 $ 10.61 |
DERIVATIVE INSTRUMENTS AND HE32
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about derivative assets and liabilities at June 30, 2018 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB borrowings $ — 0 — % — % $ — Total cash flow hedges — — Economic hedges: Interest rate swap on tax advantaged economic development bond 10,426 11.4 2.35 % 5.09 % (1,175 ) Interest rate swaps on loans with commercial loan customers 1,094,198 6.3 3.90 % 4.40 % 16,744 Reverse interest rate swaps on loans with commercial loan customers 1,094,198 6.3 4.40 % 3.90 % (16,403 ) Risk participation agreements with dealer banks 183,986 6.2 (3 ) Forward sale commitments 338,884 0.2 (658 ) Total economic hedges 2,721,692 (1,495 ) Non-hedging derivatives: Commitments to lend 289,750 0.2 7,285 Total non-hedging derivatives 289,750 7,285 Total $ 3,011,442 $ 5,790 Information about derivative assets and liabilities at December 31, 2017 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on FHLB 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 |
Schedule of Amounts Included in the Consolidated Statements of Income and in the Other Comprehensive Income Section of the Consolidated Statements of Comprehensive Income | Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Interest rate swaps on FHLB borrowings: Unrealized (loss) recognized in accumulated other comprehensive loss $ — $ — $ — $ (449 ) Less: reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense — — — (393 ) Less: reclassification of unrealized (loss) from accumulated other comprehensive income to other non-interest expense — — — (6,629 ) Net tax (expense) benefit on items recognized in accumulated other comprehensive income — — — (2,589 ) Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ — $ — $ — $ 3,984 |
Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-Hedging Derivatives | Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 163 $ 2 $ 474 $ 124 Interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income 5,270 (3,810 ) 19,939 (1,682 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income (5,270 ) 3,810 (19,939 ) 1,682 Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income 95 (114 ) 332 (276 ) Risk participation agreements: Unrealized gain recognized in other non-interest income 7 23 23 5 Forward commitments: Unrealized (loss) gain recognized in other non-interest income (658 ) 975 (1,567 ) (276 ) Realized gain (loss) in other non-interest income 1,077 238 4,999 (2,668 ) Non-hedging derivatives Commitments to lend Unrealized gain recognized in other non-interest income $ 7,285 $ 7,375 $ 13,816 $ 15,436 Realized gain in other non-interest income 2,491 7,693 3,094 16,467 |
Schedule of Assets Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 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 Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount June 30, 2018 Interest Rate Swap Agreements: Institutional counterparties $ 20,015 $ (1,386 ) $ 18,629 $ — $ — $ 18,629 Commercial counterparties 4,546 — 4,546 — — 4,546 Total $ 24,561 $ (1,386 ) $ 23,175 $ — $ — $ 23,175 |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 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 Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount June 30, 2018 Interest Rate Swap Agreements: Institutional counterparties $ (4,468 ) $ 1,404 $ (3,064 ) $ — $ 6,853 $ 3,789 Commercial counterparties (21,058 ) 109 (20,949 ) — — (20,949 ) Total $ (25,526 ) $ 1,513 $ (24,013 ) $ — $ 6,853 $ (17,160 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Segregated by the Level of the Valuation Inputs Within the Fair Value Hierarchy Utilized to Measure Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,483 $ 11,483 Securities available for sale: Municipal bonds and obligations — 112,137 — 112,137 Agency collateralized mortgage obligations — 915,217 — 915,217 Agency residential mortgage-backed securities — 184,670 — 184,670 Agency commercial mortgage-backed securities — 59,513 — 59,513 Corporate bonds — 101,062 — 101,062 Trust preferred securities — 11,614 — 11,614 Other bonds and obligations — 9,037 — 9,037 Marketable equity securities 59,163 563 — 59,726 Loans held for sale — 149,182 — 149,182 Derivative assets — 26,031 7,285 33,316 Capitalized servicing rights — — 7,839 7,839 Derivative liabilities 658 26,869 — 27,527 December 31, 2017 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 12,277 $ 12,277 Securities available for sale: 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 Capitalized servicing rights — — 3,834 3,834 Derivative liabilities 104 15,715 19 15,838 |
Summary of Securities Available for Sale | The following is a summary of securities available for sale, held to maturity, and marketable equity securities: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2018 Securities available for sale Debt securities: Municipal bonds and obligations $ 110,381 $ 2,475 $ (719 ) $ 112,137 Agency collateralized mortgage obligations 940,130 10 (24,923 ) 915,217 Agency mortgage-backed securities 190,872 45 (6,247 ) 184,670 Agency commercial mortgage-backed securities 62,930 — (3,417 ) 59,513 Corporate bonds 100,985 534 (457 ) 101,062 Trust preferred securities 11,266 348 — 11,614 Other bonds and obligations 9,042 44 (49 ) 9,037 Total securities available for sale 1,425,606 3,456 (35,812 ) 1,393,250 Securities held to maturity Municipal bonds and obligations 268,529 3,928 (3,066 ) 269,391 Agency collateralized mortgage obligations 72,754 169 (1,392 ) 71,531 Agency mortgage-backed securities 7,457 — (351 ) 7,106 Agency commercial mortgage-backed securities 10,449 — (532 ) 9,917 Tax advantaged economic development bonds 20,395 19 (1,194 ) 19,220 Other bonds and obligations 321 — — 321 Total securities held to maturity 379,905 4,116 (6,535 ) 377,486 Marketable equity securities 55,618 6,024 (1,916 ) 59,726 Total $ 1,861,129 $ 13,596 $ (44,263 ) $ 1,830,462 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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 securities available for sale 1,387,250 7,108 (13,444 ) 1,380,914 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 Marketable equity securities 36,483 9,211 (509 ) 45,185 Total $ 1,820,836 $ 26,635 $ (16,096 ) $ 1,831,375 June 30, 2018 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 59,726 $ 55,618 $ 4,108 December 31, 2017 (In thousands) Fair Value Amortized Cost Gains Marketable equity securities $ 45,185 $ 36,483 $ 8,702 |
Schedule of Loans Held for Sale | Aggregate Fair Value June 30, 2018 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 149,182 $ 145,723 $ 3,459 Aggregate Fair Value December 31, 2017 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 153,620 $ 149,022 $ 4,598 |
Schedule of Changes in Level 3 Assets and Liabilities That Were Measured at Fair Value on a Recurring Basis | The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2018 and 2017 . Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend Commitments Rights Three Months Ended June 30, 2018 March 31, 2018 $ 11,795 $ 6,531 $ — $ 5,705 Unrealized (loss) gain, net recognized in other non-interest income (148 ) 12,787 — 339 Paydown of trading security (164 ) — — — Transfers to held for sale loans — (12,033 ) — — Additions to servicing rights — — — 1,795 June 30, 2018 $ 11,483 $ 7,285 $ — $ 7,839 Six Months Ended June 30, 2018 December 31, 2017 $ 12,277 $ 5,259 $ 19 $ 3,834 Unrealized (loss) gain, net recognized in other non-interest income (465 ) 25,000 (19 ) 804 Paydown of trading security (329 ) — — — Transfers to held for sale loans — (22,974 ) — — Additions to servicing rights $ — $ — $ — $ 3,201 June 30, 2018 $ 11,483 $ 7,285 $ — $ 7,839 Unrealized gains (losses) relating to instruments still held at June 30, 2018 $ 1,056 $ 7,285 $ — $ — Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend Commitments Rights Three Months Ended June 30, 2017 March 31, 2017 $ 12,966 $ 8,061 $ (22 ) $ 976 Unrealized gain (loss), net recognized in other non-interest income 27 16,515 34 (68 ) Paydown of trading security (156 ) — — — Transfers to held for sale loans — (17,202 ) — — Additions to servicing rights — — — 660 June 30, 2017 $ 12,837 $ 7,374 $ 12 $ 1,568 Six Months Ended June 30, 2017 December 31, 2016 $ 13,229 $ 4,738 $ 100 $ 798 Unrealized (loss) gain, net recognized in other non-interest income (79 ) 33,817 (88 ) (70 ) Paydown of trading security (313 ) — — — Transfers to held for sale loans — (31,181 ) — — Additions to servicing rights $ — $ — $ — $ 840 June 30, 2017 $ 12,837 $ 7,374 $ 12 $ 1,568 Unrealized gains (losses) relating to instruments still held at June 30, 2017 $ 1,736 $ 7,374 $ 12 $ — |
Summary of Applicable Non-Recurring Fair Value Measurements | Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) June 30, 2018 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 8,075 Fair Value of Collateral Discounted Cash Flow - Loss Severity 38.39% to 0.02% (2.79%) Appraised Value $2.80 to $1,387 ($603.90) Capitalized servicing rights 12,129 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.27% to 10.90% (9.62%) Discount Rate 10.00% to 13.12% (11.64%) Total $ 20,204 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 23,853 Fair Value of Collateral Discounted Cash Flow - loss severity 38.72% to 0.21% (3.40%) Appraised Value $10.9 to $5,967 ($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%) Total $ 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. |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | The following tables summarize the estimated fair values, and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. June 30, 2018 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 139,057 $ 139,057 $ 139,057 $ — $ — Trading security 11,483 11,483 — — 11,483 Marketable equity securities 59,726 59,726 59,163 563 — Securities available for sale 1,393,250 1,393,250 — 1,393,250 — Securities held to maturity 379,905 377,486 — 358,265 19,221 FHLB bank stock and restricted securities 75,530 N/A N/A N/A N/A Net loans 8,654,041 8,796,933 — — 8,796,933 Loans held for sale 149,182 149,182 — 149,182 — Accrued interest receivable 36,017 36,017 — 36,017 — Cash surrender value of bank-owned life insurance policies 193,121 193,121 — 193,121 — Derivative assets 33,316 33,316 — 26,031 7,285 Assets held for sale 1,070 1,070 — 1,070 — Financial Liabilities Total deposits $ 8,838,752 $ 8,809,947 $ — $ 8,809,947 $ — Short-term debt 1,002,000 1,001,944 — 1,001,944 — Long-term Federal Home Loan Bank advances 272,342 270,112 — 270,112 — Subordinated borrowings 89,429 97,006 — 97,006 — Derivative liabilities 27,527 27,527 658 26,869 — December 31, 2017 Carrying Fair (In thousands) Amount Value 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 Marketable equity securities 45,185 45,185 44,851 334 — Securities available for sale and other 1,380,914 1,380,914 — 1,380,914 — Securities held to maturity 397,103 405,276 — 371,458 33,818 FHLB bank stock and restricted securities 63,085 N/A N/A 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 Federal Home Loan Bank advances 380,436 378,766 — 378,766 — Subordinated borrowings 89,339 97,414 — 97,414 — Derivative liabilities 15,838 15,838 104 15,715 19 |
Recurring | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant Unobservable Input (In thousands) June 30, 2018 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,483 Discounted Cash Flow Discount Rate 3.32 % Commitments to lend 7,285 Historical Trend Closing Ratio 83.54 % Pricing Model Origination Costs, per loan $ 3,063 Forward commitments — Historical Trend Closing Ratio 83.54 % Pricing Model Origination Costs, per loan $ 3,063 Capitalized servicing rights 7,839 Discounted cash flow Constant Prepayment Rate (CPR) 8.00 % Discount Rate 9.96 % Total $ 26,607 Fair Value Significant Unobservable Input (In thousands) December 31, 2017 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 12,277 Discounted Cash Flow Discount Rate 2.74 % Commitments to lend 5,259 Historical Trend Closing Ratio 81.53 % Pricing Model Origination Costs, per loan $ 3,692 Forward commitments 19 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 |
Non-recurring | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis. June 30, 2018 December 31, 2017 Fair Value Measurement Date as of June 30, 2018 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Impaired loans $ 8,075 $ 23,853 June 2018 Capitalized servicing rights 12,129 12,527 June 2018 Total $ 20,204 $ 36,380 |
NET INTEREST INCOME AFTER PRO34
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Net Interest Income After Provision for Loan Losses | Presented below is net interest income after provision for loan losses for the three and six months ended June 30, 2018 and 2017, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2018 2017 2018 2017 Net interest income $ 91,121 $ 69,545 $ 176,591 $ 136,431 Provision for loan losses 6,532 4,889 12,107 9,984 Net interest income after provision for loan losses $ 84,589 $ 64,656 $ 164,484 $ 126,447 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2018 and 2017. Three months ended Six months ended June 30, June 30, (In thousands) 2018 2017 2018 2017 Non-interest income In-scope of Topic 606: Service charges on deposit accounts $ 4,923 $ 4,156 $ 10,338 $ 8,196 Insurance revenue 2,549 2,588 5,574 5,724 Wealth management fees 2,280 2,286 4,877 4,812 Interchange income 2,391 1,920 4,281 3,668 Non-interest income (in-scope of Topic 606) 12,143 10,950 25,070 22,400 Non-interest income (out-of-scope of Topic 606) 17,887 21,848 34,480 45,155 Total non-interest income $ 30,030 $ 32,798 $ 59,550 $ 67,555 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Decrease in retained earnings | $ (283,256) | $ (239,179) | |
ASU 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from AOCI | $ 896 | ||
Decrease in retained earnings | $ 896 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 10,400 | $ 10,800 |
Trading security, at fair value | $ 11,483 | $ 12,277 |
SECURITIES AVAILABLE FOR SALE38
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | $ 1,425,606 | $ 1,387,250 |
Available-for-sale debt securities, accumulated gross unrealized gain | 3,456 | 7,108 |
Available-for-sale debt securities, accumulated gross unrealized loss | (35,812) | (13,444) |
Available-for-sale securities, debt securities | 1,393,250 | 1,380,914 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 379,905 | 397,103 |
Held to maturity securities accumulated unrecognized holding gains | 4,116 | 10,316 |
Held to maturity securities, accumulated unrecognized holding loss | (6,535) | (2,143) |
Securities held to maturity, fair value | 377,486 | 405,276 |
Marketable equity securities, amortized cost | 55,618 | 36,483 |
Marketable equity securities, gross unrealized gains | 6,024 | 9,211 |
Marketable equity securities, gross unrealized losses | (1,916) | (509) |
Marketable equity securities, fair value | 59,726 | 45,185 |
Total, amortized cost basis | 1,861,129 | 1,820,836 |
Total, gross unrealized gain | 13,596 | 26,635 |
Total, gross unrealized loss | (44,263) | (16,096) |
Total, fair value | 1,830,462 | 1,831,375 |
Municipal bonds and obligations | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 110,381 | 113,427 |
Available-for-sale debt securities, accumulated gross unrealized gain | 2,475 | 5,012 |
Available-for-sale debt securities, accumulated gross unrealized loss | (719) | (206) |
Available-for-sale securities, debt securities | 112,137 | 118,233 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 268,529 | 270,310 |
Held to maturity securities accumulated unrecognized holding gains | 3,928 | 8,675 |
Held to maturity securities, accumulated unrecognized holding loss | (3,066) | (90) |
Securities held to maturity, fair value | 269,391 | 278,895 |
Agency collateralized mortgage obligations | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 940,130 | 859,705 |
