Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15781 | |
Entity Registrant Name | BERKSHIRE HILLS BANCORP INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3510455 | |
Entity Address, Address Line One | 60 State Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | 800 | |
Local Phone Number | 773-5601 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BHLB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 50,906,027 | |
Entity Central Index Key | 0001108134 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 100,588 | $ 100,972 |
Short-term investments | 128,718 | 82,217 |
Total cash and cash equivalents | 229,306 | 183,189 |
Trading security, at fair value | 11,210 | 11,212 |
Marketable equity securities, at fair value | 59,578 | 56,638 |
Securities available for sale, at fair value | 1,410,078 | 1,399,647 |
Securities held to maturity (fair values of $377,056 and $371,224) | 364,463 | 373,763 |
Federal Home Loan Bank stock and other restricted securities | 59,356 | 77,344 |
Total securities | 1,904,685 | 1,918,604 |
Loans held for sale | 184,810 | 2,183 |
Total loans | 9,941,828 | 9,043,253 |
Less: Allowance for loan losses | (62,156) | (61,469) |
Net loans | 9,879,672 | 8,981,784 |
Premises and equipment, net | 121,619 | 106,500 |
Other real estate owned | 154 | 0 |
Goodwill | 554,703 | 518,325 |
Other intangible assets | 48,724 | 33,418 |
Cash surrender value of bank-owned life insurance policies | 227,458 | 190,609 |
Deferred tax assets, net | 51,118 | 42,434 |
Other assets | 238,951 | 120,926 |
Assets from discontinued operations | 212,745 | 114,259 |
Total assets | 13,653,945 | 12,212,231 |
Liabilities | ||
Demand deposits | 1,827,016 | 1,603,019 |
NOW and other deposits | 997,685 | 1,122,321 |
Money market deposits | 2,811,158 | 2,245,195 |
Savings deposits | 848,699 | 724,129 |
Time deposits | 4,081,398 | 3,287,717 |
Total deposits | 10,565,956 | 8,982,381 |
Short-term debt | 608,928 | 1,118,832 |
Long-term Federal Home Loan Bank advances | 295,886 | 309,466 |
Subordinated borrowings | 96,927 | 89,518 |
Total borrowings | 1,001,741 | 1,517,816 |
Other liabilities | 280,155 | 149,519 |
Liabilities from discontinued operations | 26,256 | 9,597 |
Total liabilities | 11,874,108 | 10,659,313 |
Shareholders’ equity | ||
Preferred Stock (Series B non-voting convertible preferred stock - $0.01 par value; 2,000,000 shares authorized, 521,607 shares issued and outstanding in 2019; 2,000,000 shares authorized, 521,607 shares issued and outstanding in 2018 | 40,633 | 40,633 |
Common stock ($.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 51,045,173 shares outstanding in 2019; 100,000,000 shares authorized, 46,211,894 shares issued and 45,416,855 shares outstanding in 2018) | 517 | 460 |
Additional paid-in capital - common stock | 1,421,461 | 1,245,013 |
Unearned compensation | (6,555) | (6,594) |
Retained earnings | 336,542 | 308,839 |
Accumulated other comprehensive income (loss) | 11,301 | (13,470) |
Treasury stock, at cost (858,017 shares in 2019 and 795,039 shares in 2018) | (24,062) | (21,963) |
Total shareholders’ equity | 1,779,837 | 1,552,918 |
Total liabilities and shareholders’ equity | 13,653,945 | 12,212,231 |
Commercial real estate | ||
Assets | ||
Total loans | 4,005,347 | 3,400,221 |
Commercial and industrial loans | ||
Assets | ||
Total loans | 1,987,297 | 1,980,046 |
Residential mortgages | ||
Assets | ||
Total loans | 2,882,380 | 2,566,424 |
Consumer | ||
Assets | ||
Total loans | $ 1,066,804 | $ 1,096,562 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | $ 377,056 | $ 371,224 |
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) | 51,903,190 | 46,211,894 |
Common stock, shares outstanding (in shares) | 51,045,173 | 45,416,855 |
Treasury stock (in shares) | 858,017 | 795,039 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income from continuing operations | ||||
Loans | $ 113,990 | $ 100,254 | $ 219,641 | $ 191,995 |
Securities and other | 15,248 | 15,230 | 30,706 | 29,635 |
Total interest and dividend income | 129,238 | 115,484 | 250,347 | 221,630 |
Interest expense from continuing operations | ||||
Deposits | 28,273 | 17,768 | 54,895 | 33,093 |
Borrowings | 9,370 | 7,424 | 18,398 | 13,488 |
Total interest expense | 37,643 | 25,192 | 73,293 | 46,581 |
Net interest income from continuing operations | 91,595 | 90,292 | 177,054 | 175,049 |
Non-interest income from continuing operations | ||||
Other, net | (216) | 155 | 754 | 1,423 |
Gain/(loss) on securities, net | 17 | 718 | 2,568 | (784) |
(Loss)/gain on sale of business operations and other assets, net | 0 | (21) | 0 | 460 |
Total non-interest income | 17,512 | 19,623 | 39,234 | 38,515 |
Total net revenue from continuing operations | 109,107 | 109,915 | 216,288 | 213,564 |
Provision for loan losses | 3,467 | 6,532 | 7,468 | 12,107 |
Non-interest expense from continuing operations | ||||
Compensation and benefits | 34,779 | 33,499 | 68,279 | 67,346 |
Occupancy and equipment | 9,449 | 9,224 | 18,895 | 18,416 |
Technology and communications | 6,715 | 7,053 | 12,972 | 13,537 |
Marketing and promotion | 1,155 | 1,084 | 2,422 | 2,306 |
Professional services | 3,953 | 864 | 6,228 | 2,560 |
FDIC premiums and assessments | 1,751 | 1,411 | 3,390 | 2,606 |
Other real estate owned and foreclosures | (2) | 1 | 0 | 68 |
Amortization of intangible assets | 1,475 | 1,246 | 2,675 | 2,514 |
Acquisition, restructuring, and other expenses | 11,155 | 847 | 18,170 | 5,940 |
Other | 6,138 | 6,298 | 15,528 | 11,600 |
Total non-interest expense | 76,568 | 61,527 | 148,559 | 126,893 |
Income from continuing operations before income taxes | 29,072 | 41,856 | 60,261 | 74,564 |
Income tax expense | 5,118 | 8,145 | 12,035 | 15,482 |
Net income from continuing operations | 23,954 | 33,711 | 48,226 | 59,082 |
Income from discontinued operations before income taxes | 2,082 | 426 | 1,228 | 264 |
Income tax expense | 588 | 106 | 371 | 67 |
Net income from discontinued operations | 1,494 | 320 | 857 | 197 |
Net income | 25,448 | 34,031 | 49,083 | 59,279 |
Preferred stock dividend | 240 | 229 | 480 | 459 |
Income available to common shareholders | $ 25,208 | $ 33,802 | $ 48,603 | $ 58,820 |
Basic earnings per common share: | ||||
Continuing operations (in dollars per share) | $ 0.49 | $ 0.73 | $ 1.01 | $ 1.29 |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.02 | 0 |
Total (in dollars per share) | 0.52 | 0.74 | 1.03 | 1.29 |
Diluted earnings per common share: | ||||
Continuing operations (in dollars per share) | 0.49 | 0.73 | 1.01 | 1.28 |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.02 | 0 |
Total (in dollars per share) | $ 0.52 | $ 0.74 | $ 1.03 | $ 1.28 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 48,961 | 46,032 | 47,550 | 45,999 |
Diluted (in shares) | 49,114 | 46,215 | 47,700 | 46,206 |
Mortgage banking originations | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | $ 278 | $ 334 | $ 324 | $ 472 |
Loan related income | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | 4,822 | 6,003 | 10,825 | 10,822 |
Deposit related fees | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | 7,525 | 7,605 | 14,383 | 15,671 |
Insurance commissions and fees | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | 2,738 | 2,549 | 5,591 | 5,574 |
Wealth management fees | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | 2,348 | 2,280 | 4,789 | 4,877 |
Total fee income | ||||
Non-interest income from continuing operations | ||||
Total non-interest income | $ 17,711 | $ 18,771 | $ 35,912 | $ 37,416 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income from continuing operations | $ 25,448 | $ 34,031 | $ 49,083 | $ 59,279 |
Other comprehensive income, before tax: | ||||
Changes in unrealized gain on debt securities available-for-sale | 19,108 | (7,840) | 33,323 | (27,002) |
Income taxes related to other comprehensive income: | ||||
Changes in unrealized gain on debt securities available-for-sale | (4,901) | 2,001 | (8,552) | 6,932 |
Total other comprehensive income/(loss) | 14,207 | (5,839) | 24,771 | (20,070) |
Total comprehensive income | $ 39,655 | $ 28,192 | $ 73,854 | $ 39,209 |
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 income/(loss) | Treasury stock |
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 income (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 | 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 | 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 (in shares) at Mar. 31, 2018 | 522 | 45,360 | ||||||
Balance at beginning of period at Mar. 31, 2018 | 1,497,657 | $ 40,633 | $ 460 | 1,243,590 | (8,476) | 259,499 | (15,427) | (22,622) |
Comprehensive income: | ||||||||
Net income | 34,031 | 34,031 | ||||||
Other comprehensive income (loss) | (5,839) | (5,839) | ||||||
Total comprehensive income | 28,192 | 34,031 | (5,839) | |||||
Cash dividends declared on common shares | (9,995) | (9,995) | ||||||
Cash dividends declared on preferred shares | (229) | (229) | ||||||
Forfeited shares (in shares) | (11) | |||||||
Forfeited shares | 57 | 353 | (410) | |||||
Exercise of stock options (in shares) | 3 | |||||||
Exercise of stock options | 25 | (50) | 75 | |||||
Restricted stock grants (in shares) | 89 | |||||||
Restricted stock grants | 1,044 | (3,389) | 2,345 | |||||
Stock-based compensation | 1,416 | 1,416 | ||||||
Other, net (in shares) | (21) | |||||||
Other, net | (825) | (825) | ||||||
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 (in shares) at Dec. 31, 2018 | 522 | 45,417 | ||||||
Balance at beginning of period at Dec. 31, 2018 | 1,552,918 | $ 40,633 | $ 460 | 1,245,013 | (6,594) | 308,839 | (13,470) | (21,963) |
Comprehensive income: | ||||||||
Net income | 49,083 | 49,083 | ||||||
Other comprehensive income (loss) | 24,771 | 24,771 | ||||||
Total comprehensive income | 73,854 | 49,083 | 24,771 | |||||
Acquisition of SI Financial Group, Inc. (in shares) | 5,691 | |||||||
Acquisition of SI Financial Group, Inc. | 176,711 | $ 57 | 176,654 | |||||
Cash dividends declared on common shares | (20,944) | (20,944) | ||||||
Cash dividends declared on preferred shares | (480) | (480) | ||||||
Treasury stock repurchased (in shares) | (110) | |||||||
Treasury stock repurchased | (3,326) | (3,326) | ||||||
Forfeited shares (in shares) | (51) | |||||||
Forfeited shares | (209) | 1,699 | (1,490) | |||||
Exercise of stock options (in shares) | 1 | |||||||
Exercise of stock options | 14 | $ (15) | 29 | |||||
Restricted stock grants (in shares) | 131 | |||||||
Restricted stock grants | 3 | (3,664) | 3,661 | |||||
Stock-based compensation | 2,004 | 2,004 | ||||||
Other, net (in shares) | (34) | 59 | ||||||
Other, net | (914) | (973) | ||||||
Balance (in shares) at Jun. 30, 2019 | 522 | 51,045 | ||||||
Balance at end of period at Jun. 30, 2019 | 1,779,837 | $ 40,633 | $ 517 | 1,421,461 | (6,555) | $ 336,542 | 11,301 | (24,062) |
Balance (in shares) at Mar. 31, 2019 | 522 | 45,522 | ||||||
Balance at beginning of period at Mar. 31, 2019 | 1,577,005 | $ 40,633 | $ 460 | 1,244,975 | (8,825) | 321,759 | (2,906) | (19,091) |
Comprehensive income: | ||||||||
Net income | 25,448 | 25,448 | ||||||
Other comprehensive income (loss) | 14,207 | 14,207 | ||||||
Total comprehensive income | 39,655 | 25,448 | 14,207 | |||||
Acquisition of SI Financial Group, Inc. (in shares) | 5,691 | |||||||
Acquisition of SI Financial Group, Inc. | 176,711 | $ 57 | 176,654 | |||||
Cash dividends declared on common shares | (10,469) | (10,469) | ||||||
Cash dividends declared on preferred shares | (240) | (240) | ||||||
Treasury stock repurchased (in shares) | (110) | |||||||
Treasury stock repurchased | (3,326) | (3,326) | ||||||
Forfeited shares (in shares) | (38) | |||||||
Forfeited shares | (168) | 1,255 | (1,087) | |||||
Exercise of stock options (in shares) | 1 | |||||||
Exercise of stock options | 14 | (15) | 29 | |||||
Stock-based compensation | 1,015 | 1,015 | ||||||
Other, net (in shares) | (21) | |||||||
Other, net | (528) | 59 | (587) | |||||
Balance (in shares) at Jun. 30, 2019 | 522 | 51,045 | ||||||
Balance at end of period at Jun. 30, 2019 | $ 1,779,837 | $ 40,633 | $ 517 | $ 1,421,461 | $ (6,555) | $ 336,542 | $ 11,301 | $ (24,062) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, cash dividends declared (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Preferred stock, cash dividends declared (in dollars per share) | $ 0.46 | $ 0.44 | $ 0.92 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income from continuing operations | $ 48,226 | $ 59,082 |
Net income from discontinued operations | 857 | 197 |
Net income | 49,083 | 59,279 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 7,468 | 12,107 |
Net amortization of securities | 1,228 | 1,460 |
Change in unamortized net loan costs and premiums | 5,693 | (1,520) |
Premises and equipment depreciation and amortization expense | 4,952 | 5,056 |
Stock-based compensation expense | 2,004 | 2,798 |
Accretion of purchase accounting entries, net | (4,642) | (11,114) |
Amortization of other intangibles | 2,675 | 2,514 |
Income from cash surrender value of bank-owned life insurance policies | (2,463) | (2,359) |
Securities (gains) losses, net | (2,568) | 784 |
Net (decrease) in loans held-for-sale | (5,478) | (1,843) |
Change in right-of-use lease assets | 6,488 | |
Change in lease liabilities | (6,638) | |
Loss on disposition of assets | 1,615 | 0 |
Amortization of interest in tax-advantaged projects | 2,517 | 2,100 |
Net change in other | (5,320) | 357 |
Net cash provided by operating activities of continuing operations | 55,757 | 69,422 |
Net cash (used) provided by operating activities of discontinued operations | (81,825) | 1,461 |
Net cash (used) provided by operating activities | (26,068) | 70,883 |
Cash flows from investing activities: | ||
Net decrease in trading security | 347 | 328 |
Purchases of marketable equity securities | (12,393) | (12,688) |
Proceeds from sales of marketable equity securities | 11,896 | 26,096 |
Purchases of securities available for sale | (15,180) | (165,312) |
Proceeds from sales of securities available for sale | 82,978 | 0 |
Proceeds from maturities, calls, and prepayments of securities available for sale | 89,766 | 93,049 |
Purchases of securities held to maturity | (459) | (7,781) |
Proceeds from maturities, calls, and prepayments of securities held to maturity | 9,287 | 23,981 |
Net change in loans | 219,395 | (413,717) |
Proceeds from surrender of bank-owned life insurance | 0 | 459 |
Purchase of Federal Home Loan Bank stock | (52,212) | (41,118) |
Proceeds from sale of Federal Home Loan Bank stock | 78,121 | 28,673 |
Net investment in limited partnership tax credits | (1,815) | (2,464) |
Purchase of premises and equipment, net | (4,111) | (7,958) |
Acquisitions, net of cash (paid) acquired | 110,774 | 0 |
Proceeds from sale of other real estate | 0 | 1,600 |
Net investing cash flows from discontinued operations | (2) | 0 |
Net cash provided (used) by investing activities | 516,392 | (476,852) |
Cash flows from financing activities: | ||
Net increase in deposits | 249,777 | 90,009 |
Proceeds from Federal Home Loan Bank advances and other borrowings | 2,242,517 | 2,287,896 |
Repayments of Federal Home Loan Bank advances and other borrowings | (2,911,765) | (2,061,307) |
Purchase of treasury stock | (3,326) | 0 |
Exercise of stock options | 14 | 101 |
Common and preferred stock cash dividends paid | (21,424) | (20,436) |
Net cash (used) provided by financing activities | (444,207) | 296,263 |
Net change in cash and cash equivalents | 46,117 | (109,706) |
Cash and cash equivalents at beginning of period | 183,189 | 248,763 |
Cash and cash equivalents at end of period | 229,306 | 139,057 |
Supplemental cash flow information: | ||
Interest paid on deposits | 54,291 | 32,160 |
Interest paid on borrowed funds | 20,318 | 14,202 |
Income taxes paid (refunded), net | 3,752 | (2,446) |
Acquisition of non-cash assets and liabilities: | ||
Assets acquired | 1,595,054 | 0 |
Liabilities assumed | (1,530,010) | 0 |
Other non-cash changes: | ||
Other net comprehensive income | 24,771 | (20,070) |
Reclass of aircraft loan portfolio to held-for-sale | 176,144 | 0 |
Real estate owned acquired in settlement of loans | $ 0 | $ 1,600 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
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, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, 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. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. 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, 2018. In management’s opinion, all adjustment’s 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. Recently Adopted Accounting Principles Effective January 1, 2019, the following new accounting guidance was adopted by the Company: • ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities; • ASU No. 2016-02, Leases (Topic 842)(additional information is disclosed in Note 11 - Leases of the Consolidated Financial Statements) In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): 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 Sheets as of the date of adoption. In April 2019, the FASB issued ASU No. 2019-04 to clarify certain aspects of accounting for hedging activities addressed by ASU No. 2017-12, among other things (ASU No. 2019-04 amendments and pending adoption to FASB ASC Topics 326 and 825 are described in the section below). ASU No. 2017-12 became effective for the Company on January 1, 2019. The adoption was not material to the financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. 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, Topic 606. Entities will not be required to reassess transactions previously accounted under then existing guidance. 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may elect not to separate lease and non-lease components when certain conditions are met. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain practical expedients provided under ASU No. 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which provides targeted improvements and clarification to guidance with FASB ASC Topic 842 specific to lessors. The amendments of ASU No. 2018-20 have the same effective date as ASU 2016-02 and may be applied either retrospectively or prospectively to all new and existing leases. The Company obtained a third-party software application which provides lease accounting under the guidelines of FASB ASC Topic 842. The amendments of ASU No. 2016-02 and subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 842, became effective for the Company on January 1, 2019. The Company recognized right-of-use lease assets and related lease liabilities totaling $79.6 million and $82.8 million respectively as of January 1, 2019. The right-of-use lease assets and related lease liabilities recognized at January 1, 2019 include right-of-use lease assets and lease liabilities classified as discontinued operations. See Note 11 - Leases for more information. Future Application of Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): 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 (“PCD assets”). 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 (such as PCD assets) transition guidance requiring a prospective transition approach. For existing purchased credit-impaired assets, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. This transition relief avoids the need to reassess purchased financial assets that exist as of the date of adoption in order to determine whether they would have met, at acquisition, the new criteria of ‘more than insignificant’ credit deterioration since origination. The transition relief also allows the remaining accretable discount (based on the revised amortized cost basis) to accrete into interest income over the life of the related asset using the interest method. 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. A cross-functional working group has been formed and is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. Management is working through its implementation plan which includes assessment and documentation of processes and internal controls; model development and documentation; and system configuration. This is in preparation for performing a full end to end parallel run. Management is also in the process of implementing a third-party vendor solution to assist us in the application of ASU No. 2016-13. The Company expects the primary changes to be the application of the new expected credit loss model from the incurred model. 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 increase to loans for the non-accretable discount on existing purchased credit-impaired assets and a negative adjustment to retained earnings for the remaining credit losses for financial assets. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles: Goodwill and Other (Topic 350): 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 its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. Entities are also allowed to elect early adoption for the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As ASU No. 2018-14 only revises disclosure requirements, it will not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU No. 2018-15 clarifies certain aspects of ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which was issued in April 2015. Specifically, ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU No. 2018-15 does not affect the accounting for the service element of a hosting arrangement that is a service contract. ASU No. 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after 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 its Consolidated Financial Statements. As mentioned in the previous section in April 2019 the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” With respect to FASB ASC Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04 clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. With respect to FASB ASC Topic 825, Financial Instruments, on recognizing and measuring financial instruments, ASU No. 2019-04 addresses the scope of the guidance, the requirement for remeasurement under FASB ASC Topic 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The amendments to FASB ASC Topic 326 have the same effective dates as ASU 2016-13 (i.e., the first quarter of 2020). The Company is currently evaluating the potential impact of FASB ASC Topic 326 amendments on the Company’s Consolidated Financial Statements. The amendments to FASB ASC Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the Company’s Consolidated Financial Statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief.” ASU No. 2019-05 allows entities to irrevocably elect, upon adoption of ASU No. 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU No. 2019-05 has the same effective date as ASU No. 2016-13 (i.e., the first quarter of 2020). The Company is continuing to evaluate the potential impact of ASU No. 2016-13 and the subsequently issued ASUs, which provide additional guidance and clarifications to various aspects of FASB ASC Topic 326. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS SI Financial Group, Inc. At the close of business on May 17, 2019, the Company completed the acquisition of SI Financial Group, Inc. (“SIFI”), the parent company of Savings Institute Bank and Trust Company (“Savings Institute”). Savings Institute also merged with and into Berkshire Bank. With this acquisition, the Company increased its market presence with 18 branches in Eastern Connecticut and 5 branches in Rhode Island, adding to the existing 9 Connecticut branches. As established by the merger agreement, each of the 11.858 million outstanding shares of SIFI common stock was converted into the right to receive 0.48 shares of the Company's common stock, plus cash in lieu of fractional shares. As of close of business on May 17, 2019, the Company issued 5.691 million common shares as merger consideration, pursuant to the merger agreement. The value of this consideration was measured at $175.8 million for the common stock based on the $30.89 closing price of the Company’s common stock on the issuance date. SIFI had a stock option plan, and as part of the acquisition agreement, Berkshire agreed to continue the vesting schedules of option holders of SIFI stock with corresponding Berkshire stock with a share conversion ratio of 48% . The fair value of the vested portion of the options was $0.9 million , and was included as part of consideration paid for SIFI. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Accordingly, the Company recognizes amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair value, with any excess of purchase consideration over the net assets being reported as goodwill. Due to the complexity in valuing the assets acquired and liabilities assumed and the significant amount of data inputs required, the valuation of the assets and liabilities acquired is not yet final. Fair value estimates are based on the information available, and are subject to change for up to one year after the closing date of the acquisition as additional information relative to the closing date fair values becomes available. The following table provides a summary of the assets acquired and liabilities assumed and the associated fair value adjustments as recorded by the Company at acquisition: (in thousands) As Acquired Fair Value Adjustments As Recorded by the Company Consideration Paid: Company common stock issued to SIFI common shareholders $ 175,804 Fair value of SIFI stock options converted to Berkshire options 907 Cash in lieu paid to SIFI shareholders 14 Total consideration paid $ 176,725 Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: Cash and short-term investments $ 110,774 $ — $ 110,774 Investment securities 144,629 (1,261 ) (a) 143,368 Loans held for sale 1,005 — 1,005 Loans, net 1,332,127 (29,388 ) (b) 1,302,739 Premises and equipment 19,039 (2,092 ) (c) 16,947 Core deposit intangibles — 17,980 (d) 17,980 Deferred tax assets, net 6,629 10,607 (e) 17,236 Goodwill and other intangibles 16,063 (16,063 ) (f) — Other assets 60,648 (341 ) 60,307 Deposits (1,327,115 ) (7,733 ) (g) (1,334,848 ) Borrowings (154,726 ) 1,717 (h) (153,009 ) Other liabilities (33,987 ) (8,166 ) (i) (42,153 ) Total identifiable net assets $ 175,086 $ (34,740 ) $ 140,346 Goodwill 36,379 _____________________________________ Explanation of Certain Fair Value Adjustments: (a) The adjustment represents the write down of the book value of securities to their estimated fair value at the date of acquisition. (b) The adjustment represents the write-off of $15.6 million in allowance for loan and lease losses and the write down of the book value of loans to their estimated fair value based on interest rates and expected cash flows as of the acquisition date, which includes an estimate of expected loan loss inherent in the portfolio. Loans with evidence of credit deterioration at acquisition are accounted for under ASC 310-30 and had a book value of $55.8 million and had a fair value of $32.1 million , including a $4.2 million fair value adjustment that is accretable in earnings. Non-impaired loans accounted for under ASC 310-20 had a book value of $1.29 billion and have a fair value of $1.27 billion , including a $6.7 million fair value adjustment discount that is amortized over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The adjustment represents a decreased fair value based on the appraised value of Savings Institute’s owned branches comprised of $1.1 million for land. This is in addition to a $1.0 million reduction of the book value of furniture, fixtures, and equipment, to their estimated fair value and the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The adjustments will be depreciated over the remaining estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized over the estimated useful life of the deposit base ( 10 years ). (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) Represents the write-off of goodwill and intangible assets from a prior SIFI acquisition. (g) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized over the estimated useful life of eleven months . (h) Adjusts borrowings by a reduction of $0.8 million to their estimated fair value, which is calculated based on current market rates. This is in addition to a $0.9 million reduction to the estimated fair value for the SI Capital Trust II, which is calculated based on the amount an institution would be willing to purchase the instrument at in the open market. (i) Adjusts the book value of other liabilities to their estimated fair value at the acquisition date. The adjustment consists of a $7.6 million increase to post-retirement liabilities due to change-in-control provisions, a $0.8 million increase in bank-owned life insurance liabilities, offset by a decrease of $0.4 to the unfunded commitment reserve. Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, the Company estimated fair value by analyzing the value of the underlying collateral of the loans, assuming the fair values of the loans were derived from the eventual sale of the collateral. Those values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of the seller’s allowance for credit losses associated with the loans acquired, as the loans were initially recorded at fair value. Provisional information about the Savings Institute acquired loan portfolio subject to ASC 310-30 as of May 17, 2019 is as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 55,754 Contractual cash flows not expected to be collected (nonaccretable discount) (19,427 ) Expected cash flows at acquisition 36,327 Interest component of expected cash flows (accretable discount) (4,200 ) Fair value of acquired loans $ 32,127 Capitalized goodwill, which is not amortized for book purposes, is not deductible for tax purposes. Direct acquisition and integration costs of the Savings Institute acquisition were expensed as incurred, and totaled $11.3 million during the six months ending June 30, 2019 and there were no ne for the same period of 2018. Pro Forma Information (unaudited) The following table presents selected unaudited pro forma financial information reflecting the acquisition of SIFI assuming the acquisition was completed as of January 1, 2018. The preliminary valuation of the assets and liabilities acquired has been used to prepare pro forma adjustments. The final allocation could differ materially from the preliminary valuation. Fair value estimates are based on the information available, and are subject to change for up to one year after the closing date of the acquisition as additional information relative to the closing date fair values becomes available. The unaudited pro forma financial information includes adjustments for scheduled amortization and accretion of fair value adjustments. These adjustments would have been different if they had been recorded on January 1, 2018, and they do not include the impact of prepayments. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the combined financial results of the Company and the acquisition had the transaction actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. The unaudited pro forma information is based on the actual financial statements of Berkshire and the acquired business for the periods shown until the dates of acquisition, at which time the acquired business operations became included in Berkshire’s financial statements. For whole-bank acquisitions, the Company has determined it is impractical to report the amounts of revenue and earnings of each entity since acquisition date. Due to the integration of their operations with those of the organization, the Company does not record revenue and earnings separately. The revenue and earnings of SIFI’s operations are included in the Consolidated Statement of Income. The unaudited pro forma information, for the six months ended June 30, 2019 and 2018, set forth below reflects adjustments related to (a) amortization and accretion of purchase accounting fair value adjustments; (b) amortization of core deposit and customer relationship intangibles; and (c) an estimated tax rate of 26.83 percent . Direct acquisition expenses incurred by the Company during 2019, as noted above, are reversed for the purposes of this unaudited pro forma information. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing or anticipated cost-savings that could occur as a result of the acquisition. Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Six Months Ended June 30, 2019 2018 Net interest income $ 195,624 $ 202,709 Non-interest income 43,732 44,228 Income available to common shareholders 60,357 67,666 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS During the first quarter of 2019, the Company reached the decision to pursue the sale of the national mortgage banking operations of First Choice Loan Services, Inc. (“FCLS”) – a subsidiary of the Bank. The decision was based on a number of strategic priorities and other factors, including the competitiveness of the mortgage industry. FCLS continues to operate and serve its customers as the Company initiates the process of identifying a buyer. The potential transaction is expected to close within 12 months . As a result of these actions, the Company classified the operations of FCLS as discontinued under ASC 205-20. The Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows present discontinued operations retrospectively for current and prior periods. The following is a summary of the assets and liabilities of the discontinued operations of FCLS at June 30, 2019 and December 31, 2018: (in thousands) June 30, 2019 December 31, 2018 Assets Loans held for sale, at fair value $ 182,882 $ 94,050 Premises and equipment, net 1,710 1,867 Other assets 28,153 18,342 Total assets $ 212,745 $ 114,259 Liabilities Other liabilities $ 26,256 $ 9,597 Total liabilities $ 26,256 $ 9,597 FCLS funds its lending operations and maintains working capital through an intercompany line-of-credit with the Bank. Although the sale of FCLS will contemplate settlement of these borrowings, debt was not allocated to discontinued operations due to the intercompany nature of the borrowings. When the transaction closes, the Company will reallocate these funds to various purposes, including but not limited to, pay-down of short-term debt with the Federal Home Loan Bank. The following presents operating results of the discontinued operations of FCLS for the three and six months ended June 30, 2019 and June 30, 2018: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 1,818 $ 1,395 $ 2,862 $ 2,489 Interest expense 1,062 566 1,646 947 Net interest income 756 829 1,216 1,542 Non-interest income 13,246 10,407 22,059 21,035 Total net revenue 14,002 11,236 23,275 22,577 Non-interest expense 11,920 10,810 22,047 22,313 Income from discontinued operations before income taxes 2,082 426 1,228 264 Income tax expense 588 106 371 67 Net income from discontinued operations $ 1,494 $ 320 $ 857 $ 197 FCLS also originates mortgages designated as held-for-investment. This component of FCLS’s operations was not considered discontinued, since the Company expects to continue to originate mortgages designated as held-for-investment in its footprint on a small scale through processes considered as continuing operations. |
