Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UBNK | ||
Entity Registrant Name | United Financial Bancorp, Inc. | ||
Entity Central Index Key | 1,501,364 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 49,969,878 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float (millions) | $ 640.2 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 47,602 | $ 43,416 |
Short-term investments | 47,574 | 43,536 |
Total cash and cash equivalents | 95,176 | 86,952 |
Available for sale securities-at fair value | 1,059,169 | 1,053,011 |
Held to maturity securities-at amortized cost | 14,565 | 15,368 |
Loans held for sale | 10,136 | 8,220 |
Loans receivable (net of allowance for loan losses of $33,887 in 2015 and $24,809 in 2014) | 4,587,062 | 3,877,063 |
Federal Home Loan Bank stock, at cost | 51,196 | 31,950 |
Accrued interest receivable | 15,740 | 14,212 |
Deferred tax asset-net | 33,094 | 33,833 |
Premises and equipment-net | 54,779 | 57,665 |
Goodwill | 115,281 | 115,240 |
Core deposit intangible | 7,506 | 9,302 |
Cash surrender value of bank-owned life insurance | 125,101 | 122,622 |
Other real estate owned | 755 | 2,239 |
Other assets | 58,981 | 49,132 |
Total Assets | 6,228,541 | 5,476,809 |
Deposits: | ||
Non-interest-bearing | 672,008 | 602,359 |
Interest-bearing | 3,765,063 | 3,432,952 |
Total deposits | 4,437,071 | 4,035,311 |
Mortgagors’ and investors’ escrow accounts | 13,526 | 13,004 |
Advances from the Federal Home Loan Bank | 949,003 | 580,973 |
Other borrowings | 150,017 | 196,341 |
Accrued expenses and other liabilities | 53,403 | 48,772 |
Total liabilities | $ 5,603,020 | $ 4,874,401 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock (no par value; 2,000,000 shares authorized; no shares issued) | $ 0 | $ 0 |
Common stock (no par value; 120,000,000 and 60,000,000 shares authorized; 49,941,428 and 49,537,700 shares issued and 49,941,428 and 49,537,700 outstanding at December 31, 2015 and 2014, respectively) | 519,587 | 514,189 |
Additional paid-in capital | 10,722 | 16,007 |
Unearned compensation — ESOP | (5,922) | (6,150) |
Retained earnings | 112,013 | 84,852 |
Accumulated other comprehensive loss, net of tax | (10,879) | (6,490) |
Total stockholders’ equity | 625,521 | 602,408 |
Total Liabilities and Stockholders’ Equity | $ 6,228,541 | $ 5,476,809 |
Consolidated Statements of Con3
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses, loans receivable | $ 33,887 | $ 24,809 |
Preferred stock, par value (usd per share) | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | ||
Common stock, par value (usd per share) | ||
Common stock, shares authorized | 120,000,000 | 60,000,000 |
Common stock, shares issued | 49,941,428 | 49,537,700 |
Common stock, shares outstanding | 49,941,428 | 49,537,700 |
Treasury stock, at cost | 0 | 0 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and dividend income: | |||
Loans | $ 165,409 | $ 133,011 | $ 67,752 |
Securities-taxable interest | 20,039 | 16,367 | 6,687 |
Securities-non-taxable interest | 8,354 | 5,113 | 2,748 |
Securities-dividends | 2,363 | 1,302 | 250 |
Interest-bearing deposits | 180 | 86 | 80 |
Total interest and dividend income | 196,345 | 155,879 | 77,517 |
Interest expense: | |||
Deposits | 21,442 | 13,559 | 7,992 |
Borrowed funds | 10,321 | 4,448 | 2,468 |
Total interest expense | 31,763 | 18,007 | 10,460 |
Net interest income | 164,582 | 137,872 | 67,057 |
Provision for loan losses | 13,005 | 9,496 | 2,046 |
Net interest income after provision for loan losses | 151,577 | 128,376 | 65,011 |
Non-interest income: | |||
Service charges and fees | 21,040 | 13,509 | 7,250 |
Income from mortgage banking activities | 9,552 | 3,203 | 7,203 |
Bank-owned life insurance income, including gain on death benefit | 3,616 | 3,042 | 2,092 |
Gain on sales of securities, net | 939 | 1,228 | 585 |
Net loss on limited partnership investments | (3,136) | (4,224) | 0 |
Other income (loss) | 476 | (153) | (79) |
Total non-interest income | 32,487 | 16,605 | 17,051 |
Non-interest expense: | |||
Salaries and employee benefits | 67,469 | 59,332 | 36,428 |
Occupancy and equipment | 15,442 | 13,239 | 6,679 |
Service bureau fees | 6,728 | 8,179 | 3,287 |
Professional fees | 6,317 | 3,662 | 2,377 |
Marketing and promotions | 2,321 | 2,296 | 476 |
FDIC insurance assessments | 3,692 | 2,553 | 1,172 |
Other real estate owned | 237 | 792 | 874 |
Core deposit intangible amortization | 1,796 | 1,283 | 0 |
Merger related expense | 1,575 | 36,918 | 2,141 |
Other non-interest expense | 22,618 | 16,178 | 9,032 |
Total non-interest expense | 128,195 | 144,432 | 62,466 |
Income before income taxes | 55,869 | 549 | 19,596 |
Provision (benefit) for income taxes | 6,229 | (6,233) | 5,369 |
Net income | $ 49,640 | $ 6,782 | $ 14,227 |
Net income per share: | |||
Basic (usd per share) | $ 1.01 | $ 0.16 | $ 0.55 |
Diluted (usd per share) | $ 1 | $ 0.16 | $ 0.54 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 48,912,807 | 42,829,094 | 26,061,942 |
Diluted (in shares) | 49,385,566 | 43,269,517 | 26,426,220 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 49,640 | $ 6,782 | $ 14,227 | |
Securities available for sale: | ||||
Unrealized holding gains (losses) | (5,912) | 13,847 | (15,704) | |
Reclassification adjustment for gains realized in income | [1] | (939) | (1,228) | (585) |
Net unrealized gains (losses) | (6,851) | 12,619 | (16,289) | |
Tax effect - benefit (expense) | 2,462 | (4,430) | 5,701 | |
Net-of-tax amount - securities available for sale | (4,389) | 8,189 | (10,588) | |
Interest rate swaps designated as cash flow hedges: | ||||
Unrealized gains (losses) | (3,108) | (8,385) | 7,537 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [2] | 12 | 0 | 0 |
Net unrealized gains (losses) | (3,096) | (8,385) | 7,537 | |
Tax effect - benefit (expense) | 1,116 | 2,945 | (2,638) | |
Net-of-tax amount - interest rate swaps | (1,980) | (5,440) | 4,899 | |
Defined benefit pension plan: | ||||
Gains (losses) arising during the period | 1,574 | (6,460) | 5,842 | |
Reclassification adjustment for losses recognized in net periodic benefit cost | [3] | 738 | (277) | 784 |
Net gains (losses) | 2,312 | (6,737) | 6,626 | |
Tax effect - benefit (expense) | (698) | 2,427 | (2,319) | |
Net-of-tax amount - pension plan | 1,614 | (4,310) | 4,307 | |
Other post-retirement plans: | ||||
Gains (losses) arising during the period | 532 | (372) | 820 | |
Reclassification adjustment for prior service costs recognized in net periodic benefit cost | [4] | 7 | 13 | 23 |
Reclassification adjustment for losses (gains) recognized in net periodic benefit cost | [5] | 21 | (9) | 72 |
Prior service cost arising during the period | 0 | 168 | 105 | |
Change in gains (losses) and prior service costs | 560 | (200) | 1,020 | |
Tax effect - benefit (expense) | (194) | 37 | (357) | |
Net-of-tax amount - post-retirement plans | 366 | (163) | 663 | |
Net-of-tax amount - pension and post-retirement plans | 1,980 | (4,473) | 4,970 | |
Total other comprehensive income (loss) | (4,389) | (1,724) | (719) | |
Comprehensive income (loss) | $ 45,251 | $ 5,058 | $ 13,508 | |
[1] | Amounts are included in net gains from sales of securities in the Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for the years ended December 31, 2015, 2014 and 2013 was $338, $442 and $205, respectively. | |||
[2] | Amounts are included in borrowed funds in the Consolidated Statements of Net Income in interest expense. Income tax benefit associated with the reclassification adjustment for the years ended December 31, 2015, 2014 and 2013 was $4, $0 and $0, respectively. | |||
[3] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Net Income. Income tax expense (benefit) associated with the reclassification adjustment for the years ended December 31, 2015, 2014 and 2013 was $(266), $100 and $(274), respectively. | |||
[4] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for the years ended December 31, 2015, 2014 and 2013 was $3, $7 and $8, respectively. | |||
[5] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Net Income. Income tax expense (benefit) associated with the reclassification adjustment for the years ended December 31, 2015, 2014 and 2013 was $(185), $3 and $(25), respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense associated with the reclassification adjustment for gains realized in net income | $ (338) | $ (442) | $ (205) |
Income tax benefit associated with the reclassification adjustment from AOCI for borrowed funds | 4 | 0 | 0 |
Income tax expense (benefit) associated with the reclassification adjustment under salaries and employee benefits | (266) | 100 | (274) |
Income tax expense associated with the reclassification adjustment for prior service costs under post-retirement plans | 3 | 7 | 8 |
Income tax expense associated with the reclassification adjustment for losses (benefit) recognized in net periodic benefit cost under post-retirement plans | $ (185) | $ 3 | $ (25) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Restricted Stock | Stock Option | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalRestricted Stock | Additional Paid-in CapitalStock Option | Unearned Compensation - ESOP | Retained Earnings | Retained EarningsRestricted Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Treasury StockRestricted Stock | Treasury StockStock Option |
Balance, shares at Dec. 31, 2012 | 29,487,363 | 1,330,466 | ||||||||||||
Balance at Dec. 31, 2012 | $ 320,611 | $ 243,776 | $ 13,418 | $ (8,306) | $ 91,811 | $ (4,047) | $ (16,041) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Comprehensive income | 13,508 | 14,227 | (719) | |||||||||||
Adoption of MSR fair value accounting | 502 | 502 | ||||||||||||
ESOP shares released or committed to be released | 1,707 | 552 | 1,155 | |||||||||||
ESOP Forfeiture | 357 | 357 | ||||||||||||