Available-for-sale debt securities, accumulated gross unrealized gain | 10 | 397 |
Available-for-sale debt securities, accumulated gross unrealized loss | (24,923) | (8,944) |
Available-for-sale securities, debt securities | 915,217 | 851,158 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 72,754 | 73,742 |
Held to maturity securities accumulated unrecognized holding gains | 169 | 1,045 |
Held to maturity securities, accumulated unrecognized holding loss | (1,392) | (486) |
Securities held to maturity, fair value | 71,531 | 74,301 |
Agency mortgage-backed securities | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 190,872 | 218,926 |
Available-for-sale debt securities, accumulated gross unrealized gain | 45 | 279 |
Available-for-sale debt securities, accumulated gross unrealized loss | (6,247) | (2,265) |
Available-for-sale securities, debt securities | 184,670 | 216,940 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 7,457 | 7,892 |
Held to maturity securities accumulated unrecognized holding gains | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | (351) | (164) |
Securities held to maturity, fair value | 7,106 | 7,728 |
Agency commercial mortgage-backed securities | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 62,930 | 64,025 |
Available-for-sale debt securities, accumulated gross unrealized gain | 0 | 41 |
Available-for-sale debt securities, accumulated gross unrealized loss | (3,417) | (1,761) |
Available-for-sale securities, debt securities | 59,513 | 62,305 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 10,449 | 10,481 |
Held to maturity securities accumulated unrecognized holding gains | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | (532) | (268) |
Securities held to maturity, fair value | 9,917 | 10,213 |
Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 20,395 | 34,357 |
Held to maturity securities accumulated unrecognized holding gains | 19 | 596 |
Held to maturity securities, accumulated unrecognized holding loss | (1,194) | (1,135) |
Securities held to maturity, fair value | 19,220 | 33,818 |
Corporate bonds | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 100,985 | 110,076 |
Available-for-sale debt securities, accumulated gross unrealized gain | 534 | 882 |
Available-for-sale debt securities, accumulated gross unrealized loss | (457) | (237) |
Available-for-sale securities, debt securities | 101,062 | 110,721 |
Trust preferred securities | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 11,266 | 11,334 |
Available-for-sale debt securities, accumulated gross unrealized gain | 348 | 343 |
Available-for-sale debt securities, accumulated gross unrealized loss | 0 | 0 |
Available-for-sale securities, debt securities | 11,614 | 11,677 |
Other bonds and obligations | ||
Debt securities: | ||
Available-for-sale debt securities, amortized cost basis | 9,042 | 9,757 |
Available-for-sale debt securities, accumulated gross unrealized gain | 44 | 154 |
Available-for-sale debt securities, accumulated gross unrealized loss | (49) | (31) |
Available-for-sale securities, debt securities | 9,037 | 9,880 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 321 | 321 |
Held to maturity securities accumulated unrecognized holding gains | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Securities held to maturity, fair value | $ 321 | $ 321 |
SECURITIES AVAILABLE FOR SALE39
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 265 | |
Over 1 year to 5 years | 32,662 | |
Over 5 years to 10 years | 76,018 | |
Over 10 years | 122,729 | |
Total bonds and obligations | 231,674 | |
Mortgage-backed securities | 1,193,932 | |
Available-for-sale debt securities, amortized cost basis | 1,425,606 | $ 1,387,250 |
Available for sale, Fair Value | ||
Within 1 year | 266 | |
Over 1 year to 5 years | 32,794 | |
Over 5 years to 10 years | 76,647 | |
Over 10 years | 124,143 | |
Total bonds and obligations | 233,850 | |
Mortgage-backed securities | 1,159,400 | |
Available for sale securities | 1,393,250 | 1,380,914 |
Held to maturity, Amortized Cost | ||
Within 1 year | 2,251 | |
Over 1 year to 5 years | 14,496 | |
Over 5 years to 10 years | 6,701 | |
Over 10 years | 265,797 | |
Total bonds and obligations | 289,245 | |
Mortgage-backed securities | 90,660 | |
Held to maturity, amortized cost basis | 379,905 | 397,103 |
Held to maturity, Fair Value | ||
Within 1 year | 2,251 | |
Over 1 year to 5 years | 14,425 | |
Over 5 years to 10 years | 6,780 | |
Over 10 years | 265,476 | |
Total bonds and obligations | 288,932 | |
Mortgage-backed securities | 88,554 | |
Fair Value | $ 377,486 | $ 405,276 |
SECURITIES AVAILABLE FOR SALE40
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | $ 24,654 | $ 7,960 |
Available for sale securities, over twelve months, gross unrealized losses | 11,158 | 5,484 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 35,812 | 13,444 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 1,001,702 | 770,082 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 216,996 | 211,750 |
Available for sale securities, continuous unrealized loss position, fair value | 1,218,698 | 981,832 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 4,799 | 1,170 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 1,736 | 973 |
Held to maturity securities, accumulated unrecognized holding loss | 6,535 | 2,143 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 164,537 | 17,518 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 30,841 | 32,946 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 195,378 | 50,464 |
Securities available for sale and held to maturity | ||
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, aggregate losses | 29,453 | 9,130 |
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value | 1,166,239 | 787,600 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses | 12,894 | 6,457 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value | 247,837 | 244,696 |
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses | 42,347 | 15,587 |
Held to maturity and available for sale securities continuous unrealized loss position, fair value | 1,414,076 | 1,032,296 |
Municipal bonds and obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 162 | 0 |
Available for sale securities, over twelve months, gross unrealized losses | 557 | 206 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 719 | 206 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 5,805 | 0 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 8,600 | 8,985 |
Available for sale securities, continuous unrealized loss position, fair value | 14,405 | 8,985 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 2,885 | 35 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 181 | 55 |
Held to maturity securities, accumulated unrecognized holding loss | 3,066 | 90 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 117,250 | 10,213 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 1,936 | 2,059 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 119,186 | 12,272 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 20,590 | 6,849 |
Available for sale securities, over twelve months, gross unrealized losses | 4,333 | 2,095 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 24,923 | 8,944 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 800,936 | 655,479 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 97,803 | 80,401 |
Available for sale securities, continuous unrealized loss position, fair value | 898,739 | 735,880 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 720 | 0 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 672 | 486 |
Held to maturity securities, accumulated unrecognized holding loss | 1,392 | 486 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 31,773 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 11,882 | 12,946 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 43,655 | 12,946 |
Agency mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 3,074 | 765 |
Available for sale securities, over twelve months, gross unrealized losses | 3,173 | 1,500 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 6,247 | 2,265 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 119,032 | 95,800 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 62,416 | 65,323 |
Available for sale securities, continuous unrealized loss position, fair value | 181,448 | 161,123 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 351 | 164 |
Held to maturity securities, accumulated unrecognized holding loss | 351 | 164 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 7,106 | 7,728 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 7,106 | 7,728 |
Agency commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 351 | 334 |
Available for sale securities, over twelve months, gross unrealized losses | 3,066 | 1,427 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 3,417 | 1,761 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 13,421 | 17,379 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 46,092 | 39,268 |
Available for sale securities, continuous unrealized loss position, fair value | 59,513 | 56,647 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 532 | 268 |
Held to maturity securities, accumulated unrecognized holding loss | 532 | 268 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 9,917 | 10,213 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 9,917 | 10,213 |
Corporate bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 457 | 1 |
Available for sale securities, over twelve months, gross unrealized losses | 0 | 236 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 457 | 237 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 61,521 | 328 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 15,769 |
Available for sale securities, continuous unrealized loss position, fair value | 61,521 | 16,097 |
Other bonds and obligations | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 20 | 11 |
Available for sale securities, over twelve months, gross unrealized losses | 29 | 20 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 49 | 31 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 987 | 1,096 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 2,085 | 2,004 |
Available for sale securities, continuous unrealized loss position, fair value | 3,072 | 3,100 |
Tax advantaged economic development bonds | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 1,194 | 1,135 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | 1,194 | 1,135 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 15,514 | 7,305 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | $ 15,514 | $ 7,305 |
SECURITIES AVAILABLE FOR SALE41
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 1,393,250 | $ 1,380,914 |
Municipal bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 17 | |
Available for sale securities portfolio, number of securities (security) | 251 | |
Available for sale securities, continuous unrealized loss position, aggregate losses (as percent) | 4.80% | |
Held to maturity securities, continuous unrealized loss position, aggregate losses (as percent) | 2.50% | |
Held-to-maturity, securities in unrealized loss positions (security) | 78 | |
Held-to-maturity securities portfolio, number of securities (security) | 227 | |
Agency collateralized mortgage obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 237 | |
Available for sale securities portfolio, number of securities (security) | 245 | |
Available for sale securities, continuous unrealized loss position, aggregate losses (as percent) | 2.70% | |
Held to maturity securities, continuous unrealized loss position, aggregate losses (as percent) | 4.70% | |
Held-to-maturity, securities in unrealized loss positions (security) | 4 | |
Held-to-maturity securities portfolio, number of securities (security) | 9 | |
Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 73 | |
Available for sale securities portfolio, number of securities (security) | 100 | |
Available for sale securities, continuous unrealized loss position, aggregate losses (as percent) | 3.90% | |
Held to maturity securities, continuous unrealized loss position, aggregate losses (as percent) | 4.90% | |
Held-to-maturity, securities in unrealized loss positions (security) | 2 | |
Held-to-maturity securities portfolio, number of securities (security) | 2 | |
Corporate bonds | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 12 | |
Available for sale securities portfolio, number of securities (security) | 20 | |
Available for sale securities, continuous unrealized loss position, aggregate losses (as percent) | 0.70% | |
Other bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions (security) | 6 | |
Available for sale securities portfolio, number of securities (security) | 8 | |
Available for sale securities, continuous unrealized loss position, aggregate losses (as percent) | 1.60% | |
Tax advantaged economic development bonds | ||
Investment Holdings [Line Items] | ||
Held to maturity securities, continuous unrealized loss position, aggregate losses (as percent) | 7.20% | |
Held-to-maturity, securities in unrealized loss positions (security) | 3 | |
Held-to-maturity securities portfolio, number of securities (security) | 6 |
LOANS - Summary of Total Loans
LOANS - Summary of Total Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 8,709,966 | $ 8,299,338 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 6,790,379 | 6,112,198 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,919,587 | 2,187,140 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 5,194,441 | 5,068,681 |
Commercial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,724,860 | 3,400,276 |
Commercial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,469,581 | 1,668,405 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,319,323 | 3,264,742 |
Commercial Real Estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,368,996 | 2,217,707 |
Commercial Real Estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 950,327 | 1,047,035 |
Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 405,164 | 354,171 |
Commercial Real Estate | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 345,896 | 269,206 |
Commercial Real Estate | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 59,268 | 84,965 |
Commercial Real Estate | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 574,299 | 423,165 |
Commercial Real Estate | Single and multi-family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 378,434 | 217,083 |
Commercial Real Estate | Single and multi-family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 195,865 | 206,082 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,339,860 | 2,487,406 |
Commercial Real Estate | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,644,666 | 1,731,418 |
Commercial Real Estate | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 695,194 | 755,988 |
Commercial and industrial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,355,864 | 1,182,569 |
Commercial and industrial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 519,254 | 621,370 |
Commercial and industrial loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,875,118 | 1,803,939 |
Commercial and industrial loans | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,355,864 | 1,182,569 |
Commercial and industrial loans | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 519,254 | 621,370 |
Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,397,192 | 2,102,807 |
Residential Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,137,265 | 1,813,201 |
Residential Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 259,927 | 289,606 |
Residential Mortgages | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 7,482 | 5,410 |