TRADING SECURITY
TRADING SECURITY | 6 Months Ended |
Jun. 30, 2019 | |
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 $9.7 million and $10.1 million , and a fair value of $11.2 million and $11.2 million , at June 30, 2019 and December 31, 2018 , respectively. As discussed further in Note 10 - 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, 2019 . |
SECURITIES AVAILABLE FOR SALE,
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 Securities available for sale Municipal bonds and obligations $ 114,401 $ 5,477 $ (5 ) $ 119,873 Agency collateralized mortgage obligations 882,124 7,419 (581 ) 888,962 Agency mortgage-backed securities 182,598 739 (1,079 ) 182,258 Agency commercial mortgage-backed securities 61,275 465 (1,089 ) 60,651 Corporate bonds 119,917 880 (1,054 ) 119,743 Trust preferred securities 8,323 231 (4 ) 8,550 Other bonds and obligations 29,084 963 (6 ) 30,041 Total securities available for sale 1,397,722 16,174 (3,818 ) 1,410,078 Securities held to maturity Municipal bonds and obligations 257,232 10,835 — 268,067 Agency collateralized mortgage obligations 70,726 2,975 (115 ) 73,586 Agency mortgage-backed securities 6,758 — (57 ) 6,701 Agency commercial mortgage-backed securities 10,385 46 — 10,431 Tax advantaged economic development bonds 19,063 172 (1,263 ) 17,972 Other bonds and obligations 299 — — 299 Total securities held to maturity 364,463 14,028 (1,435 ) 377,056 Marketable equity securities 55,831 4,820 (1,073 ) 59,578 Total $ 1,818,016 $ 35,022 $ (6,326 ) $ 1,846,712 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Securities available for sale Municipal bonds and obligations $ 109,648 $ 2,272 $ (713 ) $ 111,207 Agency collateralized mortgage obligations 944,946 1,130 (15,192 ) 930,884 Agency mortgage-backed securities 175,406 36 (5,121 ) 170,321 Agency commercial mortgage-backed securities 62,200 — (3,275 ) 58,925 Corporate bonds 112,404 342 (1,256 ) 111,490 Trust preferred securities 8,314 251 (99 ) 8,466 Other bonds and obligations 8,355 34 (35 ) 8,354 Total securities available for sale 1,421,273 4,065 (25,691 ) 1,399,647 Securities held to maturity Municipal bonds and obligations 264,524 3,569 (3,601 ) 264,492 Agency collateralized mortgage obligations 71,637 533 (778 ) 71,392 Agency mortgage-backed securities 7,219 — (297 ) 6,922 Agency commercial mortgage-backed securities 10,417 — (289 ) 10,128 Tax advantaged economic development bonds 19,718 22 (1,698 ) 18,042 Other bonds and obligations 248 — — 248 Total securities held to maturity 373,763 4,124 (6,663 ) 371,224 Marketable equity securities 55,471 4,370 (3,203 ) 56,638 Total $ 1,850,507 $ 12,559 $ (35,557 ) $ 1,827,509 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, 2019 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 $ 15,204 $ 15,245 $ 2,875 $ 2,875 Over 1 year to 5 years 31,179 31,213 14,729 14,844 Over 5 years to 10 years 71,721 72,831 15,086 15,180 Over 10 years 153,621 158,918 243,904 253,439 Total bonds and obligations 271,725 278,207 276,594 286,338 Mortgage-backed securities 1,125,997 1,131,871 87,869 90,718 Total $ 1,397,722 $ 1,410,078 $ 364,463 $ 377,056 During the three and six months ended June 30, 2019 , the proceeds from the sale of AFS securities totaled $80.4 million and $83.0 million , respectively. During the three months ended June 30,2019, gross gains on AFS securities totaled $5 thousand and gross losses totaled $7 thousand . During the six months ended June 30, 2019 gross gains totaled $11 thousand and gross losses totaled $7 thousand . These gains and losses are included in Gain/(loss) on securities, net on the consolidated statements of income. There were no sales of AFS securities during the three and six months ended June 30, 2018. Securities available for sale and held to maturity 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, 2019 Securities available for sale Municipal bonds and obligations $ — $ — $ 5 $ 1,319 $ 5 $ 1,319 Agency collateralized mortgage obligations 72 43,755 509 103,929 581 147,684 Agency mortgage-backed securities 5 2,191 1,074 93,990 1,079 96,181 Agency commercial mortgage-backed securities — — 1,089 55,319 1,089 55,319 Corporate bonds 434 37,147 620 30,036 1,054 67,183 Trust preferred securities 4 7,163 — — 4 7,163 Other bonds and obligations — — 6 3,052 6 3,052 Total securities available for sale 515 90,256 3,303 287,645 3,818 377,901 Securities held to maturity Agency collateralized mortgage obligations — — 115 10,648 115 10,648 Agency mortgage-backed securities — — 57 6,701 57 6,701 Tax advantaged economic development bonds — — 1,263 6,729 1,263 6,729 Total securities held to maturity — — 1,435 24,078 1,435 24,078 Total $ 515 $ 90,256 $ 4,738 $ 311,723 $ 5,253 $ 401,979 December 31, 2018 Securities available for sale Municipal bonds and obligations $ 55 $ 3,186 $ 658 $ 11,787 $ 713 $ 14,973 Agency collateralized mortgage obligations 76 39,114 15,116 755,528 15,192 794,642 Agency mortgage-backed securities 53 5,500 5,068 162,439 5,121 167,939 Agency commercial mortgage-backed securities 44 1,503 3,231 57,422 3,275 58,925 Corporate bonds 1,249 74,434 7 2,561 1,256 76,995 Trust preferred securities 99 7,068 — — 99 7,068 Other bonds and obligations — — 35 3,030 35 3,030 Total securities available for sale 1,576 130,805 24,115 992,767 25,691 1,123,572 Securities held to maturity Municipal bonds and obligations 127 17,596 3,474 103,759 3,601 121,355 Agency collateralized mortgage obligations — — 778 43,138 778 43,138 Agency mortgage-backed securities — — 297 6,922 297 6,922 Agency commercial mortgage-backed securities — — 289 10,128 289 10,128 Tax advantaged economic development bonds 65 8,078 1,633 6,512 1,698 14,590 Total securities held to maturity 192 25,674 6,471 170,459 6,663 196,133 Total $ 1,768 $ 156,479 $ 30,586 $ 1,163,226 $ 32,354 $ 1,319,705 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, 2019 , 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, 2019 : AFS municipal bonds and obligations At June 30, 2019, 2 out of the total 246 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.4% 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, 2019 , 59 out of the total 253 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.4% 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, 2019 , 45 out of the total 97 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 1.4% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s 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, 2019 , 11 out of the total 23 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. Aggregate unrealized losses represents 1.5% 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 trust preferred securities At June 30, 2019, 1 out of the total 2 securities in the Company’s portfolio of AFS trust preferred securities were in an unrealized loss position. Aggregate unrealized losses represented 0.1% of the amortized cost of these securities in an unrealized loss position. The Company’s evaluation of the present value of expected cash flows on these securities supports its conclusions about the recoverability of these securities’ amortized cost basis. These securities are investment grade rated. The Company reviews the financial strength of all of the single issue trust issuers and has concluded that the amortized cost remains supported by the market value of these securities and they are performing. AFS other bonds and obligations At June 30, 2019 , 6 out of the total 10 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.2% 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 collateralized mortgage obligations At June 30, 2019 , 1 out of the total 9 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.8% 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, 2019 , 1 out of the total 2 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 0.8% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s 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, 2019, 1 out of the total 5 securities in the Company’s portfolio of tax-advantaged economic development bonds were in unrealized loss positions. Aggregate unrealized losses represented 15.8% of the amortized cost of the security in an unrealized loss position. The above mentioned tax-advantaged economic bond remains a special mention rated asset. 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, 2019 | |
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 and other commercial real estate. 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 previous mergers and acquisitions. 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. During the period ended June 30, 2019, the Company reclassified $176 million of aircraft loans from commercial and industrial to held-for-sale, reflecting its intent to sell the portfolio. These loans are not contained in the balances below. The following is a summary of total loans: June 30, 2019 December 31, 2018 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 300,996 $ 58,497 $ 359,493 $ 327,792 $ 25,220 $ 353,012 Other commercial real estate 2,358,502 1,287,352 3,645,854 2,260,919 786,290 3,047,209 Total commercial real estate 2,659,498 1,345,849 4,005,347 2,588,711 811,510 3,400,221 Commercial and industrial loans: 1,471,766 515,531 1,987,297 1,513,538 466,508 1,980,046 Total commercial loans 4,131,264 1,861,380 5,992,644 4,102,249 1,278,018 5,380,267 Residential mortgages: 1-4 family 2,268,445 596,607 2,865,052 2,317,716 238,952 2,556,668 Construction 9,170 8,158 17,328 9,582 174 9,756 Total residential mortgages 2,277,615 604,765 2,882,380 2,327,298 239,126 2,566,424 Consumer loans: Home equity 281,254 122,576 403,830 289,961 86,719 376,680 Auto and other 604,272 58,702 662,974 647,236 72,646 719,882 Total consumer loans 885,526 181,278 1,066,804 937,197 159,365 1,096,562 Total loans $ 7,294,405 $ 2,647,423 $ 9,941,828 $ 7,366,744 $ 1,676,509 $ 9,043,253 The carrying amount of the acquired loans at June 30, 2019 totaled $2.6 billion . A subset of these loans were 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 $74.1 million (and a note balance of $169.9 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 $2.6 billion . At December 31, 2018, acquired loans maintained a carrying value of $1.7 billion and purchased credit-impaired loans totaled $47.3 million (note balance of $124.0 million). Loans considered not credit-impaired at acquisition date had a carrying amount of $1.6 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) 2019 2018 Balance at beginning of period $ 2,139 $ 10,392 Acquisitions 4,200 — Accretion (2,278 ) (6,881 ) Net reclassifications from (to) nonaccretable difference 1,464 4,517 Payments received, net (105 ) (1,724 ) Balance at end of period $ 5,420 $ 6,304 Six Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of period $ 2,840 $ 11,561 Acquisitions 4,200 — Accretion (3,598 ) (10,313 ) Net reclassifications from (to) nonaccretable difference 2,129 7,049 Payments received, net (160 ) (1,912 ) Reclassification to TDR 9 — Disposals — (81 ) Balance at end of period $ 5,420 $ 6,304 The following is a summary of past due loans at June 30, 2019 and December 31, 2018: Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > June 30, 2019 Commercial real estate: Construction $ — $ — $ — $ — $ 300,996 $ 300,996 $ — Other commercial real estate 388 478 17,375 18,241 2,340,261 2,358,502 — Total 388 478 17,375 18,241 2,641,257 2,659,498 — Commercial and industrial loans: Total 2,071 784 9,889 12,744 1,459,022 1,471,766 1,422 Residential mortgages: 1-4 family 867 543 3,504 4,914 2,263,531 2,268,445 1,258 Construction — — — — 9,170 9,170 — Total 867 543 3,504 4,914 2,272,701 2,277,615 1,258 Consumer loans: — Home equity 191 582 979 1,752 279,502 281,254 165 Auto and other 3,498 663 1,802 5,963 598,309 604,272 — Total 3,689 1,245 2,781 7,715 877,811 885,526 165 Total $ 7,015 $ 3,050 $ 33,549 $ 43,614 $ 7,250,791 $ 7,294,405 $ 2,845 Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 327,792 $ 327,792 $ — Other commercial real estate 913 276 18,833 20,022 2,240,897 2,260,919 993 Total 913 276 18,833 20,022 2,568,689 2,588,711 993 Commercial and industrial loans: Total 4,694 975 4,636 10,305 1,503,233 1,513,538 4 Residential mortgages: 1-4 family 1,631 1,619 1,440 4,690 2,313,026 2,317,716 66 Construction — — — — 9,582 9,582 — Total 1,631 1,619 1,440 4,690 2,322,608 2,327,298 66 Consumer loans: Home equity 618 15 933 1,566 288,395 289,961 — Auto and other 3,543 615 1,699 5,857 641,379 647,236 — Total 4,161 630 2,632 7,423 929,774 937,197 — Total $ 11,399 $ 3,500 $ 27,541 $ 42,440 $ 7,324,304 $ 7,366,744 $ 1,063 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > June 30, 2019 Commercial real estate: Construction $ — $ — $ — $ — $ 1,411 $ 58,497 $ — Other commercial real estate 998 695 4,432 6,125 28,212 1,287,352 2,441 Total 998 695 4,432 6,125 29,623 1,345,849 2,441 Commercial and industrial loans: Total 1,055 62 1,003 2,120 31,456 515,531 214 Residential mortgages: 1-4 family 970 488 1,408 2,866 12,050 596,607 75 Construction — — — — — 8,158 — Total 970 488 1,408 2,866 12,050 604,765 75 Consumer loans: Home equity 379 — 727 1,106 700 122,576 82 Auto and other 168 41 309 518 263 58,702 — Total 547 41 1,036 1,624 963 181,278 82 Total $ 3,570 $ 1,286 $ 7,879 $ 12,735 $ 74,092 $ 2,647,423 $ 2,812 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > December 31, 2018 Commercial real estate: — Construction $ — $ — $ — $ — $ — $ 25,220 $ — Other commercial real estate 2,603 1,127 4,183 7,913 11,994 786,290 1,652 Total 2,603 1,127 4,183 7,913 11,994 811,510 1,652 Commercial and industrial loans: Total 217 147 1,515 1,879 29,539 466,508 144 Residential mortgages: 1-4 family 1,382 144 918 2,444 4,888 238,952 75 Construction — — — — — 174 — Total 1,382 144 918 2,444 4,888 239,126 75 Consumer loans: Home equity 290 148 751 1,189 553 86,719 — Auto and other 193 62 547 802 314 72,646 96 Total 483 210 1,298 1,991 867 159,365 96 Total $ 4,685 $ 1,628 $ 7,914 $ 14,227 $ 47,288 $ 1,676,509 $ 1,967 The following is summary information pertaining to non-accrual loans at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ — $ — $ — Other commercial real estate 17,375 1,991 19,366 17,840 2,531 20,371 Total 17,375 1,991 19,366 17,840 2,531 20,371 Commercial and industrial loans: Total 8,467 789 9,256 4,632 1,371 6,003 Residential mortgages: 1-4 family 2,246 1,333 3,579 1,374 843 2,217 Construction — — — — — — Total 2,246 1,333 3,579 1,374 843 2,217 Consumer loans: Home equity 814 645 1,459 933 751 1,684 Auto and other 1,802 309 2,111 1,699 451 2,150 Total 2,616 954 3,570 2,632 1,202 3,834 Total non-accrual loans $ 30,704 $ 5,067 $ 35,771 $ 26,478 $ 5,947 $ 32,425 Loans evaluated for impairment as of June 30, 2019 and December 31, 2018 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2019 Loans receivable: Balance at end of period Individually evaluated for impairment $ 22,035 $ 6,753 $ 2,841 $ 138 $ 31,767 Collectively evaluated for impairment 2,637,463 1,465,013 2,274,774 885,388 7,262,638 Total $ 2,659,498 $ 1,471,766 $ 2,277,615 $ 885,526 $ 7,294,405 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2018 Loans receivable: Balance at end of year Individually evaluated for impairment $ 23,345 $ 2,825 $ 2,089 $ 342 $ 28,601 Collectively evaluated for impairment 2,565,366 1,510,713 2,325,209 936,855 7,338,143 Total $ 2,588,711 $ 1,513,538 $ 2,327,298 $ 937,197 $ 7,366,744 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2019 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 3,709 $ 372 $ 740 $ 349 $ 5,170 Purchased credit-impaired loans 29,623 31,456 12,050 963 74,092 Collectively evaluated for impairment 1,312,517 483,703 591,975 179,966 2,568,161 Total $ 1,345,849 $ 515,531 $ 604,765 $ 181,278 $ 2,647,423 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2018 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,980 $ 763 $ 362 $ 646 $ 5,751 Purchased credit-impaired loans 11,994 29,539 4,888 867 47,288 Collectively evaluated for impairment 795,536 436,206 233,876 157,852 1,623,470 Total $ 811,510 $ 466,508 $ 239,126 $ 159,365 $ 1,676,509 The following is a summary of impaired loans at June 30, 2019 and December 31, 2018: Business Activities Loans June 30, 2019 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate $ 21,538 $ 33,028 $ — Commercial and industrial loans 5,319 10,807 — Residential mortgages - 1-4 family 1,244 1,407 — Consumer - home equity 35 240 — Consumer - other — — — With an allowance recorded: Other commercial real estate $ 513 $ 525 $ 7 Commercial and industrial loans 1,343 1,349 42 Residential mortgages - 1-4 family 1,613 1,739 78 Consumer - home equity 92 101 7 Consumer - other 11 11 — Total Commercial real estate $ 22,051 $ 33,553 $ 7 Commercial and industrial loans 6,662 12,156 42 Residential mortgages 2,857 3,146 78 Consumer 138 352 7 Total impaired loans $ 31,708 $ 49,207 $ 134 (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, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 22,606 $ 31,038 $ — Commercial and industrial loans 1,584 2,566 — Residential mortgages - 1-4 family 443 441 — Consumer - home equity 230 242 — Consumer - other — — — With an allowance recorded: Other commercial real estate loans $ 666 $ 670 $ 9 Commercial and industrial loans 1,251 1,235 49 Residential mortgages - 1-4 family 1,663 1,779 128 Consumer - home equity 100 106 10 Consumer - other 13 13 1 Total Commercial real estate $ 23,272 $ 31,708 $ 9 Commercial and industrial loans 2,835 3,801 49 Residential mortgages 2,106 2,220 128 Consumer 343 361 11 Total impaired loans $ 28,556 $ 38,090 $ 197 (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, 2019 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 2,664 $ 5,544 $ — Commercial and industrial loans 343 594 — Residential mortgages - 1-4 family 658 656 — Consumer - home equity 243 1,448 — Consumer - other 16 14 — With an allowance recorded: Other commercial real estate loans $ 1,066 $ 1,071 $ 84 Commercial and industrial loans 29 30 — Residential mortgages - 1-4 family 88 113 8 Consumer - home equity 50 50 — Consumer - other 41 39 7 Total x Commercial real estate $ 3,730 $ 6,615 $ 84 Commercial and industrial loans 372 624 — Residential mortgages 746 769 8 Consumer 350 1,551 7 Total impaired loans $ 5,198 $ 9,559 $ 99 (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, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 3,055 $ 5,959 $ — Other commercial and industrial loans 538 644 — Residential mortgages - 1-4 family 271 324 — Consumer - home equity 399 1,053 — Consumer - other — 11 — With an allowance recorded: Other commercial real estate loans $ 925 $ 947 $ 9 Commercial and industrial loans 228 232 4 Residential mortgages - 1-4 family 94 117 36 Consumer - home equity 205 196 41 Consumer - other 43 40 7 Total Commercial real estate $ 3,980 $ 6,906 $ 9 Commercial and industrial loans 766 876 4 Residential mortgages 365 441 36 Consumer 647 1,300 48 Total impaired loans $ 5,758 $ 9,523 $ 97 (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, 2019 and 2018: Business Activities Loans Six Months Ended Six Months Ended (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Other commercial real estate loans $ 20,877 $ 213 $ 29,092 $ 326 Commercial and industrial loans 1,775 304 4,467 201 Residential mortgages - 1-4 family 574 23 942 26 Consumer - home equity 196 1 1,754 4 Consumer - other — — — — With an allowance recorded: Other commercial real estate loans $ 569 $ 12 $ 1,786 $ 47 Commercial and industrial loans 1,468 64 1,279 83 Residential mortgages - 1-4 family 1,633 37 1,409 32 Consumer - home equity 95 3 45 1 Consumer - other 12 — 16 — Total Commercial real estate $ 21,446 $ 225 $ 30,878 $ 373 Commercial and industrial loans 3,243 368 5,746 284 Residential mortgages 2,207 60 2,351 58 Consumer loans 303 4 1,815 5 Total impaired loans $ 27,199 $ 657 $ 40,790 $ 720 Acquired Loans Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Other commercial real estate loans $ 2,607 $ 82 $ 2,306 $ 111 Commercial and industrial loans 522 32 349 27 Residential mortgages - 1-4 family 362 12 1,505 6 Consumer - home equity 557 5 760 — Consumer - other 5 — 17 1 With an allowance recorded: Other commercial real estate loans $ 965 $ 33 $ 3,020 $ 89 Commercial and industrial loans 30 1 287 17 Residential mortgages - 1-4 family 90 4 77 2 Consumer - home equity 50 1 320 5 Consumer - other 42 1 — — Total Commercial real estate $ 3,572 $ 115 $ 5,326 $ 200 Commercial and industrial loans 552 33 636 44 Residential mortgages 452 16 1,582 8 Consumer loans 654 7 1,097 6 Total impaired loans $ 5,230 $ 171 $ 8,641 $ 258 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, 2019 and June 30, 2018. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the three and six months ended June 30, 2019 and 2018 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended June 30, 2019 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial real estate — $ — $ — Commercial and industrial 2 282 279 Total 2 $ 282 $ 279 Six Months Ended June 30, 2019 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial real estate 2 $ 145 $ 145 Commercial and industrial 3 475 472 Total 5 $ 620 $ 617 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 19 Commercial and industrial 4 1,995 1,924 Residential - 1-4 Family 1 118 118 Total 5 $ 2,113 $ 2,042 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. There were no TDRs that defaulted within 12 months of modifications during the three and six months ended June 30, 2019. 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 real estate 1 5,992 Commercial and industrial 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 real estate 1 5,992 Commercial and industrial 1 1,065 The following table presents the Company’s TDR activity for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of the period $ 25,185 $ 43,105 Principal payments (375 ) (2,511 ) TDR status change (1) — — Other reductions (2) — (7,088 ) Newly identified TDRs 279 — Balance at end of the period $ 25,089 $ 33,506 Six Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of the period $ 27,415 $ 41,990 Principal payments (1,788 ) (3,150 ) TDR status change (1) — — Other reductions (2) (1,155 ) (7,376 ) Newly identified TDRs 617 2,042 Balance at end of the period $ 25,089 $ 33,506 _________________________________ (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, payoffs, 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, 2019 , the Company maintained foreclosed residential real estate property with a fair value of $154 thousand . Additionally, residential mortgage loans collateralized by real estate property that are in the process of foreclosure as of June 30, 2019 and December 31, 2018 totaled $5.4 million and $3.2 million |
LOAN LOSS ALLOWANCE
LOAN LOSS ALLOWANCE | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
LOAN LOSS ALLOWANCE | LOAN LOSS ALLOWANCE Activity in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018 was as follows: At or for the three months ended June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 22,521 $ 18,247 $ 9,209 $ 6,235 $ 56,212 Charged-off loans 702 1,180 206 857 2,945 Recoveries on charged-off loans 67 119 43 79 308 Provision/(releases) for loan losses 522 1,663 (212 ) (116 ) 1,857 Balance at end of period $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 At or for the six months ended June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 21,732 $ 16,504 $ 10,535 $ 7,368 $ 56,139 Charged-off loans 1,958 2,856 248 1,776 6,838 Recoveries on charged-off loans 275 426 58 133 892 Provision/(releases) for loan losses 2,359 4,775 (1,511 ) (384 ) 5,239 Balance at end of period $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 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, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,910 $ 879 $ 622 $ 415 $ 5,826 Charged-off loans 624 109 31 257 1,021 Recoveries on charged-off loans 24 175 55 55 309 Provision/(releases) for loan losses 1,252 (75 ) 236 197 1,610 Balance at end of period $ 4,562 $ 870 $ 882 $ 410 $ 6,724 At or for the six months ended June 30, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,153 $ 1,064 $ 630 $ 483 $ 5,330 Charged-off loans 804 371 104 428 1,707 Recoveries on charged-off loans 500 226 60 86 872 Provision/(releases) for loan losses 1,713 (49 ) 296 269 2,229 Balance at end of period $ 4,562 $ 870 $ 882 $ 410 $ 6,724 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 The following tables present a summary of the allowance for loan losses as of June 30, 2019 and December 31, 2018: At June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 7 42 78 7 134 Collectively evaluated for impairment 22,401 18,807 8,756 5,334 55,298 Total $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 At December 31, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 9 49 128 11 197 Collectively evaluated for impairment 21,723 16,455 10,407 7,357 55,942 Total 21,732 16,504 10,535 7,368 56,139 At June 30, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 84 — 8 7 99 Collectively evaluated for impairment 4,478 870 874 403 6,625 Total $ 4,562 $ 870 $ 882 $ 410 $ 6,724 At December 31, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 9 4 36 48 97 Collectively evaluated for impairment 3,144 1,060 594 435 5,233 Total 3,153 1,064 630 483 5,330 Credit Quality Information Business Activities Loans Credit Quality Analysis The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard and non-accruing loans are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating 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, 2019 , the allowance for loan losses related to acquired loans under ASC 310-30 and ASC 310-20 was $6.7 million using the above mentioned criteria. The following tables present the Company’s loans by risk rating at June 30, 2019 and December 31, 2018: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Real Estate Total commercial real estate (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 300,996 $ 327,792 $ 2,283,244 $ 2,198,129 $ 2,584,240 $ 2,525,921 Special mention — — 24,154 9,805 24,154 9,805 Substandard — — 51,104 52,985 51,104 52,985 Total $ 300,996 $ 327,792 $ 2,358,502 $ 2,260,919 $ 2,659,498 $ 2,588,711 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2019 December 31, 2018 Grade: Pass $ 1,385,702 $ 1,469,139 Special mention 53,543 14,279 Substandard 31,617 29,176 Doubtful 904 944 Total $ 1,471,766 $ 1,513,538 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 2,264,398 $ 2,314,657 $ 9,170 $ 9,582 $ 2,273,568 $ 2,324,239 Special mention 543 1,619 — — 543 1,619 Substandard 3,504 1,440 — — 3,504 1,440 Total $ 2,268,445 $ 2,317,716 $ 9,170 $ 9,582 $ 2,277,615 $ 2,327,298 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Performing $ 280,440 $ 289,028 $ 602,469 $ 645,537 $ 882,909 $ 934,565 Nonperforming 814 933 1,803 1,699 2,617 2,632 Total $ 281,254 $ 289,961 $ 604,272 $ 647,236 $ 885,526 $ 937,197 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Real Estate Total commercial real estate (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 56,384 $ 24,519 $ 1,231,162 $ 743,684 $ 1,287,546 $ 768,203 Special mention 1,411 — 14,147 9,086 15,558 9,086 Substandard 702 701 42,043 33,520 42,745 34,221 Total $ 58,497 $ 25,220 $ 1,287,352 $ 786,290 $ 1,345,849 $ 811,510 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2019 December 31, 2018 Grade: Pass $ 483,151 $ 439,602 Special mention 12,893 11,374 Substandard 19,487 15,532 Total $ 515,531 $ 466,508 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 590,578 $ 235,173 $ 8,158 $ 174 $ 598,736 $ 235,347 Special mention 696 144 — — 696 144 Substandard 5,333 3,635 — — 5,333 3,635 Total $ 596,607 $ 238,952 $ 8,158 $ 174 $ 604,765 $ 239,126 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Performing $ 121,931 $ 85,968 $ 58,393 $ 72,195 $ 180,324 $ 158,163 Nonperforming 645 751 309 451 954 1,202 Total $ 122,576 $ 86,719 $ 58,702 $ 72,646 $ 181,278 $ 159,365 The following table summarizes information about total loans rated Special Mention or lower as of June 30, 2019 and December 31, 2018. 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, 2019 December 31, 2018 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 30,704 $ 5,067 $ 35,771 $ 26,478 $ 5,947 $ 32,425 Substandard Accruing 59,206 63,606 122,812 60,698 48,792 109,490 Total Classified 89,910 68,673 158,583 87,176 54,739 141,915 Special Mention 79,484 29,187 108,671 26,333 20,833 47,166 Total Criticized $ 169,394 $ 97,860 $ 267,254 $ 113,509 $ 75,572 $ 189,081 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) June 30, December 31, Time less than $100,000 $ 888,791 $ 719,689 Time $100,000 through $250,000 2,221,209 2,060,500 Time more than $250,000 971,398 507,528 Total time deposits $ 4,081,398 $ 3,287,717 Included in total deposits are brokered deposits of $1.6 billion and $1.4 billion at June 30, 2019 and December 31, 2018 , respectively. Included in total deposits are reciprocal deposits of $94.6 million and $84.4 million at June 30, 2019 and December 31, 2018 , respectively. |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at June 30, 2019 and December 31, 2018 are summarized, as follows: June 30, 2019 December 31, 2018 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ 608,928 2.65 % $ 1,118,832 2.58 % Total short-term borrowings: 608,928 2.65 1,118,832 2.58 Long-term borrowings: Advances from the FHLB and other borrowings 295,886 2.36 309,466 2.17 Subordinated borrowings 74,143 7.00 74,054 7.00 Junior subordinated borrowing - Trust I 15,464 4.37 15,464 4.50 Junior subordinated borrowing - Trust II 7,320 4.11 — — Total long-term borrowings: 392,813 3.34 398,984 3.16 Total $ 1,001,741 2.92 % $ 1,517,816 2.73 % 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, 2019 and December 31, 2018 . 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, 2019 and December 31, 2018 . Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. The advances outstanding at June 30, 2019 include callable advances totaling $10 million and amortizing advances totaling $4.5 million . The advances outstanding at December 31, 2018 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, 2019 is as follows: June 30, 2019 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2019 $ 640,219 2.59 % 2020 195,603 2.51 2021 31,476 2.49 2022 17,770 2.24 2023 and beyond 19,746 2.13 Total FHLB advances $ 904,814 2.55 % The Company did not have variable-rate FHLB advances for the periods ended June 30, 2019 and December 31, 2018 . 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 $399 thousand and $461 thousand for unamortized debt issuance costs as of June 30, 2019 and December 31 2018, 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 4.37% and 4.50% at June 30, 2019 and December 31, 2018 , 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. The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets with a cost of $0.2 million . The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate of 4.11% at June 30, 2019 . 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 II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of June 30, 2019 , the Company held derivatives with a total notional amount of $4.4 billion . The Company had economic hedges and non-hedging derivatives totaling $4.0 billion and $0.5 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 $3.1 billion , risk participation agreements with dealer banks of $0.3 billion , and $0.5 billion in forward commitment contracts. Forward sale commitments and commitments to lend are included in discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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 and 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, 2019 . The Company pledged collateral to derivative counterparties in the form of cash totaling $78.9 million and securities with an amortized cost of $12.0 million and a fair value of $12.0 million as of June 30, 2019 . 