Reissuance of treasury shares, shares | (53,834) | (90,411) | ||||||||||||
Reissuance of treasury shares, value | $ 0 | $ 805 | $ (633) | $ (259) | $ (9) | $ 642 | $ 1,064 | |||||||
Share-based compensation expense | 2,665 | 2,665 | ||||||||||||
Cancellation of shares for tax withholding, shares | (24,932) | |||||||||||||
Cancellation of shares for tax withholding | (357) | (357) | ||||||||||||
Treasury stock purchased, shares | 2,301,665 | |||||||||||||
Treasury stock purchased | (30,028) | $ (30,028) | ||||||||||||
Tax effects of share-based awards | 65 | 65 | ||||||||||||
Forfeited (in shares) | (6,141) | |||||||||||||
Dividends declared/paid | (10,453) | (10,453) | ||||||||||||
Balance, shares at Dec. 31, 2013 | 29,456,290 | 3,487,886 | ||||||||||||
Balance at Dec. 31, 2013 | 299,382 | $ 243,776 | 15,808 | (7,151) | 96,078 | (4,766) | $ (44,363) | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Comprehensive income | 5,058 | 6,782 | (1,724) | |||||||||||
Issuance of common stock for the acquisition of United Financial Bancorp, Inc., shares | 26,706,401 | |||||||||||||
Issuance of common stock for the acquisition of United Financial Bancorp, Inc | 356,365 | $ 356,365 | ||||||||||||
ESOP shares released or committed to be released | 1,727 | 726 | 1,001 | |||||||||||
Cancellation of treasury shares, shares | (3,476,270) | (3,476,270) | ||||||||||||
Cancellation of treasury shares | 0 | $ (44,226) | $ 44,226 | |||||||||||
Common stock repurchased, shares | (3,507,324) | |||||||||||||
Common stock repurchased | (47,772) | $ (47,772) | ||||||||||||
Share-based compensation expense | 3,957 | 3,957 | ||||||||||||
Shares issued for stock options exercised, shares | (321,058) | (11,616) | ||||||||||||
Shares issued for stock options exercised | 2,246 | $ 4,530 | (2,421) | $ 137 | ||||||||||
Shares issued for restricted stock grants, shares | 138,482 | |||||||||||||
Shares issued for restricted stock grants | 0 | $ 1,889 | (1,889) | |||||||||||
Cancellation of shares for tax withholding, shares | (100,937) | |||||||||||||
Cancellation of shares for tax withholding | (1,367) | $ (373) | (994) | |||||||||||
Tax effects of share-based awards | 820 | 820 | ||||||||||||
Dividends declared/paid | $ (18,008) | (18,008) | ||||||||||||
Balance, shares at Dec. 31, 2014 | 49,537,700 | 49,537,700 | 0 | |||||||||||
Balance at Dec. 31, 2014 | $ 602,408 | $ 514,189 | 16,007 | (6,150) | 84,852 | (6,490) | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Comprehensive income | 45,251 | 49,640 | (4,389) | |||||||||||
ESOP shares released or committed to be released | 299 | 71 | 228 | |||||||||||
Common stock repurchased, shares | (377,700) | |||||||||||||
Common stock repurchased | (5,171) | $ (5,171) | ||||||||||||
Share-based compensation expense | $ 1,076 | 1,076 | ||||||||||||
Shares issued for stock options exercised, shares | (678,363) | (545,148) | ||||||||||||
Shares issued for stock options exercised | $ 4,765 | $ 7,281 | (2,516) | |||||||||||
Shares issued for restricted stock grants, shares | 259,845 | |||||||||||||
Shares issued for restricted stock grants | 0 | $ 3,491 | (3,491) | |||||||||||
Cancellation of shares for tax withholding, shares | (22,430) | |||||||||||||
Cancellation of shares for tax withholding | (311) | $ (188) | (123) | |||||||||||
Tax effects of share-based awards | (317) | (317) | ||||||||||||
Forfeited (in shares) | (1,135) | (1,135) | ||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Forfeitures | $ (15) | 15 | ||||||||||||
Dividends declared/paid | $ (22,479) | (22,479) | ||||||||||||
Balance, shares at Dec. 31, 2015 | 49,941,428 | 49,941,428 | 0 | |||||||||||
Balance at Dec. 31, 2015 | $ 625,521 | $ 519,587 | $ 10,722 | $ (5,922) | $ 112,013 | $ (10,879) | $ 0 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Retained Earnings | |||
Dividends declared/ paid per common share (usd per share) | $ 0.46 | $ 0.40 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 49,640 | $ 6,782 | $ 14,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of premiums and discounts on investments, net | 5,041 | 2,680 | 471 |
Accretion of intangible assets and purchase accounting marks, net | (10,835) | (10,899) | 0 |
Amortization of subordinated debt issuance costs | 126 | 34 | 0 |
Share-based compensation expense | 1,076 | 3,957 | 2,665 |
ESOP expense | 299 | 1,727 | 1,707 |
Loss on extinguishment of debt | 0 | 288 | 0 |
Tax effects of share-based awards | 317 | (820) | (65) |
Provision for loan losses | 13,005 | 9,496 | 2,046 |
Net gain from sales of securities | (939) | (1,228) | (585) |
Loans originated for sale | (406,960) | (145,124) | (144,597) |
Proceeds from sales of loans held for sale | 405,044 | 137,326 | 149,467 |
Decrease (increase) in mortgage servicing asset | (2,345) | (138) | 3,051 |
Loss (gain) on sales of OREO | (218) | (409) | 85 |
Net change in mortgage banking fair value adjustment | 39 | (356) | 439 |
Loss on disposal of equipment | 191 | 1,210 | 113 |
Write-downs of other real estate owned | 118 | 213 | 287 |
Depreciation and amortization | 5,340 | 3,762 | 2,383 |
Loss on limited partnerships | 3,136 | 4,224 | 0 |
Loss (gain) on lease terminations | (195) | 1,888 | 0 |
Deferred income tax expense | 3,582 | 7,361 | 410 |
Increase in cash surrender value of bank-owned life insurance | (3,397) | (3,042) | (2,092) |
Income recognized from death benefit on bank-owned life insurance | (219) | 0 | 0 |
Net change in: | |||
Deferred loan fees and premiums | (3,013) | (1,603) | (1,632) |
Accrued interest receivable | (1,528) | (2,237) | (844) |
Other assets | (16,172) | (33,243) | (4,340) |
Accrued expenses and other liabilities | 9,637 | 8,552 | 946 |
Net cash provided by (used in) operating activities | 50,770 | (9,599) | 24,142 |
Cash flows from investing activities: | |||
Proceeds from sales of available for sale securities | 280,564 | 511,044 | 44,880 |
Proceeds from calls and maturities of available for sale securities | 16,655 | 21,220 | 0 |
Principal payments on available for sale securities | 86,128 | 61,425 | 26,862 |
Principal payments on held to maturity securities | 774 | 783 | 2,373 |
Purchases of available for sale securities | (398,794) | (885,610) | (245,609) |
Purchases of held to maturity securities | 0 | (2,342) | (10,093) |
Cash acquired from United Financial Bancorp, Inc. | 0 | 25,410 | 0 |
Redemption of FHLBB stock | 0 | 2,297 | 814 |
Purchase of FHLBB stock | (19,246) | (1,860) | 0 |
Proceeds from sale of other real estate owned | 2,683 | 3,869 | 4,042 |
Proceeds from portfolio loan sales | 0 | 0 | 70,715 |
Purchases of loans | (348,175) | (16,310) | (14,142) |
Loan originations, net of principal repayments | (366,495) | (302,918) | (170,550) |
Purchase of bank-owned life insurance | 0 | 0 | (4,008) |
Proceeds from bank-owned life insurance death benefit | 1,158 | 0 | 0 |
Proceeds from sale of equipment | 364 | 327 | 0 |
Purchases of premises and equipment | (3,593) | (12,719) | (7,108) |
Net cash used in investing activities | (747,977) | (595,384) | (301,824) |
Cash flows from financing activities: | |||
Net increase in non-interest-bearing deposits | 69,649 | 2,550 | 27,685 |
Net increase in interest-bearing deposits | 335,320 | 357,800 | 202,840 |
Net increase (decrease) in mortgagors’ and investors’ escrow accounts | 522 | 4,604 | (434) |
Net increase in short-term FHLBB advances | 196,200 | 275,776 | 64,112 |
Repayments of long-term FHLBB advances | (8,056) | (6,076) | (15,182) |
Proceeds from long-term FHLBB advances | 181,800 | 10,000 | 0 |
Repayments of FHLBB borrowings and penalty | 0 | (12,466) | 0 |
Net increase in other borrowings, excluding proceeds from subordinated debt issuance | (46,491) | 4,860 | 48,192 |
Proceeds from issuance of subordinated debt, net of issuance costs | 0 | 73,733 | 0 |
Proceeds from exercise of stock options | 4,765 | 2,246 | 805 |
Common stock repurchased | (5,171) | (47,772) | (30,028) |
Cancellation of shares for tax withholding | (311) | (1,367) | (357) |
Tax effects of share-based awards | (317) | 820 | 65 |
Cash dividend paid on common stock | (22,479) | (18,008) | (10,453) |
ESOP Forfeiture | 0 | 0 | 357 |
Net cash provided by financing activities | 705,431 | 646,700 | 287,602 |
Net increase in cash and cash equivalents | 8,224 | 41,717 | 9,920 |
Cash and cash equivalents - beginning of year | 86,952 | 45,235 | 35,315 |
Cash and cash equivalents - end of year | 95,176 | 86,952 | 45,235 |
Cash paid during the year for: | |||
Interest | 36,532 | 21,824 | 10,465 |
Income taxes, net | (6,744) | 3,599 | 7,017 |
Transfer of loans to other real estate owned | 1,099 | 2,339 | 3,097 |
Increase (decrease) in due to broker, investment purchases | (1,105) | (4,855) | 1,758 |
Increase in due to broker, common stock buyback | (523) | 523 | 0 |
Acquisition of non-cash assets and liabilities: | |||
Fair value of assets acquired | 0 | 2,396,937 | 0 |