Residential Mortgages | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 7,289 | 5,177 |
Residential Mortgages | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 193 | 233 |
Residential Mortgages | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,389,710 | 2,097,397 |
Residential Mortgages | 1-4 family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,129,976 | 1,808,024 |
Residential Mortgages | 1-4 family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 259,734 | 289,373 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,118,333 | 1,127,850 |
Consumer Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 928,254 | 898,721 |
Consumer Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 190,079 | 229,129 |
Consumer Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 392,830 | 410,181 |
Consumer Loans | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 293,450 | 294,954 |
Consumer Loans | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 99,380 | 115,227 |
Consumer Loans | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 725,503 | 717,669 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 634,804 | 603,767 |
Consumer Loans | Auto and other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 90,699 | $ 113,902 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)contract | Jun. 30, 2018USD ($)contract | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 8,709,966 | $ 8,709,966 | $ 8,299,338 |
Borrower's sustained repayment performance period | 6 months | ||
Modifications that subsequently defaulted, number of contracts | contract | 2 | 2 | |
Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 2,397,192 | $ 2,397,192 | 2,102,807 |
Residential Mortgages | Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Process of foreclosure | 3,800 | 4,900 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,919,587 | 1,919,587 | 2,187,140 |
Acquired credit impaired | 70,766 | 70,766 | 97,344 |
Certain loans acquired in transfer not accounted for as debt securities, note balance, net | 171,700 | 171,700 | 208,700 |
Financing receivable not considered impaired at time of acquisition | 1,800,000 | 1,800,000 | 2,100,000 |
Acquired Loans | Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 259,927 | 259,927 | 289,606 |
Acquired credit impaired | $ 5,054 | $ 5,054 | $ 6,974 |
LOANS - Accretable Yield Activi
LOANS - Accretable Yield Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 10,392 | $ 7,363 | $ 11,561 | $ 8,738 |
Accretion | (2,195) | (1,005) | (4,918) | (2,051) |
Net reclassifications from (to) nonaccretable difference | (169) | (85) | 1,654 | 333 |
Payments received, net | (1,724) | (506) | (1,912) | (1,253) |
Disposals | 0 | 0 | (81) | 0 |
Balance at end of period | $ 6,304 | $ 5,767 | $ 6,304 | $ 5,767 |
LOANS - Summary of Past Due Loa
LOANS - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 8,709,966 | $ 8,299,338 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,319,323 | 3,264,742 |
Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 405,164 | 354,171 |
Commercial Real Estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 574,299 | 423,165 |
Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,339,860 | 2,487,406 |
Commercial and industrial loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,875,118 | 1,803,939 |
Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,397,192 | 2,102,807 |
Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 7,482 | 5,410 |
Residential Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,389,710 | 2,097,397 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,118,333 | 1,127,850 |
Consumer Loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 392,830 | 410,181 |
Consumer Loans | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 725,503 | 717,669 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 40,584 | 33,264 |
Current | 6,749,795 | 6,078,934 |
Total loans | 6,790,379 | 6,112,198 |
Past Due 90 days and Accruing | 17,685 | 1,368 |
Business Activities Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,404 | 12,201 |
Business Activities Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,299 | 4,036 |
Business Activities Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 31,881 | 17,027 |
Business Activities Loans | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 24,165 | 7,447 |
Current | 2,344,831 | 2,210,260 |
Total loans | 2,368,996 | 2,217,707 |
Past Due 90 days and Accruing | 16,715 | 457 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 345,896 | 269,206 |
Total loans | 345,896 | 269,206 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 747 | 451 |
Current | 377,687 | 216,632 |
Total loans | 378,434 | 217,083 |
Past Due 90 days and Accruing | 9 | 0 |
Business Activities Loans | Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 23,418 | 6,996 |
Current | 1,621,248 | 1,724,422 |
Total loans | 1,644,666 | 1,731,418 |
Past Due 90 days and Accruing | 16,706 | 457 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,477 | 1,925 |
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 | 314 | 0 |
Business Activities Loans | Commercial Real Estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,163 | 1,925 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 262 | 48 |
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 | 0 |
Business Activities Loans | Commercial Real Estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 262 | 48 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22,426 | 5,474 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 433 | 451 |
Business Activities Loans | Commercial Real Estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21,993 | 5,023 |
Business Activities Loans | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,914 | 11,966 |
Current | 1,350,950 | 1,170,603 |
Total loans | 1,355,864 | 1,182,569 |
Past Due 90 days and Accruing | 42 | 128 |
Business Activities Loans | Commercial and industrial loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,355,864 | 1,182,569 |
Business Activities Loans | Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,272 | 4,031 |
Business Activities Loans | Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 114 | 1,912 |
Business Activities Loans | Commercial and industrial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,528 | 6,023 |
Business Activities Loans | Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,060 | 4,840 |
Current | 2,133,205 | 1,808,361 |
Total loans | 2,137,265 | 1,813,201 |
Past Due 90 days and Accruing | 879 | 520 |
Business Activities Loans | Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 7,289 | 5,177 |
Total loans | 7,289 | 5,177 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,060 | 4,840 |
Current | 2,125,916 | 1,803,184 |
Total loans | 2,129,976 | 1,808,024 |
Past Due 90 days and Accruing | 879 | 520 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 817 | 2,412 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | 30-59 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 817 | 2,412 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 445 | 242 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | 60-89 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 445 | 242 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,798 | 2,186 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential Mortgages | 90 Days or Greater Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,798 | 2,186 |
Business Activities Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,445 | 9,011 |
Current | 920,809 | 889,710 |
Total loans | 928,254 | 898,721 |
Past Due 90 days and Accruing | 49 | 263 |
Business Activities Loans | Consumer Loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,534 | 3,426 |
Current | 290,916 | 291,528 |
Total loans | 293,450 | 294,954 |
Past Due 90 days and Accruing | 0 | 120 |
Business Activities Loans | Consumer Loans | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,911 | 5,585 |
Current | 629,893 | 598,182 |
Total loans | 634,804 | 603,767 |
Past Due 90 days and Accruing | 49 | 143 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,838 | 3,833 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 72 | 444 |
Business Activities Loans | Consumer Loans | 30-59 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,766 | 3,389 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 478 | 1,834 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,235 |
Business Activities Loans | Consumer Loans | 60-89 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 478 | 599 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,129 | 3,344 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,462 | 1,747 |
Business Activities Loans | Consumer Loans | 90 Days or Greater Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,667 | 1,597 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14,295 | 16,667 |
Acquired Credit Impaired | 70,766 | 97,344 |
Total loans | 1,919,587 | 2,187,140 |
Past Due 90 days and Accruing | 634 | 200 |
Acquired Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,851 | 4,328 |
Acquired Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,976 | 4,899 |
Acquired Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,468 | 7,440 |
Acquired Loans | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,052 | 5,721 |
Acquired Credit Impaired | 31,015 | 53,302 |
Total loans | 950,327 | 1,047,035 |
Past Due 90 days and Accruing | 323 | 109 |
Acquired Loans | Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 7,633 | 7,655 |
Total loans | 59,268 | 84,965 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial Real Estate | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 707 | 874 |
Acquired Credit Impaired | 2,074 | 2,846 |
Total loans | 195,865 | 206,082 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,345 | 4,847 |
Acquired Credit Impaired | 21,308 | 42,801 |
Total loans | 695,194 | 755,988 |
Past Due 90 days and Accruing | 323 | 109 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 754 | 1,487 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 337 | 671 |
Acquired Loans | Commercial Real Estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 417 | 816 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,348 | 1,875 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 100 | 0 |
Acquired Loans | Commercial Real Estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,248 | 1,875 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,950 | 2,359 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 270 | 203 |
Acquired Loans | Commercial Real Estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,680 | 2,156 |
Acquired Loans | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,249 | 2,959 |
Acquired Credit Impaired | 32,297 | 34,629 |
Total loans | 519,254 | 621,370 |
Past Due 90 days and Accruing | 0 | 23 |
Acquired Loans | Commercial and industrial loans | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 519,254 | 621,370 |
Acquired Loans | Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 446 | 1,252 |
Acquired Loans | Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 260 | 268 |
Acquired Loans | Commercial and industrial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,543 | 1,439 |
Acquired Loans | Residential Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,053 | 4,785 |
Acquired Credit Impaired | 5,054 | 6,974 |
Total loans | 259,927 | 289,606 |
Past Due 90 days and Accruing | 216 | 30 |
Acquired Loans | Residential Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total loans | 193 | 233 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,053 | 4,785 |
Acquired Credit Impaired | 5,054 | 6,974 |
Total loans | 259,734 | 289,373 |
Past Due 90 days and Accruing | 216 | 30 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,318 | 957 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 30-59 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,318 | 957 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 241 | 2,581 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 60-89 Days Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 241 | 2,581 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,494 | 1,247 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential Mortgages | 90 Days or Greater Past Due | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,494 | 1,247 |
Acquired Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,941 | 3,202 |
Acquired Credit Impaired | 2,400 | 2,439 |
Total loans | 190,079 | 229,129 |
Past Due 90 days and Accruing | 95 | 38 |
Acquired Loans | Consumer Loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,300 | 2,291 |
Acquired Credit Impaired | 2,004 | 1,956 |
Total loans | 99,380 | 115,227 |
Past Due 90 days and Accruing | 81 | 0 |
Acquired Loans | Consumer Loans | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 641 | 911 |
Acquired Credit Impaired | 396 | 483 |
Total loans | 90,699 | 113,902 |
Past Due 90 days and Accruing | 14 | 38 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 333 | 632 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 183 | 286 |
Acquired Loans | Consumer Loans | 30-59 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 150 | 346 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 127 | 175 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 119 | 40 |
Acquired Loans | Consumer Loans | 60-89 Days Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8 | 135 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,481 | 2,395 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 998 | 1,965 |
Acquired Loans | Consumer Loans | 90 Days or Greater Past Due | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 483 | $ 430 |
LOANS - Summary Information Per
LOANS - Summary Information Pertaining to Non-accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Non-accrual loans | ||
Non-accrual loans | $ 22,102 | $ 22,816 |
Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 14,196 | 15,659 |
Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 7,906 | 7,157 |
Acquired Credit Impaired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 927 | 83 |
Commercial Real Estate | ||
Non-accrual loans | ||
Non-accrual loans | 9,410 | 7,267 |
Commercial Real Estate | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,711 | 5,017 |
Commercial Real Estate | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 3,699 | 2,250 |
Commercial Real Estate | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial Real Estate | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial Real Estate | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial Real Estate | Single and multi-family | ||
Non-accrual loans | ||
Non-accrual loans | 630 | 654 |
Commercial Real Estate | Single and multi-family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 424 | 451 |
Commercial Real Estate | Single and multi-family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 206 | 203 |
Commercial Real Estate | Other | ||
Non-accrual loans | ||
Non-accrual loans | 8,780 | 6,613 |
Commercial Real Estate | Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,287 | 4,566 |
Commercial Real Estate | Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 3,493 | 2,047 |
Commercial and industrial loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,029 | 7,228 |
Commercial and industrial loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,486 | 5,895 |
Commercial and industrial loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,543 | 1,333 |
Residential Mortgages | ||
Non-accrual loans | ||
Non-accrual loans | 3,197 | 2,883 |
Residential Mortgages | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,919 | 1,666 |
Residential Mortgages | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,278 | 1,217 |