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, 2019 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 9,744 10.4 2.81 % 5.09 % $ (1,583 ) Interest rate swaps on loans with commercial loan customers 1,546,563 6.7 4.47 % 3.89 % 75,114 Reverse interest rate swaps on loans with commercial loan customers 1,546,563 6.7 3.89 % 4.47 % (76,909 ) Risk participation agreements with dealer banks 303,793 7.5 343 Forward sale commitments (1) 544,475 0.2 (1,144 ) Total economic hedges 3,951,138 (4,179 ) Non-hedging derivatives: Commitments to lend (1) 471,456 0.2 9,005 Total non-hedging derivatives 471,456 9,005 Total $ 4,422,594 $ 4,826 (1) Includes the impact of discontinued operations. Information about derivative assets and liabilities at December 31, 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) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 10,090 10.9 2.72 % 5.09 % $ (1,240 ) Interest rate swaps on loans with commercial loan customers 1,346,894 6.7 4.53 % 4.04 % 11,443 Reverse interest rate swaps on loans with commercial loan customers 1,346,894 6.7 4.04 % 4.53 % (11,953 ) Risk participation agreements with dealer banks 243,806 5.7 237 Forward sale commitments (1) 190,807 0.2 (734 ) Total economic hedges 3,138,491 (2,247 ) Non-hedging derivatives: Commitments to lend (1) 165,079 0.2 3,927 Total non-hedging derivatives 165,079 3,927 Total $ 3,303,570 $ 1,680 (1) Includes the impact of discontinued operations. Economic hedges As of June 30, 2019 , the Company has an interest rate swap with a $10.7 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 loss adjustments arising from the difference in credit worthiness of the commercial loan and financial institution counterparties totaled $1.3 million as of June 30, 2019 . 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. Forward sale commitments are included in discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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”), or commitments to lend, for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. 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 discontinued operations 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. Commitments to lend are included in discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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) 2019 2018 2019 2018 Economic hedges Interest rate swap on industrial revenue bond: Unrealized (loss)/gain recognized in other non-interest income $ (222 ) $ 163 $ (343 ) $ 474 Interest rate swaps on loans with commercial loan customers: Unrealized (loss)/gain recognized in other non-interest income 42,967 (5,270 ) 64,956 (19,939 ) (Unfavorable)/Favorable change in credit valuation adjustment recognized in other non-interest income (1,146 ) 95 (1,283 ) 332 Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income (42,967 ) 5,270 (64,956 ) 19,939 Risk participation agreements: Unrealized gain recognized in other non-interest income (19 ) 7 106 23 Forward commitments: Unrealized (loss) recognized in discontinued operations 108 (658 ) (410 ) (1,567 ) Realized gain in discontinued operations (4,083 ) 1,077 (5,798 ) 4,999 Non-hedging derivatives Commitments to lend Unrealized gain recognized in discontinued operations $ 2,687 $ 7,285 $ 5,078 $ 13,816 Realized gain in discontinued operations 16,281 2,491 25,713 3,094 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 $0.5 million and $5.9 million as of June 30, 2019 and December 31, 2018 , respectively. The Company had net asset positions with its commercial banking counterparties totaling $75.9 million and $21.2 million as of June 30, 2019 and December 31, 2018 , respectively. The Company had net liability positions with its financial institution counterparties totaling $78.8 million and $18.8 million as of June 30, 2019 and December 31, 2018 , respectively. The Company had net liability positions with its commercial banking counterparties totaling $0.7 million and $9.7 million as of June 30, 2019 and December 31, 2018 . The collateral posted by the Company that covered liability positions was $78.9 million and $25.4 million as of June 30, 2019 and December 31, 2018 , respectively. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2019 and December 31, 2018 : 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, 2019 Interest Rate Swap Agreements: Institutional counterparties $ 543 $ (14 ) $ 529 $ — $ — $ 529 Commercial counterparties 75,883 (33 ) 75,850 — — 75,850 Total $ 76,426 $ (47 ) $ 76,379 $ — $ — $ 76,379 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, 2019 Interest Rate Swap Agreements: Institutional counterparties $ (79,767 ) $ 996 $ (78,771 ) $ 11,992 $ 78,896 $ 12,117 Commercial counterparties (740 ) 5 (735 ) — — (735 ) Total $ (80,507 ) $ 1,001 $ (79,506 ) $ 11,992 $ 78,896 $ 11,382 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, 2018 Interest Rate Swap Agreements: Institutional counterparties $ 9,485 $ (3,592 ) $ 5,893 $ — $ — $ 5,893 Commercial counterparties 21,345 (157 ) 21,188 — — 21,188 Total $ 30,830 $ (3,749 ) $ 27,081 $ — $ — $ 27,081 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, 2018 Interest Rate Swap Agreements: Institutional counterparties $ (19,949 ) $ 1,101 $ (18,848 ) $ — $ 25,412 $ 6,564 Commercial counterparties (9,932 ) 187 (9,745 ) — — (9,745 ) Total $ (29,881 ) $ 1,288 $ (28,593 ) $ — $ 25,412 $ (3,181 ) |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. See Note 1 to the Consolidated Financial Statements regarding transition guidance related to the new standard. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s Consolidated Balance Sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company’s finance leases (previously referred to as a capital lease) was previously required to be recorded on the Company’s Consolidated Balance Sheets. As these leases were previously required to be recorded on the Company’s Consolidated Balance Sheets, Topic 842 did not materially impact the accounting for the leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company utilized the implicit lease rate when readily determinable. As most of the Company’s leases do not provide an implicit rate, the Company used our incremental borrowing rate based on the information available at commencement date. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. The weighted average discount rate used to discount operating lease liabilities and finance lease liabilities at June 30, 2019 was 3.36% and 5.00% , respectively. The Company made a policy election to exclude the recognition requirements of Topic 842 to all classes of leases with original terms of 12 months or less. Instead, the short-term lease payments are recognized in profit or loss on a straight-line basis over the lease term. At June 30, 2019 lease expiration dates ranged from 1 month to 21 years . The weighted average remaining lease term for operating and finance leases at June 30, 2019 was 10.6 years and 15.5 years , respectively. The following table represents the Consolidated Balance Sheets classification of the Company’s ROU assets and lease liabilities: (In thousands) June 30, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets (1) Other assets $ 80,591 Finance lease right-of-use assets Premises and equipment, net 7,981 Total Lease Right-of-Use Assets $ 88,572 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 85,045 Finance lease liabilities Other liabilities 11,123 Total Lease Liabilities $ 96,168 (1) Includes assets and liabilities classified as discontinued operations. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not have any material sub-lease agreements. Lease expense for operating leases for the three and six months ended June 30, 2019 was $3.6 million and $7.0 million , respectively. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 3,657 $ 7,155 Operating cash flows from finance leases 159 318 Financing cash flows from finance leases 98 196 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) 8,052 87,641 Finance leases — — (1) Includes cash flows related to discontinued operations. The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 7,130 $ 508 2020 13,403 1,031 2021 12,157 1,031 2022 10,981 1,031 2023 9,048 1,037 Thereafter 48,570 11,296 Total undiscounted lease payments (1) 101,289 15,934 Less amounts representing interest (1) (16,244 ) (4,811 ) Lease liability (1) $ 85,045 $ 11,123 |
LEASES | LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. See Note 1 to the Consolidated Financial Statements regarding transition guidance related to the new standard. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s Consolidated Balance Sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company’s finance leases (previously referred to as a capital lease) was previously required to be recorded on the Company’s Consolidated Balance Sheets. As these leases were previously required to be recorded on the Company’s Consolidated Balance Sheets, Topic 842 did not materially impact the accounting for the leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company utilized the implicit lease rate when readily determinable. As most of the Company’s leases do not provide an implicit rate, the Company used our incremental borrowing rate based on the information available at commencement date. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. The weighted average discount rate used to discount operating lease liabilities and finance lease liabilities at June 30, 2019 was 3.36% and 5.00% , respectively. The Company made a policy election to exclude the recognition requirements of Topic 842 to all classes of leases with original terms of 12 months or less. Instead, the short-term lease payments are recognized in profit or loss on a straight-line basis over the lease term. At June 30, 2019 lease expiration dates ranged from 1 month to 21 years . The weighted average remaining lease term for operating and finance leases at June 30, 2019 was 10.6 years and 15.5 years , respectively. The following table represents the Consolidated Balance Sheets classification of the Company’s ROU assets and lease liabilities: (In thousands) June 30, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets (1) Other assets $ 80,591 Finance lease right-of-use assets Premises and equipment, net 7,981 Total Lease Right-of-Use Assets $ 88,572 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 85,045 Finance lease liabilities Other liabilities 11,123 Total Lease Liabilities $ 96,168 (1) Includes assets and liabilities classified as discontinued operations. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not have any material sub-lease agreements. Lease expense for operating leases for the three and six months ended June 30, 2019 was $3.6 million and $7.0 million , respectively. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 3,657 $ 7,155 Operating cash flows from finance leases 159 318 Financing cash flows from finance leases 98 196 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) 8,052 87,641 Finance leases — — (1) Includes cash flows related to discontinued operations. The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 7,130 $ 508 2020 13,403 1,031 2021 12,157 1,031 2022 10,981 1,031 2023 9,048 1,037 Thereafter 48,570 11,296 Total undiscounted lease payments (1) 101,289 15,934 Less amounts representing interest (1) (16,244 ) (4,811 ) Lease liability (1) $ 85,045 $ 11,123 |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL RATIOS AND SHAREHOLDERS' 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 12.9 % N/A 13.0 % N/A Common equity tier 1 capital to risk weighted assets 11.4 N/A 11.4 N/A Tier 1 capital to risk weighted assets 11.6 N/A 11.6 N/A Tier 1 capital to average assets 9.7 N/A 9.0 N/A Bank Total capital to risk weighted assets 12.1 % 8.0 % 12.2 % 8.0 % Common equity tier 1 capital to risk weighted assets 11.5 4.5 11.6 4.5 Tier 1 capital to risk weighted assets 11.5 6.0 11.6 6.0 Tier 1 capital to average assets 9.7 4.0 9.0 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. As of January 1, 2019, banking organizations 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 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, 2019 , 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, 2019 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5% . Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is as follows: (In thousands) June 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding gain/(loss) on AFS securities $ 18,056 $ (15,267 ) Net unrealized holding (loss) on pension plans (2,753 ) (2,753 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax (expense)/benefit on AFS securities (4,738 ) 3,814 Net unrealized tax benefit on pension plans 736 736 Accumulated other comprehensive income/(loss) $ 11,301 $ (13,470 ) The following table presents the components of other comprehensive income for the three months ended June 30, 2019 and 2018 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30 , 2019 Net unrealized holding gain on AFS securities: x Net unrealized gains arising during the period $ 19,106 $ (4,900 ) $ 14,206 Less: reclassification adjustment for (losses) realized in net income (2 ) 1 (1 ) Net unrealized holding gain on AFS securities 19,108 (4,901 ) 14,207 Other comprehensive income $ 19,108 $ (4,901 ) $ 14,207 Three Months Ended June 30 , 2018 Net unrealized holding (loss) on AFS securities: Net unrealized (losses) arising during the period $ (7,839 ) $ 2,001 $ (5,838 ) Less: reclassification adjustment for losses 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 ) (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2019 Net unrealized holding gain on AFS securities: x Net unrealized gains arising during the period $ 33,327 $ (8,553 ) $ 24,774 Less: reclassification adjustment for gains realized in net income 4 (1 ) 3 Net unrealized holding gain on AFS securities 33,323 (8,552 ) 24,771 Other comprehensive income $ 33,323 $ (8,552 ) $ 24,771 Six Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: Net unrealized (losses) arising during the period $ (27,001 ) $ 6,932 $ (20,069 ) Less: reclassification adjustment for losses 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 2018-01 — (896 ) (896 ) Total change to accumulated other comprehensive (loss) (35,381 ) 9,954 (25,427 ) The following table presents the changes in each component of accumulated other comprehensive (loss) income, for the three and six months ended June 30, 2019 and 2018 : (In thousands) Net unrealized holding loss on AFS Securities Net unrealized holding loss on pension plans Total Three Months Ended June 30, 2019 Balance at Beginning of Period $ (889 ) $ (2,017 ) $ (2,906 ) Other comprehensive income before reclassifications 14,206 — 14,206 Less: amounts reclassified from accumulated other comprehensive income (loss) (1 ) — (1 ) Total other comprehensive income 14,207 — 14,207 Balance at End of Period $ 13,318 $ (2,017 ) $ 11,301 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 ) Six Months Ended June 30, 2019 Balance at Beginning of Period $ (11,453 ) $ (2,017 ) $ (13,470 ) Other comprehensive income before reclassifications 24,774 — 24,774 Less: amounts reclassified from accumulated other comprehensive income 3 — 3 Total other comprehensive (loss) 24,771 — 24,771 Balance at End of Period $ 13,318 $ (2,017 ) $ 11,301 Six Months Ended June 30, 2018 Balance at Beginning of Period $ 6,008 $ (1,847 ) $ 4,161 Other comprehensive gain (loss) before reclassifications (20,069 ) — (20,069 ) Less: amounts reclassified from accumulated other comprehensive income 1 — 1 Total other comprehensive (loss) income (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 ) 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, 2019 and 2018 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (In thousands) 2019 2018 is Presented Realized gains on AFS securities: $ (2 ) $ 1 Non-interest income 1 — Tax expense (1 ) 1 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) 2019 2018 is Presented Realized gains on AFS securities: $ 4 $ 1 Non-interest income (1 ) — Tax expense 3 1 Net of tax Total reclassifications for the period $ 3 $ 1 Net of tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
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) 2019 2018 2019 2018 Income from continuing operations $ 23,954 $ 33,711 $ 48,226 $ 59,082 Income from discontinued operations 1,494 320 857 197 Net income $ 25,448 $ 34,031 $ 49,083 $ 59,279 Average number of common shares issued 49,026 46,212 47,627 46,212 Less: average number of treasury shares 754 788 736 828 Less: average number of unvested stock award shares 354 435 384 428 Plus: average participating preferred shares 1,043 1,043 1,043 1,043 Average number of basic shares outstanding 48,961 46,032 47,550 45,999 Plus: dilutive effect of unvested stock award shares 107 152 120 176 Plus: dilutive effect of stock options outstanding 46 31 30 31 Average number of diluted shares outstanding 49,114 46,215 47,700 46,206 Basic earnings per common share: Continuing operations $ 0.49 $ 0.73 $ 1.01 $ 1.29 Discontinued operations 0.03 0.01 0.02 — Total $ 0.52 $ 0.74 $ 1.03 $ 1.29 Diluted earnings per common share: Continuing operations $ 0.49 $ 0.73 $ 1.01 $ 1.28 Discontinued operations 0.03 0.01 0.02 — Total $ 0.52 $ 0.74 $ 1.03 $ 1.28 For the six months ended June 30, 2019 , 269 thousand shares of restricted stock and 46 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. 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. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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, 2019 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, 2018 371 $ 33.63 31 $ 10.82 Granted 131 27.91 — — Acquired — — 133 23.99 Stock options exercised — — (1 ) 13.70 Stock awards vested (127 ) 31.73 — — Forfeited (51 ) 33.22 — — Expired — — — — June 30, 2019 324 $ 32.76 163 $ 21.15 Exercisable options at June 30, 2019 163 $ 21.15 During the three and six months ended June 30, 2019, proceeds from stock option exercises totaled $15 thousand . During the three and six months ended June 30, 2018 proceeds from stock option exercises totaled $101 thousand . During the three and six months ended June 30, 2019 , there were 62 thousand and 127 thousand shares issued in connection with vested stock awards, respectively. During the three and six months ended June 30, 2018, there were 63 thousand and 150 thousand shares issued in connection with vested stock awards, respectively. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $1.0 million and $1.4 million during the three months ended June 30, 2019 and 2018 , respectively. Stock-based compensation expense totaled $2.0 million and $2.8 million during the six months ended June 30, 2019 and 2018. Stock-based compensation expense is recognized over the requisite service period for all awards. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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, including assets classified as discontinued operations on the consolidated balance sheets. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,210 $ 11,210 Securities available for sale: Municipal bonds and obligations — 119,873 — 119,873 Agency collateralized mortgage obligations — 888,962 — 888,962 Agency residential mortgage-backed securities — 182,258 — 182,258 Agency commercial mortgage-backed securities — 60,651 — 60,651 Corporate bonds — 119,743 — 119,743 Trust preferred securities — 8,550 — 8,550 Other bonds and obligations — 30,041 — 30,041 Marketable equity securities 58,521 1,057 — 59,578 Loans held for sale (1) — 191,548 — 191,548 Derivative assets (1) — 76,764 9,005 85,769 Capitalized servicing rights (1) — — 11,206 11,206 Derivative liabilities (1) 1,144 79,731 — 80,875 (1) Includes assets and liabilities classified as discontinued operations. December 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,212 $ 11,212 Securities available for sale: Municipal bonds and obligations — 111,207 — 111,207 Agency collateralized mortgage obligations — 930,884 — 930,884 Agency residential mortgage-backed securities — 170,321 — 170,321 Agency commercial mortgage-backed securities — 58,925 — 58,925 Corporate bonds — 111,490 — 111,490 Trust preferred securities — 8,466 — 8,466 Other bonds and obligations — 8,354 — 8,354 Marketable equity securities 56,074 564 — 56,638 Loans held for sale (1) — 96,233 — 96,233 Derivative assets (1) — 31,727 3,927 35,654 Capitalized servicing rights (1) — — 11,485 11,485 Derivative liabilities (1) 734 33,239 — 33,973 (1) Includes assets and liabilities classified as discontinued operations. There were no transfers between levels during the three months ended June 30, 2019 . 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. 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, 2019 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale - continuing operations $ 8,666 $ 8,533 $ 133 Loans held for sale - discontinued operations 182,882 177,114 5,768 Total loans held for sale $ 191,548 $ 185,647 $ 5,901 Aggregate Fair Value December 31, 2018 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale - continuing operations $ 2,183 $ 2,140 $ 43 Loans held for sale - discontinued operations 94,050 90,879 3,171 Total loans held for sale $ 96,233 $ 93,019 $ 3,214 The changes in fair value of loans held for sale for the three months ended June 30, 2019 , were gains of $31 thousand from continuing operations and $1.4 million from discontinued operations. The changes in fair value of loans held for sale for the six months ended June 30, 2019, were gains of $91 thousand from continuing operations and $2.6 million from discontinued operations. There were no changes in fair value of loans held for sale from continuing operations for the three months ended June 30, 2018. The changes in fair value of loans held for sale from discontinued operations for the three months ended June 30, 2018 were gains of $1.3 million . The changes in fair value of loans held for sale for the six months ended June 30, 2018, were losses of $20 thousand from continuing operations and $1.1 million from discontinued operations. During the three months ended June 30, 2019, originations of loans held for sale from continuing operations totaled $17.4 million and sales of loans originated for sale from continuing operations totaled $14.5 million . During the three months ended June 30, 2018, originations of loans held for sale from continuing operations totaled $12.9 million and sales of loans originated for sale from continuing operations totaled $12.3 million . 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, 2019 , 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. Commitments to lend are included in discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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. Forward sale commitments are included in discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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. Capitalized servicing rights held at fair value are included in discontinued operations on the consolidated balance sheet. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. 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, 2019 and 2018 . Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend (1) Commitments (1) Rights (1) Three Months Ended June 30, 2019 March 31, 2019 $ 11,164 $ 6,318 $ — $ 11,351 Unrealized gain/(loss), net recognized in other non-interest income 219 — — — Unrealized gain/(loss), net recognized in discontinued operations — 17,117 — (1,972 ) Paydown of trading security (173 ) — — — Transfers to held for sale loans — (14,430 ) — — Additions to servicing rights — — — 1,827 June 30, 2019 $ 11,210 $ 9,005 $ — $ 11,206 Six Months Ended June 30, 2019 December 31, 2018 $ 11,212 $ 3,927 $ — $ 11,485 Unrealized gain, net recognized in other non-interest income 345 — — — Unrealized gain/(loss), net recognized in discontinued operations — 28,338 — (3,114 ) Paydown of trading security (347 ) — — — Transfers to held for sale loans — (23,260 ) — — Additions to servicing rights — — — 2,835 June 30, 2019 $ 11,210 $ 9,005 $ — $ 11,206 Unrealized gains relating to instruments still held at June 30, 2019 $ 1,466 $ 9,005 $ — — Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend (1) Commitments (1) Rights (1) Three Months Ended June 30, 2018 March 31, 2018 $ 11,795 $ 6,531 $ — $ 5,705 Unrealized gain/(loss), net recognized in other non-interest income (148 ) — — — Unrealized gain/(loss), net recognized in discontinued operations — 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 gain, net recognized in other non-interest income (465 ) — (19 ) — Unrealized gain/(loss), net recognized in discontinued operations — 25,000 — 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 relating to instruments still held at June 30, 2018 $ 1,056 $ 7,285 $ — — (1) Classified as assets from discontinued operations on the consolidated balance sheets. 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, 2019 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,210 Discounted Cash Flow Discount Rate 2.28 % Commitments to lend (1) 9,005 Historical Trend Closing Ratio 72.48 % Pricing Model Origination Costs, per loan $ 3,137 Capitalized servicing rights (1) 11,206 Discounted cash flow Constant Prepayment Rate (CPR) 12.74 % Discount Rate 9.99 % Total $ 31,421 (1) Classified as assets from discontinued operations on the consolidated balance sheets. Fair Value Significant Unobservable Input (In thousands) December 31, 2018 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,212 Discounted Cash Flow Discount Rate 3.07 % Commitments to lend (1) 3,927 Historical Trend Closing Ratio 82.36 % Pricing Model Origination Costs, per loan $ 3,063 Capitalized servicing rights (1) 11,485 Discounted Cash Flow Constant Prepayment Rate (CPR) 9.30 % Discount Rate 10.00 % Total $ 26,624 (1) Classified as assets from discontinued operations on the consolidated balance sheets. 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, 2019 December 31, 2018 Fair Value Measurement Date as of June 30, 2019 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Impaired loans $ 4,614 $ 4,892 June 2019 Capitalized servicing rights 14,221 11,891 June 2019 Other real estate owned 154 — June 2019 Total $ 18,989 $ 16,783 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) June 30, 2019 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 4,614 Fair Value of Collateral Discounted Cash Flow - Loss Severity 25.66% to 0.11% (3.44%) Appraised Value $0.3 to $731 ($316.8) Capitalized servicing rights 14,221 Discounted Cash Flow Constant Prepayment Rate (CPR) 8.40% to 12.73% (11.50%) Discount Rate 10.00% to 12.73% (11.30%) Other Real Estate Owned 154 Fair Value of Collateral Appraised Value $49 to $105 ($87) Total $ 18,989 (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, 2018 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 4,892 Fair Value of Collateral Discounted Cash Flow - loss severity 51.16% to 0.00% (6.75%) Appraised Value $0.3 to $877 ($363) Capitalized servicing rights 11,891 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.74% to 11.29% (9.74%) Discount Rate 10.00% to 14.13% (11.99%) Total $ 16,783 (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, 2019 and December 31, 2018 . 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. Summary of Estimated Fair Values of Financial Instruments The following tables summarize the estimated fair values (represents exit price), 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. Certain assets and liabilities in the following disclosures include balances classified as discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. June 30, 2019 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 229,306 $ 229,306 $ 229,306 $ — $ — Trading security 11,210 11,210 — — 11,210 Marketable equity securities 59,578 59,578 58,521 1,057 — Securities available for sale 1,410,078 1,410,078 — 1,410,078 — Securities held to maturity 364,463 377,056 — 359,084 17,972 FHLB bank stock and restricted securities 59,356 N/A N/A N/A N/A Net loans 9,879,672 10,151,656 — — 10,151,656 Loans held for sale (1) 367,692 370,114 — 191,548 178,566 Accrued interest receivable 41,864 41,864 — 41,864 — Cash surrender value of bank-owned life insurance policies 227,458 227,458 — 227,458 — Derivative assets (1) 85,769 85,769 — 76,764 9,005 Financial Liabilities Total deposits $ 10,565,956 $ 10,576,006 $ — $ 10,576,006 $ — Short-term debt 608,928 608,946 — 608,946 — Long-term Federal Home Loan Bank advances 295,886 297,184 — 297,184 — Subordinated borrowings 96,927 100,924 — 100,924 — Derivative liabilities (1) 80,875 80,875 1,144 79,731 — (1) Includes assets and liabilities classified as discontinued operations. December 31, 2018 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 183,189 $ 183,189 $ 183,189 $ — $ — Trading security 11,212 11,212 — — 11,212 Marketable equity securities 56,638 56,638 56,074 564 — Securities available for sale and other 1,399,647 1,399,647 — 1,399,647 — Securities held to maturity 373,763 371,224 — 353,182 18,042 FHLB bank stock and restricted securities 77,344 N/A N/A N/A N/A Net loans 8,981,784 9,026,442 — — 9,026,442 Loans held for sale (1) 96,233 96,233 — 96,233 — Accrued interest receivable 36,879 36,879 — 36,879 — Derivative assets (1) 35,654 35,654 — 31,727 3,927 Financial Liabilities Total deposits $ 8,982,381 $ 8,970,321 $ — $ 8,970,321 $ — Short-term debt 1,118,832 1,118,820 — 1,118,820 — Long-term Federal Home Loan Bank advances 309,466 308,336 — 308,336 — Subordinated borrowings 89,518 97,376 — 97,376 — Derivative liabilities (1) 33,973 33,973 734 33,239 — (1) Includes assets and liabilities classified as discontinued operations. |
NET INTEREST INCOME AFTER PROVI
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Net interest income from continuing operations $ 91,595 $ 90,292 $ 177,054 $ 175,049 Provision for loan losses 3,467 6,532 7,468 12,107 Net interest income from continuing operations after provision for loan losses $ 88,128 $ 83,760 $ 169,586 $ 162,942 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, 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. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. 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, 2018. In management’s opinion, all adjustment’s 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. |