Fair value of liabilities assumed | $ 0 | $ 2,154,713 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Financial Statement Presentation On April 30, 2014, Rockville Financial, Inc. (“Rockville”) completed its merger with United Financial Bancorp, Inc. (“Legacy United”) and changed its legal entity name to United Financial Bancorp, Inc. (the “Company”). In connection with this merger, Rockville Bank, the Company’s principal asset and wholly-owned subsidiary, completed its merger with Legacy United’s banking subsidiary, United Bank, and changed its name to United Bank (the “Bank”). Discussions throughout this report related to the merger with Legacy United are referred to as the “Merger”. The results of operations of Legacy United or assets acquired are included only from the dates of acquisition. The consolidated financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank, and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Northeast Financial Advisors, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, and UCB Securities, Inc. II. The Company is a bank holding company under the Bank Holding Company Act of 1956, as amended, headquartered in Glastonbury, Connecticut and incorporated under the laws of Connecticut in 2004. At December 31, 2015 , the Company’s principal asset was all of the outstanding capital stock of United Bank, a wholly-owned subsidiary of the Company. The Company, through United Bank and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and western Massachusetts and the surrounding regions through 53 banking offices, its commercial loan and mortgage loan production offices, 63 ATMs, telephone banking, mobile banking and its online website (www.bankatunited.com). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and to general practices in the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the valuation of derivative instruments and hedging activities, the evaluation of securities for other-than-temporary impairment, and the valuation of assets/liabilities acquired in business combinations and review of goodwill for impairment. Certain reclassifications have been made to prior periods’ consolidated financial statements to conform to the 2015 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents. All significant intercompany transactions have been eliminated. Common Share Repurchases The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Notwithstanding the foregoing, prior to December 31, 2014, the Consolidated Statements of Changes in Shareholders’ Equity refers to repurchased shares as “treasury stock.” Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and short term investments with original maturities of three months or less. Securities Securities are classified at the time of purchase as “available for sale,” “held to maturity,” or “trading.” Classification is re-evaluated at each quarter end for consistency with corporate goals and objectives. Debt securities held to maturity are those which the Bank has the ability and intent to hold to maturity. Securities held to maturity are recorded at amortized cost. Amortized cost includes the amortization of premiums or accretion of discounts using the level yield method. Such amortization and accretion is included in interest income from securities. Securities classified as available for sale are recorded at fair value. Unrealized gains and losses, net of taxes, are calculated each reporting period and presented as a separate component of other comprehensive income (“OCI”). Securities bought and held for the purpose of selling in the near term are classified as trading. Trading securities, if any, are recorded at fair value with calculated gains and losses recognized in non-interest income in the respective accounting period. The Company did not have a trading portfolio at December 31, 2015 and 2014 . Securities transferred from available for sale to held to maturity are recorded at fair value at the time of transfer. The respective gain or loss is reclassified as a separate component of OCI and amortized as an adjustment to interest income using the level yield method. The Company did not transfer any securities from available for sale to held to maturity during 2015, 2014 and 2013 . See Note 6 in the Notes to Consolidated Financial Statements for further information. Securities are reviewed quarterly for other-than-temporary impairment (“OTTI”). All securities classified as held to maturity or available for sale that are in an unrealized loss position are evaluated for OTTI. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the financial condition and near-term prospects of the issuer and guarantor, where applicable. If the Company intends to sell the security or, if it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis, or for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis, the security is written down to fair value and the respective write-down is recorded in non-interest income in the Consolidated Statements of Net Income. If the Company does not intend to sell the security and if it is more likely than not that the Company will not be required to sell the security prior to recovery of its amortized cost basis, only the credit component of any impairment charge of a debt security would be recognized as a loss in non-interest income in the Consolidated Statements of Net Income. The remaining impairment would be recorded in OCI. A decline in the value of an equity security that is considered to have OTTI is recorded as a loss in non-interest income in the Consolidated Statements of Net Income. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Derivative Financial Instruments Derivatives are recognized as either assets or liabilities and are recorded at fair value on the Company’s Consolidated Statements of Condition. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. Derivatives executed with the same counterparty are generally subject to netting arrangements; however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in non-interest income. Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the Consolidated Statements of Condition in other assets and other liabilities with changes in their fair values recorded in other non-interest income. Fair value is based on the value of servicing rights and the interest rate differential from the commitment date to the current valuation date of the underlying mortgage loans. In estimating fair value, the Company assigns a probability to a loan commitment based on an expectation that it will be exercised and the loan will be funded. Subsequent to inception, changes in the fair value of the loan commitment are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, the Company assigns a probability to a loan commitment based on an expectation that it will be exercised and the loan will be funded. Forward Loan Sale Commitments To protect against the portfolio risks inherent in derivative loan commitments or rate locks associated with fixed rate residential lending, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans and long-term interest rate risk that may result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments, excluding the valuation of servicing rights. Forward loan sale commitments are recognized at fair value on the Consolidated Statements of Condition in other assets and other liabilities with changes in fair value recorded in other non-interest income. Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank system, is required to maintain an investment in capital stock of the Federal Home Loan Bank of Boston (“FHLBB”) based primarily on its level of borrowings from the FHLBB. Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Company currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Company’s FHLBB stock as of December 31, 2015 and 2014 . Loans Held For Sale The Company primarily classifies newly originated residential real estate mortgage loans as held for sale based on intent, which is determined when loans are rate locked. Residential real estate mortgage loans not designated as held for sale are retained based upon available liquidity, interest rate risk management and other business purposes. The Company has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, Financial Instruments , for closed loans intended for sale. The Company elected the fair value option in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Fair values are estimated using quoted loan market prices. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value related to forward sale commitments and interest rate lock commitments. Gains or losses on sales of loans are included in non-interest income. Direct loan origination costs and fees are deferred upon origination and are recognized as part of the gain or loss on the date of sale. Residential loans are sold by the Company without recourse. The Company currently sells these loans servicing retained, with the exception of a limited volume of government production sold servicing released. Loans Loans we originate and intend to hold in our portfolio are stated at current unpaid principal balances, net of deferred loan origination costs and fees. Commitment fees for which the likelihood of exercise is remote are recognized over the loan commitment period on a straight-line basis. Loans that we acquired in the merger with Legacy United were recorded at fair value with no carryover of the related allowance for loan losses at the time of acquisition. Determining the fair value of the loans involved estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The Company’s loan portfolio includes residential real estate, commercial real estate, construction, commercial business and installment and collateral segments. Residential real estate loans include one-to-four family owner occupied first mortgages, second mortgages and equity lines of credit. A loan is classified as a troubled debt restructure (“TDR”) when certain concessions have been made to the original contractual terms, such as reductions of interest rates or deferral of interest or principal payments, due to the borrowers’ financial difficulties. All TDR loans are initially classified as impaired and generally remain impaired as TDRs for the remaining life of the loan. Impaired and TDR classification may be removed if the borrower demonstrates compliance with the modified terms and the restructuring agreement specifies an interest rate equal to that which would be provided to a borrower with similar credit at the time of restructuring. Interest and Fees on Loans Interest on loans is accrued and included in interest income based on contractual rates applied to principal amounts outstanding. Accrual of interest is discontinued, and previously accrued income is reversed, when loan payments are 