Residential Mortgages | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential Mortgages | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential Mortgages | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential Mortgages | 1-4 family | ||
Non-accrual loans | ||
Non-accrual loans | 3,197 | 2,883 |
Residential Mortgages | 1-4 family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,919 | 1,666 |
Residential Mortgages | 1-4 family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,278 | 1,217 |
Consumer Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,466 | 5,438 |
Consumer Loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,080 | 3,081 |
Consumer Loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,386 | 2,357 |
Consumer Loans | Home equity | ||
Non-accrual loans | ||
Non-accrual loans | 3,379 | 3,592 |
Consumer Loans | Home equity | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,462 | 1,627 |
Consumer Loans | Home equity | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 917 | 1,965 |
Consumer Loans | Auto and other | ||
Non-accrual loans | ||
Non-accrual loans | 2,087 | 1,846 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,618 | 1,454 |
Consumer Loans | Auto and other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | $ 469 | $ 392 |
LOANS - Loans Evaluated for Imp
LOANS - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Loans receivable: balance at end of period | ||
Total loans | $ 8,709,966 | $ 8,299,338 |
Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Total loans | 3,319,323 | 3,264,742 |
Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Total loans | 2,397,192 | 2,102,807 |
Consumer Loans | ||
Loans receivable: balance at end of period | ||
Total loans | 1,118,333 | 1,127,850 |
Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 34,261 | 43,365 |
Collectively evaluated for impairment | 6,756,118 | 6,068,833 |
Total loans | 6,790,379 | 6,112,198 |
Business Activities Loans | Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 27,806 | 33,732 |
Collectively evaluated for impairment | 2,341,190 | 2,183,975 |
Total loans | 2,368,996 | 2,217,707 |
Business Activities Loans | Commercial and industrial loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 2,340 | 5,761 |
Collectively evaluated for impairment | 1,353,524 | 1,176,808 |
Total loans | 1,355,864 | 1,182,569 |
Business Activities Loans | Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 2,280 | 3,872 |
Collectively evaluated for impairment | 2,134,985 | 1,809,329 |
Total loans | 2,137,265 | 1,813,201 |
Business Activities Loans | Consumer Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 1,835 | 0 |
Collectively evaluated for impairment | 926,419 | 898,721 |
Total loans | 928,254 | 898,721 |
Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 8,045 | 7,309 |
Purchased credit-impaired loans | 70,766 | 97,344 |
Collectively evaluated for impairment | 1,840,776 | 2,082,487 |
Total loans | 1,919,587 | 2,187,140 |
Acquired Loans | Commercial Real Estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 5,601 | 4,244 |
Purchased credit-impaired loans | 31,015 | 53,302 |
Collectively evaluated for impairment | 913,711 | 989,489 |
Total loans | 950,327 | 1,047,035 |
Acquired Loans | Commercial and industrial loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 864 | 421 |
Purchased credit-impaired loans | 32,297 | 34,629 |
Collectively evaluated for impairment | 486,093 | 586,320 |
Total loans | 519,254 | 621,370 |
Acquired Loans | Residential Mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 765 | 2,617 |
Purchased credit-impaired loans | 5,054 | 6,974 |
Collectively evaluated for impairment | 254,108 | 280,015 |
Total loans | 259,927 | 289,606 |
Acquired Loans | Consumer Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 815 | 27 |
Purchased credit-impaired loans | 2,400 | 2,439 |
Collectively evaluated for impairment | 186,864 | 226,663 |
Total loans | $ 190,079 | $ 229,129 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Business Activities Loans | ||
Recorded Investment | ||
Total | $ 34,839 | $ 43,679 |
Unpaid Principal Balance | ||
Total | 42,941 | 49,702 |
Related Allowance | ||
With an allowance recorded | 195 | 460 |
Business Activities Loans | Commercial Real Estate | ||
Recorded Investment | ||
Total | 28,345 | 34,001 |
Unpaid Principal Balance | ||
Total | 33,869 | 37,783 |
Related Allowance | ||
With an allowance recorded | 15 | 229 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Recorded Investment | ||
With an allowance recorded | 159 | |
Unpaid Principal Balance | ||
With an allowance recorded | 159 | |
Related Allowance | ||
With an allowance recorded | 1 | |
Business Activities Loans | Commercial Real Estate | Single and multi-family | ||
Recorded Investment | ||
With no related allowance | 0 | 1,077 |
With an allowance recorded | 306 | 159 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 3,607 |
With an allowance recorded | 323 | 171 |
Related Allowance | ||
With an allowance recorded | 1 | 1 |
Business Activities Loans | Commercial Real Estate | Other | ||
Recorded Investment | ||
With no related allowance | 26,609 | 18,285 |
With an allowance recorded | 1,430 | 14,321 |
Unpaid Principal Balance | ||
With no related allowance | 32,123 | 18,611 |
With an allowance recorded | 1,423 | 15,235 |
Related Allowance | ||
With an allowance recorded | 14 | 227 |
Business Activities Loans | Commercial and industrial loans | ||
Recorded Investment | ||
Total | 2,361 | 5,776 |
Unpaid Principal Balance | ||
Total | 3,614 | 6,878 |
Related Allowance | ||
With an allowance recorded | 70 | 66 |
Business Activities Loans | Commercial and industrial loans | Other | ||
Recorded Investment | ||
With no related allowance | 908 | 2,060 |
With an allowance recorded | 1,453 | 3,716 |
Unpaid Principal Balance | ||
With no related allowance | 2,180 | 2,629 |
With an allowance recorded | 1,434 | 4,249 |
Related Allowance | ||
With an allowance recorded | 70 | 66 |
Business Activities Loans | Residential Mortgages | ||
Recorded Investment | ||
Total | 2,299 | 2,004 |
Unpaid Principal Balance | ||
Total | 2,981 | 2,521 |
Related Allowance | ||
With an allowance recorded | 109 | 130 |
Business Activities Loans | Residential Mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 904 | 660 |
With an allowance recorded | 1,395 | 1,344 |
Unpaid Principal Balance | ||
With no related allowance | 1,541 | 1,075 |
With an allowance recorded | 1,440 | 1,446 |
Related Allowance | ||
With an allowance recorded | 109 | 130 |
Business Activities Loans | Consumer Loans | ||
Recorded Investment | ||
Total | 1,834 | 1,898 |
Unpaid Principal Balance | ||
Total | 2,477 | 2,520 |
Related Allowance | ||
With an allowance recorded | 1 | 35 |
Business Activities Loans | Consumer Loans | Other | ||
Recorded Investment | ||
With no related allowance | 0 | |
With an allowance recorded | 15 | 17 |
Unpaid Principal Balance | ||
With no related allowance | 0 | |
With an allowance recorded | 15 | 17 |
Related Allowance | ||
With an allowance recorded | 1 | 1 |
Business Activities Loans | Consumer Loans | Home equity | ||
Recorded Investment | ||
With no related allowance | 1,776 | 867 |
With an allowance recorded | 43 | 1,014 |
Unpaid Principal Balance | ||
With no related allowance | 2,410 | 1,504 |
With an allowance recorded | 52 | 999 |
Related Allowance | ||
With an allowance recorded | 0 | 34 |
Acquired Loans | ||
Recorded Investment | ||
Total | 8,084 | 7,335 |
Unpaid Principal Balance | ||
Total | 11,845 | 9,178 |
Related Allowance | ||
With an allowance recorded | 58 | 111 |
Acquired Loans | Commercial Real Estate | ||
Recorded Investment | ||
Total | 5,628 | 4,257 |
Unpaid Principal Balance | ||
Total | 8,784 | 5,625 |
Related Allowance | ||
With an allowance recorded | 32 | 56 |
Acquired Loans | Commercial Real Estate | Single and multi-family | ||
Recorded Investment | ||
With no related allowance | 167 | 204 |
With an allowance recorded | 759 | 887 |
Unpaid Principal Balance | ||
With no related allowance | 261 | 290 |
With an allowance recorded | 756 | 880 |
Related Allowance | ||
With an allowance recorded | 10 | 18 |
Acquired Loans | Commercial Real Estate | Other | ||
Recorded Investment | ||
With no related allowance | 2,501 | 1,123 |
With an allowance recorded | 2,201 | 2,043 |
Unpaid Principal Balance | ||
With no related allowance | 5,556 | 2,794 |
With an allowance recorded | 2,211 | 1,661 |
Related Allowance | ||
With an allowance recorded | 22 | 38 |
Acquired Loans | Commercial and industrial loans | ||
Recorded Investment | ||
With no related allowance | 521 | 255 |
With an allowance recorded | 348 | 165 |
Total | 869 | 420 |
Unpaid Principal Balance | ||
With no related allowance | 597 | 310 |
With an allowance recorded | 347 | 166 |
Total | 944 | 476 |
Related Allowance | ||
With an allowance recorded | 9 | 1 |
Acquired Loans | Residential Mortgages | ||
Recorded Investment | ||
Total | 772 | 824 |
Unpaid Principal Balance | ||
Total | 783 | 856 |
Related Allowance | ||
With an allowance recorded | 6 | 9 |
Acquired Loans | Residential Mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 696 | 658 |
With an allowance recorded | 76 | 166 |
Unpaid Principal Balance | ||
With no related allowance | 707 | 671 |
With an allowance recorded | 76 | 185 |
Related Allowance | ||
With an allowance recorded | 6 | 9 |
Acquired Loans | Consumer Loans | ||
Recorded Investment | ||
Total | 815 | 1,834 |
Unpaid Principal Balance | ||
Total | 1,334 | 2,221 |
Related Allowance | ||
With an allowance recorded | 11 | 45 |
Acquired Loans | Consumer Loans | Other | ||
Recorded Investment | ||
With no related allowance | 13 | 27 |
Unpaid Principal Balance | ||
With no related allowance | 15 | 27 |
Acquired Loans | Consumer Loans | Home equity | ||
Recorded Investment | ||
With no related allowance | 501 | 1,374 |
With an allowance recorded | 301 | 433 |
Unpaid Principal Balance | ||
With no related allowance | 959 | 1,654 |
With an allowance recorded | 360 | 540 |
Related Allowance | ||
With an allowance recorded | $ 11 | $ 45 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | $ 40,790 | $ 45,808 |
Cash Basis Interest Income Recognized | 720 | 782 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 8,641 | 5,326 |
Cash Basis Interest Income Recognized | 258 | 144 |
Commercial Real Estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 30,878 | 32,688 |
Cash Basis Interest Income Recognized | 373 | 600 |
Commercial Real Estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 5,326 | 3,052 |
Cash Basis Interest Income Recognized | 200 | 123 |
Commercial Real Estate | Single and multi-family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 99 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Average recorded investment with related allowance | 310 | 171 |
Cash basis interest income recognized, with related allowance | 8 | 8 |
Commercial Real Estate | Single and multi-family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 182 | 396 |
Cash basis interest income recognized, with no related allowance | 9 | 43 |
Average recorded investment with related allowance | 765 | 905 |
Cash basis interest income recognized, with related allowance | 20 | 12 |
Commercial Real Estate | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 29,092 | 22,362 |
Cash basis interest income recognized, with no related allowance | 326 | 473 |
Average recorded investment with related allowance | 1,476 | 10,056 |
Cash basis interest income recognized, with related allowance | 39 | 119 |
Commercial Real Estate | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,124 | 269 |
Cash basis interest income recognized, with no related allowance | 102 | 49 |
Average recorded investment with related allowance | 2,255 | 1,482 |
Cash basis interest income recognized, with related allowance | 69 | 19 |
Commercial and industrial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 4,467 | 1,251 |
Cash basis interest income recognized, with no related allowance | 201 | 16 |
Average recorded investment with related allowance | 1,279 | 6,902 |
Cash basis interest income recognized, with related allowance | 83 | 131 |
Average Recorded Investment | 5,746 | 8,153 |
Cash Basis Interest Income Recognized | 284 | 147 |
Commercial and industrial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 349 | 298 |
Cash basis interest income recognized, with no related allowance | 27 | 1 |
Average recorded investment with related allowance | 287 | 328 |
Cash basis interest income recognized, with related allowance | 17 | 8 |
Average Recorded Investment | 636 | 626 |
Cash Basis Interest Income Recognized | 44 | 9 |
Residential Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 2,351 | 2,506 |
Cash Basis Interest Income Recognized | 58 | 18 |
Residential Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,582 | 487 |
Cash Basis Interest Income Recognized | 8 | 7 |
Residential Mortgages | 1-4 Family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 942 | 1,870 |
Cash basis interest income recognized, with no related allowance | 26 | 11 |
Average recorded investment with related allowance | 1,409 | 636 |
Cash basis interest income recognized, with related allowance | 32 | 7 |
Residential Mortgages | 1-4 Family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,505 | 393 |
Cash basis interest income recognized, with no related allowance | 6 | 6 |
Average recorded investment with related allowance | 77 | 94 |
Cash basis interest income recognized, with related allowance | 2 | 1 |
Consumer Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,815 | 2,461 |
Cash Basis Interest Income Recognized | 5 | 17 |
Consumer Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,097 | 1,161 |
Cash Basis Interest Income Recognized | 6 | 5 |
Consumer Loans | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Average recorded investment with related allowance | 16 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Consumer Loans | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 17 | 0 |
Cash basis interest income recognized, with no related allowance | 1 | 0 |
Average recorded investment with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Consumer Loans | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,754 | 90 |
Cash basis interest income recognized, with no related allowance | 4 | 0 |
Average recorded investment with related allowance | 45 | 2,371 |
Cash basis interest income recognized, with related allowance | 1 | 17 |
Consumer Loans | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 760 | 771 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Average recorded investment with related allowance | 320 | 390 |
Cash basis interest income recognized, with related allowance | $ 5 | $ 5 |
LOANS - Recorded Investment and
LOANS - Recorded Investment and Number of Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)modification | Jun. 30, 2017USD ($)modification | Jun. 30, 2018USD ($)modification | Jun. 30, 2017USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 13 | 5 | 23 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 12,406 | $ 2,113 | $ 15,520 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 11,178 | $ 2,042 | $ 13,776 |
Commercial loans | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 9 | 4 | 15 | |
Pre-Modification Outstanding Recorded Investment | $ 10,613 | $ 1,995 | $ 13,445 | |
Post-Modification Outstanding Recorded Investment | $ 9,385 | $ 1,924 | $ 11,718 | |
Commercial and industrial loans | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 4 | 5 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 1,793 | $ 1,817 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 1,793 | $ 1,817 | |