Recently Adopted Accounting Principles and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles Effective January 1, 2019, the following new accounting guidance was adopted by the Company: • ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities; • ASU No. 2016-02, Leases (Topic 842)(additional information is disclosed in Note 11 - Leases of the Consolidated Financial Statements) In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): 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 Sheets as of the date of adoption. In April 2019, the FASB issued ASU No. 2019-04 to clarify certain aspects of accounting for hedging activities addressed by ASU No. 2017-12, among other things (ASU No. 2019-04 amendments and pending adoption to FASB ASC Topics 326 and 825 are described in the section below). ASU No. 2017-12 became effective for the Company on January 1, 2019. The adoption was not material to the financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. 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, Topic 606. Entities will not be required to reassess transactions previously accounted under then existing guidance. 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. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may elect not to separate lease and non-lease components when certain conditions are met. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain practical expedients provided under ASU No. 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which provides targeted improvements and clarification to guidance with FASB ASC Topic 842 specific to lessors. The amendments of ASU No. 2018-20 have the same effective date as ASU 2016-02 and may be applied either retrospectively or prospectively to all new and existing leases. The Company obtained a third-party software application which provides lease accounting under the guidelines of FASB ASC Topic 842. The amendments of ASU No. 2016-02 and subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 842, became effective for the Company on January 1, 2019. The Company recognized right-of-use lease assets and related lease liabilities totaling $79.6 million and $82.8 million respectively as of January 1, 2019. The right-of-use lease assets and related lease liabilities recognized at January 1, 2019 include right-of-use lease assets and lease liabilities classified as discontinued operations. See Note 11 - Leases for more information. Future Application of Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): 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 (“PCD assets”). 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 (such as PCD assets) transition guidance requiring a prospective transition approach. For existing purchased credit-impaired assets, upon adoption, the amortized cost basis will be adjusted to reflect the addition of the allowance for credit losses. This transition relief avoids the need to reassess purchased financial assets that exist as of the date of adoption in order to determine whether they would have met, at acquisition, the new criteria of ‘more than insignificant’ credit deterioration since origination. The transition relief also allows the remaining accretable discount (based on the revised amortized cost basis) to accrete into interest income over the life of the related asset using the interest method. 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. A cross-functional working group has been formed and is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. Management is working through its implementation plan which includes assessment and documentation of processes and internal controls; model development and documentation; and system configuration. This is in preparation for performing a full end to end parallel run. Management is also in the process of implementing a third-party vendor solution to assist us in the application of ASU No. 2016-13. The Company expects the primary changes to be the application of the new expected credit loss model from the incurred model. 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 increase to loans for the non-accretable discount on existing purchased credit-impaired assets and a negative adjustment to retained earnings for the remaining credit losses for financial assets. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles: Goodwill and Other (Topic 350): 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 its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds, and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. Entities are also allowed to elect early adoption for the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” This ASU amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As ASU No. 2018-14 only revises disclosure requirements, it will not have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU No. 2018-15 clarifies certain aspects of ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which was issued in April 2015. Specifically, ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU No. 2018-15 does not affect the accounting for the service element of a hosting arrangement that is a service contract. ASU No. 2018-15 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after 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 its Consolidated Financial Statements. As mentioned in the previous section in April 2019 the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” With respect to FASB ASC Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04 clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other things. With respect to FASB ASC Topic 825, Financial Instruments, on recognizing and measuring financial instruments, ASU No. 2019-04 addresses the scope of the guidance, the requirement for remeasurement under FASB ASC Topic 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. The amendments to FASB ASC Topic 326 have the same effective dates as ASU 2016-13 (i.e., the first quarter of 2020). The Company is currently evaluating the potential impact of FASB ASC Topic 326 amendments on the Company’s Consolidated Financial Statements. The amendments to FASB ASC Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the Company’s Consolidated Financial Statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief.” ASU No. 2019-05 allows entities to irrevocably elect, upon adoption of ASU No. 2016-13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU No. 2019-05 has the same effective date as ASU No. 2016-13 (i.e., the first quarter of 2020). The Company is continuing to evaluate the potential impact of ASU No. 2016-13 and the subsequently issued ASUs, which provide additional guidance and clarifications to various aspects of FASB ASC Topic 326. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed and Fair Value Adjustments | The following table provides a summary of the assets acquired and liabilities assumed and the associated fair value adjustments as recorded by the Company at acquisition: (in thousands) As Acquired Fair Value Adjustments As Recorded by the Company Consideration Paid: Company common stock issued to SIFI common shareholders $ 175,804 Fair value of SIFI stock options converted to Berkshire options 907 Cash in lieu paid to SIFI shareholders 14 Total consideration paid $ 176,725 Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: Cash and short-term investments $ 110,774 $ — $ 110,774 Investment securities 144,629 (1,261 ) (a) 143,368 Loans held for sale 1,005 — 1,005 Loans, net 1,332,127 (29,388 ) (b) 1,302,739 Premises and equipment 19,039 (2,092 ) (c) 16,947 Core deposit intangibles — 17,980 (d) 17,980 Deferred tax assets, net 6,629 10,607 (e) 17,236 Goodwill and other intangibles 16,063 (16,063 ) (f) — Other assets 60,648 (341 ) 60,307 Deposits (1,327,115 ) (7,733 ) (g) (1,334,848 ) Borrowings (154,726 ) 1,717 (h) (153,009 ) Other liabilities (33,987 ) (8,166 ) (i) (42,153 ) Total identifiable net assets $ 175,086 $ (34,740 ) $ 140,346 Goodwill 36,379 _____________________________________ Explanation of Certain Fair Value Adjustments: (a) The adjustment represents the write down of the book value of securities to their estimated fair value at the date of acquisition. (b) The adjustment represents the write-off of $15.6 million in allowance for loan and lease losses and the write down of the book value of loans to their estimated fair value based on interest rates and expected cash flows as of the acquisition date, which includes an estimate of expected loan loss inherent in the portfolio. Loans with evidence of credit deterioration at acquisition are accounted for under ASC 310-30 and had a book value of $55.8 million and had a fair value of $32.1 million , including a $4.2 million fair value adjustment that is accretable in earnings. Non-impaired loans accounted for under ASC 310-20 had a book value of $1.29 billion and have a fair value of $1.27 billion , including a $6.7 million fair value adjustment discount that is amortized over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The adjustment represents a decreased fair value based on the appraised value of Savings Institute’s owned branches comprised of $1.1 million for land. This is in addition to a $1.0 million reduction of the book value of furniture, fixtures, and equipment, to their estimated fair value and the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The adjustments will be depreciated over the remaining estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized over the estimated useful life of the deposit base ( 10 years ). (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) Represents the write-off of goodwill and intangible assets from a prior SIFI acquisition. (g) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized over the estimated useful life of eleven months . (h) Adjusts borrowings by a reduction of $0.8 million to their estimated fair value, which is calculated based on current market rates. This is in addition to a $0.9 million reduction to the estimated fair value for the SI Capital Trust II, which is calculated based on the amount an institution would be willing to purchase the instrument at in the open market. (i) Adjusts the book value of other liabilities to their estimated fair value at the acquisition date. The adjustment consists of a $7.6 million increase to post-retirement liabilities due to change-in-control provisions, a $0.8 million increase in bank-owned life insurance liabilities, offset by a decrease of $0.4 to the unfunded commitment reserve. |
Summary of Provisional Information about the Savings Institute Acquired Loan Portfolio | Provisional information about the Savings Institute acquired loan portfolio subject to ASC 310-30 as of May 17, 2019 is as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 55,754 Contractual cash flows not expected to be collected (nonaccretable discount) (19,427 ) Expected cash flows at acquisition 36,327 Interest component of expected cash flows (accretable discount) (4,200 ) Fair value of acquired loans $ 32,127 |
Summary of Pro Forma Information | Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Six Months Ended June 30, 2019 2018 Net interest income $ 195,624 $ 202,709 Non-interest income 43,732 44,228 Income available to common shareholders 60,357 67,666 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Discontinued Operations | The following presents operating results of the discontinued operations of FCLS for the three and six months ended June 30, 2019 and June 30, 2018: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 1,818 $ 1,395 $ 2,862 $ 2,489 Interest expense 1,062 566 1,646 947 Net interest income 756 829 1,216 1,542 Non-interest income 13,246 10,407 22,059 21,035 Total net revenue 14,002 11,236 23,275 22,577 Non-interest expense 11,920 10,810 22,047 22,313 Income from discontinued operations before income taxes 2,082 426 1,228 264 Income tax expense 588 106 371 67 Net income from discontinued operations $ 1,494 $ 320 $ 857 $ 197 The following is a summary of the assets and liabilities of the discontinued operations of FCLS at June 30, 2019 and December 31, 2018: (in thousands) June 30, 2019 December 31, 2018 Assets Loans held for sale, at fair value $ 182,882 $ 94,050 Premises and equipment, net 1,710 1,867 Other assets 28,153 18,342 Total assets $ 212,745 $ 114,259 Liabilities Other liabilities $ 26,256 $ 9,597 Total liabilities $ 26,256 $ 9,597 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Securities Available for Sale, Held to Maturity, and Marketable Equity Securities | 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, 2019 Securities available for sale Municipal bonds and obligations $ 114,401 $ 5,477 $ (5 ) $ 119,873 Agency collateralized mortgage obligations 882,124 7,419 (581 ) 888,962 Agency mortgage-backed securities 182,598 739 (1,079 ) 182,258 Agency commercial mortgage-backed securities 61,275 465 (1,089 ) 60,651 Corporate bonds 119,917 880 (1,054 ) 119,743 Trust preferred securities 8,323 231 (4 ) 8,550 Other bonds and obligations 29,084 963 (6 ) 30,041 Total securities available for sale 1,397,722 16,174 (3,818 ) 1,410,078 Securities held to maturity Municipal bonds and obligations 257,232 10,835 — 268,067 Agency collateralized mortgage obligations 70,726 2,975 (115 ) 73,586 Agency mortgage-backed securities 6,758 — (57 ) 6,701 Agency commercial mortgage-backed securities 10,385 46 — 10,431 Tax advantaged economic development bonds 19,063 172 (1,263 ) 17,972 Other bonds and obligations 299 — — 299 Total securities held to maturity 364,463 14,028 (1,435 ) 377,056 Marketable equity securities 55,831 4,820 (1,073 ) 59,578 Total $ 1,818,016 $ 35,022 $ (6,326 ) $ 1,846,712 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Securities available for sale Municipal bonds and obligations $ 109,648 $ 2,272 $ (713 ) $ 111,207 Agency collateralized mortgage obligations 944,946 1,130 (15,192 ) 930,884 Agency mortgage-backed securities 175,406 36 (5,121 ) 170,321 Agency commercial mortgage-backed securities 62,200 — (3,275 ) 58,925 Corporate bonds 112,404 342 (1,256 ) 111,490 Trust preferred securities 8,314 251 (99 ) 8,466 Other bonds and obligations 8,355 34 (35 ) 8,354 Total securities available for sale 1,421,273 4,065 (25,691 ) 1,399,647 Securities held to maturity Municipal bonds and obligations 264,524 3,569 (3,601 ) 264,492 Agency collateralized mortgage obligations 71,637 533 (778 ) 71,392 Agency mortgage-backed securities 7,219 — (297 ) 6,922 Agency commercial mortgage-backed securities 10,417 — (289 ) 10,128 Tax advantaged economic development bonds 19,718 22 (1,698 ) 18,042 Other bonds and obligations 248 — — 248 Total securities held to maturity 373,763 4,124 (6,663 ) 371,224 Marketable equity securities 55,471 4,370 (3,203 ) 56,638 Total $ 1,850,507 $ 12,559 $ (35,557 ) $ 1,827,509 |
Schedule of 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, 2019 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 $ 15,204 $ 15,245 $ 2,875 $ 2,875 Over 1 year to 5 years 31,179 31,213 14,729 14,844 Over 5 years to 10 years 71,721 72,831 15,086 15,180 Over 10 years 153,621 158,918 243,904 253,439 Total bonds and obligations 271,725 278,207 276,594 286,338 Mortgage-backed securities 1,125,997 1,131,871 87,869 90,718 Total $ 1,397,722 $ 1,410,078 $ 364,463 $ 377,056 |
Schedule of Securities Available for Sale and Held to Maturity with Unrealized Losses, Segregated by Duration | Securities available for sale and held to maturity 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, 2019 Securities available for sale Municipal bonds and obligations $ — $ — $ 5 $ 1,319 $ 5 $ 1,319 Agency collateralized mortgage obligations 72 43,755 509 103,929 581 147,684 Agency mortgage-backed securities 5 2,191 1,074 93,990 1,079 96,181 Agency commercial mortgage-backed securities — — 1,089 55,319 1,089 55,319 Corporate bonds 434 37,147 620 30,036 1,054 67,183 Trust preferred securities 4 7,163 — — 4 7,163 Other bonds and obligations — — 6 3,052 6 3,052 Total securities available for sale 515 90,256 3,303 287,645 3,818 377,901 Securities held to maturity Agency collateralized mortgage obligations — — 115 10,648 115 10,648 Agency mortgage-backed securities — — 57 6,701 57 6,701 Tax advantaged economic development bonds — — 1,263 6,729 1,263 6,729 Total securities held to maturity — — 1,435 24,078 1,435 24,078 Total $ 515 $ 90,256 $ 4,738 $ 311,723 $ 5,253 $ 401,979 December 31, 2018 Securities available for sale Municipal bonds and obligations $ 55 $ 3,186 $ 658 $ 11,787 $ 713 $ 14,973 Agency collateralized mortgage obligations 76 39,114 15,116 755,528 15,192 794,642 Agency mortgage-backed securities 53 5,500 5,068 162,439 5,121 167,939 Agency commercial mortgage-backed securities 44 1,503 3,231 57,422 3,275 58,925 Corporate bonds 1,249 74,434 7 2,561 1,256 76,995 Trust preferred securities 99 7,068 — — 99 7,068 Other bonds and obligations — — 35 3,030 35 3,030 Total securities available for sale 1,576 130,805 24,115 992,767 25,691 1,123,572 Securities held to maturity Municipal bonds and obligations 127 17,596 3,474 103,759 3,601 121,355 Agency collateralized mortgage obligations — — 778 43,138 778 43,138 Agency mortgage-backed securities — — 297 6,922 297 6,922 Agency commercial mortgage-backed securities — — 289 10,128 289 10,128 Tax advantaged economic development bonds 65 8,078 1,633 6,512 1,698 14,590 Total securities held to maturity 192 25,674 6,471 170,459 6,663 196,133 Total $ 1,768 $ 156,479 $ 30,586 $ 1,163,226 $ 32,354 $ 1,319,705 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans: June 30, 2019 December 31, 2018 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ 300,996 $ 58,497 $ 359,493 $ 327,792 $ 25,220 $ 353,012 Other commercial real estate 2,358,502 1,287,352 3,645,854 2,260,919 786,290 3,047,209 Total commercial real estate 2,659,498 1,345,849 4,005,347 2,588,711 811,510 3,400,221 Commercial and industrial loans: 1,471,766 515,531 1,987,297 1,513,538 466,508 1,980,046 Total commercial loans 4,131,264 1,861,380 5,992,644 4,102,249 1,278,018 5,380,267 Residential mortgages: 1-4 family 2,268,445 596,607 2,865,052 2,317,716 238,952 2,556,668 Construction 9,170 8,158 17,328 9,582 174 9,756 Total residential mortgages 2,277,615 604,765 2,882,380 2,327,298 239,126 2,566,424 Consumer loans: Home equity 281,254 122,576 403,830 289,961 86,719 376,680 Auto and other 604,272 58,702 662,974 647,236 72,646 719,882 Total consumer loans 885,526 181,278 1,066,804 937,197 159,365 1,096,562 Total loans $ 7,294,405 $ 2,647,423 $ 9,941,828 $ 7,366,744 $ 1,676,509 $ 9,043,253 |
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) 2019 2018 Balance at beginning of period $ 2,139 $ 10,392 Acquisitions 4,200 — Accretion (2,278 ) (6,881 ) Net reclassifications from (to) nonaccretable difference 1,464 4,517 Payments received, net (105 ) (1,724 ) Balance at end of period $ 5,420 $ 6,304 Six Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of period $ 2,840 $ 11,561 Acquisitions 4,200 — Accretion (3,598 ) (10,313 ) Net reclassifications from (to) nonaccretable difference 2,129 7,049 Payments received, net (160 ) (1,912 ) Reclassification to TDR 9 — Disposals — (81 ) Balance at end of period $ 5,420 $ 6,304 |
Summary of Past Due Loans | The following is a summary of past due loans at June 30, 2019 and December 31, 2018: Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > June 30, 2019 Commercial real estate: Construction $ — $ — $ — $ — $ 300,996 $ 300,996 $ — Other commercial real estate 388 478 17,375 18,241 2,340,261 2,358,502 — Total 388 478 17,375 18,241 2,641,257 2,659,498 — Commercial and industrial loans: Total 2,071 784 9,889 12,744 1,459,022 1,471,766 1,422 Residential mortgages: 1-4 family 867 543 3,504 4,914 2,263,531 2,268,445 1,258 Construction — — — — 9,170 9,170 — Total 867 543 3,504 4,914 2,272,701 2,277,615 1,258 Consumer loans: — Home equity 191 582 979 1,752 279,502 281,254 165 Auto and other 3,498 663 1,802 5,963 598,309 604,272 — Total 3,689 1,245 2,781 7,715 877,811 885,526 165 Total $ 7,015 $ 3,050 $ 33,549 $ 43,614 $ 7,250,791 $ 7,294,405 $ 2,845 Business Activities Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Current Total Loans Past Due > December 31, 2018 Commercial real estate: Construction $ — $ — $ — $ — $ 327,792 $ 327,792 $ — Other commercial real estate 913 276 18,833 20,022 2,240,897 2,260,919 993 Total 913 276 18,833 20,022 2,568,689 2,588,711 993 Commercial and industrial loans: Total 4,694 975 4,636 10,305 1,503,233 1,513,538 4 Residential mortgages: 1-4 family 1,631 1,619 1,440 4,690 2,313,026 2,317,716 66 Construction — — — — 9,582 9,582 — Total 1,631 1,619 1,440 4,690 2,322,608 2,327,298 66 Consumer loans: Home equity 618 15 933 1,566 288,395 289,961 — Auto and other 3,543 615 1,699 5,857 641,379 647,236 — Total 4,161 630 2,632 7,423 929,774 937,197 — Total $ 11,399 $ 3,500 $ 27,541 $ 42,440 $ 7,324,304 $ 7,366,744 $ 1,063 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > June 30, 2019 Commercial real estate: Construction $ — $ — $ — $ — $ 1,411 $ 58,497 $ — Other commercial real estate 998 695 4,432 6,125 28,212 1,287,352 2,441 Total 998 695 4,432 6,125 29,623 1,345,849 2,441 Commercial and industrial loans: Total 1,055 62 1,003 2,120 31,456 515,531 214 Residential mortgages: 1-4 family 970 488 1,408 2,866 12,050 596,607 75 Construction — — — — — 8,158 — Total 970 488 1,408 2,866 12,050 604,765 75 Consumer loans: Home equity 379 — 727 1,106 700 122,576 82 Auto and other 168 41 309 518 263 58,702 — Total 547 41 1,036 1,624 963 181,278 82 Total $ 3,570 $ 1,286 $ 7,879 $ 12,735 $ 74,092 $ 2,647,423 $ 2,812 Acquired Loans (In thousands) 30-59 Days 60-89 Days 90 Total Past Acquired Total Loans Past Due > December 31, 2018 Commercial real estate: — Construction $ — $ — $ — $ — $ — $ 25,220 $ — Other commercial real estate 2,603 1,127 4,183 7,913 11,994 786,290 1,652 Total 2,603 1,127 4,183 7,913 11,994 811,510 1,652 Commercial and industrial loans: Total 217 147 1,515 1,879 29,539 466,508 144 Residential mortgages: 1-4 family 1,382 144 918 2,444 4,888 238,952 75 Construction — — — — — 174 — Total 1,382 144 918 2,444 4,888 239,126 75 Consumer loans: Home equity 290 148 751 1,189 553 86,719 — Auto and other 193 62 547 802 314 72,646 96 Total 483 210 1,298 1,991 867 159,365 96 Total $ 4,685 $ 1,628 $ 7,914 $ 14,227 $ 47,288 $ 1,676,509 $ 1,967 |
Summary of Information Pertaining to Non-Accrual Loans | The following is summary information pertaining to non-accrual loans at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 (In thousands) Business Acquired Total Business Acquired Total Commercial real estate: Construction $ — $ — $ — $ — $ — $ — Other commercial real estate 17,375 1,991 19,366 17,840 2,531 20,371 Total 17,375 1,991 19,366 17,840 2,531 20,371 Commercial and industrial loans: Total 8,467 789 9,256 4,632 1,371 6,003 Residential mortgages: 1-4 family 2,246 1,333 3,579 1,374 843 2,217 Construction — — — — — — Total 2,246 1,333 3,579 1,374 843 2,217 Consumer loans: Home equity 814 645 1,459 933 751 1,684 Auto and other 1,802 309 2,111 1,699 451 2,150 Total 2,616 954 3,570 2,632 1,202 3,834 Total non-accrual loans $ 30,704 $ 5,067 $ 35,771 $ 26,478 $ 5,947 $ 32,425 |
Schedule of Loans Evaluated for Impairment | Loans evaluated for impairment as of June 30, 2019 and December 31, 2018 were as follows: Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2019 Loans receivable: Balance at end of period Individually evaluated for impairment $ 22,035 $ 6,753 $ 2,841 $ 138 $ 31,767 Collectively evaluated for impairment 2,637,463 1,465,013 2,274,774 885,388 7,262,638 Total $ 2,659,498 $ 1,471,766 $ 2,277,615 $ 885,526 $ 7,294,405 Business Activities Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2018 Loans receivable: Balance at end of year Individually evaluated for impairment $ 23,345 $ 2,825 $ 2,089 $ 342 $ 28,601 Collectively evaluated for impairment 2,565,366 1,510,713 2,325,209 936,855 7,338,143 Total $ 2,588,711 $ 1,513,538 $ 2,327,298 $ 937,197 $ 7,366,744 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total June 30, 2019 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 3,709 $ 372 $ 740 $ 349 $ 5,170 Purchased credit-impaired loans 29,623 31,456 12,050 963 74,092 Collectively evaluated for impairment 1,312,517 483,703 591,975 179,966 2,568,161 Total $ 1,345,849 $ 515,531 $ 604,765 $ 181,278 $ 2,647,423 Acquired Loans (In thousands) Commercial Commercial and Residential Consumer Total December 31, 2018 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,980 $ 763 $ 362 $ 646 $ 5,751 Purchased credit-impaired loans 11,994 29,539 4,888 867 47,288 Collectively evaluated for impairment 795,536 436,206 233,876 157,852 1,623,470 Total $ 811,510 $ 466,508 $ 239,126 $ 159,365 $ 1,676,509 |
Summary of Impaired Loans | The following is a summary of impaired loans at June 30, 2019 and December 31, 2018: Business Activities Loans June 30, 2019 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate $ 21,538 $ 33,028 $ — Commercial and industrial loans 5,319 10,807 — Residential mortgages - 1-4 family 1,244 1,407 — Consumer - home equity 35 240 — Consumer - other — — — With an allowance recorded: Other commercial real estate $ 513 $ 525 $ 7 Commercial and industrial loans 1,343 1,349 42 Residential mortgages - 1-4 family 1,613 1,739 78 Consumer - home equity 92 101 7 Consumer - other 11 11 — Total Commercial real estate $ 22,051 $ 33,553 $ 7 Commercial and industrial loans 6,662 12,156 42 Residential mortgages 2,857 3,146 78 Consumer 138 352 7 Total impaired loans $ 31,708 $ 49,207 $ 134 (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, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 22,606 $ 31,038 $ — Commercial and industrial loans 1,584 2,566 — Residential mortgages - 1-4 family 443 441 — Consumer - home equity 230 242 — Consumer - other — — — With an allowance recorded: Other commercial real estate loans $ 666 $ 670 $ 9 Commercial and industrial loans 1,251 1,235 49 Residential mortgages - 1-4 family 1,663 1,779 128 Consumer - home equity 100 106 10 Consumer - other 13 13 1 Total Commercial real estate $ 23,272 $ 31,708 $ 9 Commercial and industrial loans 2,835 3,801 49 Residential mortgages 2,106 2,220 128 Consumer 343 361 11 Total impaired loans $ 28,556 $ 38,090 $ 197 (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, 2019 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 2,664 $ 5,544 $ — Commercial and industrial loans 343 594 — Residential mortgages - 1-4 family 658 656 — Consumer - home equity 243 1,448 — Consumer - other 16 14 — With an allowance recorded: Other commercial real estate loans $ 1,066 $ 1,071 $ 84 Commercial and industrial loans 29 30 — Residential mortgages - 1-4 family 88 113 8 Consumer - home equity 50 50 — Consumer - other 41 39 7 Total x Commercial real estate $ 3,730 $ 6,615 $ 84 Commercial and industrial loans 372 624 — Residential mortgages 746 769 8 Consumer 350 1,551 7 Total impaired loans $ 5,198 $ 9,559 $ 99 (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, 2018 (In thousands) Recorded Investment (1) Unpaid Principal Related Allowance With no related allowance: Other commercial real estate loans $ 3,055 $ 5,959 $ — Other commercial and industrial loans 538 644 — Residential mortgages - 1-4 family 271 324 — Consumer - home equity 399 1,053 — Consumer - other — 11 — With an allowance recorded: Other commercial real estate loans $ 925 $ 947 $ 9 Commercial and industrial loans 228 232 4 Residential mortgages - 1-4 family 94 117 36 Consumer - home equity 205 196 41 Consumer - other 43 40 7 Total Commercial real estate $ 3,980 $ 6,906 $ 9 Commercial and industrial loans 766 876 4 Residential mortgages 365 441 36 Consumer 647 1,300 48 Total impaired loans $ 5,758 $ 9,523 $ 97 (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, 2019 and 2018: Business Activities Loans Six Months Ended Six Months Ended (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Other commercial real estate loans $ 20,877 $ 213 $ 29,092 $ 326 Commercial and industrial loans 1,775 304 4,467 201 Residential mortgages - 1-4 family 574 23 942 26 Consumer - home equity 196 1 1,754 4 Consumer - other — — — — With an allowance recorded: Other commercial real estate loans $ 569 $ 12 $ 1,786 $ 47 Commercial and industrial loans 1,468 64 1,279 83 Residential mortgages - 1-4 family 1,633 37 1,409 32 Consumer - home equity 95 3 45 1 Consumer - other 12 — 16 — Total Commercial real estate $ 21,446 $ 225 $ 30,878 $ 373 Commercial and industrial loans 3,243 368 5,746 284 Residential mortgages 2,207 60 2,351 58 Consumer loans 303 4 1,815 5 Total impaired loans $ 27,199 $ 657 $ 40,790 $ 720 Acquired Loans Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In thousands) Average Cash Basis Average Cash Basis With no related allowance: Other commercial real estate loans $ 2,607 $ 82 $ 2,306 $ 111 Commercial and industrial loans 522 32 349 27 Residential mortgages - 1-4 family 362 12 1,505 6 Consumer - home equity 557 5 760 — Consumer - other 5 — 17 1 With an allowance recorded: Other commercial real estate loans $ 965 $ 33 $ 3,020 $ 89 Commercial and industrial loans 30 1 287 17 Residential mortgages - 1-4 family 90 4 77 2 Consumer - home equity 50 1 320 5 Consumer - other 42 1 — — Total Commercial real estate $ 3,572 $ 115 $ 5,326 $ 200 Commercial and industrial loans 552 33 636 44 Residential mortgages 452 16 1,582 8 Consumer loans 654 7 1,097 6 Total impaired loans $ 5,230 $ 171 $ 8,641 $ 258 |
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, 2019 and June 30, 2018. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the three and six months ended June 30, 2019 and 2018 were attributable to interest rate concessions, principal concessions, maturity date extensions, modified payment terms, reamortization, and accelerated maturity. Three Months Ended June 30, 2019 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial real estate — $ — $ — Commercial and industrial 2 282 279 Total 2 $ 282 $ 279 Six Months Ended June 30, 2019 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial real estate 2 $ 145 $ 145 Commercial and industrial 3 475 472 Total 5 $ 620 $ 617 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 19 Commercial and industrial 4 1,995 1,924 Residential - 1-4 Family 1 118 118 Total 5 $ 2,113 $ 2,042 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. There were no TDRs that defaulted within 12 months of modifications during the three and six months ended June 30, 2019. 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 real estate 1 5,992 Commercial and industrial 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 real estate 1 5,992 Commercial and industrial 1 1,065 |
Schedule of TDR Activity | The following table presents the Company’s TDR activity for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of the period $ 25,185 $ 43,105 Principal payments (375 ) (2,511 ) TDR status change (1) — — Other reductions (2) — (7,088 ) Newly identified TDRs 279 — Balance at end of the period $ 25,089 $ 33,506 Six Months Ended June 30, (In thousands) 2019 2018 Balance at beginning of the period $ 27,415 $ 41,990 Principal payments (1,788 ) (3,150 ) TDR status change (1) — — Other reductions (2) (1,155 ) (7,376 ) Newly identified TDRs 617 2,042 Balance at end of the period $ 25,089 $ 33,506 _________________________________ (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, payoffs, charge-offs, and advances to loans. |
LOAN LOSS ALLOWANCE (Tables)
LOAN LOSS ALLOWANCE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 was as follows: At or for the three months ended June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 22,521 $ 18,247 $ 9,209 $ 6,235 $ 56,212 Charged-off loans 702 1,180 206 857 2,945 Recoveries on charged-off loans 67 119 43 79 308 Provision/(releases) for loan losses 522 1,663 (212 ) (116 ) 1,857 Balance at end of period $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 At or for the six months ended June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 21,732 $ 16,504 $ 10,535 $ 7,368 $ 56,139 Charged-off loans 1,958 2,856 248 1,776 6,838 Recoveries on charged-off loans 275 426 58 133 892 Provision/(releases) for loan losses 2,359 4,775 (1,511 ) (384 ) 5,239 Balance at end of period $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 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, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,910 $ 879 $ 622 $ 415 $ 5,826 Charged-off loans 624 109 31 257 1,021 Recoveries on charged-off loans 24 175 55 55 309 Provision/(releases) for loan losses 1,252 (75 ) 236 197 1,610 Balance at end of period $ 4,562 $ 870 $ 882 $ 410 $ 6,724 At or for the six months ended June 30, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Balance at beginning of period $ 3,153 $ 1,064 $ 630 $ 483 $ 5,330 Charged-off loans 804 371 104 428 1,707 Recoveries on charged-off loans 500 226 60 86 872 Provision/(releases) for loan losses 1,713 (49 ) 296 269 2,229 Balance at end of period $ 4,562 $ 870 $ 882 $ 410 $ 6,724 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 The following tables present a summary of the allowance for loan losses as of June 30, 2019 and December 31, 2018: At June 30, 2019 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 7 42 78 7 134 Collectively evaluated for impairment 22,401 18,807 8,756 5,334 55,298 Total $ 22,408 $ 18,849 $ 8,834 $ 5,341 $ 55,432 At December 31, 2018 Business Activities Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 9 49 128 11 197 Collectively evaluated for impairment 21,723 16,455 10,407 7,357 55,942 Total 21,732 16,504 10,535 7,368 56,139 At June 30, 2019 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 84 — 8 7 99 Collectively evaluated for impairment 4,478 870 874 403 6,625 Total $ 4,562 $ 870 $ 882 $ 410 $ 6,724 At December 31, 2018 Acquired Loans (In thousands) Commercial real estate Commercial and industrial loans Residential mortgages Consumer Total Individually evaluated for impairment 9 4 36 48 97 Collectively evaluated for impairment 3,144 1,060 594 435 5,233 Total 3,153 1,064 630 483 5,330 |
Schedule of Loans by Risk Rating | The following tables present the Company’s loans by risk rating at June 30, 2019 and December 31, 2018: Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Real Estate Total commercial real estate (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 300,996 $ 327,792 $ 2,283,244 $ 2,198,129 $ 2,584,240 $ 2,525,921 Special mention — — 24,154 9,805 24,154 9,805 Substandard — — 51,104 52,985 51,104 52,985 Total $ 300,996 $ 327,792 $ 2,358,502 $ 2,260,919 $ 2,659,498 $ 2,588,711 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2019 December 31, 2018 Grade: Pass $ 1,385,702 $ 1,469,139 Special mention 53,543 14,279 Substandard 31,617 29,176 Doubtful 904 944 Total $ 1,471,766 $ 1,513,538 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 2,264,398 $ 2,314,657 $ 9,170 $ 9,582 $ 2,273,568 $ 2,324,239 Special mention 543 1,619 — — 543 1,619 Substandard 3,504 1,440 — — 3,504 1,440 Total $ 2,268,445 $ 2,317,716 $ 9,170 $ 9,582 $ 2,277,615 $ 2,327,298 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Performing $ 280,440 $ 289,028 $ 602,469 $ 645,537 $ 882,909 $ 934,565 Nonperforming 814 933 1,803 1,699 2,617 2,632 Total $ 281,254 $ 289,961 $ 604,272 $ 647,236 $ 885,526 $ 937,197 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Real Estate Total commercial real estate (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 56,384 $ 24,519 $ 1,231,162 $ 743,684 $ 1,287,546 $ 768,203 Special mention 1,411 — 14,147 9,086 15,558 9,086 Substandard 702 701 42,043 33,520 42,745 34,221 Total $ 58,497 $ 25,220 $ 1,287,352 $ 786,290 $ 1,345,849 $ 811,510 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Total comm. and industrial loans (In thousands) June 30, 2019 December 31, 2018 Grade: Pass $ 483,151 $ 439,602 Special mention 12,893 11,374 Substandard 19,487 15,532 Total $ 515,531 $ 466,508 Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Grade: Pass $ 590,578 $ 235,173 $ 8,158 $ 174 $ 598,736 $ 235,347 Special mention 696 144 — — 696 144 Substandard 5,333 3,635 — — 5,333 3,635 Total $ 596,607 $ 238,952 $ 8,158 $ 174 $ 604,765 $ 239,126 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Performing $ 121,931 $ 85,968 $ 58,393 $ 72,195 $ 180,324 $ 158,163 Nonperforming 645 751 309 451 954 1,202 Total $ 122,576 $ 86,719 $ 58,702 $ 72,646 $ 181,278 $ 159,365 |