Residential Mortgages | 1-4 Family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 0 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 118 | $ 205 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 118 | $ 188 |
Consumer Loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 53 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 53 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts | 2 | 2 | ||
Commercial loans | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts | 1 | 0 | 1 | 1 |
Modifications that subsequently defaulted, recorded investment | $ | $ 5,992 | $ 0 | $ 5,992 | $ 113 |
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts | 1 | 0 | 1 | 1 |
Modifications that subsequently defaulted, recorded investment | $ | $ 1,065 | $ 0 | $ 1,065 | $ 101 |
LOANS - Troubled Debt Restruc52
LOANS - Troubled Debt Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||||
Balance at beginning of the period | $ 43,105 | $ 34,699 | $ 41,990 | $ 33,829 |
Principal payments | (2,511) | (266) | (3,150) | (1,154) |
TDR status change | 0 | 0 | 0 | 0 |
Other reductions/increases | (7,088) | (1,055) | (7,376) | (1,895) |
Newly identified TDRs | 0 | 11,178 | 2,042 | 13,776 |
Balance at end of the period | $ 33,506 | $ 44,556 | $ 33,506 | $ 44,556 |
LOAN LOSS ALLOWANCE - Allowance
LOAN LOSS ALLOWANCE - Allowance Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | $ 51,834 | |||||
Provision/(releases) for loan losses | $ 6,532 | $ 4,889 | 12,107 | $ 9,984 | ||
Balance at end of period | 55,925 | 55,925 | ||||
Total | 55,925 | 51,834 | $ 55,925 | $ 51,834 | ||
Business Activities Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 47,277 | 41,463 | 45,920 | 39,229 | ||
Charged-off loans | 3,962 | 2,883 | 5,898 | 5,197 | ||
Recoveries on charged-off loans | 614 | 156 | 755 | 329 | ||
Provision/(releases) for loan losses | 6,385 | 4,159 | 9,537 | 8,534 | ||
Balance at end of period | 50,314 | 42,895 | 50,314 | 42,895 | ||
Individually evaluated for impairment | 195 | 460 | ||||
Collectively evaluated for impairment | 50,119 | 45,460 | ||||
Total | 47,277 | 41,463 | 45,920 | 39,229 | 50,314 | 45,920 |
Business Activities Loans | Commercial real estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 17,841 | 16,280 | 16,843 | 16,498 | ||
Charged-off loans | 1,392 | 1,393 | 1,498 | 1,516 | ||
Recoveries on charged-off loans | 26 | 0 | 49 | 57 | ||
Provision/(releases) for loan losses | 2,676 | 1,046 | 3,757 | 894 | ||
Balance at end of period | 19,151 | 15,933 | 19,151 | 15,933 | ||
Individually evaluated for impairment | 15 | 229 | ||||
Collectively evaluated for impairment | 19,136 | 16,614 | ||||
Total | 17,841 | 16,280 | 16,843 | 16,498 | 19,151 | 16,843 |
Business Activities Loans | Commercial and industrial loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 13,229 | 11,850 | 13,850 | 9,447 | ||
Charged-off loans | 1,706 | 581 | 2,596 | 1,851 | ||
Recoveries on charged-off loans | 447 | 55 | 491 | 71 | ||
Provision/(releases) for loan losses | 2,685 | 1,306 | 2,910 | 4,963 | ||
Balance at end of period | 14,655 | 12,630 | 14,655 | 12,630 | ||
Individually evaluated for impairment | 70 | 66 | ||||
Collectively evaluated for impairment | 14,585 | 13,784 | ||||
Total | 13,229 | 11,850 | 13,850 | 9,447 | 14,655 | 13,850 |
Business Activities Loans | Residential mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 8,598 | 7,863 | 9,420 | 7,805 | ||
Charged-off loans | 27 | 278 | 27 | 513 | ||
Recoveries on charged-off loans | 6 | 14 | 6 | 29 | ||
Provision/(releases) for loan losses | 853 | 512 | 31 | 790 | ||
Balance at end of period | 9,430 | 8,111 | 9,430 | 8,111 | ||
Individually evaluated for impairment | 109 | 130 | ||||
Collectively evaluated for impairment | 9,321 | 9,290 | ||||
Total | 8,598 | 7,863 | 9,420 | 7,805 | 9,430 | 9,420 |
Business Activities Loans | Consumer | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 7,609 | 5,470 | 5,807 | 5,479 | ||
Charged-off loans | 837 | 631 | 1,777 | 1,317 | ||
Recoveries on charged-off loans | 135 | 87 | 209 | 172 | ||
Provision/(releases) for loan losses | 171 | 1,295 | 2,839 | 1,887 | ||
Balance at end of period | 7,078 | 6,221 | 7,078 | 6,221 | ||
Individually evaluated for impairment | 1 | 35 | ||||
Collectively evaluated for impairment | 7,077 | 5,772 | ||||
Total | 7,609 | 5,470 | 5,807 | 5,479 | 7,078 | 5,807 |
Acquired Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 6,582 | 4,341 | 5,914 | 4,769 | ||
Charged-off loans | 1,758 | 548 | 3,613 | 1,857 | ||
Recoveries on charged-off loans | 640 | (59) | 740 | 102 | ||
Provision/(releases) for loan losses | 147 | 730 | 2,570 | 1,450 | ||
Balance at end of period | 5,611 | 4,464 | 5,611 | 4,464 | ||
Individually evaluated for impairment | 58 | 111 | ||||
Collectively evaluated for impairment | 5,553 | 5,803 | ||||
Total | 6,582 | 4,341 | 5,914 | 4,769 | 5,611 | 5,914 |
Acquired Loans | Commercial real estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 3,995 | 2,128 | 3,856 | 2,303 | ||
Charged-off loans | 972 | 94 | 1,712 | 670 | ||
Recoveries on charged-off loans | 259 | 13 | 265 | 22 | ||
Provision/(releases) for loan losses | 100 | 309 | 973 | 701 | ||
Balance at end of period | 3,382 | 2,356 | 3,382 | 2,356 | ||
Individually evaluated for impairment | 32 | 56 | ||||
Collectively evaluated for impairment | 3,350 | 3,800 | ||||
Total | 3,995 | 2,128 | 3,856 | 2,303 | 3,382 | 3,856 |
Acquired Loans | Commercial and industrial loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 1,243 | 1,054 | 1,125 | 1,164 | ||
Charged-off loans | 0 | 43 | 155 | 481 | ||
Recoveries on charged-off loans | 66 | (56) | 95 | 1 | ||
Provision/(releases) for loan losses | (182) | 59 | 62 | 330 | ||
Balance at end of period | 1,127 | 1,014 | 1,127 | 1,014 | ||
Individually evaluated for impairment | 9 | 1 | ||||
Collectively evaluated for impairment | 1,118 | 1,124 | ||||
Total | 1,243 | 1,054 | 1,125 | 1,164 | 1,127 | 1,125 |
Acquired Loans | Residential mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 1,046 | 706 | 598 | 766 | ||
Charged-off loans | 622 | 71 | 1,053 | 215 | ||
Recoveries on charged-off loans | 11 | (2) | 36 | 38 | ||
Provision/(releases) for loan losses | 183 | 57 | 1,037 | 101 | ||
Balance at end of period | 618 | 690 | 618 | 690 | ||
Individually evaluated for impairment | 6 | 9 | ||||
Collectively evaluated for impairment | 612 | 589 | ||||
Total | 1,046 | 706 | 598 | 766 | 618 | 598 |
Acquired Loans | Consumer | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 298 | 453 | 335 | 536 | ||
Charged-off loans | 164 | 340 | 693 | 491 | ||
Recoveries on charged-off loans | 304 | (14) | 344 | 41 | ||
Provision/(releases) for loan losses | 46 | 305 | 498 | 318 | ||
Balance at end of period | 484 | 404 | 484 | 404 | ||
Individually evaluated for impairment | 11 | 45 | ||||
Collectively evaluated for impairment | 473 | 290 | ||||
Total | $ 298 | $ 453 | $ 335 | $ 536 | $ 484 | $ 335 |
LOAN LOSS ALLOWANCE - Narrative
LOAN LOSS ALLOWANCE - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)grade | |
Credit quality information | |
Allowance for losses on acquired loans under Subtopic ASC 310-30 | $ | $ 5.6 |
Acquired Loans | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 11 |
Residential Mortgages | Business Activities Loans | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 3 |
Residential Mortgages | Business Activities Loans | Pass | Maximum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 59 days |
Residential Mortgages | Business Activities Loans | Special mention | Minimum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 60 days |
Residential Mortgages | Business Activities Loans | Special mention | Maximum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 89 days |
Residential Mortgages | Business Activities Loans | Substandard | Minimum | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 90 days |
Consumer Loans | Business Activities Loans | Other | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 2 |
Consumer Loans | Business Activities Loans | Performing | Maximum | Other | |
Credit quality information | |
Period within which loans are current, based on which risk rating is assigned (in days) | 119 days |
Consumer Loans | Business Activities Loans | Nonperforming | Minimum | Other | |
Credit quality information | |
Delinquency period of loans based on which risk rating is assigned to loans (in days) | 120 days |
LOAN LOSS ALLOWANCE - Loans by
LOAN LOSS ALLOWANCE - Loans by Credit Risk Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit quality information | ||
Total Loans | $ 8,709,966 | $ 8,299,338 |
Special mention | ||
Credit quality information | ||
Total Loans | 60,694 | 55,189 |
Substandard | ||
Credit quality information | ||
Total Loans | 127,025 | 110,258 |
Non Accrual | ||
Credit quality information | ||
Total Loans | 23,029 | 22,899 |
Classified | ||
Credit quality information | ||
Total Loans | 150,054 | 133,157 |
Criticized | ||
Credit quality information | ||
Total Loans | 210,748 | 188,346 |
Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 3,319,323 | 3,264,742 |
Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 405,164 | 354,171 |
Commercial Real Estate | Single and multi-family | ||
Credit quality information | ||
Total Loans | 574,299 | 423,165 |
Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 2,339,860 | 2,487,406 |
Commercial and industrial loans | Other | ||
Credit quality information | ||
Total Loans | 1,875,118 | 1,803,939 |
Residential Mortgages | ||
Credit quality information | ||
Total Loans | 2,397,192 | 2,102,807 |
Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 7,482 | 5,410 |
Residential Mortgages | 1-4 family | ||
Credit quality information | ||
Total Loans | 2,389,710 | 2,097,397 |
Consumer Loans | ||
Credit quality information | ||
Total Loans | 1,118,333 | 1,127,850 |
Consumer Loans | Home equity | ||
Credit quality information | ||
Total Loans | 392,830 | 410,181 |
Consumer Loans | Auto and other | ||
Credit quality information | ||
Total Loans | 725,503 | 717,669 |
Business Activities Loans | ||
Credit quality information | ||
Total Loans | 6,790,379 | 6,112,198 |
Business Activities Loans | Special mention | ||
Credit quality information | ||
Total Loans | 49,314 | 28,387 |
Business Activities Loans | Substandard | ||
Credit quality information | ||
Total Loans | 55,498 | 36,846 |
Business Activities Loans | Non Accrual | ||
Credit quality information | ||
Total Loans | 14,196 | 15,659 |
Business Activities Loans | Classified | ||
Credit quality information | ||
Total Loans | 69,694 | 52,505 |
Business Activities Loans | Criticized | ||
Credit quality information | ||
Total Loans | 119,008 | 80,892 |
Business Activities Loans | Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 2,368,996 | 2,217,707 |
Business Activities Loans | Commercial Real Estate | Pass | ||
Credit quality information | ||
Total Loans | 2,288,476 | 2,170,751 |
Business Activities Loans | Commercial Real Estate | Special mention | ||
Credit quality information | ||
Total Loans | 33,694 | 13,503 |
Business Activities Loans | Commercial Real Estate | Substandard | ||
Credit quality information | ||
Total Loans | 46,826 | 33,453 |
Business Activities Loans | Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 345,896 | 269,206 |
Business Activities Loans | Commercial Real Estate | Construction | Pass | ||
Credit quality information | ||
Total Loans | 345,896 | 269,206 |
Business Activities Loans | Commercial Real Estate | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Commercial Real Estate | Single and multi-family | ||
Credit quality information | ||
Total Loans | 378,434 | 217,083 |
Business Activities Loans | Commercial Real Estate | Single and multi-family | Pass | ||
Credit quality information | ||
Total Loans | 375,907 | 214,289 |
Business Activities Loans | Commercial Real Estate | Single and multi-family | Special mention | ||
Credit quality information | ||
Total Loans | 459 | 504 |
Business Activities Loans | Commercial Real Estate | Single and multi-family | Substandard | ||
Credit quality information | ||
Total Loans | 2,068 | 2,290 |
Business Activities Loans | Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 1,644,666 | 1,731,418 |
Business Activities Loans | Commercial Real Estate | Other | Pass | ||
Credit quality information | ||
Total Loans | 1,566,673 | 1,687,256 |
Business Activities Loans | Commercial Real Estate | Other | Special mention | ||
Credit quality information | ||
Total Loans | 33,235 | 12,999 |
Business Activities Loans | Commercial Real Estate | Other | Substandard | ||
Credit quality information | ||
Total Loans | 44,758 | 31,163 |
Business Activities Loans | Commercial and industrial loans | ||
Credit quality information | ||
Total Loans | 1,355,864 | 1,182,569 |
Business Activities Loans | Commercial and industrial loans | Other | ||
Credit quality information | ||
Total Loans | 1,355,864 | 1,182,569 |
Business Activities Loans | Commercial and industrial loans | Other | Pass | ||
Credit quality information | ||
Total Loans | 1,325,226 | 1,156,240 |
Business Activities Loans | Commercial and industrial loans | Other | Special mention | ||
Credit quality information | ||
Total Loans | 14,697 | 12,806 |
Business Activities Loans | Commercial and industrial loans | Other | Substandard | ||
Credit quality information | ||
Total Loans | 15,941 | 11,123 |
Business Activities Loans | Commercial and industrial loans | Other | Doubtful | ||
Credit quality information | ||
Total Loans | 0 | 2,400 |
Business Activities Loans | Residential Mortgages | ||
Credit quality information | ||
Total Loans | 2,137,265 | 1,813,201 |
Business Activities Loans | Residential Mortgages | Pass | ||
Credit quality information | ||
Total Loans | 2,134,022 | 1,810,773 |
Business Activities Loans | Residential Mortgages | Special mention | ||
Credit quality information | ||
Total Loans | 445 | 242 |
Business Activities Loans | Residential Mortgages | Substandard | ||
Credit quality information | ||
Total Loans | 2,798 | 2,186 |
Business Activities Loans | Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 7,289 | 5,177 |
Business Activities Loans | Residential Mortgages | Construction | Pass | ||
Credit quality information | ||
Total Loans | 7,289 | 5,177 |
Business Activities Loans | Residential Mortgages | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Residential Mortgages | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Business Activities Loans | Residential Mortgages | 1-4 family | ||
Credit quality information | ||
Total Loans | 2,129,976 | 1,808,024 |
Business Activities Loans | Residential Mortgages | 1-4 family | Pass | ||
Credit quality information | ||
Total Loans | 2,126,733 | 1,805,596 |
Business Activities Loans | Residential Mortgages | 1-4 family | Special mention | ||
Credit quality information | ||
Total Loans | 445 | 242 |
Business Activities Loans | Residential Mortgages | 1-4 family | Substandard | ||
Credit quality information | ||
Total Loans | 2,798 | 2,186 |
Business Activities Loans | Consumer Loans | ||
Credit quality information | ||
Total Loans | 928,254 | 898,721 |
Business Activities Loans | Consumer Loans | Performing | ||
Credit quality information | ||
Total Loans | 924,173 | 895,640 |
Business Activities Loans | Consumer Loans | Nonperforming | ||
Credit quality information | ||
Total Loans | 4,081 | 3,081 |
Business Activities Loans | Consumer Loans | Home equity | ||
Credit quality information | ||
Total Loans | 293,450 | 294,954 |
Business Activities Loans | Consumer Loans | Home equity | Performing | ||
Credit quality information | ||
Total Loans | 290,988 | 293,327 |
Business Activities Loans | Consumer Loans | Home equity | Nonperforming | ||
Credit quality information | ||
Total Loans | 2,462 | 1,627 |
Business Activities Loans | Consumer Loans | Auto and other | ||
Credit quality information | ||
Total Loans | 634,804 | 603,767 |
Business Activities Loans | Consumer Loans | Auto and other | Performing | ||
Credit quality information | ||
Total Loans | 633,185 | 602,313 |
Business Activities Loans | Consumer Loans | Auto and other | Nonperforming | ||
Credit quality information | ||
Total Loans | 1,619 | 1,454 |
Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,919,587 | 2,187,140 |
Acquired Loans | Special mention | ||
Credit quality information | ||
Total Loans | 11,380 | 26,802 |
Acquired Loans | Substandard | ||
Credit quality information | ||
Total Loans | 71,527 | 73,412 |
Acquired Loans | Non Accrual | ||
Credit quality information | ||
Total Loans | 8,833 | 7,240 |
Acquired Loans | Classified | ||
Credit quality information | ||
Total Loans | 80,360 | 80,652 |
Acquired Loans | Criticized | ||
Credit quality information | ||
Total Loans | 91,740 | 107,454 |
Acquired Loans | Commercial Real Estate | ||
Credit quality information | ||
Total Loans | 950,327 | 1,047,035 |
Acquired Loans | Commercial Real Estate | Pass | ||
Credit quality information | ||
Total Loans | 883,556 | 965,081 |
Acquired Loans | Commercial Real Estate | Special mention | ||
Credit quality information | ||
Total Loans | 9,734 | 22,673 |
Acquired Loans | Commercial Real Estate | Substandard | ||
Credit quality information | ||
Total Loans | 57,037 | 59,281 |
Acquired Loans | Commercial Real Estate | Construction | ||
Credit quality information | ||
Total Loans | 59,268 | 84,965 |
Acquired Loans | Commercial Real Estate | Construction | Pass | ||
Credit quality information | ||
Total Loans | 50,934 | 76,611 |
Acquired Loans | Commercial Real Estate | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Commercial Real Estate | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 8,334 | 8,354 |
Acquired Loans | Commercial Real Estate | Single and multi-family | ||
Credit quality information | ||
Total Loans | 195,865 | 206,082 |
Acquired Loans | Commercial Real Estate | Single and multi-family | Pass | ||
Credit quality information | ||
Total Loans | 191,132 | 203,624 |
Acquired Loans | Commercial Real Estate | Single and multi-family | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 603 |
Acquired Loans | Commercial Real Estate | Single and multi-family | Substandard | ||
Credit quality information | ||
Total Loans | 4,733 | 1,855 |
Acquired Loans | Commercial Real Estate | Other | ||
Credit quality information | ||
Total Loans | 695,194 | 755,988 |
Acquired Loans | Commercial Real Estate | Other | Pass | ||
Credit quality information | ||
Total Loans | 641,490 | 684,846 |
Acquired Loans | Commercial Real Estate | Other | Special mention | ||
Credit quality information | ||
Total Loans | 9,734 | 22,070 |
Acquired Loans | Commercial Real Estate | Other | Substandard | ||
Credit quality information | ||
Total Loans | 43,970 | 49,072 |
Acquired Loans | Commercial and industrial loans | ||
Credit quality information | ||
Total Loans | 519,254 | 621,370 |
Acquired Loans | Commercial and industrial loans | Pass | ||
Credit quality information | ||
Total Loans | 500,636 | |
Acquired Loans | Commercial and industrial loans | Special mention | ||
Credit quality information | ||
Total Loans | 1,128 | |
Acquired Loans | Commercial and industrial loans | Substandard | ||
Credit quality information | ||
Total Loans | 17,490 | |
Acquired Loans | Commercial and industrial loans | Other | ||
Credit quality information | ||
Total Loans | 519,254 | 621,370 |
Acquired Loans | Commercial and industrial loans | Other | Pass | ||
Credit quality information | ||
Total Loans | 606,922 | |
Acquired Loans | Commercial and industrial loans | Other | Special mention | ||
Credit quality information | ||
Total Loans | 1,241 | |
Acquired Loans | Commercial and industrial loans | Other | Substandard | ||
Credit quality information | ||
Total Loans | 13,207 | |
Acquired Loans | Residential Mortgages | ||
Credit quality information | ||
Total Loans | 259,927 | 289,606 |
Acquired Loans | Residential Mortgages | Pass | ||
Credit quality information | ||
Total Loans | 255,465 | 281,393 |
Acquired Loans | Residential Mortgages | Special mention | ||
Credit quality information | ||
Total Loans | 268 | 2,704 |
Acquired Loans | Residential Mortgages | Substandard | ||
Credit quality information | ||
Total Loans | 4,194 | 5,509 |
Acquired Loans | Residential Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 193 | 233 |
Acquired Loans | Residential Mortgages | Construction | Pass | ||
Credit quality information | ||
Total Loans | 193 | 233 |
Acquired Loans | Residential Mortgages | Construction | Special mention | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Residential Mortgages | Construction | Substandard | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Acquired Loans | Residential Mortgages | 1-4 family | ||
Credit quality information | ||
Total Loans | 259,734 | 289,373 |
Acquired Loans | Residential Mortgages | 1-4 family | Pass | ||
Credit quality information | ||
Total Loans | 255,272 | 281,160 |
Acquired Loans | Residential Mortgages | 1-4 family | Special mention | ||
Credit quality information | ||
Total Loans | 268 | 2,704 |
Acquired Loans | Residential Mortgages | 1-4 family | Substandard | ||
Credit quality information | ||
Total Loans | 4,194 | 5,509 |
Acquired Loans | Consumer Loans | ||
Credit quality information | ||
Total Loans | 190,079 | 229,129 |
Acquired Loans | Consumer Loans | Performing | ||
Credit quality information | ||
Total Loans | 188,694 | 226,772 |
Acquired Loans | Consumer Loans | Nonperforming | ||
Credit quality information | ||
Total Loans | 1,385 | 2,357 |
Acquired Loans | Consumer Loans | Home equity | ||
Credit quality information | ||
Total Loans | 99,380 | 115,227 |
Acquired Loans | Consumer Loans | Home equity | Performing | ||
Credit quality information | ||
Total Loans | 98,464 | 113,262 |
Acquired Loans | Consumer Loans | Home equity | Nonperforming | ||
Credit quality information | ||
Total Loans | 916 | 1,965 |
Acquired Loans | Consumer Loans | Auto and other | ||
Credit quality information | ||
Total Loans | 90,699 | 113,902 |
Acquired Loans | Consumer Loans | Auto and other | Performing | ||
Credit quality information | ||
Total Loans | 90,230 | 113,510 |
Acquired Loans | Consumer Loans | Auto and other | Nonperforming | ||
Credit quality information | ||
Total Loans | $ 469 | $ 392 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 707,398 | $ 733,785 |
Time $100,000 through $250,000 | 1,906,803 | 1,717,050 |
Time more than $250,000 | 445,833 | 439,370 |
Total time deposits | 3,060,034 | 2,890,205 |
Brokered time deposits | 1,300,000 | 1,100,000 |
Reciprocal deposits | $ 94,000 | $ 99,800 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 1,002,000 | $ 667,300 |
Long-term borrowings | 361,771 | 469,775 |
Total borrowings | $ 1,363,771 | $ 1,137,075 |
Weighted average rate on short-term borrowings (as percent) | 2.11% | 1.48% |
Weighted average rate on long-term borrowings (as percent) | 2.88% | 2.46% |
Weighted average rate (as percent) | 2.32% | 1.88% |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 1,002,000 | $ 667,300 |
Long-term borrowings | $ 272,342 | $ 380,436 |
Weighted average rate on short-term borrowings (as percent) | 2.11% | 1.48% |
Weighted average rate on long-term borrowings (as percent) | 1.69% | 1.54% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 73,965 | $ 73,875 |
Weighted average rate on long-term borrowings (as percent) | 7.00% | 7.00% |
Junior subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings (as percent) | 4.18% | 3.30% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Line of credit, current | $ 3,000,000 | ||
Short-term debt | 1,002,000,000 | $ 667,300,000 | |
Long-term borrowings | 361,771,000 | 469,775,000 | |
Advances from the FHLB | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 0 | 0 | |
Short-term debt | 1,002,000,000 | 667,300,000 | |
Long-term borrowings | 272,342,000 | 380,436,000 | |
Federal Reserve Bank Advances | |||
Debt Instrument [Line Items] | |||
Short-term debt | 0 | 0 | |
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 1,300,000 | 1,400,000 | |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 73,965,000 | 73,875,000 | |
Maturity period (in years) | 15 years | ||
Principal amount of debt issued | $ 75,000,000 | ||
Discount rate (as a percent) | 1.15% | ||
Fixed interest rate (as percent) | 6.875% | ||
Maturity period with fixed interest rate (in months) | 10 years | ||
Subordinated borrowings | Three-month LIBOR rate | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as percent) | 5.113% | ||
Unamortized debt issuance expense | 522,000 | 583,000 | |
Junior subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 15,464,000 | $ 15,464,000 | |
Junior subordinated borrowings | Trust I | |||
Debt Instrument [Line Items] | |||
Common stock of trust (as 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 (as percent) | 4.18% | 3.30% | |
Period up to which interest payments can be deferred (in years) | 5 years | ||
Junior subordinated borrowings | LIBOR | Trust I | |||
Debt Instrument [Line Items] | |||
Interest rate margin (as percent) | 1.85% |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLB (Details) - Fixed rate advances $ in Thousands | Jun. 30, 2018USD ($) |
Principal | |
2,018 | $ 1,063,993 |
2,019 | 150,079 |
2,020 | 53,371 |
2,021 | 213 |
2022 and beyond | 6,686 |
Total FHLB advances | $ 1,274,342 |
Weighted Average | |
Weighted Average Rate (as a percent) | |
2,018 | 2.07% |
2,019 | 1.64% |
2,020 | 2.04% |
2,021 | 2.71% |
2022 and beyond | 2.64% |
Total FHLB advances | 2.02% |
CAPITAL RATIOS AND SHAREHOLDE60
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Jun. 30, 2018 | Dec. 31, 2017 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 12.80% | 12.40% |
Common equity tier 1 capital to risk weighted assets | 11.30% | 11.00% |
Tier 1 capital to risk weighted assets | 11.50% | 11.20% |
Tier 1 capital to average assets | 9.10% | 9.00% |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 12.00% | 11.20% |
Common equity tier 1 capital to risk weighted assets | 11.10% | 10.30% |
Tier 1 capital to risk weighted assets | 11.10% | 10.30% |
Tier 1 capital to average assets | 8.80% | 8.30% |
Regulatory minimum to be well capitalized, Total capital to risk weighted assets (as percent) | 8.00% | 8.00% |
Regulatory minimum to be well capitalized, Common equity tier 1 capital to risk weighted assets (as percent) | 4.50% | 4.50% |
Regulatory minimum to be well capitalized, Tier 1 capital to risk weighted assets (as percent) | 6.00% | 6.00% |
Regulatory minimum to be well capitalized, Tier 1 capital to average assets (as percent) | 4.00% | 4.00% |
CAPITAL RATIOS AND SHAREHOLDE61
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Total shareholders’ equity | $ 1,516,241 | $ 1,496,264 | $ 1,268,194 | $ 1,093,298 | ||
Accumulated other comprehensive (loss)/income | ||||||
Total shareholders’ equity | (21,266) | $ (15,427) | 4,161 | 10,331 | $ 7,859 | 9,766 |
Net unrealized holding loss on AFS securities | ||||||
Other accumulated comprehensive income (loss), before tax | (25,347) | 10,034 | ||||
Income taxes related to items of accumulated other comprehensive income | 6,326 | (4,026) | ||||
Total shareholders’ equity | (19,021) | (13,182) | 6,008 | 12,121 | 9,649 | 15,540 |
Net unrealized holding loss on pension plans | ||||||
Other accumulated comprehensive income (loss), before tax | (3,048) | (3,048) | ||||
Income taxes related to items of accumulated other comprehensive income | 803 | 1,201 | ||||
Total shareholders’ equity | $ (2,245) | $ (2,245) | $ (1,847) | $ (1,790) | $ (1,790) | $ (1,790) |
CAPITAL RATIOS AND SHAREHOLDE62
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net unrealized holding gain (loss) | ||||
Net of Tax | $ (5,838) | $ 2,471 | $ (20,069) | $ 4,168 |
Less: reclassification adjustment for gains (losses) realized in net income | ||||
Net of Tax | 1 | (1) | 1 | 3,603 |
Other comprehensive income (loss) | ||||
Before Tax | (7,840) | 3,927 | (27,002) | 1,068 |
Tax Effect | 2,001 | (1,455) | 6,932 | (503) |
Total other comprehensive (loss)/income | (5,839) | 2,472 | (20,070) | 565 |
Less: reclassification related to adoption of ASU | ||||
Net of Tax | 5,357 | |||
Total change to accumulated other comprehensive (loss) | ||||
Before Tax | (35,381) | |||
Tax Effect | 9,954 | |||
Net of Tax | (25,427) | |||
ASU 2016-01 | ||||
Less: reclassification related to adoption of ASU | ||||
Before Tax | 8,379 | |||
Tax Effect | (2,126) | |||
Net of Tax | 6,253 | |||
ASU 2018-02 | ||||
Less: reclassification related to adoption of ASU | ||||
Before Tax | 0 | |||
Tax Effect | (896) | |||
Net of Tax | (896) | |||
Realized gains on AFS securities: | ||||
Net unrealized holding gain (loss) | ||||
Before Tax | (7,839) | 3,926 | (27,001) | 7,064 |
Tax Effect | 2,001 | (1,455) | 6,932 | (2,627) |
Net of Tax | (5,838) | 2,471 | (20,069) | 4,437 |
Less: reclassification adjustment for gains (losses) realized in net income | ||||
Before Tax | 1 | (1) | 1 | 12,569 |
Tax Effect | 0 | 0 | 0 | (4,713) |
Net of Tax | 1 | (1) | 1 | 7,856 |
Other comprehensive income (loss) | ||||
Before Tax | (7,840) | 3,927 | (27,002) | (5,505) |
Tax Effect | 2,001 | (1,455) | 6,932 | 2,086 |
Total other comprehensive (loss)/income | (5,839) | 2,472 | (20,070) | (3,419) |
Less: reclassification related to adoption of ASU | ||||
Net of Tax | 4,959 | |||
Realized (losses) on cash flow hedging derivatives: | ||||
Net unrealized holding gain (loss) | ||||
Before Tax | (449) | |||
Tax Effect | 180 | |||
Net of Tax | 0 | 0 | 0 | (269) |
Less: reclassification adjustment for gains (losses) realized in net income | ||||
Before Tax | (7,022) | |||
Tax Effect | 2,769 | |||
Net of Tax | 0 | 0 | 0 | (4,253) |
Other comprehensive income (loss) | ||||
Before Tax | 6,573 | |||
Tax Effect | (2,589) | |||
Total other comprehensive (loss)/income | $ 0 | $ 0 | 0 | $ 3,984 |
Less: reclassification related to adoption of ASU | ||||
Net of Tax | $ 0 |
CAPITAL RATIOS AND SHAREHOLDE63
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ 1,496,264 | $ 1,093,298 | ||
Other comprehensive gain before reclassifications | $ (5,838) | $ 2,471 | (20,069) | 4,168 |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 1 | (1) | 1 | 3,603 |
Total other comprehensive (loss)/income | (5,839) | 2,472 | (20,070) | 565 |
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 5,357 | |||
Balance at End of Period | 1,516,241 | 1,268,194 | 1,516,241 | 1,268,194 |
Net unrealized holding loss on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (13,182) | 9,649 | 6,008 | 15,540 |
Other comprehensive gain before reclassifications | (5,838) | 2,471 | (20,069) | 4,437 |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 1 | (1) | 1 | 7,856 |
Total other comprehensive (loss)/income | (5,839) | 2,472 | (20,070) | (3,419) |
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 4,959 | |||
Balance at End of Period | (19,021) | 12,121 | (19,021) | 12,121 |
Net unrealized loss on cash flow hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 0 | 0 | 0 | (3,984) |
Other comprehensive gain before reclassifications | 0 | 0 | 0 | (269) |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | (4,253) |
Total other comprehensive (loss)/income | 0 | 0 | 0 | 3,984 |
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 0 | |||
Balance at End of Period | 0 | 0 | 0 | 0 |
Net unrealized holding loss on pension plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (2,245) | (1,790) | (1,847) | (1,790) |
Other comprehensive gain before reclassifications | 0 | 0 | 0 | 0 |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive (loss)/income | 0 | 0 | 0 | 0 |
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 398 | |||
Balance at End of Period | (2,245) | (1,790) | (2,245) | (1,790) |