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, 2019 and December 31, 2018. 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, 2019 December 31, 2018 (In thousands) Business Acquired Loans Total Business Acquired Loans Total Non-Accrual $ 30,704 $ 5,067 $ 35,771 $ 26,478 $ 5,947 $ 32,425 Substandard Accruing 59,206 63,606 122,812 60,698 48,792 109,490 Total Classified 89,910 68,673 158,583 87,176 54,739 141,915 Special Mention 79,484 29,187 108,671 26,333 20,833 47,166 Total Criticized $ 169,394 $ 97,860 $ 267,254 $ 113,509 $ 75,572 $ 189,081 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 $ 888,791 $ 719,689 Time $100,000 through $250,000 2,221,209 2,060,500 Time more than $250,000 971,398 507,528 Total time deposits $ 4,081,398 $ 3,287,717 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at June 30, 2019 and December 31, 2018 are summarized, as follows: June 30, 2019 December 31, 2018 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ 608,928 2.65 % $ 1,118,832 2.58 % Total short-term borrowings: 608,928 2.65 1,118,832 2.58 Long-term borrowings: Advances from the FHLB and other borrowings 295,886 2.36 309,466 2.17 Subordinated borrowings 74,143 7.00 74,054 7.00 Junior subordinated borrowing - Trust I 15,464 4.37 15,464 4.50 Junior subordinated borrowing - Trust II 7,320 4.11 — — Total long-term borrowings: 392,813 3.34 398,984 3.16 Total $ 1,001,741 2.92 % $ 1,517,816 2.73 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLB advances as of June 30, 2019 is as follows: June 30, 2019 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2019 $ 640,219 2.59 % 2020 195,603 2.51 2021 31,476 2.49 2022 17,770 2.24 2023 and beyond 19,746 2.13 Total FHLB advances $ 904,814 2.55 % |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 9,744 10.4 2.81 % 5.09 % $ (1,583 ) Interest rate swaps on loans with commercial loan customers 1,546,563 6.7 4.47 % 3.89 % 75,114 Reverse interest rate swaps on loans with commercial loan customers 1,546,563 6.7 3.89 % 4.47 % (76,909 ) Risk participation agreements with dealer banks 303,793 7.5 343 Forward sale commitments (1) 544,475 0.2 (1,144 ) Total economic hedges 3,951,138 (4,179 ) Non-hedging derivatives: Commitments to lend (1) 471,456 0.2 9,005 Total non-hedging derivatives 471,456 9,005 Total $ 4,422,594 $ 4,826 (1) Includes the impact of discontinued operations. Information about derivative assets and liabilities at December 31, 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) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 10,090 10.9 2.72 % 5.09 % $ (1,240 ) Interest rate swaps on loans with commercial loan customers 1,346,894 6.7 4.53 % 4.04 % 11,443 Reverse interest rate swaps on loans with commercial loan customers 1,346,894 6.7 4.04 % 4.53 % (11,953 ) Risk participation agreements with dealer banks 243,806 5.7 237 Forward sale commitments (1) 190,807 0.2 (734 ) Total economic hedges 3,138,491 (2,247 ) Non-hedging derivatives: Commitments to lend (1) 165,079 0.2 3,927 Total non-hedging derivatives 165,079 3,927 Total $ 3,303,570 $ 1,680 |
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) 2019 2018 2019 2018 Economic hedges Interest rate swap on industrial revenue bond: Unrealized (loss)/gain recognized in other non-interest income $ (222 ) $ 163 $ (343 ) $ 474 Interest rate swaps on loans with commercial loan customers: Unrealized (loss)/gain recognized in other non-interest income 42,967 (5,270 ) 64,956 (19,939 ) (Unfavorable)/Favorable change in credit valuation adjustment recognized in other non-interest income (1,146 ) 95 (1,283 ) 332 Reverse interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income (42,967 ) 5,270 (64,956 ) 19,939 Risk participation agreements: Unrealized gain recognized in other non-interest income (19 ) 7 106 23 Forward commitments: Unrealized (loss) recognized in discontinued operations 108 (658 ) (410 ) (1,567 ) Realized gain in discontinued operations (4,083 ) 1,077 (5,798 ) 4,999 Non-hedging derivatives Commitments to lend Unrealized gain recognized in discontinued operations $ 2,687 $ 7,285 $ 5,078 $ 13,816 Realized gain in discontinued operations 16,281 2,491 25,713 3,094 |
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, 2018 Interest Rate Swap Agreements: Institutional counterparties $ 9,485 $ (3,592 ) $ 5,893 $ — $ — $ 5,893 Commercial counterparties 21,345 (157 ) 21,188 — — 21,188 Total $ 30,830 $ (3,749 ) $ 27,081 $ — $ — $ 27,081 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, 2019 Interest Rate Swap Agreements: Institutional counterparties $ 543 $ (14 ) $ 529 $ — $ — $ 529 Commercial counterparties 75,883 (33 ) 75,850 — — 75,850 Total $ 76,426 $ (47 ) $ 76,379 $ — $ — $ 76,379 |
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, 2018 Interest Rate Swap Agreements: Institutional counterparties $ (19,949 ) $ 1,101 $ (18,848 ) $ — $ 25,412 $ 6,564 Commercial counterparties (9,932 ) 187 (9,745 ) — — (9,745 ) Total $ (29,881 ) $ 1,288 $ (28,593 ) $ — $ 25,412 $ (3,181 ) 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, 2019 Interest Rate Swap Agreements: Institutional counterparties $ (79,767 ) $ 996 $ (78,771 ) $ 11,992 $ 78,896 $ 12,117 Commercial counterparties (740 ) 5 (735 ) — — (735 ) Total $ (80,507 ) $ 1,001 $ (79,506 ) $ 11,992 $ 78,896 $ 11,382 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheets classification of the Company’s ROU assets and lease liabilities: (In thousands) June 30, 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets (1) Other assets $ 80,591 Finance lease right-of-use assets Premises and equipment, net 7,981 Total Lease Right-of-Use Assets $ 88,572 Lease Liabilities Operating lease liabilities (1) Other liabilities $ 85,045 Finance lease liabilities Other liabilities 11,123 Total Lease Liabilities $ 96,168 (1) Includes assets and liabilities classified as discontinued operations. |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 3,657 $ 7,155 Operating cash flows from finance leases 159 318 Financing cash flows from finance leases 98 196 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) 8,052 87,641 Finance leases — — (1) Includes cash flows related to discontinued operations. |
Schedule of Maturity Analysis of Operating Lease Liability | The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 7,130 $ 508 2020 13,403 1,031 2021 12,157 1,031 2022 10,981 1,031 2023 9,048 1,037 Thereafter 48,570 11,296 Total undiscounted lease payments (1) 101,289 15,934 Less amounts representing interest (1) (16,244 ) (4,811 ) Lease liability (1) $ 85,045 $ 11,123 (1) Includes discontinued operations. |
Schedule of Maturity Analysis of Finance Lease Liability | The following table presents a maturity analysis of the Company’s lease liability by lease classification at June 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 7,130 $ 508 2020 13,403 1,031 2021 12,157 1,031 2022 10,981 1,031 2023 9,048 1,037 Thereafter 48,570 11,296 Total undiscounted lease payments (1) 101,289 15,934 Less amounts representing interest (1) (16,244 ) (4,811 ) Lease liability (1) $ 85,045 $ 11,123 (1) Includes discontinued operations. |
CAPITAL RATIOS AND SHAREHOLDE_2
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 12.9 % N/A 13.0 % N/A Common equity tier 1 capital to risk weighted assets 11.4 N/A 11.4 N/A Tier 1 capital to risk weighted assets 11.6 N/A 11.6 N/A Tier 1 capital to average assets 9.7 N/A 9.0 N/A Bank Total capital to risk weighted assets 12.1 % 8.0 % 12.2 % 8.0 % Common equity tier 1 capital to risk weighted assets 11.5 4.5 11.6 4.5 Tier 1 capital to risk weighted assets 11.5 6.0 11.6 6.0 Tier 1 capital to average assets 9.7 4.0 9.0 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 gain/(loss) on AFS securities $ 18,056 $ (15,267 ) Net unrealized holding (loss) on pension plans (2,753 ) (2,753 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax (expense)/benefit on AFS securities (4,738 ) 3,814 Net unrealized tax benefit on pension plans 736 736 Accumulated other comprehensive income/(loss) $ 11,301 $ (13,470 ) |
Schedule of Components of Other Comprehensive Income | The following table presents the components of other comprehensive income for the three months ended June 30, 2019 and 2018 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30 , 2019 Net unrealized holding gain on AFS securities: x Net unrealized gains arising during the period $ 19,106 $ (4,900 ) $ 14,206 Less: reclassification adjustment for (losses) realized in net income (2 ) 1 (1 ) Net unrealized holding gain on AFS securities 19,108 (4,901 ) 14,207 Other comprehensive income $ 19,108 $ (4,901 ) $ 14,207 Three Months Ended June 30 , 2018 Net unrealized holding (loss) on AFS securities: Net unrealized (losses) arising during the period $ (7,839 ) $ 2,001 $ (5,838 ) Less: reclassification adjustment for losses 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 ) (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2019 Net unrealized holding gain on AFS securities: x Net unrealized gains arising during the period $ 33,327 $ (8,553 ) $ 24,774 Less: reclassification adjustment for gains realized in net income 4 (1 ) 3 Net unrealized holding gain on AFS securities 33,323 (8,552 ) 24,771 Other comprehensive income $ 33,323 $ (8,552 ) $ 24,771 Six Months Ended June 30, 2018 Net unrealized holding (loss) on AFS securities: Net unrealized (losses) arising during the period $ (27,001 ) $ 6,932 $ (20,069 ) Less: reclassification adjustment for losses 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 2018-01 — (896 ) (896 ) Total change to accumulated other comprehensive (loss) (35,381 ) 9,954 (25,427 ) |
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, 2019 and 2018 : (In thousands) Net unrealized holding loss on AFS Securities Net unrealized holding loss on pension plans Total Three Months Ended June 30, 2019 Balance at Beginning of Period $ (889 ) $ (2,017 ) $ (2,906 ) Other comprehensive income before reclassifications 14,206 — 14,206 Less: amounts reclassified from accumulated other comprehensive income (loss) (1 ) — (1 ) Total other comprehensive income 14,207 — 14,207 Balance at End of Period $ 13,318 $ (2,017 ) $ 11,301 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 ) Six Months Ended June 30, 2019 Balance at Beginning of Period $ (11,453 ) $ (2,017 ) $ (13,470 ) Other comprehensive income before reclassifications 24,774 — 24,774 Less: amounts reclassified from accumulated other comprehensive income 3 — 3 Total other comprehensive (loss) 24,771 — 24,771 Balance at End of Period $ 13,318 $ (2,017 ) $ 11,301 Six Months Ended June 30, 2018 Balance at Beginning of Period $ 6,008 $ (1,847 ) $ 4,161 Other comprehensive gain (loss) before reclassifications (20,069 ) — (20,069 ) Less: amounts reclassified from accumulated other comprehensive income 1 — 1 Total other comprehensive (loss) income (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 ) |
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, 2019 and 2018 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (In thousands) 2019 2018 is Presented Realized gains on AFS securities: $ (2 ) $ 1 Non-interest income 1 — Tax expense (1 ) 1 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) 2019 2018 is Presented Realized gains on AFS securities: $ 4 $ 1 Non-interest income (1 ) — Tax expense 3 1 Net of tax Total reclassifications for the period $ 3 $ 1 Net of tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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) 2019 2018 2019 2018 Income from continuing operations $ 23,954 $ 33,711 $ 48,226 $ 59,082 Income from discontinued operations 1,494 320 857 197 Net income $ 25,448 $ 34,031 $ 49,083 $ 59,279 Average number of common shares issued 49,026 46,212 47,627 46,212 Less: average number of treasury shares 754 788 736 828 Less: average number of unvested stock award shares 354 435 384 428 Plus: average participating preferred shares 1,043 1,043 1,043 1,043 Average number of basic shares outstanding 48,961 46,032 47,550 45,999 Plus: dilutive effect of unvested stock award shares 107 152 120 176 Plus: dilutive effect of stock options outstanding 46 31 30 31 Average number of diluted shares outstanding 49,114 46,215 47,700 46,206 Basic earnings per common share: Continuing operations $ 0.49 $ 0.73 $ 1.01 $ 1.29 Discontinued operations 0.03 0.01 0.02 — Total $ 0.52 $ 0.74 $ 1.03 $ 1.29 Diluted earnings per common share: Continuing operations $ 0.49 $ 0.73 $ 1.01 $ 1.28 Discontinued operations 0.03 0.01 0.02 — Total $ 0.52 $ 0.74 $ 1.03 $ 1.28 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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, 2019 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, 2018 371 $ 33.63 31 $ 10.82 Granted 131 27.91 — — Acquired — — 133 23.99 Stock options exercised — — (1 ) 13.70 Stock awards vested (127 ) 31.73 — — Forfeited (51 ) 33.22 — — Expired — — — — June 30, 2019 324 $ 32.76 163 $ 21.15 Exercisable options at June 30, 2019 163 $ 21.15 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
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, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,210 $ 11,210 Securities available for sale: Municipal bonds and obligations — 119,873 — 119,873 Agency collateralized mortgage obligations — 888,962 — 888,962 Agency residential mortgage-backed securities — 182,258 — 182,258 Agency commercial mortgage-backed securities — 60,651 — 60,651 Corporate bonds — 119,743 — 119,743 Trust preferred securities — 8,550 — 8,550 Other bonds and obligations — 30,041 — 30,041 Marketable equity securities 58,521 1,057 — 59,578 Loans held for sale (1) — 191,548 — 191,548 Derivative assets (1) — 76,764 9,005 85,769 Capitalized servicing rights (1) — — 11,206 11,206 Derivative liabilities (1) 1,144 79,731 — 80,875 (1) Includes assets and liabilities classified as discontinued operations. December 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 11,212 $ 11,212 Securities available for sale: Municipal bonds and obligations — 111,207 — 111,207 Agency collateralized mortgage obligations — 930,884 — 930,884 Agency residential mortgage-backed securities — 170,321 — 170,321 Agency commercial mortgage-backed securities — 58,925 — 58,925 Corporate bonds — 111,490 — 111,490 Trust preferred securities — 8,466 — 8,466 Other bonds and obligations — 8,354 — 8,354 Marketable equity securities 56,074 564 — 56,638 Loans held for sale (1) — 96,233 — 96,233 Derivative assets (1) — 31,727 3,927 35,654 Capitalized servicing rights (1) — — 11,485 11,485 Derivative liabilities (1) 734 33,239 — 33,973 (1) Includes assets and liabilities classified as discontinued operations. |
Schedule of Loans Held for Sale | Aggregate Fair Value June 30, 2019 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale - continuing operations $ 8,666 $ 8,533 $ 133 Loans held for sale - discontinued operations 182,882 177,114 5,768 Total loans held for sale $ 191,548 $ 185,647 $ 5,901 Aggregate Fair Value December 31, 2018 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale - continuing operations $ 2,183 $ 2,140 $ 43 Loans held for sale - discontinued operations 94,050 90,879 3,171 Total loans held for sale $ 96,233 $ 93,019 $ 3,214 |
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, 2019 and 2018 . Assets (Liabilities) Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend (1) Commitments (1) Rights (1) Three Months Ended June 30, 2019 March 31, 2019 $ 11,164 $ 6,318 $ — $ 11,351 Unrealized gain/(loss), net recognized in other non-interest income 219 — — — Unrealized gain/(loss), net recognized in discontinued operations — 17,117 — (1,972 ) Paydown of trading security (173 ) — — — Transfers to held for sale loans — (14,430 ) — — Additions to servicing rights — — — 1,827 June 30, 2019 $ 11,210 $ 9,005 $ — $ 11,206 Six Months Ended June 30, 2019 December 31, 2018 $ 11,212 $ 3,927 $ — $ 11,485 Unrealized gain, net recognized in other non-interest income 345 — — — Unrealized gain/(loss), net recognized in discontinued operations — 28,338 — (3,114 ) Paydown of trading security (347 ) — — — Transfers to held for sale loans — (23,260 ) — — Additions to servicing rights — — — 2,835 June 30, 2019 $ 11,210 $ 9,005 $ — $ 11,206 Unrealized gains relating to instruments still held at June 30, 2019 $ 1,466 $ 9,005 $ — — Capitalized Trading Commitments Forward Servicing (In thousands) Security to Lend (1) Commitments (1) Rights (1) Three Months Ended June 30, 2018 March 31, 2018 $ 11,795 $ 6,531 $ — $ 5,705 Unrealized gain/(loss), net recognized in other non-interest income (148 ) — — — Unrealized gain/(loss), net recognized in discontinued operations — 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 gain, net recognized in other non-interest income (465 ) — (19 ) — Unrealized gain/(loss), net recognized in discontinued operations — 25,000 — 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 relating to instruments still held at June 30, 2018 $ 1,056 $ 7,285 $ — — (1) Classified as assets from discontinued operations on the consolidated balance sheets. |
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, 2019 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,210 Discounted Cash Flow Discount Rate 2.28 % Commitments to lend (1) 9,005 Historical Trend Closing Ratio 72.48 % Pricing Model Origination Costs, per loan $ 3,137 Capitalized servicing rights (1) 11,206 Discounted cash flow Constant Prepayment Rate (CPR) 12.74 % Discount Rate 9.99 % Total $ 31,421 (1) Classified as assets from discontinued operations on the consolidated balance sheets. Fair Value Significant Unobservable Input (In thousands) December 31, 2018 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 11,212 Discounted Cash Flow Discount Rate 3.07 % Commitments to lend (1) 3,927 Historical Trend Closing Ratio 82.36 % Pricing Model Origination Costs, per loan $ 3,063 Capitalized servicing rights (1) 11,485 Discounted Cash Flow Constant Prepayment Rate (CPR) 9.30 % Discount Rate 10.00 % Total $ 26,624 (1) Classified as assets from discontinued operations on the consolidated balance sheets. June 30, 2019 December 31, 2018 Fair Value Measurement Date as of June 30, 2019 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Impaired loans $ 4,614 $ 4,892 June 2019 Capitalized servicing rights 14,221 11,891 June 2019 Other real estate owned 154 — June 2019 Total $ 18,989 $ 16,783 |
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, 2019 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 4,614 Fair Value of Collateral Discounted Cash Flow - Loss Severity 25.66% to 0.11% (3.44%) Appraised Value $0.3 to $731 ($316.8) Capitalized servicing rights 14,221 Discounted Cash Flow Constant Prepayment Rate (CPR) 8.40% to 12.73% (11.50%) Discount Rate 10.00% to 12.73% (11.30%) Other Real Estate Owned 154 Fair Value of Collateral Appraised Value $49 to $105 ($87) Total $ 18,989 (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, 2018 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired Loans $ 4,892 Fair Value of Collateral Discounted Cash Flow - loss severity 51.16% to 0.00% (6.75%) Appraised Value $0.3 to $877 ($363) Capitalized servicing rights 11,891 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.74% to 11.29% (9.74%) Discount Rate 10.00% to 14.13% (11.99%) Total $ 16,783 (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 (represents exit price), 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. Certain assets and liabilities in the following disclosures include balances classified as discontinued operations. See Note 3 - Discontinued Operations for more information on assets and liabilities classified as discontinued operations. June 30, 2019 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 229,306 $ 229,306 $ 229,306 $ — $ — Trading security 11,210 11,210 — — 11,210 Marketable equity securities 59,578 59,578 58,521 1,057 — Securities available for sale 1,410,078 1,410,078 — 1,410,078 — Securities held to maturity 364,463 377,056 — 359,084 17,972 FHLB bank stock and restricted securities 59,356 N/A N/A N/A N/A Net loans 9,879,672 10,151,656 — — 10,151,656 Loans held for sale (1) 367,692 370,114 — 191,548 178,566 Accrued interest receivable 41,864 41,864 — 41,864 — Cash surrender value of bank-owned life insurance policies 227,458 227,458 — 227,458 — Derivative assets (1) 85,769 85,769 — 76,764 9,005 Financial Liabilities Total deposits $ 10,565,956 $ 10,576,006 $ — $ 10,576,006 $ — Short-term debt 608,928 608,946 — 608,946 — Long-term Federal Home Loan Bank advances 295,886 297,184 — 297,184 — Subordinated borrowings 96,927 100,924 — 100,924 — Derivative liabilities (1) 80,875 80,875 1,144 79,731 — (1) Includes assets and liabilities classified as discontinued operations. December 31, 2018 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 183,189 $ 183,189 $ 183,189 $ — $ — Trading security 11,212 11,212 — — 11,212 Marketable equity securities 56,638 56,638 56,074 564 — Securities available for sale and other 1,399,647 1,399,647 — 1,399,647 — Securities held to maturity 373,763 371,224 — 353,182 18,042 FHLB bank stock and restricted securities 77,344 N/A N/A N/A N/A Net loans 8,981,784 9,026,442 — — 9,026,442 Loans held for sale (1) 96,233 96,233 — 96,233 — Accrued interest receivable 36,879 36,879 — 36,879 — Derivative assets (1) 35,654 35,654 — 31,727 3,927 Financial Liabilities Total deposits $ 8,982,381 $ 8,970,321 $ — $ 8,970,321 $ — Short-term debt 1,118,832 1,118,820 — 1,118,820 — Long-term Federal Home Loan Bank advances 309,466 308,336 — 308,336 — Subordinated borrowings 89,518 97,376 — 97,376 — Derivative liabilities (1) 33,973 33,973 734 33,239 — (1) Includes assets and liabilities classified as discontinued operations. |
NET INTEREST INCOME AFTER PRO_2
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Net interest income from continuing operations $ 91,595 $ 90,292 $ 177,054 $ 175,049 Provision for loan losses 3,467 6,532 7,468 12,107 Net interest income from continuing operations after provision for loan losses $ 88,128 $ 83,760 $ 169,586 $ 162,942 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease, right-of-use asset | $ 88,572 | |
Lease, liability | $ 96,168 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease, right-of-use asset | $ 79,600 | |
Lease, liability | $ 82,800 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - SI Financial Group, Inc. $ / shares in Units, shares in Thousands | May 17, 2019USD ($)branch$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||
Equity interest issued or issuable, shares converted (in shares) | shares | 11,858 | ||
Equity interest issued or issuable, share exchange ratio | 0.48 | ||
Equity interest issued or issuable, shares issued (in shares) | shares | 5,691 | ||
Company common stock issued to SIFI common shareholders | $ | $ 175,804,000 | ||
Equity interest issued or issuable, basis for determining value, share price (in dollars per share) | $ / shares | $ 30.89 | ||
Fair value of SIFI stock options converted to Berkshire options | $ | $ 907,000 | ||
Direct acquisition and integration costs | $ | $ 11,300,000 | $ 0 | |
Pro forma estimated tax rate | 26.83% | 26.83% | |
Eastern Connecticut | |||
Business Acquisition [Line Items] | |||
Number of branch banking offices | branch | 18 | ||
Rhode Island | |||
Business Acquisition [Line Items] | |||
Number of branch banking offices | branch | 5 | ||
Connecticut | |||
Business Acquisition [Line Items] | |||
Number of branch banking offices | branch | 9 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) | 3 Months Ended |
Jun. 30, 2019 | |
First Choice Loan Services, Inc. | Discontinued Operations, Held-for-sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Timing of disposal, term | 12 months |
ACQUISITIONS - Summary of the A
ACQUISITIONS - Summary of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 17, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||
Goodwill | $ 554,703 | $ 518,325 | |
SI Financial Group, Inc. | |||
Consideration Paid: | |||
Company common stock issued to SIFI common shareholders | $ 175,804 | ||
Fair value of SIFI stock options converted to Berkshire options | 907 | ||
Cash in lieu paid to SIFI shareholders | 14 | ||
Total consideration paid | 176,725 | ||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||
Cash and short-term investments | 110,774 | ||
Investment securities | 143,368 | ||
Loans held for sale | 1,005 | ||
Loans, net | 1,302,739 | ||
Premises and equipment | 16,947 | ||
Core deposit intangibles | 17,980 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 17,236 | ||
Goodwill and other intangibles | 0 | ||
Other assets | 60,307 | ||
Deposits | (1,334,848) | ||
Borrowings | (153,009) | ||
Other liabilities | (42,153) | ||
Total identifiable net assets | 140,346 | ||
Goodwill | 36,379 | ||
Fair Value Adjustments | |||
Cash and short-term investments | 0 | ||
Investment securities | (1,261) | ||
Loans held for sale | 0 | ||
Loans, net | (29,388) | ||
Premises and equipment | (2,092) | ||
Core deposit intangibles | 17,980 | ||
Deferred tax assets, net | 10,607 | ||
Goodwill and other intangibles | (16,063) | ||
Other assets | (341) | ||
Deposits | (7,733) | ||
Borrowings | 1,717 | ||
Other liabilities | (8,166) | ||
Total identifiable net assets | (34,740) | ||
Fair value adjustments, write-off in allowance for loan and lease losses | 15,600 | ||
Acquired credit impaired loans | 55,754 | ||
Impaired loans, fair value | 32,100 | ||
Fair value adjustments, impaired loans | 4,200 | ||
Financing receivable not considered impaired at time of acquisition | 1,290,000 | ||
Financing receivable not considered impaired at time of acquisition, fair value | $ 1,270,000 | ||
Fair value adjustments, financing receivable not considered impaired at time of acquisition | 6,700 | ||
Fair value adjustments, land | 1,100 | ||
Fair value adjustments, furniture, fixtures, and equipment | 1,000 | ||
Acquired finite-lived intangible assets, estimated useful life | 10 years | ||
Acquired deposits, estimated useful life | 11 months | ||
Fair value adjustments, borrowings | 800 | ||
Fair value adjustments, SI Capital Trust II | 900 | ||
Fair value adjustments, post-retirement liabilities | 7,600 | ||
Fair value adjustments, bank-owned life insurance liabilities | 800 | ||
Fair value adjustments, unfunded commitment reserve | $ 400 | ||
As Acquired | SI Financial Group, Inc. | |||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value: | |||
Cash and short-term investments | $ 110,774 | ||
Investment securities | 144,629 | ||
Loans held for sale | 1,005 | ||
Loans, net | 1,332,127 | ||
Premises and equipment | 19,039 | ||
Core deposit intangibles | 0 | ||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 6,629 | ||
Goodwill and other intangibles | 16,063 | ||
Other assets | 60,648 | ||
Deposits | (1,327,115) | ||
Borrowings | (154,726) | ||
Other liabilities | (33,987) | ||
Total identifiable net assets | $ 175,086 |
DISCONTINUED OPERATIONS - Asset
DISCONTINUED OPERATIONS - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Total assets | $ 212,745 | $ 114,259 |
Liabilities | ||
Total liabilities | 26,256 | 9,597 |
First Choice Loan Services, Inc. | Discontinued Operations, Held-for-sale | ||
Assets | ||
Loans held for sale, at fair value | 182,882 | 94,050 |
Premises and equipment, net | 1,710 | 1,867 |
Other assets | 28,153 | 18,342 |
Total assets | 212,745 | 114,259 |
Liabilities | ||
Other liabilities | 26,256 | 9,597 |
Total liabilities | $ 26,256 | $ 9,597 |
ACQUISITIONS - Provisional Info
ACQUISITIONS - Provisional Information about the Savings Institute Acquired Loan Portfolio (Details) - USD ($) $ in Thousands | May 17, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||
Interest component of expected cash flows (accretable discount) | $ (2,278) | $ (6,881) | $ (3,598) | $ (10,313) | |
SI Financial Group, Inc. | |||||
Business Acquisition [Line Items] | |||||
Gross contractual receivable amounts at acquisition | $ 55,754 | ||||
Contractual cash flows not expected to be collected (nonaccretable discount) | (19,427) | ||||
Expected cash flows at acquisition | 36,327 | ||||
Interest component of expected cash flows (accretable discount) | (4,200) | ||||
Fair value of acquired loans | $ 32,127 |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results of Discontinued Operation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations before income taxes | $ 2,082 | $ 426 | $ 1,228 | $ 264 |
Income tax expense | 588 | 106 | 371 | 67 |
Net income from discontinued operations | 1,494 | 320 | 857 | 197 |
First Choice Loan Services, Inc. | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest income | 1,818 | 1,395 | 2,862 | 2,489 |
Interest expense | 1,062 | 566 | 1,646 | 947 |
Net interest income | 756 | 829 | 1,216 | 1,542 |
Non-interest income | 13,246 | 10,407 | 22,059 | 21,035 |
Total net revenue | 14,002 | 11,236 | 23,275 | 22,577 |
Non-interest expense | 11,920 | 10,810 | 22,047 | 22,313 |
Income from discontinued operations before income taxes | 2,082 | 426 | 1,228 | 264 |
Income tax expense | 588 | 106 | 371 | 67 |
Net income from discontinued operations | $ 1,494 | $ 320 | $ 857 | $ 197 |
ACQUISITIONS - Pro Forma Inform
ACQUISITIONS - Pro Forma Information (Details) - SI Financial Group, Inc. - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 195,624 | $ 202,709 |
Non-interest income | 43,732 | 44,228 |
Income available to common shareholders | $ 60,357 | $ 67,666 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 9,700 | $ 10,100 |
Trading security, at fair value | $ 11,210 | $ 11,212 |
SECURITIES AVAILABLE FOR SALE_3
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, 2019 | Dec. 31, 2018 | |
Securities available for sale | ||
Amortized Cost | $ 1,397,722 | $ 1,421,273 |
Gross Unrealized Gains | 16,174 | 4,065 |
Gross Unrealized Losses | (3,818) | (25,691) |
Fair Value | 1,410,078 | 1,399,647 |
Securities held to maturity | ||
Amortized Cost | 364,463 | 373,763 |
Gross Unrealized Gains | 14,028 | 4,124 |
Gross Unrealized Losses | (1,435) | (6,663) |
Fair Value | 377,056 | 371,224 |
Marketable equity securities, amortized cost | 55,831 | 55,471 |
Marketable equity securities, gross unrealized gains | 4,820 | 4,370 |
Marketable equity securities, gross unrealized losses | (1,073) | (3,203) |
Marketable equity securities, fair value | 59,578 | 56,638 |
Total, amortized cost basis | 1,818,016 | 1,850,507 |
Total, gross unrealized gain | 35,022 | 12,559 |
Total, gross unrealized loss | (6,326) | (35,557) |
Total, fair value | 1,846,712 | 1,827,509 |
Municipal bonds and obligations | ||
Securities available for sale | ||
Amortized Cost | 114,401 | 109,648 |
Gross Unrealized Gains | 5,477 | 2,272 |
Gross Unrealized Losses | (5) | (713) |
Fair Value | 119,873 | 111,207 |
Securities held to maturity | ||
Amortized Cost | 257,232 | 264,524 |
Gross Unrealized Gains | 10,835 | 3,569 |
Gross Unrealized Losses | 0 | (3,601) |
Fair Value | 268,067 | 264,492 |
Agency collateralized mortgage obligations | ||
Securities available for sale | ||
Amortized Cost | 882,124 | 944,946 |
Gross Unrealized Gains | 7,419 | 1,130 |
Gross Unrealized Losses | (581) | (15,192) |
Fair Value | 888,962 | 930,884 |
Securities held to maturity | ||
Amortized Cost | 70,726 | 71,637 |
Gross Unrealized Gains | 2,975 | 533 |
Gross Unrealized Losses | (115) | (778) |
Fair Value | 73,586 | 71,392 |
Agency mortgage-backed securities | ||
Securities available for sale | ||
Amortized Cost | 182,598 | 175,406 |
Gross Unrealized Gains | 739 | 36 |
Gross Unrealized Losses | (1,079) | (5,121) |
Fair Value | 182,258 | 170,321 |
Securities held to maturity | ||
Amortized Cost | 6,758 | 7,219 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (57) | (297) |
Fair Value | 6,701 | 6,922 |
Agency commercial mortgage-backed securities | ||
Securities available for sale | ||
Amortized Cost | 61,275 | 62,200 |
Gross Unrealized Gains | 465 | 0 |
Gross Unrealized Losses | (1,089) | (3,275) |
Fair Value | 60,651 | 58,925 |
Securities held to maturity | ||
Amortized Cost | 10,385 | 10,417 |
Gross Unrealized Gains | 46 | 0 |
Gross Unrealized Losses | 0 | (289) |
Fair Value | 10,431 | 10,128 |
Corporate bonds | ||
Securities available for sale | ||
Amortized Cost | 119,917 | 112,404 |
Gross Unrealized Gains | 880 | 342 |
Gross Unrealized Losses | (1,054) | (1,256) |
Fair Value | 119,743 | 111,490 |
Trust preferred securities | ||
Securities available for sale | ||
Amortized Cost | 8,323 | 8,314 |
Gross Unrealized Gains | 231 | 251 |
Gross Unrealized Losses | (4) | (99) |
Fair Value | 8,550 | 8,466 |
Other bonds and obligations | ||
Securities available for sale | ||
Amortized Cost | 29,084 | 8,355 |
Gross Unrealized Gains | 963 | 34 |
Gross Unrealized Losses | (6) | (35) |
Fair Value | 30,041 | 8,354 |
Securities held to maturity | ||
Amortized Cost | 299 | 248 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 299 | 248 |
Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Amortized Cost | 19,063 | 19,718 |