Accumulated other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (15,427) | 7,859 | 4,161 | 9,766 |
Total other comprehensive (loss)/income | (20,070) | 565 | ||
Balance at End of Period | $ (21,266) | $ 10,331 | $ (21,266) | $ 10,331 |
CAPITAL RATIOS AND SHAREHOLDE64
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | $ 30,030 | $ 32,798 | $ 59,550 | $ 67,555 |
Interest expense | (25,758) | (15,121) | (47,528) | (28,944) |
Non-interest expense | (72,337) | (69,523) | (149,206) | (143,849) |
Tax (expense) benefit | (8,251) | (8,237) | (15,549) | (14,999) |
Net income | 33,802 | 19,694 | 58,820 | 35,154 |
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Net income | 1 | (1) | 1 | 3,603 |
Realized gains on AFS securities: | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | 1 | (1) | 1 | 12,569 |
Tax (expense) benefit | 0 | 0 | 0 | (4,713) |
Net income | 1 | (1) | 1 | 7,856 |
Realized (losses) on cash flow hedging derivatives: | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Interest expense | 0 | 0 | 0 | (393) |
Non-interest expense | 0 | 0 | 0 | (6,629) |
Tax (expense) benefit | 0 | 0 | 0 | 2,769 |
Net income | $ 0 | $ 0 | $ 0 | $ (4,253) |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per share | ||||
Net income | $ 34,031 | $ 19,694 | $ 59,279 | $ 35,154 |
Average number of common shares issued (in shares) | 46,212 | 38,720 | 46,212 | 37,731 |
Less: average number of treasury shares (in shares) | 788 | 943 | 828 | 981 |
Less: average number of unvested stock award shares (in shares) | 435 | 453 | 428 | 445 |
Plus: average participating preferred shares (in shares) | 1,043 | 0 | 1,043 | 0 |
Average number of basic common shares outstanding (in shares) | 46,032 | 37,324 | 45,999 | 36,305 |
Average number of diluted common shares outstanding (in shares) | 46,215 | 37,474 | 46,206 | 36,466 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.74 | $ 0.53 | $ 1.29 | $ 0.97 |
Diluted (in dollars per share) | $ 0.74 | $ 0.53 | $ 1.28 | $ 0.96 |
Unvested stock award shares | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 152 | 106 | 176 | 116 |
Options | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 31 | 44 | 31 | 45 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Unvested stock award shares | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 252 | 327 |
Options | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 33 | 48 |
STOCK-BASED COMPENSATION PLAN67
STOCK-BASED COMPENSATION PLANS (Details) - $ / shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Non-Vested Stock Awards Outstanding | ||
Non-vested Stock Awards Outstanding, Number of Shares | ||
Balance at the beginning of the period (in shares) | 418 | |
Granted (in shares) | 181 | |
Stock awards vested (in shares) | (150) | (133) |
Forfeited (in shares) | (15) | |
Balance at the end of the period (in shares) | 434 | |
Non-vested Stock Awards Outstanding, Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 29.68 | |
Granted (in dollars per share) | 37.81 | |
Stock awards vested (in dollars per share) | 28.65 | |
Forfeited (in dollars per share) | 32.93 | |
Balance at the end of the period (in dollars per share) | $ 33.18 | |
Stock Options Outstanding | ||
Stock Options Outstanding, Number of Shares | ||
Balance at the beginning of the period (in shares) | 76 | |
Stock options exercised (in shares) | (8) | |
Expired (in shares) | (11) | |
Balance at the end of the period (in shares) | 57 | |
Exercisable options at the end of the period (in shares) | 57 | |
Stock Options Outstanding, Weighted-Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 13.59 | |
Stock options exercised (in dollars per share) | 12.46 | |
Expired (in dollars per share) | 22.61 | |
Balance at the end of the period (in dollars per share) | 10.61 | |
Exercisable options at the end of the period (in dollars per share) | $ 10.61 |
STOCK-BASED COMPENSATION PLAN68
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of stock options | $ 101 | $ 111 |
Total compensation cost | 2,800 | 2,500 |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of stock options | $ 101 | $ 111 |
Non-Vested Stock Awards Outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards vested (in shares) | 150 | 133 |
DERIVATIVE INSTRUMENTS AND HE69
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | Feb. 07, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($)contract | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |||||||
Notional amount | $ 3,011,442 | $ 3,011,442 | $ 2,510,937 | ||||
Cash collateral pledged | 6,900 | 6,900 | |||||
Amortized cost of securities pledged as collateral to derivative counterparties | 14,300 | 14,300 | |||||
Fair value of securities as pledged collateral to derivative counterparties | 13,900 | 13,900 | |||||
Interest expense | 25,758 | $ 15,121 | 47,528 | $ 28,944 | |||
Commercial counterparties | |||||||
Derivative [Line Items] | |||||||
Net asset position | 18,600 | 18,600 | 1,100 | ||||
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | Accumulated net gain (loss) from cash flow hedges | |||||||
Derivative [Line Items] | |||||||
Interest expense | $ 6,600 | ||||||
Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Notional amount | 10,400 | 10,400 | |||||
Cash collateral pledged | 6,853 | 6,853 | 1,960 | ||||
Derivative liability | 24,013 | 24,013 | 11,315 | ||||
Amount of collateral posted for the net liability positions | 6,900 | 6,900 | 5,900 | ||||
Interest rate swaps | Commercial counterparties | |||||||
Derivative [Line Items] | |||||||
Cash collateral pledged | 0 | 0 | 0 | ||||
Net asset position | 4,500 | 4,500 | 8,600 | ||||
Derivative liability | 20,949 | 20,949 | 5,373 | ||||
Interest rate swaps | Institutional counterparties | |||||||
Derivative [Line Items] | |||||||
Cash collateral pledged | 6,853 | 6,853 | 1,960 | ||||
Derivative liability | 3,064 | 3,064 | 5,942 | ||||
Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amount | 289,750 | 289,750 | $ 193,966 | ||||
Economic hedges | |||||||
Derivative [Line Items] | |||||||
Notional amount | 2,700,000 | 2,700,000 | |||||
Credit valuation adjustments | $ 332 | $ 332 | |||||
Economic hedges | Tax advantaged economic development bonds | |||||||
Derivative [Line Items] | |||||||
Fixed rate of interest (as percent) | 5.09% | 5.09% | |||||
Maturity period (in years) | 21 years | ||||||
Economic hedges | Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 2,200,000 | $ 2,200,000 | |||||
Economic hedges | Risk participation agreements with dealer banks | |||||||
Derivative [Line Items] | |||||||
Notional amount | 200,000 | 200,000 | |||||
Economic hedges | Forward sale commitments | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 300,000 | $ 300,000 | |||||
Cash flow hedges | |||||||
Derivative [Line Items] | |||||||
Durations of derivative instruments (in years) | 3 years | ||||||
Amount of ineffectiveness | $ 0 | $ 0 | |||||
Cash flow hedges | Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Number of instruments (contract) | contract | 6 | ||||||
Cash flow hedges | Interest rate swaps | FHLB borrowings | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 300,000 | $ 300,000 |
DERIVATIVE INSTRUMENTS AND HE70
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Feb. 07, 2017 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 3,011,442 | $ 2,510,937 | ||
Estimated fair value asset (liability) | 5,790 | 3,470 | ||
Interest rate swaps | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 10,400 | |||
Total cash flow hedges | Interest rate swaps | FHLB borrowings | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 300,000 | $ 300,000 | ||
Total economic hedges | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 2,700,000 | |||
Total economic hedges | Interest rate swaps | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 2,200,000 | |||
Total economic hedges | Risk participation agreements with dealer banks | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 200,000 | |||
Total economic hedges | Forward sale commitments | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 300,000 | |||
Designated as Hedging Instrument | Total cash flow hedges | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 0 | 0 | ||
Estimated fair value asset (liability) | 0 | 0 | ||
Designated as Hedging Instrument | Total cash flow hedges | Interest rate swaps | FHLB borrowings | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 0 | $ 0 | ||
Weighted average maturity | 0 years | 0 years | ||
Weighted average rate, received (as percent) | 0.00% | 0.00% | ||
Weighted average rate, contract pay rate (as percent) | 0.00% | 0.00% | ||
Estimated fair value asset (liability) | $ 0 | $ 0 | ||
Designated as Hedging Instrument | Total economic hedges | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 2,721,692 | 2,316,971 | ||
Estimated fair value asset (liability) | (1,495) | (1,789) | ||
Designated as Hedging Instrument | Total economic hedges | Interest rate swaps | Tax advantaged economic development bonds | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 10,426 | $ 10,755 | ||
Weighted average maturity | 11 years 4 months 24 days | 11 years 10 months 24 days | ||
Weighted average rate, received (as percent) | 2.35% | 1.73% | ||
Weighted average rate, contract pay rate (as percent) | 5.09% | 5.09% | ||
Estimated fair value asset (liability) | $ (1,175) | $ (1,649) | ||
Designated as Hedging Instrument | Total economic hedges | Interest rate swaps | Loans with commercial loan customers | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 1,094,198 | $ 943,795 | ||
Weighted average maturity | 6 years 3 months 12 days | 5 years 10 months 12 days | ||
Weighted average rate, received (as percent) | 3.90% | 3.26% | ||
Weighted average rate, contract pay rate (as percent) | 4.40% | 4.25% | ||
Estimated fair value asset (liability) | $ 16,744 | $ (3,195) | ||
Designated as Hedging Instrument | Total economic hedges | Reverse interest rate swaps | Loans with commercial loan customers | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 1,094,198 | $ 943,795 | ||
Weighted average maturity | 6 years 3 months 12 days | 5 years 10 months 12 days | ||
Weighted average rate, received (as percent) | 4.40% | 4.25% | ||
Weighted average rate, contract pay rate (as percent) | 3.90% | 3.26% | ||
Estimated fair value asset (liability) | $ (16,403) | $ 3,204 | ||
Designated as Hedging Instrument | Total economic hedges | Risk participation agreements with dealer banks | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 183,986 | $ 142,054 | ||
Weighted average maturity | 6 years 2 months 20 days | 8 years 4 months 20 days | ||
Estimated fair value asset (liability) | $ (3) | $ (26) | ||
Designated as Hedging Instrument | Total economic hedges | Forward sale commitments | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 338,884 | $ 276,572 | ||
Weighted average maturity | 2 months 12 days | 2 months 12 days | ||
Estimated fair value asset (liability) | $ (658) | $ (123) | ||
Not Designated as Hedging Instrument | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | 289,750 | 193,966 | ||
Estimated fair value asset (liability) | 7,285 | 5,259 | ||
Not Designated as Hedging Instrument | Commitments to lend | ||||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||||
Notional amount | $ 289,750 | $ 193,966 | ||
Weighted average maturity | 2 months 12 days | 2 months 12 days | ||
Estimated fair value asset (liability) | $ 7,285 | $ 5,259 |
DERIVATIVE INSTRUMENTS AND HE71
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Interest Rate Derivatives (Details) - FHLB borrowings - Interest rate swaps - Total cash flow hedges - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Unrealized (loss) recognized in accumulated other comprehensive loss | $ 0 | $ 0 | $ 0 | $ (449) |
Net tax (expense) benefit on items recognized in accumulated other comprehensive income | 0 | 0 | 0 | (2,589) |
Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | 0 | 0 | 0 | 3,984 |
Interest Expense | ||||
Derivative [Line Items] | ||||
Less: reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense | 0 | 0 | 0 | (393) |
Other non-interest expense | ||||
Derivative [Line Items] | ||||
Less: reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense | $ 0 | $ 0 | $ 0 | $ (6,629) |
DERIVATIVE INSTRUMENTS AND HE72
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest rate swaps | Economic hedges | Industrial revenue bond | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | $ 163 | $ 2 | $ 474 | $ 124 |
Interest rate swaps | Economic hedges | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | 5,270 | (3,810) | 19,939 | (1,682) |
Reverse interest rate swaps | Economic hedges | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | (5,270) | 3,810 | (19,939) | 1,682 |
Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income | 95 | (114) | 332 | (276) |
Risk participation agreements with dealer banks | Economic hedges | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | 7 | 23 | 23 | 5 |
Forward sale commitments | Economic hedges | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | (658) | 975 | (1,567) | (276) |
Realized gain (loss) in other non-interest income | 1,077 | 238 | 4,999 | (2,668) |
Commitments to lend | Non-hedging derivatives | ||||
Derivative [Line Items] | ||||
Unrealized gain/(loss) recognized in other non-interest income | 7,285 | 7,375 | 13,816 | 15,436 |
Realized gain (loss) in other non-interest income | $ 2,491 | $ 7,693 | $ 3,094 | $ 16,467 |
DERIVATIVE INSTRUMENTS AND HE73
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | $ 24,561 | $ 11,269 |
Gross amounts offset in the Statements of Condition | (1,386) | (1,622) |
Net amounts of assets presented in the Statements of Condition | 23,175 | 9,647 |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral received | 0 | 0 |
Net amount | 23,175 | 9,647 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 20,015 | 2,692 |
Gross amounts offset in the Statements of Condition | (1,386) | (1,622) |
Net amounts of assets presented in the Statements of Condition | 18,629 | 1,070 |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral received | 0 | 0 |
Net amount | 18,629 | 1,070 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 4,546 | 8,577 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 4,546 | 8,577 |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral received | 0 | 0 |
Net amount | $ 4,546 | $ 8,577 |
DERIVATIVE INSTRUMENTS AND HE74
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts not offset in the Statements of Condition, cash collateral pledged | $ 6,900 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (25,526) | $ (14,152) |
Gross amounts offset in the Statements of Condition | 1,513 | 2,837 |
Net amounts of liabilities presented in the Statements of Condition | (24,013) | (11,315) |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 3,982 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 6,853 | 1,960 |
Net amount | (17,160) | (5,373) |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (4,468) | (8,777) |
Gross amounts offset in the Statements of Condition | 1,404 | 2,835 |
Net amounts of liabilities presented in the Statements of Condition | (3,064) | (5,942) |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 3,982 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 6,853 | 1,960 |
Net amount | 3,789 | 0 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (21,058) | (5,375) |
Gross amounts offset in the Statements of Condition | 109 | 2 |
Net amounts of liabilities presented in the Statements of Condition | (20,949) | (5,373) |
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 | $ (20,949) | $ (5,373) |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,393,250 | $ 1,380,914 |
Marketable equity securities | 59,726 | 45,185 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,483 | 12,277 |
Securities available for sale | 1,393,250 | 1,380,914 |
Marketable equity securities | 59,726 | 45,185 |
Loans held for sale | 149,182 | 153,620 |
Derivative assets | 33,316 | 19,308 |
Derivative liabilities | 27,527 | 15,838 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale | 0 | 0 |
Marketable equity securities | 59,163 | 44,851 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 658 | 104 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale | 1,393,250 | 1,380,914 |
Marketable equity securities | 563 | 334 |
Loans held for sale | 149,182 | 153,620 |
Derivative assets | 26,031 | 14,049 |
Derivative liabilities | 26,869 | 15,715 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,483 | 12,277 |
Securities available for sale | 0 | 0 |
Marketable equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 7,285 | 5,259 |
Derivative liabilities | 0 | 19 |
Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,483 | 12,277 |
Loans held for sale | 149,182 | 153,620 |
Derivative assets | 33,316 | 19,308 |
Capitalized servicing rights | 7,839 | 3,834 |
Derivative liabilities | 27,527 | 15,838 |
Recurring | Total Fair Value | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 112,137 | 118,233 |
Recurring | Total Fair Value | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 915,217 | 851,158 |
Recurring | Total Fair Value | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 184,670 | 216,940 |
Recurring | Total Fair Value | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59,513 | 62,305 |
Recurring | Total Fair Value | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 101,062 | 110,721 |
Recurring | Total Fair Value | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,614 | 11,677 |
Recurring | Total Fair Value | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,037 | 9,880 |
Recurring | Total Fair Value | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 59,726 | 45,185 |
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 | 0 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 658 | 104 |
Recurring | Level 1 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 59,163 | 44,851 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 149,182 | 153,620 |
Derivative assets | 26,031 | 14,049 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 26,869 | 15,715 |
Recurring | Level 2 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 112,137 | 118,233 |
Recurring | Level 2 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 915,217 | 851,158 |
Recurring | Level 2 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 184,670 | 216,940 |
Recurring | Level 2 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 59,513 | 62,305 |
Recurring | Level 2 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 101,062 | 110,721 |
Recurring | Level 2 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,614 | 11,677 |
Recurring | Level 2 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,037 | 9,880 |
Recurring | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 563 | 334 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,483 | 12,277 |
Loans held for sale | 0 | 0 |
Derivative assets | 7,285 | 5,259 |
Capitalized servicing rights | 7,839 | 3,834 |
Derivative liabilities | 0 | 19 |
Recurring | Level 3 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)security | Jun. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of trading securities in the portfolio (security) | security | 1 | |||
Junior subordinated debentures re-price period (in days) | 90 days | |||
Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) in fair value of loans held for sale included in earnings | $ | $ (1.3) | $ 1.7 | $ 1.1 | $ 2.3 |
FAIR VALUE MEASUREMENTS - Marke
FAIR VALUE MEASUREMENTS - Marketable Securities/Loans Held for Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Loans Held for Sale | ||
Marketable equity securities, fair value | $ 59,726 | $ 45,185 |
Marketable equity securities, amortized cost | 55,618 | 36,483 |
Marketable equity securities, gains | 4,108 | |
Marketable equity securities, fair value | 45,185 | |
Marketable equity securities, amortized cost | 36,483 | |
Marketable equity securities, gains | 8,702 | |
Level 1 | ||
Loans Held for Sale | ||
Marketable equity securities, fair value | 59,163 | 44,851 |
Aggregate Fair Value | 0 | 0 |
Aggregate Unpaid Principal | 0 | 0 |
Level 2 | ||
Loans Held for Sale | ||
Marketable equity securities, fair value | 563 | 334 |
Aggregate Fair Value | 149,182 | 153,620 |
Aggregate Unpaid Principal | 1,070 | 1,392 |
Recurring | Level 1 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 0 | 0 |
Recurring | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 149,182 | 153,620 |
Recurring | Loans Held for Sale | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 149,182 | 153,620 |
Aggregate Unpaid Principal | 145,723 | 149,022 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 3,459 | $ 4,598 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments to lend | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Unrealized gains (losses) relating to instruments still held at the end of the period | $ 7,285 | $ 7,374 | $ 7,285 | $ 7,374 |
Derivative Asset (Liability) | ||||
Beginning balance | 6,531 | 8,061 | 5,259 | 4,738 |
Unrealized (loss) gain, net recognized in other non-interest income | 12,787 | 16,515 | 25,000 | 33,817 |
Transfers to held for sale loans | (12,033) | (17,202) | (22,974) | (31,181) |
Ending balance | 7,285 | 7,374 | 7,285 | 7,374 |
Forward commitments | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Unrealized gains (losses) relating to instruments still held at the end of the period | 0 | 12 | 0 | 12 |
Derivative Asset (Liability) | ||||
Beginning balance | 0 | (22) | 19 | 100 |
Unrealized (loss) gain, net recognized in other non-interest income | 0 | 34 | (19) | (88) |
Ending balance | 0 | 12 | 0 | 12 |
Trading Security | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 11,795 | 12,966 | 12,277 | 13,229 |
Unrealized (loss) gain, net recognized in other non-interest income | (148) | 27 | (465) | (79) |
Paydown of trading security | (164) | (156) | (329) | (313) |
Balance at the end of the period | 11,483 | 12,837 | 11,483 | 12,837 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 1,056 | 1,736 | 1,056 | 1,736 |
Capitalized servicing rights | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 5,705 | 976 | 3,834 | 798 |
Unrealized (loss) gain, net recognized in other non-interest income | 339 | (68) | 804 | (70) |
Additions to servicing rights | 1,795 | 660 | 3,201 | 840 |
Balance at the end of the period | 7,839 | 1,568 | 7,839 | 1,568 |
Unrealized gains (losses) relating to instruments still held at the end of the period | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) $ in Thousands | Jun. 30, 2018USD ($)$ / contract | Dec. 31, 2017USD ($)$ / contract |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | $ 11,483 | $ 12,277 |
Level 3 | Recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | 11,483 | 12,277 |
Total | $ 26,607 | $ 21,389 |
Level 3 | Recurring | Discounted Cash Flow | Discount rate | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading Security, Significant Unobservable Input | 0.0332 | 0.0274 |
Level 3 | Recurring | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset | $ 0 | $ 19 |
Level 3 | Recurring | Forward commitments | Historical Trend | Closing Ratio | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset. Significant Unobservable Input | 0.8354 | 0.8153 |
Level 3 | Recurring | Forward commitments | Pricing Model | Origination Costs, per loan | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset. Significant Unobservable Input | $ / contract | 3,063 | 3,692 |
Level 3 | Recurring | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset | $ 7,285 | $ 5,259 |
Level 3 | Recurring | Commitments to lend | Historical Trend | Closing Ratio | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset. Significant Unobservable Input | 0.8354 | 0.8153 |
Level 3 | Recurring | Commitments to lend | Pricing Model | Origination Costs, per loan | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative Asset. Significant Unobservable Input | $ / contract | 3,063 | 3,692 |
Level 3 | Recurring | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset | $ 7,839 | $ 3,834 |
Level 3 | Recurring | Capitalized servicing rights | Discounted Cash Flow | Discount rate | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Significant Unobservable Input | 0.0996 | 0.1095 |
Level 3 | Recurring | Capitalized servicing rights | Discounted Cash Flow | Constant prepayment rate (CPR) | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Significant Unobservable Input | 0.0800 | 0.1000 |
FAIR VALUE MEASUREMENTS - Mea80
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | $ 8,075 | $ 23,853 |
Capitalized servicing rights | 12,129 | 12,527 |
Total | $ 20,204 | $ 36,380 |
FAIR VALUE MEASUREMENTS - Uno81
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 $ in Thousands | Jun. 30, 2018USD ($)$ / contract | Dec. 31, 2017USD ($)$ / contract |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | $ 8,075 | $ 23,853 |
Capitalized servicing rights | 12,129 | 12,527 |
Total | 20,204 | 36,380 |
Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 8,075 | 23,853 |
Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 12,129 | $ 12,527 |
Minimum | Loss severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | 0.0002 | 0.0021 |
Minimum | Appraised value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | $ / contract | 2,800 | 10,900 |
Maximum | Loss severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | 0.3839 | 0.3872 |
Maximum | Appraised value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | $ / contract | 1,387,000 | 5,967,000 |
Weighted Average | Loss severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | 0.0279 | 0.0340 |
Weighted Average | Appraised value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired Financing Receivables, Unobservable Input | $ / contract | 603,900 | 2,197,000 |
Capitalized servicing rights | Minimum | Constant prepayment rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.0727 | 0.0778 |
Capitalized servicing rights | Minimum | Discount rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.1000 | 0.1000 |
Capitalized servicing rights | Maximum | Constant prepayment rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.1090 | 0.1278 |
Capitalized servicing rights | Maximum | Discount rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.1312 | 0.1328 |
Capitalized servicing rights | Weighted Average | Constant prepayment rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.0962 | 0.1038 |
Capitalized servicing rights | Weighted Average | Discount rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing Asset, Unobservable Input | 0.1164 | 0.1172 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Marketable equity securities | $ 59,726 | $ 45,185 |
Securities available for sale | 1,393,250 | 1,380,914 |
Securities held to maturity | 377,486 | 405,276 |
FHLB bank stock and restricted securities | 75,530 | 63,085 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 139,057 | 248,763 |
Trading security | 0 | 0 |
Marketable equity securities | 59,163 | 44,851 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Net loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | |
Derivative assets | 0 | 0 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 658 | 104 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 0 | 0 |
Marketable equity securities | 563 | 334 |
Securities available for sale | 1,393,250 | 1,380,914 |
Securities held to maturity | 358,265 | 371,458 |
Net loans | 0 | 0 |
Loans held for sale | 149,182 | 153,620 |
Accrued interest receivable | 36,017 | 33,739 |
Cash surrender value of bank-owned life insurance policies | 193,121 | |
Derivative assets | 26,031 | 14,049 |
Assets held for sale | 1,070 | 1,392 |
Financial Liabilities | ||
Total deposits | 8,809,947 | 8,731,527 |
Short-term debt | 1,001,944 | 667,246 |
Long-term Federal Home Loan Bank advances | 270,112 | 378,766 |
Subordinated borrowings | 97,006 | 97,414 |
Derivative liabilities | 26,869 | 15,715 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 11,483 | 12,277 |
Marketable equity securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 19,221 | 33,818 |
Net loans | 8,796,933 | 8,422,034 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | |
Derivative assets | 7,285 | 5,259 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 0 | 19 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 139,057 | 248,763 |
Trading security | 11,483 | 12,277 |
Marketable equity securities | 59,726 | 45,185 |
Securities available for sale | 1,393,250 | 1,380,914 |
Securities held to maturity | 379,905 | 397,103 |
FHLB bank stock and restricted securities | 75,530 | 63,085 |
Net loans | 8,654,041 | 8,247,504 |
Loans held for sale | 149,182 | 153,620 |
Accrued interest receivable | 36,017 | 33,739 |
Cash surrender value of bank-owned life insurance policies | 193,121 | |
Derivative assets | 33,316 | 19,308 |
Assets held for sale | 1,070 | 1,392 |
Financial Liabilities | ||
Total deposits | 8,838,752 | 8,749,530 |
Short-term debt | 1,002,000 | 667,300 |
Long-term Federal Home Loan Bank advances | 272,342 | 380,436 |
Subordinated borrowings | 89,429 | 89,339 |
Derivative liabilities | 27,527 | 15,838 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 139,057 | 248,763 |
Trading security | 11,483 | 12,277 |
Marketable equity securities | 59,726 | 45,185 |
Securities available for sale | 1,393,250 | 1,380,914 |
Securities held to maturity | 377,486 | 405,276 |
Net loans | 8,796,933 | 8,422,034 |
Loans held for sale | 149,182 | 153,620 |
Accrued interest receivable | 36,017 | 33,739 |
Cash surrender value of bank-owned life insurance policies | 193,121 | |
Derivative assets | 33,316 | 19,308 |
Assets held for sale | 1,070 | 1,392 |
Financial Liabilities | ||
Total deposits | 8,809,947 | 8,731,527 |
Short-term debt | 1,001,944 | 667,246 |
Long-term Federal Home Loan Bank advances | 270,112 | 378,766 |
Subordinated borrowings | 97,006 | 97,414 |
Derivative liabilities | $ 27,527 | $ 15,838 |
NET INTEREST INCOME AFTER PRO83
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Banking and Thrift, Interest [Abstract] | ||||
Net interest income | $ 91,121 | $ 69,545 | $ 176,591 | $ 136,431 |
Provision for loan losses | 6,532 | 4,889 | 12,107 | 9,984 |
Net interest income after provision for loan losses | $ 84,589 | $ 64,656 | $ 164,484 | $ 126,447 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | $ 30,030 | $ 32,798 | $ 59,550 | $ 67,555 |
Insurance revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 2,549 | 2,588 | 5,574 | 5,724 |
Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 2,280 | 2,286 | 4,877 | 4,812 |
Non-interest income (in-scope of Topic 606) | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 12,143 | 10,950 | 25,070 | 22,400 |
Non-interest income (in-scope of Topic 606) | Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 4,923 | 4,156 | 10,338 | 8,196 |
Non-interest income (in-scope of Topic 606) | Insurance revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 2,549 | 2,588 | 5,574 | 5,724 |
Non-interest income (in-scope of Topic 606) | Wealth management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 2,280 | 2,286 | 4,877 | 4,812 |
Non-interest income (in-scope of Topic 606) | Interchange income | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | 2,391 | 1,920 | 4,281 | 3,668 |
Non-interest income (out-of-scope of Topic 606) | ||||
Disaggregation of Revenue [Line Items] | ||||
Non-interest income | $ 17,887 | $ 21,848 | $ 34,480 | $ 45,155 |