Gross Unrealized Gains | 172 | 22 |
Gross Unrealized Losses | (1,263) | (1,698) |
Fair Value | $ 17,972 | $ 18,042 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 15,204 | |
Over 1 year to 5 years | 31,179 | |
Over 5 years to 10 years | 71,721 | |
Over 10 years | 153,621 | |
Total bonds and obligations | 271,725 | |
Mortgage-backed securities | 1,125,997 | |
Amortized Cost | 1,397,722 | $ 1,421,273 |
Available for sale, Fair Value | ||
Within 1 year | 15,245 | |
Over 1 year to 5 years | 31,213 | |
Over 5 years to 10 years | 72,831 | |
Over 10 years | 158,918 | |
Total bonds and obligations | 278,207 | |
Mortgage-backed securities | 1,131,871 | |
Fair Value | 1,410,078 | 1,399,647 |
Held to maturity, Amortized Cost | ||
Within 1 year | 2,875 | |
Over 1 year to 5 years | 14,729 | |
Over 5 years to 10 years | 15,086 | |
Over 10 years | 243,904 | |
Total bonds and obligations | 276,594 | |
Mortgage-backed securities | 87,869 | |
Amortized Cost | 364,463 | 373,763 |
Held to maturity, Fair Value | ||
Within 1 year | 2,875 | |
Over 1 year to 5 years | 14,844 | |
Over 5 years to 10 years | 15,180 | |
Over 10 years | 253,439 | |
Total bonds and obligations | 286,338 | |
Mortgage-backed securities | 90,718 | |
Fair Value | $ 377,056 | $ 371,224 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)security | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | |
Investment Holdings [Line Items] | |||
Purchases of securities available for sale | $ | $ 15,180 | $ 165,312 | |
Proceeds from sale of available-for-sale securities | $ | $ 80,400 | 82,978 | $ 0 |
Debt securities, available-for-sale, realized gain | $ | 5 | 11 | |
Debt securities, available-for-sale, realized loss | $ | $ 7 | $ 7 | |
Municipal bonds and obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 2 | 2 | |
Available for sale securities portfolio, number of securities | 246 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 0.40% | ||
Agency collateralized mortgage obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 59 | 59 | |
Available for sale securities portfolio, number of securities | 253 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 0.40% | ||
Held-to-maturity, securities in unrealized loss positions | 1 | 1 | |
Held-to-maturity securities portfolio, number of securities | 9 | 9 | |
Held to maturity securities, continuous unrealized loss position, aggregate losses | 0.80% | ||
Mortgage-backed securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 45 | 45 | |
Available for sale securities portfolio, number of securities | 97 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 1.40% | ||
Held-to-maturity, securities in unrealized loss positions | 1 | 1 | |
Held-to-maturity securities portfolio, number of securities | 2 | 2 | |
Held to maturity securities, continuous unrealized loss position, aggregate losses | 0.80% | ||
Corporate bonds | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 11 | 11 | |
Available for sale securities portfolio, number of securities | 23 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 1.50% | ||
Trust preferred securities | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 1 | 1 | |
Available for sale securities portfolio, number of securities | 2 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 0.10% | ||
Other bonds and obligations | |||
Investment Holdings [Line Items] | |||
Available-for-sale, securities in unrealized loss positions | 6 | 6 | |
Available for sale securities portfolio, number of securities | 10 | ||
Available for sale securities, continuous unrealized loss position, aggregate losses | 0.20% | ||
Tax advantaged economic development bonds | |||
Investment Holdings [Line Items] | |||
Held-to-maturity, securities in unrealized loss positions | 1 | 1 | |
Held-to-maturity securities portfolio, number of securities | 5 | 5 | |
Held to maturity securities, continuous unrealized loss position, aggregate losses | 15.80% |
SECURITIES AVAILABLE FOR SALE_6
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | $ 515 | $ 1,576 |
Available for sale securities, over twelve months, gross unrealized losses | 3,303 | 24,115 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 3,818 | 25,691 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 90,256 | 130,805 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 287,645 | 992,767 |
Available for sale securities, continuous unrealized loss position, fair value | 377,901 | 1,123,572 |
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 | 192 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 1,435 | 6,471 |
Held to maturity securities, accumulated unrecognized holding loss | 1,435 | 6,663 |
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 | 25,674 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 24,078 | 170,459 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 24,078 | 196,133 |
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 | 515 | 1,768 |
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value | 90,256 | 156,479 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses | 4,738 | 30,586 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value | 311,723 | 1,163,226 |
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses | 5,253 | 32,354 |
Held to maturity and available for sale securities continuous unrealized loss position, fair value | 401,979 | 1,319,705 |
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 | 0 | 55 |
Available for sale securities, over twelve months, gross unrealized losses | 5 | 658 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 5 | 713 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 3,186 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 1,319 | 11,787 |
Available for sale securities, continuous unrealized loss position, fair value | 1,319 | 14,973 |
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 | 127 | |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 3,474 | |
Held to maturity securities, accumulated unrecognized holding loss | 3,601 | |
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 | 17,596 | |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 103,759 | |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 121,355 | |
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 | 72 | 76 |
Available for sale securities, over twelve months, gross unrealized losses | 509 | 15,116 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 581 | 15,192 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 43,755 | 39,114 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 103,929 | 755,528 |
Available for sale securities, continuous unrealized loss position, fair value | 147,684 | 794,642 |
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 | 115 | 778 |
Held to maturity securities, accumulated unrecognized holding loss | 115 | 778 |
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 | 10,648 | 43,138 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 10,648 | 43,138 |
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 | 5 | 53 |
Available for sale securities, over twelve months, gross unrealized losses | 1,074 | 5,068 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,079 | 5,121 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 2,191 | 5,500 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 93,990 | 162,439 |
Available for sale securities, continuous unrealized loss position, fair value | 96,181 | 167,939 |
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 | 57 | 297 |
Held to maturity securities, accumulated unrecognized holding loss | 57 | 297 |
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 | 6,701 | 6,922 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 6,701 | 6,922 |
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 | 0 | 44 |
Available for sale securities, over twelve months, gross unrealized losses | 1,089 | 3,231 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,089 | 3,275 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 1,503 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 55,319 | 57,422 |
Available for sale securities, continuous unrealized loss position, fair value | 55,319 | 58,925 |
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 | |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 289 | |
Held to maturity securities, accumulated unrecognized holding loss | 289 | |
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 | |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 10,128 | |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 10,128 | |
Corporate bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 434 | 1,249 |
Available for sale securities, over twelve months, gross unrealized losses | 620 | 7 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,054 | 1,256 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 37,147 | 74,434 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 30,036 | 2,561 |
Available for sale securities, continuous unrealized loss position, fair value | 67,183 | 76,995 |
Trust preferred securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 4 | 99 |
Available for sale securities, over twelve months, gross unrealized losses | 0 | 0 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 4 | 99 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 7,163 | 7,068 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 0 |
Available for sale securities, continuous unrealized loss position, fair value | 7,163 | 7,068 |
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 | 0 | 0 |
Available for sale securities, over twelve months, gross unrealized losses | 6 | 35 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 6 | 35 |
Debt Securities, Available-for-sale, Unrealized Loss Position [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 0 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 3,052 | 3,030 |
Available for sale securities, continuous unrealized loss position, fair value | 3,052 | 3,030 |
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 | 0 | 65 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 1,263 | 1,633 |
Held to maturity securities, accumulated unrecognized holding loss | 1,263 | 1,698 |
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 | 8,078 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 6,729 | 6,512 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | $ 6,729 | $ 14,590 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reclass of aircraft loan portfolio to held-for-sale | $ 176,144 | $ 0 | |
Total loans | $ 9,941,828 | $ 9,043,253 | |
Borrower's sustained repayment performance period | 6 months | ||
Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 2,882,380 | 2,566,424 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,647,423 | 1,676,509 | |
Acquired credit impaired loans | 74,092 | 47,288 | |
Certain loans acquired in transfer not accounted for as debt securities, note balance, net | 169,900 | 124,000 | |
Financing receivable not considered impaired at time of acquisition | 2,600,000 | 1,600,000 | |
Acquired Loans | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 604,765 | 239,126 | |
Acquired credit impaired loans | 12,050 | 4,888 | |
Real Estate | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Process of foreclosure | 154 | ||
Mortgages | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Process of foreclosure | $ 5,400 | $ 3,200 |
LOANS - Summary of Total Loans
LOANS - Summary of Total Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 9,941,828 | $ 9,043,253 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 7,294,405 | 7,366,744 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,647,423 | 1,676,509 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 5,992,644 | 5,380,267 |
Commercial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 4,131,264 | 4,102,249 |
Commercial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,861,380 | 1,278,018 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 4,005,347 | 3,400,221 |
Commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,659,498 | 2,588,711 |
Commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,345,849 | 811,510 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 359,493 | 353,012 |
Commercial real estate | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 300,996 | 327,792 |
Commercial real estate | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 58,497 | 25,220 |
Commercial real estate | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 3,645,854 | 3,047,209 |
Commercial real estate | Other commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,358,502 | 2,260,919 |
Commercial real estate | Other commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,287,352 | 786,290 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,987,297 | 1,980,046 |
Commercial and industrial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,471,766 | 1,513,538 |
Commercial and industrial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 515,531 | 466,508 |
Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,882,380 | 2,566,424 |
Residential mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,277,615 | 2,327,298 |
Residential mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 604,765 | 239,126 |
Residential mortgages | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 17,328 | 9,756 |
Residential mortgages | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 9,170 | 9,582 |
Residential mortgages | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 8,158 | 174 |
Residential mortgages | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,865,052 | 2,556,668 |
Residential mortgages | 1-4 family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,268,445 | 2,317,716 |
Residential mortgages | 1-4 family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 596,607 | 238,952 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,066,804 | 1,096,562 |
Consumer | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 885,526 | 937,197 |
Consumer | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 181,278 | 159,365 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 403,830 | 376,680 |
Consumer | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 281,254 | 289,961 |
Consumer | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 122,576 | 86,719 |
Consumer | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 662,974 | 719,882 |
Consumer | Auto and other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 604,272 | 647,236 |
Consumer | Auto and other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 58,702 | $ 72,646 |
LOANS - Accretable Yield Activi
LOANS - Accretable Yield Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 2,139 | $ 10,392 | $ 2,840 | $ 11,561 |
Acquisitions | 4,200 | 0 | 4,200 | 0 |
Interest component of expected cash flows (accretable discount) | (2,278) | (6,881) | (3,598) | (10,313) |
Net reclassifications from (to) nonaccretable difference | 1,464 | 4,517 | 2,129 | 7,049 |
Payments received, net | (105) | (1,724) | (160) | (1,912) |
Reclassification to TDR | 9 | 0 | ||
Disposals | 0 | (81) | ||
Balance at end of period | $ 5,420 | $ 6,304 | $ 5,420 | $ 6,304 |
LOANS - Summary of Past Due Loa
LOANS - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 9,941,828 | $ 9,043,253 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 4,005,347 | 3,400,221 |
Commercial real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 359,493 | 353,012 |
Commercial real estate | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,645,854 | 3,047,209 |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,987,297 | 1,980,046 |
Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,882,380 | 2,566,424 |
Residential mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 17,328 | 9,756 |
Residential mortgages | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,865,052 | 2,556,668 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,066,804 | 1,096,562 |
Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 403,830 | 376,680 |
Consumer | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 662,974 | 719,882 |
Business Activities Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 43,614 | 42,440 |
Current | 7,250,791 | 7,324,304 |
Total loans | 7,294,405 | 7,366,744 |
Past Due 90 days and Accruing | 2,845 | 1,063 |
Business Activities Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,015 | 11,399 |
Business Activities Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,050 | 3,500 |
Business Activities Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 33,549 | 27,541 |
Business Activities Loans | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 18,241 | 20,022 |
Current | 2,641,257 | 2,568,689 |
Total loans | 2,659,498 | 2,588,711 |
Past Due 90 days and Accruing | 0 | 993 |
Business Activities Loans | Commercial real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 300,996 | 327,792 |
Total loans | 300,996 | 327,792 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial real estate | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 18,241 | 20,022 |
Current | 2,340,261 | 2,240,897 |
Total loans | 2,358,502 | 2,260,919 |
Past Due 90 days and Accruing | 0 | 993 |
Business Activities Loans | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 388 | 913 |
Business Activities Loans | Commercial real estate | 30-59 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 388 | 913 |
Business Activities Loans | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 478 | 276 |
Business Activities Loans | Commercial real estate | 60-89 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 478 | 276 |
Business Activities Loans | Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 17,375 | 18,833 |
Business Activities Loans | Commercial real estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 17,375 | 18,833 |
Business Activities Loans | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,744 | 10,305 |
Current | 1,459,022 | 1,503,233 |
Total loans | 1,471,766 | 1,513,538 |
Past Due 90 days and Accruing | 1,422 | 4 |
Business Activities Loans | Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,071 | 4,694 |
Business Activities Loans | Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 784 | 975 |
Business Activities Loans | Commercial and industrial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,889 | 4,636 |
Business Activities Loans | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,914 | 4,690 |
Current | 2,272,701 | 2,322,608 |
Total loans | 2,277,615 | 2,327,298 |
Past Due 90 days and Accruing | 1,258 | 66 |
Business Activities Loans | Residential mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 9,170 | 9,582 |
Total loans | 9,170 | 9,582 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential mortgages | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,914 | 4,690 |
Current | 2,263,531 | 2,313,026 |
Total loans | 2,268,445 | 2,317,716 |
Past Due 90 days and Accruing | 1,258 | 66 |
Business Activities Loans | Residential mortgages | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 867 | 1,631 |
Business Activities Loans | Residential mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential mortgages | 30-59 Days Past Due | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 867 | 1,631 |
Business Activities Loans | Residential mortgages | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 543 | 1,619 |
Business Activities Loans | Residential mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Residential mortgages | 60-89 Days Past Due | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 543 | 1,619 |
Business Activities Loans | Residential mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,504 | 1,440 |
Business Activities Loans | Residential mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, 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, Past Due [Line Items] | ||
Total Past Due | 3,504 | 1,440 |
Business Activities Loans | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,715 | 7,423 |
Current | 877,811 | 929,774 |
Total loans | 885,526 | 937,197 |
Past Due 90 days and Accruing | 165 | 0 |
Business Activities Loans | Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,752 | 1,566 |
Current | 279,502 | 288,395 |
Total loans | 281,254 | 289,961 |
Past Due 90 days and Accruing | 165 | 0 |
Business Activities Loans | Consumer | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,963 | 5,857 |
Current | 598,309 | 641,379 |
Total loans | 604,272 | 647,236 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,689 | 4,161 |
Business Activities Loans | Consumer | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 191 | 618 |
Business Activities Loans | Consumer | 30-59 Days Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,498 | 3,543 |
Business Activities Loans | Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,245 | 630 |
Business Activities Loans | Consumer | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 582 | 15 |
Business Activities Loans | Consumer | 60-89 Days Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 663 | 615 |
Business Activities Loans | Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,781 | 2,632 |
Business Activities Loans | Consumer | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 979 | 933 |
Business Activities Loans | Consumer | 90 Days or Greater Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,802 | 1,699 |
Acquired Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,735 | 14,227 |
Acquired Credit Impaired | 74,092 | 47,288 |
Total loans | 2,647,423 | 1,676,509 |
Past Due 90 days and Accruing | 2,812 | 1,967 |
Acquired Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,570 | 4,685 |
Acquired Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,286 | 1,628 |
Acquired Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,879 | 7,914 |
Acquired Loans | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,125 | 7,913 |
Acquired Credit Impaired | 29,623 | 11,994 |
Total loans | 1,345,849 | 811,510 |
Past Due 90 days and Accruing | 2,441 | 1,652 |
Acquired Loans | Commercial real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 1,411 | 0 |
Total loans | 58,497 | 25,220 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,125 | 7,913 |
Acquired Credit Impaired | 28,212 | 11,994 |
Total loans | 1,287,352 | 786,290 |
Past Due 90 days and Accruing | 2,441 | 1,652 |
Acquired Loans | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 998 | 2,603 |
Acquired Loans | Commercial real estate | 30-59 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate | 30-59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 998 | 2,603 |
Acquired Loans | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 695 | 1,127 |
Acquired Loans | Commercial real estate | 60-89 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate | 60-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 695 | 1,127 |
Acquired Loans | Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,432 | 4,183 |
Acquired Loans | Commercial real estate | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate | 90 Days or Greater Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,432 | 4,183 |
Acquired Loans | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,120 | 1,879 |
Acquired Credit Impaired | 31,456 | 29,539 |
Total loans | 515,531 | 466,508 |
Past Due 90 days and Accruing | 214 | 144 |
Acquired Loans | Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,055 | 217 |
Acquired Loans | Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 62 | 147 |
Acquired Loans | Commercial and industrial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,003 | 1,515 |
Acquired Loans | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,866 | 2,444 |
Acquired Credit Impaired | 12,050 | 4,888 |
Total loans | 604,765 | 239,126 |
Past Due 90 days and Accruing | 75 | 75 |
Acquired Loans | Residential mortgages | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total loans | 8,158 | 174 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential mortgages | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,866 | 2,444 |
Acquired Credit Impaired | 12,050 | 4,888 |
Total loans | 596,607 | 238,952 |
Past Due 90 days and Accruing | 75 | 75 |
Acquired Loans | Residential mortgages | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 970 | 1,382 |
Acquired Loans | Residential mortgages | 30-59 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential mortgages | 30-59 Days Past Due | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 970 | 1,382 |
Acquired Loans | Residential mortgages | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 488 | 144 |
Acquired Loans | Residential mortgages | 60-89 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential mortgages | 60-89 Days Past Due | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 488 | 144 |
Acquired Loans | Residential mortgages | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,408 | 918 |
Acquired Loans | Residential mortgages | 90 Days or Greater Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Residential mortgages | 90 Days or Greater Past Due | 1-4 family | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,408 | 918 |
Acquired Loans | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,624 | 1,991 |
Acquired Credit Impaired | 963 | 867 |
Total loans | 181,278 | 159,365 |
Past Due 90 days and Accruing | 82 | 96 |
Acquired Loans | Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,106 | 1,189 |
Acquired Credit Impaired | 700 | 553 |
Total loans | 122,576 | 86,719 |
Past Due 90 days and Accruing | 82 | 0 |
Acquired Loans | Consumer | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 518 | 802 |
Acquired Credit Impaired | 263 | 314 |
Total loans | 58,702 | 72,646 |
Past Due 90 days and Accruing | 0 | 96 |
Acquired Loans | Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 547 | 483 |
Acquired Loans | Consumer | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 379 | 290 |
Acquired Loans | Consumer | 30-59 Days Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 168 | 193 |
Acquired Loans | Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 41 | 210 |
Acquired Loans | Consumer | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 148 |
Acquired Loans | Consumer | 60-89 Days Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 41 | 62 |
Acquired Loans | Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,036 | 1,298 |
Acquired Loans | Consumer | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 727 | 751 |
Acquired Loans | Consumer | 90 Days or Greater Past Due | Auto and other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 309 | $ 547 |
LOANS - Summary Information Per
LOANS - Summary Information Pertaining to Non-accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Non-accrual loans | ||
Non-accrual loans | $ 35,771 | $ 32,425 |
Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 30,704 | 26,478 |
Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,067 | 5,947 |
Commercial real estate | ||
Non-accrual loans | ||
Non-accrual loans | 19,366 | 20,371 |
Commercial real estate | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 17,375 | 17,840 |
Commercial real estate | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,991 | 2,531 |
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 | Other | ||
Non-accrual loans | ||
Non-accrual loans | 19,366 | 20,371 |
Commercial real estate | Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 17,375 | 17,840 |
Commercial real estate | Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,991 | 2,531 |
Commercial and industrial loans | ||
Non-accrual loans | ||
Non-accrual loans | 9,256 | 6,003 |
Commercial and industrial loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 8,467 | 4,632 |
Commercial and industrial loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 789 | 1,371 |
Residential mortgages | ||
Non-accrual loans | ||
Non-accrual loans | 3,579 | 2,217 |
Residential mortgages | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,246 | 1,374 |
Residential mortgages | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,333 | 843 |
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 | 3,579 | 2,217 |
Residential mortgages | 1-4 family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,246 | 1,374 |
Residential mortgages | 1-4 family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,333 | 843 |
Consumer | ||
Non-accrual loans | ||
Non-accrual loans | 3,570 | 3,834 |
Consumer | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,616 | 2,632 |
Consumer | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 954 | 1,202 |
Consumer | Home equity | ||
Non-accrual loans | ||
Non-accrual loans | 1,459 | 1,684 |
Consumer | Home equity | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 814 | 933 |
Consumer | Home equity | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 645 | 751 |
Consumer | Auto and other | ||
Non-accrual loans | ||
Non-accrual loans | 2,111 | 2,150 |
Consumer | Auto and other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,802 | 1,699 |
Consumer | Auto and other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | $ 309 | $ 451 |
LOANS - Loans Evaluated for Imp
LOANS - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans receivable: balance at end of period | ||
Total loans | $ 9,941,828 | $ 9,043,253 |
Commercial real estate | ||
Loans receivable: balance at end of period | ||
Total loans | 4,005,347 | 3,400,221 |
Commercial and industrial loans | ||
Loans receivable: balance at end of period | ||
Total loans | 1,987,297 | 1,980,046 |
Residential mortgages | ||
Loans receivable: balance at end of period | ||
Total loans | 2,882,380 | 2,566,424 |
Consumer | ||
Loans receivable: balance at end of period | ||
Total loans | 1,066,804 | 1,096,562 |
Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 31,767 | 28,601 |
Collectively evaluated for impairment | 7,262,638 | 7,338,143 |
Total loans | 7,294,405 | 7,366,744 |
Business Activities Loans | Commercial real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 22,035 | 23,345 |
Collectively evaluated for impairment | 2,637,463 | 2,565,366 |
Total loans | 2,659,498 | 2,588,711 |
Business Activities Loans | Commercial and industrial loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 6,753 | 2,825 |
Collectively evaluated for impairment | 1,465,013 | 1,510,713 |
Total loans | 1,471,766 | 1,513,538 |
Business Activities Loans | Residential mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 2,841 | 2,089 |
Collectively evaluated for impairment | 2,274,774 | 2,325,209 |
Total loans | 2,277,615 | 2,327,298 |
Business Activities Loans | Consumer | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 138 | 342 |
Collectively evaluated for impairment | 885,388 | 936,855 |
Total loans | 885,526 | 937,197 |
Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 5,170 | 5,751 |
Purchased credit-impaired loans | 74,092 | 47,288 |
Collectively evaluated for impairment | 2,568,161 | 1,623,470 |
Total loans | 2,647,423 | 1,676,509 |
Acquired Loans | Commercial real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 3,709 | 3,980 |
Purchased credit-impaired loans | 29,623 | 11,994 |
Collectively evaluated for impairment | 1,312,517 | 795,536 |
Total loans | 1,345,849 | 811,510 |
Acquired Loans | Commercial and industrial loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 372 | 763 |
Purchased credit-impaired loans | 31,456 | 29,539 |
Collectively evaluated for impairment | 483,703 | 436,206 |
Total loans | 515,531 | 466,508 |
Acquired Loans | Residential mortgages | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 740 | 362 |
Purchased credit-impaired loans | 12,050 | 4,888 |
Collectively evaluated for impairment | 591,975 | 233,876 |
Total loans | 604,765 | 239,126 |
Acquired Loans | Consumer | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 349 | 646 |
Purchased credit-impaired loans | 963 | 867 |
Collectively evaluated for impairment | 179,966 | 157,852 |
Total loans | $ 181,278 | $ 159,365 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Business Activities Loans | ||
Recorded Investment | ||
Total | $ 31,708 | $ 28,556 |
Unpaid Principal Balance | ||
Total | 49,207 | 38,090 |
Related Allowance | ||
With an allowance recorded | 134 | 197 |
Business Activities Loans | Commercial real estate | ||
Recorded Investment | ||
Total | 22,051 | 23,272 |
Unpaid Principal Balance | ||
Total | 33,553 | 31,708 |
Related Allowance | ||
With an allowance recorded | 7 | 9 |
Business Activities Loans | Commercial real estate | Other | ||
Recorded Investment | ||
With no related allowance | 21,538 | 22,606 |
With an allowance recorded | 513 | 666 |
Unpaid Principal Balance | ||
With no related allowance | 33,028 | 31,038 |
With an allowance recorded | 525 | 670 |
Related Allowance | ||
With an allowance recorded | 7 | 9 |
Business Activities Loans | Commercial and industrial loans | ||
Recorded Investment | ||
With no related allowance | 5,319 | 1,584 |
With an allowance recorded | 1,343 | 1,251 |
Total | 6,662 | 2,835 |
Unpaid Principal Balance | ||
With no related allowance | 10,807 | 2,566 |
With an allowance recorded | 1,349 | 1,235 |
Total | 12,156 | 3,801 |
Related Allowance | ||
With an allowance recorded | 42 | 49 |
Business Activities Loans | Residential mortgages | ||
Recorded Investment | ||
Total | 2,857 | 2,106 |
Unpaid Principal Balance | ||
Total | 3,146 | 2,220 |
Related Allowance | ||
With an allowance recorded | 78 | 128 |
Business Activities Loans | Residential mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 1,244 | 443 |
With an allowance recorded | 1,613 | 1,663 |
Unpaid Principal Balance | ||
With no related allowance | 1,407 | 441 |
With an allowance recorded | 1,739 | 1,779 |
Related Allowance | ||
With an allowance recorded | 78 | 128 |
Business Activities Loans | Consumer | ||
Recorded Investment | ||
Total | 138 | 343 |
Unpaid Principal Balance | ||
Total | 352 | 361 |
Related Allowance | ||
With an allowance recorded | 7 | 11 |
Business Activities Loans | Consumer | Other | ||
Recorded Investment | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 11 | 13 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 11 | 13 |
Related Allowance | ||
With an allowance recorded | 0 | 1 |
Business Activities Loans | Consumer | Home equity | ||
Recorded Investment | ||
With no related allowance | 35 | 230 |
With an allowance recorded | 92 | 100 |
Unpaid Principal Balance | ||
With no related allowance | 240 | 242 |
With an allowance recorded | 101 | 106 |
Related Allowance | ||
With an allowance recorded | 7 | 10 |
Acquired Loans | ||
Recorded Investment | ||
Total | 5,198 | 5,758 |
Unpaid Principal Balance | ||
Total | 9,559 | 9,523 |
Related Allowance | ||
With an allowance recorded | 99 | 97 |
Acquired Loans | Commercial real estate | ||
Recorded Investment | ||
Total | 3,730 | 3,980 |
Unpaid Principal Balance | ||
Total | 6,615 | 6,906 |
Related Allowance | ||
With an allowance recorded | 84 | 9 |
Acquired Loans | Commercial real estate | Other | ||
Recorded Investment | ||
With no related allowance | 3,055 | |
With an allowance recorded | 925 | |
Unpaid Principal Balance | ||
With no related allowance | 5,959 | |
With an allowance recorded | 947 | |
Related Allowance | ||
With an allowance recorded | 9 | |
Acquired Loans | Commercial and industrial loans | ||
Recorded Investment | ||
With no related allowance | 343 | 538 |
With an allowance recorded | 29 | 228 |
Total | 372 | 766 |
Unpaid Principal Balance | ||
With no related allowance | 594 | 644 |
With an allowance recorded | 30 | 232 |
Total | 624 | 876 |
Related Allowance | ||
With an allowance recorded | 0 | 4 |
Acquired Loans | Commercial and industrial loans | Other | ||
Recorded Investment | ||
With no related allowance | 2,664 | |
With an allowance recorded | 1,066 | |
Unpaid Principal Balance | ||
With no related allowance | 5,544 | |
With an allowance recorded | 1,071 | |
Related Allowance | ||
With an allowance recorded | 84 | |
Acquired Loans | Residential mortgages | ||
Recorded Investment | ||
Total | 746 | 365 |
Unpaid Principal Balance | ||
Total | 769 | 441 |
Related Allowance | ||
With an allowance recorded | 8 | 36 |
Acquired Loans | Residential mortgages | 1-4 Family | ||
Recorded Investment | ||
With no related allowance | 658 | 271 |
With an allowance recorded | 88 | 94 |
Unpaid Principal Balance | ||
With no related allowance | 656 | 324 |
With an allowance recorded | 113 | 117 |
Related Allowance | ||
With an allowance recorded | 8 | 36 |
Acquired Loans | Consumer | ||
Recorded Investment | ||
Total | 350 | 647 |
Unpaid Principal Balance | ||
Total | 1,551 | 1,300 |
Related Allowance | ||
With an allowance recorded | 7 | 48 |
Acquired Loans | Consumer | Other | ||
Recorded Investment | ||
With no related allowance | 16 | 0 |
With an allowance recorded | 41 | 43 |
Unpaid Principal Balance | ||
With no related allowance | 14 | 11 |
With an allowance recorded | 39 | 40 |
Related Allowance | ||
With an allowance recorded | 7 | 7 |
Acquired Loans | Consumer | Home equity | ||
Recorded Investment | ||
With no related allowance | 243 | 399 |
With an allowance recorded | 50 | 205 |
Unpaid Principal Balance | ||
With no related allowance | 1,448 | 1,053 |
With an allowance recorded | 50 | 196 |
Related Allowance | ||
With an allowance recorded | $ 0 | $ 41 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | $ 27,199 | $ 40,790 |
Cash Basis Interest Income Recognized | 657 | 720 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 5,230 | 8,641 |
Cash Basis Interest Income Recognized | 171 | 258 |
Commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 21,446 | 30,878 |
Cash Basis Interest Income Recognized | 225 | 373 |
Commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 3,572 | 5,326 |
Cash Basis Interest Income Recognized | 115 | 200 |
Commercial real estate | Other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 20,877 | 29,092 |
Cash basis interest income recognized, with no related allowance | 213 | 326 |
Average recorded investment with related allowance | 569 | 1,786 |
Cash basis interest income recognized, with related allowance | 12 | 47 |
Commercial real estate | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,607 | 2,306 |
Cash basis interest income recognized, with no related allowance | 82 | 111 |
Average recorded investment with related allowance | 965 | 3,020 |
Cash basis interest income recognized, with related allowance | 33 | 89 |
Commercial and industrial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,775 | 4,467 |
Cash basis interest income recognized, with no related allowance | 304 | 201 |
Average recorded investment with related allowance | 1,468 | 1,279 |
Cash basis interest income recognized, with related allowance | 64 | 83 |
Average Recorded Investment | 3,243 | 5,746 |
Cash Basis Interest Income Recognized | 368 | 284 |
Commercial and industrial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 522 | 349 |
Cash basis interest income recognized, with no related allowance | 32 | 27 |
Average recorded investment with related allowance | 30 | 287 |
Cash basis interest income recognized, with related allowance | 1 | 17 |
Average Recorded Investment | 552 | 636 |
Cash Basis Interest Income Recognized | 33 | 44 |
Residential mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 2,207 | 2,351 |
Cash Basis Interest Income Recognized | 60 | 58 |
Residential mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 452 | 1,582 |
Cash Basis Interest Income Recognized | 16 | 8 |
Residential mortgages | 1-4 Family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 574 | 942 |
Cash basis interest income recognized, with no related allowance | 23 | 26 |
Average recorded investment with related allowance | 1,633 | 1,409 |
Cash basis interest income recognized, with related allowance | 37 | 32 |
Residential mortgages | 1-4 Family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 362 | 1,505 |
Cash basis interest income recognized, with no related allowance | 12 | 6 |
Average recorded investment with related allowance | 90 | 77 |
Cash basis interest income recognized, with related allowance | 4 | 2 |
Consumer | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 303 | 1,815 |
Cash Basis Interest Income Recognized | 4 | 5 |
Consumer | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 654 | 1,097 |
Cash Basis Interest Income Recognized | 7 | 6 |
Consumer | 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 | 12 | 16 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Consumer | Other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 5 | 17 |
Cash basis interest income recognized, with no related allowance | 0 | 1 |
Average recorded investment with related allowance | 42 | 0 |
Cash basis interest income recognized, with related allowance | 1 | 0 |
Consumer | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 196 | 1,754 |
Cash basis interest income recognized, with no related allowance | 1 | 4 |
Average recorded investment with related allowance | 95 | 45 |
Cash basis interest income recognized, with related allowance | 3 | 1 |
Consumer | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 557 | 760 |
Cash basis interest income recognized, with no related allowance | 5 | 0 |
Average recorded investment with related allowance | 50 | 320 |
Cash basis interest income recognized, with related allowance | $ 1 | $ 5 |
LOANS - Recorded Investment and
LOANS - Recorded Investment and Number of Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)modification | Jun. 30, 2018USD ($)modification | Jun. 30, 2019USD ($)modification | Jun. 30, 2018USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 0 | 5 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 282 | $ 0 | $ 620 | $ 2,113 |
Post-Modification Outstanding Recorded Investment | $ 279 | $ 0 | $ 617 | $ 2,042 |
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 145 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 145 | ||
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 0 | 3 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 282 | $ 0 | $ 475 | $ 1,995 |
Post-Modification Outstanding Recorded Investment | $ 279 | $ 0 | $ 472 | $ 1,924 |
Residential mortgages | 1-4 family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 0 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 118 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 118 |
LOANS - Modifications that Subs
LOANS - Modifications that Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019contract | Jun. 30, 2018USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts (contract) | 0 | 2 | 0 | 2 |
Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts (contract) | 1,000 | 1,000 | ||
Modifications that subsequently defaulted, recorded investment | $ | $ 5,992 | $ 5,992 | ||
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts (contract) | 1,000 | 1,000 | ||
Modifications that subsequently defaulted, recorded investment | $ | $ 1,065 | $ 1,065 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||||
Balance at beginning of the period | $ 25,185 | $ 43,105 | $ 27,415 | $ 41,990 |
Principal payments | (375) | (2,511) | (1,788) | (3,150) |
TDR status change | 0 | 0 | 0 | 0 |
Other reductions | 0 | (7,088) | (1,155) | (7,376) |
Newly identified TDRs | 279 | 0 | 617 | 2,042 |
Balance at end of the period | $ 25,089 | $ 33,506 | $ 25,089 | $ 33,506 |
LOAN LOSS ALLOWANCE - Allowance
LOAN LOSS ALLOWANCE - Allowance Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | $ 61,469 | |||||
Provision/(releases) for loan losses | $ 3,467 | $ 6,532 | 7,468 | $ 12,107 | ||
Balance at end of period | 62,156 | 62,156 | ||||
Total | 62,156 | 62,156 | $ 62,156 | $ 61,469 | ||
Business Activities Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 56,212 | 47,277 | 56,139 | 45,920 | ||
Charged-off loans | 2,945 | 3,962 | 6,838 | 5,898 | ||
Recoveries on charged-off loans | 308 | 614 | 892 | 755 | ||
Provision/(releases) for loan losses | 1,857 | 6,385 | 5,239 | 9,537 | ||
Balance at end of period | 55,432 | 50,314 | 55,432 | 50,314 | ||
Individually evaluated for impairment | 134 | 197 | ||||
Collectively evaluated for impairment | 55,298 | 55,942 | ||||
Total | 56,212 | 47,277 | 55,432 | 50,314 | 55,432 | 56,139 |
Business Activities Loans | Commercial real estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 22,521 | 17,841 | 21,732 | 16,843 | ||
Charged-off loans | 702 | 1,392 | 1,958 | 1,498 | ||
Recoveries on charged-off loans | 67 | 26 | 275 | 49 | ||
Provision/(releases) for loan losses | 522 | 2,676 | 2,359 | 3,757 | ||
Balance at end of period | 22,408 | 19,151 | 22,408 | 19,151 | ||
Individually evaluated for impairment | 7 | 9 | ||||
Collectively evaluated for impairment | 22,401 | 21,723 | ||||
Total | 22,521 | 17,841 | 22,408 | 19,151 | 22,408 | 21,732 |
Business Activities Loans | Commercial and industrial loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 18,247 | 13,229 | 16,504 | 13,850 | ||
Charged-off loans | 1,180 | 1,706 | 2,856 | 2,596 | ||
Recoveries on charged-off loans | 119 | 447 | 426 | 491 | ||
Provision/(releases) for loan losses | 1,663 | 2,685 | 4,775 | 2,910 | ||
Balance at end of period | 18,849 | 14,655 | 18,849 | 14,655 | ||
Individually evaluated for impairment | 42 | 49 | ||||
Collectively evaluated for impairment | 18,807 | 16,455 | ||||
Total | 18,247 | 13,229 | 18,849 | 14,655 | 18,849 | 16,504 |
Business Activities Loans | Residential mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 9,209 | 8,598 | 10,535 | 9,420 | ||
Charged-off loans | 206 | 27 | 248 | 27 | ||
Recoveries on charged-off loans | 43 | 6 | 58 | 6 | ||
Provision/(releases) for loan losses | (212) | 853 | (1,511) | 31 | ||
Balance at end of period | 8,834 | 9,430 | 8,834 | 9,430 | ||
Individually evaluated for impairment | 78 | 128 | ||||
Collectively evaluated for impairment | 8,756 | 10,407 | ||||
Total | 9,209 | 8,598 | 10,535 | 9,430 | 8,834 | 10,535 |
Business Activities Loans | Consumer | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 6,235 | 7,609 | 7,368 | 5,807 | ||
Charged-off loans | 857 | 837 | 1,776 | 1,777 | ||
Recoveries on charged-off loans | 79 | 135 | 133 | 209 | ||
Provision/(releases) for loan losses | (116) | 171 | (384) | 2,839 | ||
Balance at end of period | 5,341 | 7,078 | 5,341 | 7,078 | ||
Individually evaluated for impairment | 7 | 11 | ||||
Collectively evaluated for impairment | 5,334 | 7,357 | ||||
Total | 6,235 | 7,609 | 5,341 | 7,078 | 5,341 | 7,368 |
Acquired Loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 5,826 | 6,582 | 5,330 | 5,914 | ||
Charged-off loans | 1,021 | 1,758 | 1,707 | 3,613 | ||
Recoveries on charged-off loans | 309 | 640 | 872 | 740 | ||
Provision/(releases) for loan losses | 1,610 | 147 | 2,229 | 2,570 | ||
Balance at end of period | 6,724 | 5,611 | 6,724 | 5,611 | ||
Individually evaluated for impairment | 99 | 97 | ||||
Collectively evaluated for impairment | 6,625 | 5,233 | ||||
Total | 5,826 | 6,582 | 5,330 | 5,611 | 6,724 | 5,330 |
Acquired Loans | Commercial real estate | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 3,910 | 3,995 | 3,153 | 3,856 | ||
Charged-off loans | 624 | 972 | 804 | 1,712 | ||
Recoveries on charged-off loans | 24 | 259 | 500 | 265 | ||
Provision/(releases) for loan losses | 1,252 | 100 | 1,713 | 973 | ||
Balance at end of period | 4,562 | 3,382 | 4,562 | 3,382 | ||
Individually evaluated for impairment | 84 | 9 | ||||
Collectively evaluated for impairment | 4,478 | 3,144 | ||||
Total | 3,910 | 3,995 | 4,562 | 3,856 | 4,562 | 3,153 |
Acquired Loans | Commercial and industrial loans | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 879 | 1,243 | 1,064 | 1,125 | ||
Charged-off loans | 109 | 0 | 371 | 155 | ||
Recoveries on charged-off loans | 175 | 66 | 226 | 95 | ||
Provision/(releases) for loan losses | (75) | (182) | (49) | 62 | ||
Balance at end of period | 870 | 1,127 | 870 | 1,127 | ||
Individually evaluated for impairment | 0 | 4 | ||||
Collectively evaluated for impairment | 870 | 1,060 | ||||
Total | 879 | 1,243 | 1,064 | 1,127 | 870 | 1,064 |
Acquired Loans | Residential mortgages | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 622 | 1,046 | 630 | 598 | ||
Charged-off loans | 31 | 622 | 104 | 1,053 | ||
Recoveries on charged-off loans | 55 | 11 | 60 | 36 | ||
Provision/(releases) for loan losses | 236 | 183 | 296 | 1,037 | ||
Balance at end of period | 882 | 618 | 882 | 618 | ||
Individually evaluated for impairment | 8 | 36 | ||||
Collectively evaluated for impairment | 874 | 594 | ||||
Total | 622 | 1,046 | 630 | 598 | 882 | 630 |
Acquired Loans | Consumer | ||||||
Activity in the allowance for loan losses | ||||||
Balance at beginning of period | 415 | 298 | 483 | 335 | ||
Charged-off loans | 257 | 164 | 428 | 693 | ||
Recoveries on charged-off loans | 55 | 304 | 86 | 344 | ||
Provision/(releases) for loan losses | 197 | 46 | 269 | 498 | ||
Balance at end of period | 410 | 484 | 410 | 484 | ||
Individually evaluated for impairment | 7 | 48 | ||||
Collectively evaluated for impairment | 403 | 435 | ||||
Total | $ 415 | $ 298 | $ 483 | $ 335 | $ 410 | $ 483 |
LOAN LOSS ALLOWANCE - Narrative
LOAN LOSS ALLOWANCE - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)grade | |
Credit quality information | |
Allowance for losses on acquired loans under Subtopic ASC 310-30 | $ | $ 6.7 |
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 | Business Activities Loans | Other | |
Credit quality information | |
Number of grades in internal loan rating system (grade) | 2 |
Consumer | 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 | 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, 2019 | Dec. 31, 2018 |
Credit quality information | ||
Total loans | $ 9,941,828 | $ 9,043,253 |
Special mention | ||
Credit quality information | ||
Total loans | 108,671 | 47,166 |
Substandard | ||
Credit quality information | ||
Total loans | 122,812 | 109,490 |
Non-Accrual | ||
Credit quality information | ||
Total loans | 35,771 | 32,425 |
Classified | ||
Credit quality information | ||
Total loans | 158,583 | 141,915 |
Criticized | ||
Credit quality information | ||
Total loans | 267,254 | 189,081 |
Commercial real estate | ||
Credit quality information | ||
Total loans | 4,005,347 | 3,400,221 |
Commercial real estate | Construction | ||
Credit quality information | ||
Total loans | 359,493 | 353,012 |
Commercial and industrial loans | ||
Credit quality information | ||
Total loans | 1,987,297 | 1,980,046 |
Residential mortgages | ||
Credit quality information | ||
Total loans | 2,882,380 | 2,566,424 |
Residential mortgages | Construction | ||
Credit quality information | ||
Total loans | 17,328 | 9,756 |
Residential mortgages | 1-4 family | ||
Credit quality information | ||
Total loans | 2,865,052 | 2,556,668 |
Consumer | ||
Credit quality information | ||
Total loans | 1,066,804 | 1,096,562 |
Consumer | Home equity | ||
Credit quality information | ||
Total loans | 403,830 | 376,680 |
Consumer | Auto and other | ||
Credit quality information | ||
Total loans | 662,974 | 719,882 |
Business Activities Loans | ||
Credit quality information | ||
Total loans | 7,294,405 | 7,366,744 |
Business Activities Loans | Special mention | ||
Credit quality information | ||
Total loans | 79,484 | 26,333 |
Business Activities Loans | Substandard | ||
Credit quality information | ||
Total loans | 59,206 | 60,698 |
Business Activities Loans | Non-Accrual | ||
Credit quality information | ||
Total loans | 30,704 | 26,478 |
Business Activities Loans | Classified | ||
Credit quality information | ||
Total loans | 89,910 | 87,176 |
Business Activities Loans | Criticized | ||
Credit quality information | ||
Total loans | 169,394 | 113,509 |
Business Activities Loans | Commercial real estate | ||
Credit quality information | ||
Total loans | 2,659,498 | 2,588,711 |
Business Activities Loans | Commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 2,584,240 | 2,525,921 |
Business Activities Loans | Commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 24,154 | 9,805 |
Business Activities Loans | Commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 51,104 | 52,985 |
Business Activities Loans | Commercial real estate | Construction | ||
Credit quality information | ||
Total loans | 300,996 | 327,792 |
Business Activities Loans | Commercial real estate | Construction | Pass | ||
Credit quality information | ||
Total loans | 300,996 | 327,792 |
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 | Real Estate | ||
Credit quality information | ||
Total loans | 2,358,502 | 2,260,919 |
Business Activities Loans | Commercial real estate | Real Estate | Pass | ||
Credit quality information | ||
Total loans | 2,283,244 | 2,198,129 |
Business Activities Loans | Commercial real estate | Real Estate | Special mention | ||
Credit quality information | ||
Total loans | 24,154 | 9,805 |
Business Activities Loans | Commercial real estate | Real Estate | Substandard | ||
Credit quality information | ||
Total loans | 51,104 | 52,985 |
Business Activities Loans | Commercial and industrial loans | ||
Credit quality information | ||
Total loans | 1,471,766 | 1,513,538 |
Business Activities Loans | Commercial and industrial loans | Pass | ||
Credit quality information | ||
Total loans | 1,385,702 | 1,469,139 |
Business Activities Loans | Commercial and industrial loans | Special mention | ||
Credit quality information | ||
Total loans | 53,543 | 14,279 |
Business Activities Loans | Commercial and industrial loans | Substandard | ||
Credit quality information | ||
Total loans | 31,617 | 29,176 |
Business Activities Loans | Commercial and industrial loans | Doubtful | ||
Credit quality information | ||
Total loans | 904 | 944 |
Business Activities Loans | Residential mortgages | ||
Credit quality information | ||
Total loans | 2,277,615 | 2,327,298 |
Business Activities Loans | Residential mortgages | Pass | ||
Credit quality information | ||
Total loans | 2,273,568 | 2,324,239 |
Business Activities Loans | Residential mortgages | Special mention | ||
Credit quality information | ||
Total loans | 543 | 1,619 |
Business Activities Loans | Residential mortgages | Substandard | ||
Credit quality information | ||
Total loans | 3,504 | 1,440 |
Business Activities Loans | Residential mortgages | Construction | ||
Credit quality information | ||
Total loans | 9,170 | 9,582 |
Business Activities Loans | Residential mortgages | Construction | Pass | ||
Credit quality information | ||
Total loans | 9,170 | 9,582 |
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 | 2,268,445 | 2,317,716 |
Business Activities Loans | Residential mortgages | 1-4 family | Pass | ||
Credit quality information | ||
Total loans | 2,264,398 | 2,314,657 |
Business Activities Loans | Residential mortgages | 1-4 family | Special mention | ||
Credit quality information | ||
Total loans | 543 | 1,619 |
Business Activities Loans | Residential mortgages | 1-4 family | Substandard | ||
Credit quality information | ||
Total loans | 3,504 | 1,440 |
Business Activities Loans | Consumer | ||
Credit quality information | ||
Total loans | 885,526 | 937,197 |
Business Activities Loans | Consumer | Performing | ||
Credit quality information | ||
Total loans | 882,909 | 934,565 |
Business Activities Loans | Consumer | Nonperforming | ||
Credit quality information | ||
Total loans | 2,617 | 2,632 |
Business Activities Loans | Consumer | Home equity | ||
Credit quality information | ||
Total loans | 281,254 | 289,961 |
Business Activities Loans | Consumer | Home equity | Performing | ||
Credit quality information | ||
Total loans | 280,440 | 289,028 |
Business Activities Loans | Consumer | Home equity | Nonperforming | ||
Credit quality information | ||
Total loans | 814 | 933 |
Business Activities Loans | Consumer | Auto and other | ||
Credit quality information | ||
Total loans | 604,272 | 647,236 |
Business Activities Loans | Consumer | Auto and other | Performing | ||
Credit quality information | ||
Total loans | 602,469 | 645,537 |
Business Activities Loans | Consumer | Auto and other | Nonperforming | ||
Credit quality information | ||
Total loans | 1,803 | 1,699 |
Acquired Loans | ||
Credit quality information | ||
Total loans | 2,647,423 | 1,676,509 |
Acquired Loans | Special mention | ||
Credit quality information | ||
Total loans | 29,187 | 20,833 |
Acquired Loans | Substandard | ||
Credit quality information | ||
Total loans | 63,606 | 48,792 |
Acquired Loans | Non-Accrual | ||
Credit quality information | ||
Total loans | 5,067 | 5,947 |
Acquired Loans | Classified | ||
Credit quality information | ||
Total loans | 68,673 | 54,739 |
Acquired Loans | Criticized | ||
Credit quality information | ||
Total loans | 97,860 | 75,572 |
Acquired Loans | Commercial real estate | ||
Credit quality information | ||
Total loans | 1,345,849 | 811,510 |
Acquired Loans | Commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 1,287,546 | 768,203 |
Acquired Loans | Commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 15,558 | 9,086 |
Acquired Loans | Commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 42,745 | 34,221 |
Acquired Loans | Commercial real estate | Construction | ||
Credit quality information | ||
Total loans | 58,497 | 25,220 |
Acquired Loans | Commercial real estate | Construction | Pass | ||
Credit quality information | ||
Total loans | 56,384 | 24,519 |
Acquired Loans | Commercial real estate | Construction | Special mention | ||
Credit quality information | ||
Total loans | 1,411 | 0 |
Acquired Loans | Commercial real estate | Construction | Substandard | ||
Credit quality information | ||
Total loans | 702 | 701 |
Acquired Loans | Commercial real estate | Real Estate | ||
Credit quality information | ||
Total loans | 1,287,352 | 786,290 |
Acquired Loans | Commercial real estate | Real Estate | Pass | ||
Credit quality information | ||
Total loans | 1,231,162 | 743,684 |
Acquired Loans | Commercial real estate | Real Estate | Special mention | ||
Credit quality information | ||
Total loans | 14,147 | 9,086 |
Acquired Loans | Commercial real estate | Real Estate | Substandard | ||
Credit quality information | ||
Total loans | 42,043 | 33,520 |
Acquired Loans | Commercial and industrial loans | ||
Credit quality information | ||
Total loans | 515,531 | 466,508 |
Acquired Loans | Commercial and industrial loans | Pass | ||
Credit quality information | ||
Total loans | 483,151 | 439,602 |
Acquired Loans | Commercial and industrial loans | Special mention | ||
Credit quality information | ||
Total loans | 12,893 | 11,374 |
Acquired Loans | Commercial and industrial loans | Substandard | ||
Credit quality information | ||
Total loans | 19,487 | 15,532 |
Acquired Loans | Residential mortgages | ||
Credit quality information | ||
Total loans | 604,765 | 239,126 |
Acquired Loans | Residential mortgages | Pass | ||
Credit quality information | ||
Total loans | 598,736 | 235,347 |
Acquired Loans | Residential mortgages | Special mention | ||
Credit quality information | ||
Total loans | 696 | 144 |
Acquired Loans | Residential mortgages | Substandard | ||
Credit quality information | ||
Total loans | 5,333 | 3,635 |
Acquired Loans | Residential mortgages | Construction | ||
Credit quality information | ||
Total loans | 8,158 | 174 |
Acquired Loans | Residential mortgages | Construction | Pass | ||
Credit quality information | ||
Total loans | 8,158 | 174 |
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 | 596,607 | 238,952 |
Acquired Loans | Residential mortgages | 1-4 family | Pass | ||
Credit quality information | ||
Total loans | 590,578 | 235,173 |
Acquired Loans | Residential mortgages | 1-4 family | Special mention | ||
Credit quality information | ||
Total loans | 696 | 144 |
Acquired Loans | Residential mortgages | 1-4 family | Substandard | ||
Credit quality information | ||
Total loans | 5,333 | 3,635 |
Acquired Loans | Consumer | ||
Credit quality information | ||
Total loans | 181,278 | 159,365 |
Acquired Loans | Consumer | Performing | ||
Credit quality information | ||
Total loans | 180,324 | 158,163 |
Acquired Loans | Consumer | Nonperforming | ||
Credit quality information | ||
Total loans | 954 | 1,202 |
Acquired Loans | Consumer | Home equity | ||
Credit quality information | ||
Total loans | 122,576 | 86,719 |
Acquired Loans | Consumer | Home equity | Performing | ||
Credit quality information | ||
Total loans | 121,931 | 85,968 |
Acquired Loans | Consumer | Home equity | Nonperforming | ||
Credit quality information | ||
Total loans | 645 | 751 |
Acquired Loans | Consumer | Auto and other | ||
Credit quality information | ||
Total loans | 58,702 | 72,646 |
Acquired Loans | Consumer | Auto and other | Performing | ||
Credit quality information | ||
Total loans | 58,393 | 72,195 |
Acquired Loans | Consumer | Auto and other | Nonperforming | ||
Credit quality information | ||
Total loans | $ 309 | $ 451 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 888,791 | $ 719,689 |
Time $100,000 through $250,000 | 2,221,209 | 2,060,500 |
Time more than $250,000 | 971,398 | 507,528 |
Total time deposits | 4,081,398 | 3,287,717 |
Brokered time deposits | 1,600,000 | 1,400,000 |
Reciprocal deposits | $ 94,600 | $ 84,400 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 608,928 | $ 1,118,832 |
Long-term borrowings | 392,813 | 398,984 |
Total borrowings | $ 1,001,741 | $ 1,517,816 |
Weighted average rate on short-term borrowings | 2.65% | 2.58% |
Weighted average rate on long-term borrowings | 3.34% | 3.16% |
Weighted average rate | 2.92% | 2.73% |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 608,928 | $ 1,118,832 |
Long-term borrowings | $ 295,886 | $ 309,466 |
Weighted average rate on short-term borrowings | 2.65% | 2.58% |
Weighted average rate on long-term borrowings | 2.36% | 2.17% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 74,143 | $ 74,054 |
Weighted average rate on long-term borrowings | 7.00% | 7.00% |
Trust I | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings | 4.37% | 4.50% |
Trust II | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 7,320 | $ 0 |
Weighted average rate on long-term borrowings | 4.11% | 0.00% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Line of credit, current | $ 3,000,000 | ||
Short-term debt | 608,928,000 | $ 1,118,832,000 | |
Long-term borrowings | 392,813,000 | 398,984,000 | |
Advances from the FHLB | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 0 | 0 | |
Short-term debt | 608,928,000 | 1,118,832,000 | |
Long-term borrowings | 295,886,000 | 309,466,000 | |
Federal Reserve Bank Advances | |||
Debt Instrument [Line Items] | |||
Short-term debt | 0 | 0 | |
Federal Home Loan Bank Certificates And Obligations F H L B Callable Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 10,000,000 | ||
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 4,500,000 | 1,400,000 | |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 74,143,000 | 74,054,000 | |
Maturity period | 15 years | ||
Principal amount of debt issued | $ 75,000,000 | ||
Discount rate | 1.15% | ||
Fixed interest rate | 6.875% | ||
Maturity period with fixed interest rate | 10 years | ||
Subordinated borrowings | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 5.113% | ||
Unamortized debt issuance expense | $ 399,000 | $ 461,000 | |
Junior subordinated borrowing | Trust I | |||
Debt Instrument [Line Items] | |||
Common stock of trust | 100.00% | ||
Common stock of trust included in other asset | $ 500,000 | ||
Sole asset of trust in form of debt | $ 15,500,000 | ||
Variable interest rate | 4.37% | 4.50% | |
Period up to which interest payments can be deferred | 5 years | ||
Junior subordinated borrowing | Trust II | |||
Debt Instrument [Line Items] | |||
Common stock of trust | 100.00% | ||
Common stock of trust included in other asset | $ 200,000 | ||
Sole asset of trust in form of debt | $ 8,200,000 | ||
Variable interest rate | 4.11% | ||
Period up to which interest payments can be deferred | 5 years | ||
Junior subordinated borrowing | LIBOR | Trust I | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.85% | ||
Junior subordinated borrowing | LIBOR | Trust II | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.70% |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLB (Details) - Fixed rate advances $ in Thousands | Jun. 30, 2019USD ($) |
Principal | |
2019 | $ 640,219 |
2020 | 195,603 |
2021 | 31,476 |
2022 | 17,770 |
2023 and beyond | 19,746 |
Total FHLB advances | $ 904,814 |
Weighted Average Rate | |
Weighted Average Rate | |
2019 | 2.59% |
2020 | 2.51% |
2021 | 2.49% |
2022 | 2.24% |
2023 and beyond | 2.13% |
Total FHLB advances | 2.55% |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Notional amount | $ 4,422,594 | $ 4,422,594 | $ 3,303,570 | ||
Cash collateral pledged | 78,900 | 78,900 | |||
Amortized cost of securities pledged as collateral to derivative counterparties | 12,000 | 12,000 | |||
Fair value of securities as pledged collateral to derivative counterparties | 12,000 | 12,000 | |||
Interest expense | 37,643 | $ 25,192 | 73,293 | $ 46,581 | |
Commercial counterparties | |||||
Derivative [Line Items] | |||||
Net asset position | 500 | 500 | 5,900 | ||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional amount | 10,700 | 10,700 | |||
Cash collateral pledged | 78,896 | 78,896 | 25,412 | ||
Derivative liability | 79,506 | 79,506 | 28,593 | ||
Amount of collateral posted for the net liability positions | 78,900 | 78,900 | 25,400 | ||
Interest rate swaps | Commercial counterparties | |||||
Derivative [Line Items] | |||||
Cash collateral pledged | 0 | 0 | 0 | ||
Net asset position | 75,900 | 75,900 | 21,200 | ||
Derivative liability | 735 | 735 | 9,745 | ||
Interest rate swaps | Institutional counterparties | |||||
Derivative [Line Items] | |||||
Cash collateral pledged | 78,896 | 78,896 | 25,412 | ||
Derivative liability | 78,771 | 78,771 | 18,848 | ||
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | 471,456 | 471,456 | $ 165,079 | ||
Economic hedges | |||||
Derivative [Line Items] | |||||
Notional amount | 4,000,000 | 4,000,000 | |||
Credit valuation adjustments | $ 1,300 | $ 1,300 | |||
Economic hedges | Tax advantaged economic development bonds | |||||
Derivative [Line Items] | |||||
Fixed rate of interest | 5.09% | 5.09% | |||
Maturity period | 21 years | ||||
Economic hedges | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional amount | $ 3,100,000 | $ 3,100,000 | |||
Economic hedges | Risk participation agreements with dealer banks | |||||
Derivative [Line Items] | |||||
Notional amount | 300,000 | 300,000 | |||
Economic hedges | Forward sale commitments | |||||
Derivative [Line Items] | |||||
Notional amount | $ 500,000 | $ 500,000 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 4,422,594 | $ 3,303,570 |
Estimated fair value asset (liability) | 4,826 | 1,680 |
Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 10,700 | |
Total economic hedges | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 4,000,000 | |
Total economic hedges | Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 3,100,000 | |
Total economic hedges | Risk participation agreements with dealer banks | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 300,000 | |
Total economic hedges | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 500,000 | |
Designated as Hedging Instrument | Total economic hedges | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 3,951,138 | 3,138,491 |
Estimated fair value asset (liability) | (4,179) | (2,247) |
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 | $ 9,744 | $ 10,090 |
Weighted average maturity | 10 years 4 months 24 days | 10 years 10 months 24 days |
Weighted average rate, received | 2.81% | 2.72% |
Weighted average rate, contract pay rate | 5.09% | 5.09% |
Estimated fair value asset (liability) | $ (1,583) | $ (1,240) |
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 | $ 1,546,563 | $ 1,346,894 |
Weighted average maturity | 6 years 8 months 12 days | 6 years 8 months 12 days |
Weighted average rate, received | 4.47% | 4.53% |
Weighted average rate, contract pay rate | 3.89% | 4.04% |
Estimated fair value asset (liability) | $ 75,114 | $ 11,443 |
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 | $ 1,546,563 | $ 1,346,894 |
Weighted average maturity | 6 years 8 months 12 days | 6 years 8 months 12 days |
Weighted average rate, received | 3.89% | 4.04% |
Weighted average rate, contract pay rate | 4.47% | 4.53% |
Estimated fair value asset (liability) | $ (76,909) | $ (11,953) |
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 | $ 303,793 | $ 243,806 |
Weighted average maturity | 7 years 6 months | 5 years 8 months 12 days |
Estimated fair value asset (liability) | $ 343 | $ 237 |
Designated as Hedging Instrument | Total economic hedges | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 544,475 | $ 190,807 |
Weighted average maturity | 6 days | 6 days |
Estimated fair value asset (liability) | $ (1,144) | $ (734) |
Not Designated as Hedging Instrument | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 471,456 | 165,079 |
Estimated fair value asset (liability) | 9,005 | 3,927 |
Not Designated as Hedging Instrument | Commitments to lend | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 471,456 | $ 165,079 |
Weighted average maturity | 6 days | 6 days |
Estimated fair value asset (liability) | $ 9,005 | $ 3,927 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate swaps | Economic hedges | Industrial revenue bond | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | $ (222) | $ 163 | $ (343) | $ 474 |
Interest rate swaps | Economic hedges | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | 42,967 | (5,270) | 64,956 | (19,939) |
(Unfavorable)/Favorable change in credit valuation adjustment recognized in other non-interest income | (1,146) | 95 | (1,283) | 332 |
Reverse interest rate swaps | Economic hedges | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | (42,967) | 5,270 | (64,956) | 19,939 |
Risk participation agreements with dealer banks | Economic hedges | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | (19) | 7 | 106 | 23 |
Forward sale commitments | Economic hedges | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | 108 | (658) | (410) | (1,567) |
Realized gain in discontinued operations | (4,083) | 1,077 | (5,798) | 4,999 |
Commitments to lend | Non-hedging derivatives | ||||
Derivative [Line Items] | ||||
Unrealized (loss)/gain recognized in other non-interest income | 2,687 | 7,285 | 5,078 | 13,816 |
Realized gain in discontinued operations | $ 16,281 | $ 2,491 | $ 25,713 | $ 3,094 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | $ 76,426 | $ 30,830 |
Gross amounts offset in the Statements of Condition | (47) | (3,749) |
Net amounts of assets presented in the Statements of Condition | 76,379 | 27,081 |
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 | 76,379 | 27,081 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 543 | 9,485 |
Gross amounts offset in the Statements of Condition | (14) | (3,592) |
Net amounts of assets presented in the Statements of Condition | 529 | 5,893 |
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 | 529 | 5,893 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 75,883 | 21,345 |
Gross amounts offset in the Statements of Condition | (33) | (157) |
Net amounts of assets presented in the Statements of Condition | 75,850 | 21,188 |
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 | $ 75,850 | $ 21,188 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts not offset in the Statements of Condition, cash collateral pledged | $ 78,900 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (80,507) | $ (29,881) |
Gross amounts offset in the Statements of Condition | 1,001 | 1,288 |
Net amounts of liabilities presented in the Statements of Condition | (79,506) | (28,593) |
Gross amounts not offset in the Statements of Condition, financial instruments | 11,992 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 78,896 | 25,412 |
Net amount | 11,382 | (3,181) |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (79,767) | (19,949) |
Gross amounts offset in the Statements of Condition | 996 | 1,101 |
Net amounts of liabilities presented in the Statements of Condition | (78,771) | (18,848) |
Gross amounts not offset in the Statements of Condition, financial instruments | 11,992 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 78,896 | 25,412 |
Net amount | 12,117 | 6,564 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (740) | (9,932) |
Gross amounts offset in the Statements of Condition | 5 | 187 |
Net amounts of liabilities presented in the Statements of Condition | (735) | (9,745) |
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 | $ (735) | $ (9,745) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average discount rate, percent | 3.36% | 3.36% |
Finance lease, weighted average discount rate, percent | 5.00% | 5.00% |
Operating lease, weighted average remaining lease term | 10 years 7 months 6 days | 10 years 7 months 6 days |
Finance lease, weighted average remaining lease term | 15 years 6 months | 15 years 6 months |
Operating lease expense | $ 3.6 | $ 7 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, lease, remaining lease term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, lease, remaining lease term | 21 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lease Right-of-Use Assets | |
Operating lease right-of-use assets | $ 80,591 |
Finance lease right-of-use assets | 7,981 |
Total Lease Right-of-Use Assets | 88,572 |
Lease Liabilities | |
Operating lease liabilities | 85,045 |
Finance lease liabilities | 11,123 |
Total Lease Liabilities | $ 96,168 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 3,657 | $ 7,155 |
Operating cash flows from finance leases | 159 | 318 |
Financing cash flows from finance leases | 98 | 196 |
Right-of-use assets obtained in exchange for lease obligations - operating leases | 8,052 | 87,641 |
Right-of-use assets obtained in exchange for lease obligations - finance leases | $ 0 | $ 0 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liability (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 | $ 7,130 |
2020 | 13,403 |
2021 | 12,157 |
2022 | 10,981 |
2023 | 9,048 |
Thereafter | 48,570 |
Total undiscounted lease payments | 101,289 |
Less amounts representing interest | (16,244) |
Lease liability | 85,045 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2019 | 508 |
2020 | 1,031 |
2021 | 1,031 |
2022 | 1,031 |
2023 | 1,037 |
Thereafter | 11,296 |
Total undiscounted lease payments | 15,934 |
Less amounts representing interest | (4,811) |
Lease liability | $ 11,123 |
CAPITAL RATIOS AND SHAREHOLDE_3
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Jun. 30, 2019 | Dec. 31, 2018 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 12.90% | 13.00% |
Common equity tier 1 capital to risk weighted assets | 11.40% | 11.40% |
Tier 1 capital to risk weighted assets | 11.60% | 11.60% |
Tier 1 capital to average assets | 9.70% | 9.00% |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 12.10% | 12.20% |
Common equity tier 1 capital to risk weighted assets | 11.50% | 11.60% |
Tier 1 capital to risk weighted assets | 11.50% | 11.60% |
Tier 1 capital to average assets | 9.70% | 9.00% |
Regulatory minimum to be well capitalized, Total capital to risk weighted assets | 8.00% | 8.00% |
Regulatory minimum to be well capitalized, Common equity tier 1 capital to risk weighted assets | 4.50% | 4.50% |
Regulatory minimum to be well capitalized, Tier 1 capital to risk weighted assets | 6.00% | 6.00% |
Regulatory minimum to be well capitalized, Tier 1 capital to average assets | 4.00% | 4.00% |
CAPITAL RATIOS AND SHAREHOLDE_4
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total shareholders’ equity | $ 1,779,837 | $ 1,577,005 | $ 1,552,918 | $ 1,516,241 | $ 1,497,657 | $ 1,496,264 |
Accumulated other comprehensive income/(loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Total shareholders’ equity | 11,301 | (2,906) | (13,470) | (21,266) | (15,427) | 4,161 |
Net unrealized holding gain (loss) on AFS securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other accumulated comprehensive income (loss), before tax | 18,056 | (15,267) | ||||
Income taxes related to items of accumulated other comprehensive income | (4,738) | 3,814 | ||||
Total shareholders’ equity | 13,318 | (889) | (11,453) | (19,021) | (13,182) | 6,008 |
Net unrealized holding (loss) on pension plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other accumulated comprehensive income (loss), before tax | (2,753) | (2,753) | ||||
Income taxes related to items of accumulated other comprehensive income | 736 | 736 | ||||
Total shareholders’ equity | $ (2,017) | $ (2,017) | $ (2,017) | $ (2,245) | $ (2,245) | $ (1,847) |
CAPITAL RATIOS AND SHAREHOLDE_5
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net unrealized holding gain (loss) | ||||
Net of Tax | $ 14,206 | $ (5,838) | $ 24,774 | $ (20,069) |
Less: reclassification adjustment for gains (losses) realized in net income | ||||
Net of Tax | (1) | 1 | 3 | 1 |
Other comprehensive income (loss) | ||||
Before Tax | 19,108 | (7,840) | 33,323 | (27,002) |
Tax Effect | (4,901) | 2,001 | (8,552) | 6,932 |
Total other comprehensive income/(loss) | 14,207 | (5,839) | 24,771 | (20,070) |
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) | |||
Net unrealized holding gain (loss) on AFS securities | ||||
Net unrealized holding gain (loss) | ||||
Before Tax | 19,106 | (7,839) | 33,327 | (27,001) |
Tax Effect | (4,900) | 2,001 | (8,553) | 6,932 |
Net of Tax | 14,206 | (5,838) | 24,774 | (20,069) |
Less: reclassification adjustment for gains (losses) realized in net income | ||||
Before Tax | (2) | 1 | 4 | 1 |
Tax Effect | 1 | 0 | (1) | 0 |
Net of Tax | (1) | 1 | 3 | 1 |
Other comprehensive income (loss) | ||||
Before Tax | 19,108 | (7,840) | 33,323 | (27,002) |
Tax Effect | (4,901) | 2,001 | (8,552) | 6,932 |
Total other comprehensive income/(loss) | $ 14,207 | $ (5,839) | $ 24,771 | $ (20,070) |
CAPITAL RATIOS AND SHAREHOLDE_6
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 1,577,005 | $ 1,497,657 | $ 1,552,918 | $ 1,496,264 |
Other comprehensive (loss) before reclassifications | 14,206 | (5,838) | 24,774 | (20,069) |
Less: amounts reclassified from accumulated other comprehensive income (loss) | (1) | 1 | 3 | 1 |
Total other comprehensive income/(loss) | 14,207 | (5,839) | 24,771 | (20,070) |
Balance at end of period | 1,779,837 | 1,516,241 | 1,779,837 | 1,516,241 |
Net unrealized holding gain (loss) on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (889) | (13,182) | (11,453) | 6,008 |
Other comprehensive (loss) before reclassifications | 14,206 | (5,838) | 24,774 | (20,069) |
Less: amounts reclassified from accumulated other comprehensive income (loss) | (1) | 1 | 3 | 1 |
Total other comprehensive income/(loss) | 14,207 | (5,839) | 24,771 | (20,070) |
Balance at end of period | 13,318 | (19,021) | 13,318 | (19,021) |
Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (2,017) | (2,245) | (2,017) | (1,847) |
Other comprehensive (loss) before reclassifications | 0 | 0 | 0 | 0 |
Less: amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income/(loss) | 0 | 0 | 0 | 0 |
Balance at end of period | (2,017) | (2,245) | (2,017) | (2,245) |
Accumulated other comprehensive income/(loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (2,906) | (15,427) | (13,470) | 4,161 |
Total other comprehensive income/(loss) | 14,207 | (5,839) | 24,771 | (20,070) |
Balance at end of period | $ 11,301 | $ (21,266) | $ 11,301 | (21,266) |
Accounting Standards Updates 2016-01 and 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 5,357 | |||
Accounting Standards Updates 2016-01 and 2018-02 | Net unrealized holding gain (loss) on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | 4,959 | |||
Accounting Standards Updates 2016-01 and 2018-02 | Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Less: amounts reclassified from accumulated other comprehensive income (loss) related to adoption of ASU 2016-01 and ASU 2018-02 | $ 398 |
CAPITAL RATIOS AND SHAREHOLDE_7
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | $ 17,512 | $ 19,623 | $ 39,234 | $ 38,515 |
Tax expense | (5,118) | (8,145) | (12,035) | (15,482) |
Income available to common shareholders | 25,208 | 33,802 | 48,603 | 58,820 |
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Income available to common shareholders | (1) | 1 | 3 | 1 |
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 | (2) | 1 | 4 | 1 |
Tax expense | 1 | 0 | (1) | 0 |
Income available to common shareholders | $ (1) | $ 1 | $ 3 | $ 1 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per share | ||||
Income from continuing operations | $ 23,954 | $ 33,711 | $ 48,226 | $ 59,082 |
Income from discontinued operations | 1,494 | 320 | 857 | 197 |
Net income | $ 25,448 | $ 34,031 | $ 49,083 | $ 59,279 |
Average number of common shares issued (in shares) | 49,026 | 46,212 | 47,627 | 46,212 |
Less: average number of treasury shares (in shares) | 754 | 788 | 736 | 828 |
Less: average number of unvested stock award shares (in shares) | 354 | 435 | 384 | 428 |
Plus: average participating preferred shares (in shares) | 1,043 | 1,043 | 1,043 | 1,043 |
Average number of basic common shares outstanding (in shares) | 48,961 | 46,032 | 47,550 | 45,999 |
Average number of diluted common shares outstanding (in shares) | 49,114 | 46,215 | 47,700 | 46,206 |
Basic earnings per common share: | ||||
Continuing operations (in dollars per share) | $ 0.49 | $ 0.73 | $ 1.01 | $ 1.29 |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.02 | 0 |
Total (in dollars per share) | 0.52 | 0.74 | 1.03 | 1.29 |
Diluted earnings per common share: | ||||
Continuing operations (in dollars per share) | 0.49 | 0.73 | 1.01 | 1.28 |
Discontinued operations (in dollars per share) | 0.03 | 0.01 | 0.02 | 0 |
Total (in dollars per share) | $ 0.52 | $ 0.74 | $ 1.03 | $ 1.28 |
Unvested stock award shares | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 107 | 152 | 120 | 176 |
Stock options | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (in shares) | 46 | 31 | 30 | 31 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Unvested stock award shares | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 269 | 252 |
Stock options | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 46 | 33 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Non-Vested Stock Awards Outstanding | ||||
Non-vested Stock Awards Outstanding, Number of Shares | ||||
Balance at the beginning of the period (in shares) | 371 | |||
Granted (in shares) | 131 | |||
Stock awards vested (in shares) | (62) | (63) | (127) | (150) |
Forfeited (in shares) | (51) | |||
Balance at the end of the period (in shares) | 324 | 324 | ||
Non-vested Stock Awards Outstanding, Weighted-Average Grant Date Fair Value | ||||
Balance at the beginning of the period (in dollars per share) | $ 33.63 | |||
Granted (in dollars per share) | 27.91 | |||
Stock awards vested (in dollars per share) | 31.73 | |||
Forfeited (in dollars per share) | 33.22 | |||
Balance at the end of the period (in dollars per share) | $ 32.76 | $ 32.76 | ||
Stock Options Outstanding | ||||
Stock Options Outstanding, Number of Shares | ||||
Balance at the beginning of the period (in shares) | 31 | |||
Granted (in shares) | 0 | |||
Acquired (in shares) | 133 | |||
Stock options exercised (in shares) | (1) | |||
Expired (in shares) | 0 | |||
Balance at the end of the period (in shares) | 163 | 163 | ||
Exercisable options at the end of the period (in shares) | 163 | 163 | ||
Stock Options Outstanding, Weighted-Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ 10.82 | |||
Granted (in dollars per share) | 0 | |||
Acquired (in dollars per share) | 23.99 | |||
Stock options exercised (in dollars per share) | 13.70 | |||
Expired (in dollars per share) | 0 | |||
Balance at the end of the period (in dollars per share) | $ 21.15 | 21.15 | ||
Exercisable options at the end of the period (in dollars per share) | $ 21.15 | $ 21.15 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of stock options | $ 14 | $ 101 | ||
Total compensation cost | $ 1,000 | $ 1,400 | 2,000 | 2,800 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of stock options | $ 101 | $ 15 | $ 15 | $ 101 |
Non-Vested Stock Awards Outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards vested (in shares) | 62 | 63 | 127 | 150 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,410,078 | $ 1,399,647 |
Marketable equity securities | 59,578 | 56,638 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,210 | 11,212 |
Securities available for sale | 1,410,078 | 1,399,647 |
Marketable equity securities | 59,578 | 56,638 |
Loans held for sale | 370,114 | 96,233 |
Derivative assets | 85,769 | 35,654 |
Derivative liabilities | 80,875 | 33,973 |
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 | 58,521 | 56,074 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 1,144 | 734 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale | 1,410,078 | 1,399,647 |
Marketable equity securities | 1,057 | 564 |
Loans held for sale | 191,548 | 96,233 |
Derivative assets | 76,764 | 31,727 |
Derivative liabilities | 79,731 | 33,239 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,210 | 11,212 |
Securities available for sale | 0 | 0 |
Marketable equity securities | 0 | 0 |
Loans held for sale | 178,566 | 0 |
Derivative assets | 9,005 | 3,927 |
Derivative liabilities | 0 | 0 |
Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,210 | 11,212 |
Loans held for sale | 191,548 | 96,233 |
Derivative assets | 85,769 | 35,654 |
Capitalized servicing rights | 11,206 | 11,485 |
Derivative liabilities | 80,875 | 33,973 |
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 | 119,873 | 111,207 |
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 | 888,962 | 930,884 |
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 | 182,258 | 170,321 |
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 | 60,651 | 58,925 |
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 | 119,743 | 111,490 |
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 | 8,550 | 8,466 |
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 | 30,041 | 8,354 |
Recurring | Total Fair Value | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 59,578 | 56,638 |
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 | 1,144 | 734 |
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 | 58,521 | 56,074 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 191,548 | 96,233 |
Derivative assets | 76,764 | 31,727 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 79,731 | 33,239 |
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 | 119,873 | 111,207 |
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 | 888,962 | 930,884 |
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 | 182,258 | 170,321 |
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 | 60,651 | 58,925 |
Recurring | Level 2 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 119,743 | 111,490 |
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 | 8,550 | 8,466 |
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 | 30,041 | 8,354 |
Recurring | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 1,057 | 564 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 11,210 | 11,212 |
Loans held for sale | 0 | 0 |
Derivative assets | 9,005 | 3,927 |
Capitalized servicing rights | 11,206 | 11,485 |
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 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 Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of trading securities in the portfolio | security | 1 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | $ 191,548 | $ 191,548 | $ 96,233 | |
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 191,548 | 191,548 | 96,233 | |
Recurring | Level 2 | Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 191,548 | 191,548 | 96,233 | |
Continuing Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments for origination of mortgage loans held-for-sale | 17,400 | $ 12,900 | ||
Proceeds from sale and collection of loans held-for-sale | 14,500 | 12,300 | ||
Continuing Operations | 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 | 31 | 91 | 20 | |
Continuing Operations | Recurring | Level 2 | Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 8,666 | 8,666 | 2,183 | |
Discontinued Operations | 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 | 1,400 | 2,600 | $ 1,100 | |
Discontinued Operations | Recurring | Level 2 | Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | $ 182,882 | $ 182,882 | $ 94,050 |
FAIR VALUE MEASUREMENTS - Loans
FAIR VALUE MEASUREMENTS - Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans Held for Sale | ||
Assets from discontinued operations | $ 212,745 | $ 114,259 |
Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 191,548 | 96,233 |
Recurring | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 191,548 | 96,233 |
Recurring | Loans Held for Sale | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 191,548 | 96,233 |
Assets from discontinued operations | 185,647 | 93,019 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 5,901 | 3,214 |
Continuing Operations | Recurring | Loans Held for Sale | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 8,666 | 2,183 |
Assets from discontinued operations | 8,533 | 2,140 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 133 | 43 |
Discontinued Operations | Recurring | Loans Held for Sale | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 182,882 | 94,050 |
Assets from discontinued operations | 177,114 | 90,879 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 5,768 | $ 3,171 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ 9,005 | $ 7,285 | $ 9,005 | $ 7,285 |
Derivative Asset (Liability) | ||||
Beginning balance | 6,318 | 6,531 | 3,927 | 5,259 |
Unrealized gain/(loss), net recognized in other non-interest income | 0 | 0 | ||
Transfers to held for sale loans | (14,430) | (12,033) | (23,260) | (22,974) |
Ending balance | 9,005 | 7,285 | 9,005 | 7,285 |
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 | 0 | 0 | 0 |
Derivative Asset (Liability) | ||||
Beginning balance | 0 | 0 | 0 | 19 |
Unrealized gain/(loss), net recognized in other non-interest income | 0 | (19) | ||
Ending balance | 0 | 0 | 0 | 0 |
Trading Security | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 11,164 | 11,795 | 11,212 | 12,277 |
Unrealized gain/(loss), net recognized in other non-interest income | 219 | (148) | 345 | (465) |
Paydown of trading security | (173) | (164) | (347) | (329) |
Balance at the end of the period | 11,210 | 11,483 | 11,210 | 11,483 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 1,466 | 1,056 | 1,466 | 1,056 |
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 | 11,351 | 5,705 | 11,485 | 3,834 |
Unrealized gain/(loss), net recognized in other non-interest income | 0 | 0 | ||
Additions to servicing rights | 1,827 | 1,795 | 2,835 | 3,201 |
Balance at the end of the period | 11,206 | 7,839 | 11,206 | 7,839 |
Unrealized gains (losses) relating to instruments still held at the end of the period | 0 | 0 | 0 | 0 |
Discontinued Operations | Commitments to lend | ||||
Derivative Asset (Liability) | ||||
Unrealized gain/(loss), net recognized in other non-interest income | 17,117 | 12,787 | 28,338 | 25,000 |
Discontinued Operations | Forward commitments | ||||
Derivative Asset (Liability) | ||||
Unrealized gain/(loss), net recognized in other non-interest income | 0 | 0 | ||
Discontinued Operations | Trading Security | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Unrealized gain/(loss), net recognized in other non-interest income | 0 | 0 | ||
Discontinued Operations | Capitalized servicing rights | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Unrealized gain/(loss), net recognized in other non-interest income | $ (1,972) | $ 339 | $ (3,114) | $ 804 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) $ in Thousands | Jun. 30, 2019USD ($)$ / contract | Dec. 31, 2018USD ($)$ / contract |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | $ 11,210 | $ 11,212 |
Level 3 | Recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | 11,210 | 11,212 |
Total | $ 31,421 | $ 26,624 |
Level 3 | Recurring | Discounted Cash Flow | Discount rate | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security, significant unobservable input value | 0.0228 | 0.0307 |
Level 3 | Recurring | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset | $ 9,005 | $ 3,927 |
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 value | 0.7248 | 0.8236 |
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 value | $ / contract | 3,137 | 3,063 |
Level 3 | Recurring | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset | $ 11,206 | $ 11,485 |
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 value | 0.0999 | 0.1000 |
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 value | 0.1274 | 0.0930 |
FAIR VALUE MEASUREMENTS - Mea_2
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 154 | $ 0 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 4,614 | 4,892 |
Capitalized servicing rights | 14,221 | 11,891 |
Other real estate owned | 154 | 0 |
Total | $ 18,989 | $ 16,783 |
FAIR VALUE MEASUREMENTS - Uno_2
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) $ in Thousands | Jun. 30, 2019USD ($)$ / contract | Dec. 31, 2018USD ($)$ / contract |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 154 | $ 0 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 4,614 | 4,892 |
Capitalized servicing rights | 14,221 | 11,891 |
Other real estate owned | 154 | 0 |
Total | 18,989 | 16,783 |
Non-recurring | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | $ 4,614 | $ 4,892 |
Non-recurring | Minimum | Loss severity | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | 0.0011 | 0 |
Non-recurring | Minimum | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 300 | 300 |
Non-recurring | Maximum | Loss severity | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | 0.2566 | 0.5116 |
Non-recurring | Maximum | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 731,000 | 877,000 |
Non-recurring | Weighted Average | Loss severity | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | 0.0344 | 0.0675 |
Non-recurring | Weighted Average | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 316,800 | 363,000 |
Non-recurring | Capitalized servicing rights | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 14,221 | $ 11,891 |
Non-recurring | Capitalized servicing rights | Minimum | Constant prepayment rate (CPR) | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.0840 | 0.0774 |
Non-recurring | Capitalized servicing rights | Minimum | Discount rate | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.1000 | 0.1000 |
Non-recurring | Capitalized servicing rights | Maximum | Constant prepayment rate (CPR) | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.1273 | 0.1129 |
Non-recurring | Capitalized servicing rights | Maximum | Discount rate | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.1273 | 0.1413 |
Non-recurring | Capitalized servicing rights | Weighted Average | Constant prepayment rate (CPR) | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.1150 | 0.0974 |
Non-recurring | Capitalized servicing rights | Weighted Average | Discount rate | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Servicing asset, significant unobservable input value | 0.1130 | 0.1199 |
Other Real Estate Owned | Non-recurring | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 154 | |
Other Real Estate Owned | Non-recurring | Minimum | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 49,000 | |
Other Real Estate Owned | Non-recurring | Maximum | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 105,000 | |
Other Real Estate Owned | Non-recurring | Weighted Average | Appraised value | Fair Value of Collateral | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans, significant unobservable input value | $ / contract | 87,000 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Marketable equity securities | $ 59,578 | $ 56,638 |
Securities available for sale | 1,410,078 | 1,399,647 |
Securities held to maturity | 377,056 | 371,224 |
FHLB bank stock and restricted securities | 59,356 | 77,344 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 229,306 | 183,189 |
Trading security | 0 | 0 |
Marketable equity securities | 58,521 | 56,074 |
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 |
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 | 1,144 | 734 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 0 | 0 |
Marketable equity securities | 1,057 | 564 |
Securities available for sale | 1,410,078 | 1,399,647 |
Securities held to maturity | 359,084 | 353,182 |
Net loans | 0 | 0 |
Loans held for sale | 191,548 | 96,233 |
Accrued interest receivable | 41,864 | 36,879 |
Cash surrender value of bank-owned life insurance policies | 227,458 | |
Derivative assets | 76,764 | 31,727 |
Financial Liabilities | ||
Total deposits | 10,576,006 | 8,970,321 |
Short-term debt | 608,946 | 1,118,820 |
Long-term Federal Home Loan Bank advances | 297,184 | 308,336 |
Subordinated borrowings | 100,924 | 97,376 |
Derivative liabilities | 79,731 | 33,239 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 11,210 | 11,212 |
Marketable equity securities | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 17,972 | 18,042 |
Net loans | 10,151,656 | 9,026,442 |
Loans held for sale | 178,566 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | |
Derivative assets | 9,005 | 3,927 |
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 | 0 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 229,306 | 183,189 |
Trading security | 11,210 | 11,212 |
Marketable equity securities | 59,578 | 56,638 |
Securities available for sale | 1,410,078 | 1,399,647 |
Securities held to maturity | 364,463 | 373,763 |
FHLB bank stock and restricted securities | 59,356 | 77,344 |
Net loans | 9,879,672 | 8,981,784 |
Loans held for sale | 367,692 | 96,233 |
Accrued interest receivable | 41,864 | 36,879 |
Cash surrender value of bank-owned life insurance policies | 227,458 | |
Derivative assets | 85,769 | 35,654 |
Financial Liabilities | ||
Total deposits | 10,565,956 | 8,982,381 |
Short-term debt | 608,928 | 1,118,832 |
Long-term Federal Home Loan Bank advances | 295,886 | 309,466 |
Subordinated borrowings | 96,927 | 89,518 |
Derivative liabilities | 80,875 | 33,973 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 229,306 | 183,189 |
Trading security | 11,210 | 11,212 |
Marketable equity securities | 59,578 | 56,638 |
Securities available for sale | 1,410,078 | 1,399,647 |
Securities held to maturity | 377,056 | 371,224 |
Net loans | 10,151,656 | 9,026,442 |
Loans held for sale | 370,114 | 96,233 |
Accrued interest receivable | 41,864 | 36,879 |
Cash surrender value of bank-owned life insurance policies | 227,458 | |
Derivative assets | 85,769 | 35,654 |
Financial Liabilities | ||
Total deposits | 10,576,006 | 8,970,321 |
Short-term debt | 608,946 | 1,118,820 |
Long-term Federal Home Loan Bank advances | 297,184 | 308,336 |
Subordinated borrowings | 100,924 | 97,376 |
Derivative liabilities | $ 80,875 | $ 33,973 |
NET INTEREST INCOME AFTER PRO_3
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Banking and Thrift, Interest [Abstract] | ||||
Net interest income from continuing operations | $ 91,595 | $ 90,292 | $ 177,054 | $ 175,049 |
Provision for loan losses | 3,467 | 6,532 | 7,468 | 12,107 |
Net interest income from continuing operations after provision for loan losses | $ 88,128 | $ 83,760 | $ 169,586 | $ 162,942 |
Uncategorized Items - bhlb-2019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,253,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (6,253,000) |
Accounting Standards Update 2018-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (896,000) |
Accounting Standards Update 2018-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 896,000 |