90 days or more past due or when, in the judgment of management, collectability of the loan or loan interest becomes uncertain. Past due status is based on the contractual payment terms of the loan. Subsequent recognition of income occurs only to the extent payment is received subject to management’s assessment of the collectability of the remaining interest and principal. A non-accrual loan is restored to accrual status when the loan is brought current, collectability of interest and principal is no longer in doubt and six months of continuous payments have been received. Loan origination fees and direct loan origination costs (including loan commitment fees) are deferred, and the net amount is recognized as an adjustment of the related loan’s yield utilizing the interest method over the contractual life of the loan. Fair value acquisition adjustments are determined as of the date of acquisition based upon facts and circumstances, including the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Subsequent to acquisition, the fair value acquisition adjustments are generally amortized over the remaining life of the loan under the interest method, or a constant effective yield method. For ASC 310-30 loans, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”), the interest method is applicable to a loan or a pool of loans as determined by characteristics including but not limited to borrower type, loan purpose, geographic location and collateral type. In recording the acquisition data fair values of acquired impaired loans, management calculates a non-accretable difference (the credit component of the purchased loans) and an accretable difference (the yield component of the purchased loans). For changes in cash flows expected to be collected, we adjust the amount of accretable yield recognized on a prospective basis over the remaining lives of the loans. Allowance for Loan Losses The allowance for loan losses is a reserve established through a provision for loan losses charged to expense and represents management’s best estimate of probable losses incurred within the existing loan portfolio as of the balance sheet date. The level of the allowance reflects management’s view of trends in loan loss activity, current loan portfolio quality and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific loans; however, the allowance is available for any loan that is charged off. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans (or portions thereof) deemed to be uncollectible. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loans losses, as further described below. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the loan segments. Management uses a rolling average of historical losses based on a three -year loss history to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels and trends in delinquencies; level and trend of charge-offs and recoveries; trends in volume and types of loans; effects of changes in risk selection and underwriting standards, changes in risk selection and underwriting standards; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. There were no changes in the Company’s methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Bank establishes maximum loan-to-value and debt-to-income ratios and minimum credit scores as an integral component of the underwriting criteria. Loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the income and credit quality of the individual borrower. Within the qualitative allowance factors, national and local economic trends including unemployment rates and potential declines in property value, are key elements reviewed as a component of establishing the appropriate allocation. Overall economic conditions, unemployment rates and housing price trends will influence the underlying credit quality of these segments. Commercial real estate – Loans in this segment are primarily income-producing properties throughout Connecticut, western Massachusetts, and other select markets in the Northeast. The underlying cash flows generated by the properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually, continually monitors the cash flows of these loans and performs stress testing. Construction loans – Loans in this segment primarily include commercial real estate development and residential subdivision loans for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial business loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy and its effect on business profitability and cash flow could have an effect on the credit quality in this segment. Installment and collateral loans – Loans in this segment are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. A significant portion of these loans are secured by boats. For acquired loans accounted for under ASC 310-30, our allowance for loan losses is estimated based upon our expected cash flows for these loans. To the extent that we experience a deterioration in borrower credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans. Allocated component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Residential and installment and collateral loans are evaluated for impairment if payments are 90 days or more delinquent. Updated property evaluations are obtained at time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. When a loan is determined to be impaired, the Company makes a determination if the repayment of the obligation is collateral dependent. As a majority of impaired loans are collateralized by real estate, appraisals on the underlying value of the property securing the obligation are utilized in determining the specific impairment amount that is allocated to the loan as a component of the allowance calculation. If the loan is collateral dependent, an updated appraisal is obtained within a short period of time from the date the loan is determined to be impaired; typically no longer than 30 days for a residential property and 90 days for a commercial real estate property. The appraisal and the appraised value are reviewed for adequacy and then further discounted for estimated disposition costs and the period of time until resolution, in order to determine the impairment amount. The Company updates the appraised value at least annually and on a more frequent basis if current market factors indicate a potential change in valuation. The majority of the Company’s loans are collateralized by real estate located in central and eastern Connecticut and western Massachusetts in addition to a portion of the commercial real estate loan portfolio located in the Northeast region of the United States. Accordingly, the collateral value of a substantial portion of the Company’s loan portfolio and real estate acquired through foreclosure is susceptible to changes in market conditions in these areas. Unallocated component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The allowance for loan losses has been determined in accordance with GAAP, under which the Company is required to maintain an allowance for probable losses at the balance sheet date. The Company is responsible for the timely and periodic determination of the amount of the allowance required. Management believes that the allowance for loan losses is adequate to cover specifically identifiable losses, as well as, estimated losses inherent in our portfolio that are probable, but not specifically identifiable. While management regularly evaluates the adequacy of the allowance for loan losses, future additions to the allowance may be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Servicing The Company services mortgage loans for others. Mortgage servicing assets are recognized at fair value as separate assets when rights are acquired through purchase or through sale of financial assets. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. The Company’s servicing asset valuation is performed by an independent third party using a static valuation model representing a projection of a single interest rate/market environment into the future and discounting the resulting assumed cash flow back to present value. Discount rates, servicing costs, float earnings rates and delinquency information as well as the use of the medium PSA quotations provided by Security Industry and Financial Market Association are used to calculate the value of the servicing asset. Capitalized servicing rights are reported in other assets at fair value, with changes in fair value recorded in income from mortgage banking activities. Other Real Estate Owned Real estate acquired through, or in lieu of, loan foreclosure is held for sale and is initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct write-downs are included in non-interest expense. Gains and losses on the sale of other real estate owned are recorded in other income (loss) in the Consolidated Statements of Net Income. Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) represents life insurance on certain current and former employees who have consented to allow the Bank to be the beneficiary of those policies. BOLI is recorded as an asset at cash surrender value. Increases in the cash surrender value of the policies, as well as insurance proceeds received, are recorded in non-interest income and are not subject to income tax. Management reviews the credit quality and financial strength of the insurance carriers on a quarterly and annual basis. BOLI with any individual carrier is limited to 15% of capital plus reserves. Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and no condition both constrains the transferee from taking advantage of that right and provides more than a trivial benefit for the transferor, and (3) the Company does not maintain effective control over the transferred assets through either: (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets which range from 3 to 39 1/2 years. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms excluding lease extension periods. Maintenance and repairs are expensed as incurred and improvements are capitalized. Marketing and Promotions Marketing and promotions costs are expensed as incurred. Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value through a charge to non-interest expense. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. No write-downs of long-lived assets were recorded for any period presented herein. Goodwill Goodwill is recognized for the excess of the acquisition cost over the fair values of the net assets acquired. Goodwill is not amortized and is instead reviewed for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying value. Any impairment write-down is charged to non-interest expense in the Consolidate |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | Note 2. RECENT ACCOUNTING PRONOUNCEMENTS Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 Leases (Topic 842) . This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts with Customers . The new leases standard represents a whole-sale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e. calendar periods beginning on January 1, 2019), and interim periods therein. Early adoption will be permitted for all entities. Management is currently analyzing the impact on the Company’s Consolidated Financial Statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures and limited liability companies, at fair value through net income. This new requirement does not apply to investments that qualify for the equity method of accounting or to those that result in consolidation of these investments. The ASU supersedes current guidance and no longer requires equity securities with readily determinable fair value to be classified into categories (i.e. trading or available for sale). The ASU clarifies that when identifying observable price changes, an entity should consider relevant transactions “that are known or can reasonably be known“ and that an entity is not required to spend undue cost and effort to identify such transactions. The ASU also indicates that an entity should consider a security’s rights and obligations, such as voting rights, distribution rights and preferences, and conversion features, when evaluating whether the security issued by the same issuer is similar to the equity security held by the entity. The ASU further provides for the elimination of disclosure requirements related to financial instruments measured at amortized cost. For public business entities, the new standard will require disclosure of fair value using the exit price notion for all financial instruments measured at amortized cost. Pursuant to the ASU, recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all entities, the ASU permits early adoption of the instrument-specific credit risk provision. Management is currently analyzing the impact on the Company’s Consolidated Financial Statements. Business Combinations In September 2015, the FASB issued ASU No. 2015-16 Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments which aims to simplify accounting for adjustments made to provisional amounts recognized in a business combination . The requirement per GAAP to retrospectively apply measurement-period adjustments to provisional amounts was eliminated. The new guidance requires that the acquiring company recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. In addition, an entity is required to present separately, on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not yet been made available for issuance. This ASU is not expected to have an impact on the Company’s Consolidated Financial Statements. Revenue from Contracts In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defer the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that reporting period. This ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements. Intangibles-Goodwill and Other-Internal-Use Software In April 2015, the FASB issued 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. The ASU provides criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. When a cloud computing arrangement includes a license of software, the customer will capitalize the fee attributable to the software license portion of the arrangement when the criteria for capitalization of internal-use software are met. When a cloud computing arrangement does not include a license of software, the customer will account for the arrangement as a service contract and expense the cost as the services are received. The ASU supersedes the guidance that required companies to analogize to lease accounting when determining the asset acquired in a software licensing arrangement. Entities may elect to adopt the ASU either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. For public business entities, the standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. For all other entities, the standard is effective for annual periods beginning after December 15, 2015, and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted for all entities. Entities that elect prospective transition should disclose the nature of, and reason for, the change in accounting policy, the transition method, and a qualitative description of the financial statement line items affected by the change. Entities that elect retrospective transition should also disclose quantitative information about the effects of the accounting change. This information should include the cumulative effect of the change on retained earnings or other components of equity or net assets in the statement of financial position as of the beginning of the earliest period presented. This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Interest-Imputation of Interest . In April 2015, the FASB issued ASU No. 2015-03, ( Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
MERGER
MERGER | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
MERGER | Note 3. MERGER The Company acquired 100% of the outstanding common shares and completed its merger with Legacy United on April 30, 2014. Legacy United’s principal subsidiary was a federally chartered savings bank headquartered in West Springfield, Massachusetts, which operated 35 branch locations, two express drive-up branches, and two loan production offices, primarily in the Springfield and Worcester regions of Massachusetts and in Central Connecticut. The Company entered into the Merger agreement based on its assessment of the anticipated benefits, including enhanced market share and expansion of its banking franchise. The Merger was accounted for as a purchase and, as such, was included in the results of operations from the date of the Merger. The Merger was funded with shares of Rockville common stock and cash. As of the close of trading on April 30, 2014, all of the shareholders of Legacy United received 1.3472 shares of Rockville for each share of Legacy United common stock owned at that date. Total consideration paid at closing was valued at $356.4 million , based on the closing price of $13.16 of Rockville common stock, the value of Legacy United exercisable options and cash paid for fractional shares on April 30, 2014. The following table summarizes the Merger on April 30, 2014: (Dollars and shares in thousands) Transaction Related Items Legacy United Goodwill Other Identifiable Intangibles Shares Issued Value of Legacy United Exercisable Options Total Purchase Price Balance at April 30, 2014 Assets Equity $ 2,442,525 $ 304,505 $ 114,211 $ 10,585 26,706 $ 4,909 $ 356,394 The transaction was accounted for using the purchase method of accounting in accordance with ASC Topic 805, Business Combinations . Accordingly, the purchase price was allocated based on the estimated fair market values of the assets and liabilities acquired. See the Company’s 2014 audited consolidated financial statements and notes thereto included in United Financial Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended December 31, 2014 for additional information. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLES | Note 4. GOODWILL AND CORE DEPOSIT INTANGIBLES The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows: Goodwill Core Deposit Intangible (In thousands) Balance at December 31, 2013 $ 1,070 $ — Acquisition of Legacy United 114,170 10,585 Amortization expense — (1,283 ) Balance at December 31, 2014 $ 115,240 $ 9,302 Adjustments 41 — Amortization expense — (1,796 ) Balance at December 31, 2015 $ 115,281 $ 7,506 Estimated amortization expense for the years ending December 31, 2016 $ 1,604 2017 1,411 2018 1,219 2019 1,026 2020 834 2021 and thereafter 1,412 Total remaining $ 7,506 The goodwill associated with the acquisition of Legacy United is not tax deductible. In accordance with ASC 350 , Intangibles – Goodwill and Other , goodwill will not be amortized, but will be subject to at least an annual impairment review. The Company tests goodwill impairment annually in the fourth quarter or more frequently if events or changes in circumstances indicate that impairment is possible. No impairment was recorded on goodwill for 2015 and 2014. The amortizing intangible asset associated with the acquisition consists of the core deposit intangible. The core deposit intangible is being amortized using the sum of the years’ digits method over its estimated life of 10 years . Amortization expense of the core deposit intangible was $1.8 million and $1.3 million for the years ended December 31, 2015 and 2014 . |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | Note 5. RESTRICTIONS ON CASH AND DUE FROM BANKS The Company is required to maintain a percentage of transaction account balances on deposit with the Federal Reserve Bank that was offset by the Company’s average vault cash. As of December 31, 2015 and 2014 , the Company was required to have cash and liquid assets of $24.0 million and $22.7 million , respectively, to meet these requirements. The Company is also required to maintain a reserve balance as part of their correspondent relationship with Bankers Bank Northeast. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | Note 6. SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities at December 31, 2015 and 2014 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 (In thousands) Available for sale: Debt securities: U.S. Government and government-sponsored enterprise obligations $ 10,159 $ 13 $ (83 ) $ 10,089 Government-sponsored residential mortgage-backed securities 146,434 731 (1,304 ) 145,861 Government-sponsored residential collateralized debt obligations 287,515 855 (1,403 ) 286,967 Government-sponsored commercial mortgage-backed securities 21,144 21 (200 ) 20,965 Government-sponsored commercial collateralized debt obligations 128,617 626 (271 ) 128,972 Asset-backed securities 162,895 43 (3,037 ) 159,901 Corporate debt securities 62,356 91 (2,487 ) 59,960 Obligations of states and political subdivisions 201,217 1,561 (1,663 ) 201,115 Total debt securities 1,020,337 3,941 (10,448 ) 1,013,830 Marketable equity securities, by sector: Banks 41,558 1,099 (544 ) 42,113 Industrial 109 34 — 143 Mutual funds 2,854 65 (4 ) 2,915 Oil and gas 132 36 — 168 Total marketable equity securities 44,653 1,234 (548 ) 45,339 Total available for sale securities $ 1,064,990 $ 5,175 $ (10,996 ) $ 1,059,169 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 2,205 $ 244 $ — $ 2,449 Obligations of states and political subdivisions 12,360 884 (10 ) 13,234 Total held to maturity securities $ 14,565 $ 1,128 $ (10 ) $ 15,683 December 31, 2014 Available for sale: Debt securities: U.S. Government and government-sponsored enterprise obligations $ 6,965 $ 94 $ (237 ) $ 6,822 Government-sponsored residential mortgage-backed securities 165,199 2,379 (159 ) 167,419 Government-sponsored residential collateralized debt obligations 237,128 1,365 (360 ) 238,133 Government-sponsored commercial mortgage-backed securities 67,470 1,081 (253 ) 68,298 Government-sponsored commercial collateralized debt obligations 129,547 737 (598 ) 129,686 Asset-backed securities 181,198 272 (2,715 ) 178,755 Corporate debt securities 43,907 35 (1,697 ) 42,245 Obligations of states and political subdivisions 194,857 1,572 (657 ) 195,772 Total debt securities 1,026,271 7,535 (6,676 ) 1,027,130 Marketable equity securities, by sector: Banks 22,645 277 (340 ) 22,582 Industrial 109 76 — 185 Mutual funds 2,824 89 (3 ) 2,910 Oil and gas 131 73 — 204 Total marketable equity securities 25,709 515 (343 ) 25,881 Total available for sale securities $ 1,051,980 $ 8,050 $ (7,019 ) $ 1,053,011 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 2,971 $ 339 $ — $ 3,310 Obligations of states and political subdivisions 12,397 1,006 — 13,403 Total held to maturity securities $ 15,368 $ 1,345 $ — $ 16,713 At December 31, 2015 , the net unrealized loss on securities available for sale of $5.8 million , net of income taxes of $2.1 million , or $3.7 million , was included in accumulated other comprehensive loss. At December 31, 2014 , the net unrealized gain on securities available for sale of $1.0 million , net of income taxes of $374,000 , or $656,000 , was included in accumulated other comprehensive loss. The amortized cost and fair value of debt securities at December 31, 2015 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because the securities may be called or repaid without any penalties. Because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary: Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Maturity: Within 1 year $ 529 $ 529 $ — $ — After 1 year through 5 years 9,340 9,190 1,193 1,202 After 5 years through 10 years 66,078 65,077 — — After 10 years 197,785 196,368 11,167 12,032 273,732 271,164 12,360 13,234 Government-sponsored mortgage-backed securities 146,434 145,861 2,205 2,449 Government-sponsored residential collateralized debt obligations 287,515 286,967 — — Government-sponsored commercial mortgage-backed securities 21,144 20,965 — — Government-sponsored commercial collateralized debt obligations 128,617 128,972 — — Asset-backed securities 162,895 159,901 — — Total debt securities $ 1,020,337 $ 1,013,830 $ 14,565 $ 15,683 At December 31, 2015 , the Company had 114 encumbered securities, with a fair value of $446.0 million , pledged as derivative collateral and collateral for reverse repurchase borrowings. See Notes 12 and 14. For the years ended December 31, 2015, 2014 and 2013 , proceeds from the sale of available for sale securities and gross realized gains and losses on the sale of available for sale securities are presented below: For the Years Ended December 31, 2015 2014 2013 (In thousands) Proceeds from the sale of available for sale securities $ 280,564 $ 511,044 $ 44,880 Gross gains on the sale of available for sale securities 3,090 2,711 804 Gross losses on the sale of available for sale securities 2,151 1,483 219 As of December 31, 2015 , the Company did not have any exposure to private-label mortgage-backed securities. The Company did not own any single security with an aggregate book value in excess of 10% of the Company’s stockholders’ equity at December 31, 2015 and 2014 . The Company’s Management Investment Committee reviews state exposure in the obligations of states and political subdivisions portfolio on an ongoing basis. As of December 31, 2015 , the estimated fair value of this portfolio was $214.4 million , with no significant geographic exposure concentrations. Of the total revenue and general obligations of $214.4 million , $101.9 million were representative of general obligation bonds for which $78.8 million are general obligations of political subdivisions of the respective state, rather than general obligations of the state itself. The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of December 31, 2015 and 2014 : Less than 12 months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) December 31, 2015 Available for sale: Debt securities: U.S. Government and government sponsored enterprise obligations $ 4,867 $ (66 ) $ 4,977 $ (17 ) $ 9,844 $ (83 ) Government-sponsored residential mortgage-backed securities 107,142 (1,183 ) 7,195 (121 ) 114,337 (1,304 ) Government-sponsored residential collateralized debt obligations 152,278 (1,357 ) 3,506 (46 ) 155,784 (1,403 ) Government-sponsored commercial mortgage-backed securities 16,207 (200 ) — — 16,207 (200 ) Government-sponsored commercial collateralized debt obligations 38,151 (221 ) 3,496 (50 ) 41,647 (271 ) Asset-backed securities 93,723 (1,233 ) 49,462 (1,804 ) 143,185 (3,037 ) Corporate debt securities 42,102 (797 ) 6,720 (1,690 ) 48,822 (2,487 ) Obligations of states and political subdivisions 47,878 (946 ) 42,685 (717 ) 90,563 (1,663 ) Total debt securities 502,348 (6,003 ) 118,041 (4,445 ) 620,389 (10,448 ) Marketable equity securities 18,449 (287 ) 6,176 (261 ) 24,625 (548 ) Total available for sale securities $ 520,797 $ (6,290 ) $ 124,217 $ (4,706 ) $ 645,014 $ (10,996 ) Held to Maturity: Debt Securities: Obligations of states and political subdivisions $ 1,104 $ (10 ) — — $ 1,104 $ (10 ) Total held to maturity securities $ 1,104 $ (10 ) — — $ 1,104 $ (10 ) December 31, 2014 Available for sale: Debt securities: U.S. Government and government sponsored enterprise obligations $ — $ — $ 4,757 $ (237 ) $ 4,757 $ (237 ) Government-sponsored residential mortgage-backed securities 1,492 (11 ) 19,785 (148 ) 21,277 (159 ) Government-sponsored residential collateralized debt obligations 35,769 (124 ) 17,443 (236 ) 53,212 (360 ) Government-sponsored commercial mortgage-backed securities 14,118 (15 ) 16,337 (238 ) 30,455 (253 ) Government-sponsored commercial collateralized debt obligations 62,477 (551 ) 4,991 (47 ) 67,468 (598 ) Asset-backed securities 128,808 (2,080 ) 20,146 (635 ) 148,954 (2,715 ) Corporate debt securities 30,634 (501 ) 5,054 (1,196 ) 35,688 (1,697 ) Obligations of states and political subdivisions 55,029 (419 ) 18,568 (238 ) 73,597 (657 ) Total debt securities 328,327 (3,701 ) 107,081 (2,975 ) 435,408 (6,676 ) Marketable equity securities: 12,716 (340 ) 140 (3 ) 12,856 (343 ) Total $ 341,043 $ (4,041 ) $ 107,221 $ (2,978 ) $ 448,264 $ (7,019 ) Of the securities summarized above as of December 31, 2015 , 146 issues had unrealized losses equaling 1.2% of the cost basis for less than twelve months and 96 issues had unrealized losses equaling 3.7% of the amortized cost basis for twelve months or more. As of December 31, 2014 , 155 issues had unrealized losses for less than twelve months and 78 issues had losses for twelve months or more. Management believes that no individual unrealized loss as of December 31, 2015 represents an other-than-temporary impairment, based on its detailed quarterly review of the securities portfolio. Among other things, the other-than-temporary impairment review of the investment securities portfolio focuses on the combined factors of percentage and length of time by which an issue is below book value as well as consideration of issuer specific information (present value of cash flows expected to be collected, issuer rating changes and trends, credit worthiness and review of underlying collateral), broad market details and the Company’s intent to sell the security or if it is more likely than not that the Company will be required to sell the debt security before recovering its cost. The Company also considers whether the depreciation is due to interest rates or credit risk. The following paragraphs outline the Company’s position related to unrealized losses in its investment securities portfolio at December 31, 2015 : U.S. Government and government-sponsored enterprises . The unrealized losses on the Company’s U.S. Government and government-sponsored securities were primarily caused by changes in interest rates and interest rate expectations. The Company does not expect these securities to settle at a price less than the par value of the securities. U.S. Government and government-sponsored collateralized mortgage obligations and commercial mortgage-backed securities. The unrealized losses on the Company’s U.S. Government and government-sponsored collateralized debt obligations and commercial mortgage backed securities were caused by the increase in average prepayment speeds given the path of the government yield curve over the period. The Company monitors this risk, and therefore, strives to minimize premiums within this security class. The Company does not expect these securities to settle at a price less than the par value of the securities. Obligations of states and political subdivisions. The unrealized loss on obligations of states and political subdivisions relates to securities with no geographic concentration. The unrealized loss was due to an upward shift in certain shorter parts of the municipal bond yield curve that resulted in a negative impact to the respective bonds’ pricing, relative to the time of purchase. Corporate debt securities. The unrealized losses on corporate debt securities is primarily related to one pooled trust preferred security, Preferred Term Security XXVIII, Ltd (“PRETSL XXVIII”). The unrealized loss on this security is primarily caused by the overall low interest rate environment because it reprices quarterly to the three month LIBOR and market spreads on similar securities have increased. No loss of principal or break in yield is projected. Based on the existing credit profile, management does not believe that this security will suffer from any credit related losses. The unrealized loss on the remainder of the corporate credit portfolio has been driven primarily by a general widening in credit spreads across the curve. Asset-Backed Securities . The unrealized losses on the Company’s asset-backed securities were largely driven a general widening in credit spreads across the yield curve. The majority of these securities have resetting coupons that adjust on quarterly basis and the market spreads on similar securities have increased. Based on the credit profiles and asset qualities of the individual securities, management does not believe that the securities will suffer from any credit related losses. The Company does not expect these securities to settle at a price less than the par value of the securities. The Company will continue to review its entire portfolio for other-than-temporarily impaired securities with additional attention being given to high risk securities such as the one pooled trust preferred security that the Company owns. |
LOANS RECEIVABLE AND ALLOWANCE
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND ALLOANCE FOR LOAN LOSSES | Note 7. LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES A summary of the Company’s loan portfolio at December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Real estate loans: Residential $ 1,611,197 $ 1,413,739 Commercial 1,995,332 1,678,936 Construction 171,006 185,843 Total real estate loans 3,777,535 3,278,518 Commercial business loans 603,332 613,596 Installment and collateral loans 233,064 5,752 Total loans 4,613,931 3,897,866 Net deferred loan costs and premiums 7,018 4,006 Allowance for loan losses (33,887 ) (24,809 ) Loans — net $ 4,587,062 $ 3,877,063 At December 31, 2015 , the Company had pledged $978.2 million and $185.0 million of eligible loan collateral to support available borrowing capacity at the FHLBB and FRB, respectively. See Note 12. Acquired Loans: Gross loans acquired from the Legacy United merger totaled $1.88 billion . Acquired performing loans totaled $1.86 billion with a fair value of $1.83 billion . The Company’s best estimate at the acquisition date of contractual cash flows not expected to be collected on acquired performing loans was $29.1 million . Loans acquired and determined to be impaired totaled $18.5 million . During December 2015, the Company purchased three loan portfolios consisting of marine finance consumer loans, Title 1 home improvement loans and home equity lines of credit. Gross loans purchased totaled $330.5 million , the outstanding balance of which at December 31, 2015 was $324.3 million . The impaired loans are accounted for in accordance with ASC 310-30. At December 31, 2015 , the net recorded carrying amount of loans accounted for under ASC 310-30 was $6.3 million and the aggregate outstanding principal balance was $12.1 million . The following table summarizes the activity in the non-accretable purchased accounting adjustments for purchased credit impaired acquired loans for the periods presented: For the Year Ended December 31, 2015 2014 (In thousands) Balance at beginning of period $ (7,989 ) $ — Acquisitions (3,674 ) (8,650 ) Accretion 223 648 Paid off 2,533 13 Reclassification to accretable 3,097 — Balance at end of year $ (5,810 ) $ (7,989 ) Allowance for Loan Losses . Changes in the allowance for loan losses for the years ended December 31, 2015, 2014 and 2013 are as follows: Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral Unallocated Total (In thousands) December 31, 2015 Balance, beginning of year $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 Provision (credit) for loan losses 3,155 6,291 891 1,693 292 683 13,005 Loans charged off (1,171 ) (1,018 ) (466 ) (2,513 ) (324 ) — (5,492 ) Recoveries of loans previously charged off 281 342 — 839 103 — 1,565 Balance, end of year $ 10,192 $ 15,033 $ 1,895 $ 5,827 $ 146 $ 794 $ 33,887 December 31, 2014 Balance, beginning of year $ 6,396 $ 8,288 $ 829 $ 3,394 $ 29 $ 247 $ 19,183 Provision (credit) for loan losses 3,250 1,880 641 3,723 138 (136 ) 9,496 Loans charged off (1,894 ) (750 ) — (1,406 ) (139 ) — (4,189 ) Recoveries of loans previously charged off 175 — — 97 47 — 319 Balance, end of year $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 December 31, 2013 Balance, beginning of year $ 6,194 $ 8,051 $ 807 $ 2,916 $ 29 $ 480 $ 18,477 Provision (credit) for loan losses 876 382 272 650 99 (233 ) 2,046 Loans charged off (811 ) (145 ) (250 ) (190 ) (124 ) — (1,520 ) Recoveries of loans previously charged off 137 — — 18 25 — 180 Balance, end of year $ 6,396 $ 8,288 $ 829 $ 3,394 $ 29 $ 247 $ 19,183 Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2015 and 2014 follows: Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral Unallocated Total (In thousands) December 31, 2015 Allowance related to loans individually evaluated and deemed impaired $ 74 $ — $ 147 $ 121 $ — $ — $ 342 Allowance related to loans collectively evaluated and not deemed impaired 10,118 15,033 1,748 5,531 146 794 33,370 Allowance related to loans acquired with deteriorated credit quality — — — 175 — — 175 Total allowance for loan losses $ 10,192 $ 15,033 $ 1,895 $ 5,827 $ 146 $ 794 $ 33,887 Loans deemed impaired $ 20,592 $ 17,960 $ 4,660 $ 13,035 $ 8 $ — $ 56,255 Loans not deemed impaired 1,590,605 1,975,349 166,346 588,982 230,061 — 4,551,343 Loans acquired with deteriorated credit quality — 2,023 — 1,315 2,995 — 6,333 Total loans $ 1,611,197 $ 1,995,332 $ 171,006 $ 603,332 $ 233,064 $ — $ 4,613,931 December 31, 2014 Allowance related to loans individually evaluated and deemed impaired $ 28 $ 316 $ 33 $ 882 $ — $ — $ 1,259 Allowance related to loans collectively evaluated and not deemed impaired 7,899 9,102 1,437 4,710 75 111 23,334 Allowance related to loans acquired with deteriorated credit quality — — — 216 — — 216 Total allowance for loan losses $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 Loans deemed impaired $ 15,981 $ 19,514 $ 2,610 $ 5,846 $ 46 $ — $ 43,997 Loans not deemed impaired 1,397,758 1,654,917 180,548 604,055 5,706 — 3,842,984 Loans acquired with deteriorated credit quality — 4,505 2,685 3,695 — — 10,885 Total loans $ 1,413,739 $ 1,678,936 $ 185,843 $ 613,596 $ 5,752 $ — $ 3,897,866 Past Due and Non-Accrual Loans . The following is a summary of past due and non-accrual loans at December 31, 2015 and 2014 : 30-59 Days Past Due 60-89 Days Past Due Past Due 90 Days or More Total Past Due Past Due 90 Days or More and Still Accruing Loans on Non-accrual (In thousands) December 31, 2015 Real estate loans: Residential $ 10,516 $ 2,758 $ 8,485 $ 21,759 $ 238 $ 19,122 Commercial 4,054 2,689 6,024 12,767 — 11,620 Construction 214 449 2,135 2,798 — 2,808 Commercial business 526 266 2,804 3,596 66 4,244 Installment and collateral 17 3 8 28 3 8 Total $ 15,327 $ 6,165 $ 19,456 $ 40,948 $ 307 $ 37,802 December 31, 2014 Real estate loans: Residential $ 18,913 $ 3,954 $ 7,320 $ 30,187 $ — $ 13,972 Commercial 7,734 3,967 9,509 21,210 2,361 12,514 Construction 1,403 227 695 2,325 84 611 Commercial business 2,782 3,812 7,486 14,080 2,307 5,217 Installment and collateral 34 — 12 46 — 44 Total $ 30,866 $ 11,960 $ 25,022 $ 67,848 $ 4,752 $ 32,358 At December 31, 2015 , loans reported as past due 90 days or more and still accruing represent Legacy United purchased credit impaired loans for which an accretable fair value interest mark is being recognized and one loan which is fully guaranteed by the U.S. Government. Impaired Loans . The following is a summary of impaired loans with and without a valuation allowance as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) Impaired loans without a valuation allowance: Real estate loans: Residential $ 19,315 $ 22,829 $ 15,233 $ 17,143 Commercial 17,960 20,381 18,408 21,202 Construction 4,442 6,869 2,384 2,441 Commercial business loans 12,634 14,477 3,804 6,129 Installment and collateral loans 8 11 46 34 Total 54,359 64,567 39,875 46,949 Impaired loans with a valuation allowance: Real estate loans: Residential 1,277 1,292 $ 74 748 892 $ 28 Commercial — — — 1,106 1,271 316 Construction 218 218 147 226 226 33 Commercial business loans 401 401 121 2,042 2,098 882 Total 1,896 1,911 342 4,122 4,487 1,259 Total impaired loans $ 56,255 $ 66,478 $ 342 $ 43,997 $ 51,436 $ 1,259 The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended For the Year Ended For the Year Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans: Real estate loans: Residential $ 18,213 $ 616 $ 12,721 $ 451 $ 9,999 $ 432 Commercial 18,424 694 11,868 284 4,407 45 Construction 3,784 299 2,646 81 2,720 46 Commercial business loans 7,835 431 3,087 121 1,525 46 Installment and collateral loans 24 — 110 1 36 2 Total $ 48,280 $ 2,040 $ 30,432 $ 938 $ 18,687 $ 571 No additional funds are committed to be advanced in connection with impaired loans other than those noted below in conjunction with TDRs. Troubled Debt Restructurings (“TDR”) . The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the restructuring constitutes a concession by the creditor and (ii) the debtor is experiencing financial difficulties. A TDR may include (i) a transfer from the debtor to the creditor of receivables from third parties, real estate, or other assets to satisfy fully or partially a debt, (ii) issuance or other granting of an equity interest to the creditor by the debtor to satisfy fully or partially a debt unless the equity interest is granted pursuant to existing terms for converting debt into an equity interest, and (iii) modifications of terms of a debt. The following table provides detail of TDR balances for the periods presented: At December 31, At December 31, (In thousands) Recorded investment in TDRs: Accrual status $ 18,453 $ 11,638 Non-accrual status 5,611 4,169 Total recorded investment in TDRs $ 24,064 $ 15,807 Accruing TDRs performing under modified terms more than one year $ 5,821 $ 1,919 Specific reserves for TDRs included in the balance of allowance for loan losses $ 223 $ 380 Additional funds committed to borrowers in TDR status $ 513 $ 210 Loans restructured as TDRs during 2015 and 2014 are set forth in the following table: For the Year Ended For the Year Ended (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential real estate 38 $ 4,632 $ 4,642 16 $ 2,497 $ 2,497 Commercial real estate 2 791 791 6 1,450 1,450 Construction 2 564 564 15 4,161 4,161 Commercial business 8 9,180 9,680 8 1,121 1,121 Installment & collateral — — — 1 2 2 Total TDRs 50 $ 15,167 $ 15,677 46 $ 9,231 $ 9,231 The following table provides information on how loans were modified as TDRs during the periods indicated: For the Year Ended December 31, 2015 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Residential real estate $ — $ 1,202 $ 1,659 $ 814 $ 967 Commercial real estate 538 — 253 — — Construction 564 — — — — Commercial business 9,673 — 7 — — Total $ 10,775 $ 1,202 $ 1,919 $ 814 $ 967 For the Year Ended December 31, 2014 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Residential real estate $ 80 $ 1,008 $ — $ 732 $ 677 Commercial real estate 448 564 438 — — Construction 3,980 — — — 181 Commercial business 548 — 57 — 516 Installment and collateral — — — 2 — Total $ 5,056 $ 1,572 $ 495 734 $ 1,374 Loans restructured as TDRs during 2013 totaled $8.3 million consisting of 19 loans. The majority of the balance was concentrated in commercial real estate, consisting of four loans, for which the maturity was extended. TDRs that subsequently defaulted within twelve months of restructuring during the years ended December 31, 2015 and 2014 follows: For the Year Ended For the Year Ended (Dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Residential real estate 5 $ 769 — $ — Commercial real estate 2 806 2 3,360 Total troubled debt restructuring 7 $ 1,575 2 $ 3,360 The financial impact of the TDR loans has been minimal to date. Typically, residential loans are restructured with a modification and extension of the loan amortization and maturity at substantially the same interest rate as contained in the original credit extension. As part of the TDR process, the current value of the property is compared to the Company’s carrying value and if not fully supported, a write down is processed through the allowance for loan losses. Commercial real estate loans and commercial business loans also contain payment modification agreements and a like assessment of the underlying collateral value is performed if the borrower’s cash flow may be inadequate to service the entire obligation. Credit Quality Information. The Company utilizes a nine -grade internal loan rating system for residential and commercial real estate, construction, commercial and installment and collateral loans as follows: Loans rated 1 — 5: Loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 6: Loans in this category are considered “special mention.” These loans reflect signs of potential weakness and are being closely monitored by management. Loans rated 7: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 8: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. At the time of loan origination, a risk rating based on this nine -point grading system is assigned to each loan based on the loan officer’s assessment of risk. For residential real estate and installment and collateral loans, the Company considers factors such as updated FICO scores, employment status, home prices, loan to value and geography. On an ongoing basis for portfolio monitoring purposes, the Company estimates the current value of property secured as collateral for impaired home equity and residential first mortgage lending products. Residential real estate and installment loans are pass rated unless their payment history reveals signs of deterioration, which may result in modifications to the original contractual terms. In situations which require modification to the loan terms, the internal loan grade will typically be reduced to substandard. More complex loans, such as commercial business loans and commercial real estate loans require that our internal credit area further evaluate the risk rating of the individual loan, with the credit area and Chief Credit Officer having final determination of the appropriate risk rating. These more complex loans and relationships receive an in-depth analysis and periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. The credit quality of the Company’s loan portfolio is reviewed by a third-party risk assessment firm on a quarterly basis and by the Company’s internal credit management function. The internal and external analysis of the loan portfolio is utilized to identify and quantify loans with higher than normal risk. Loans having a higher risk profile are assigned a risk rating corresponding to the level of weakness identified in the loan. All loans risk rated Special Mention, Substandard or Doubtful are reviewed by management not less than on a quarterly basis to assess the level of risk and to ensure that appropriate actions are being taken to minimize potential loss exposure. Loans identified as being loss are fully charged off. The following table presents the Company’s loans by risk rating at December 31, 2015 and 2014 : Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral (In thousands) December 31, 2015 Loans rated 1 — 5 $ 1,589,095 $ 1,909,091 $ 156,607 $ 568,248 $ 233,054 Loans rated 6 1,379 48,522 10,860 8,382 — Loans rated 7 20,720 37,719 3,539 26,655 10 Loans rated 8 — — — 47 — Loans rated 9 3 — — — — $ 1,611,197 $ 1,995,332 $ 171,006 $ 603,332 $ 233,064 December 31, 2014 Loans rated 1 — 5 $ 1,396,866 $ 1,606,420 $ 174,629 $ 570,808 $ 5,488 Loans rated 6 1,981 28,616 4,652 21,589 — Loans rated 7 14,892 43,900 6,562 21,154 264 Loans rated 8 — — — 45 — Loans rated 9 — — — — — $ 1,413,739 $ 1,678,936 $ 185,843 $ 613,596 $ 5,752 Related Party Loans . In the normal course of business, the Company grants loans to executive officers, Directors and other related parties. Changes in loans outstanding to such related parties for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 (In thousands) Balance, beginning of year $ 3,722 $ 2,020 Loans related to parties who terminated service during the year (1,495 ) (948 ) Additional loans and advances 875 2,848 Repayments (457 ) (198 ) Balance, end of year $ 2,645 $ 3,722 As of December 31, 2015 and 2014 , all related party loans were performing. Related party loans were made on the same terms as those for comparable loans and transactions with unrelated parties, other than certain mortgage loans which were made to employees with over one year of service with the Company which have rates 0.50% below market rates at the time of origination. Loan Servicing The Company services certain residential and commercial loans for third parties. The aggregate principal balance of loans serviced for others was $863.7 million , $559.1 million and $408.0 million as of December 31, 2015, 2014 and 2013 , respectively. The balances of these loans are not included in the accompanying Consolidated Statements of Condition. During the years ended December 31, 2015, 2014 and 2013 , the Company received servicing fee income in the amount of $1.3 million , $964,000 and $685,000 , respectively, which are included in income from mortgage banking activity in the Consolidated Statements of Net Income. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. At December 31, 2015 , the fair value of servicing rights was determined using pretax internal rates of return ranging from 9.5% to 11.5% and the Public Securities Association (“PSA”) Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 183 . At December 31, 2014 the fair value of servicing rights was determined using pretax internal rates of return ranging from 8.4% to 10.4% and the Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 187 . Mortgage servicing rights (“MSRs”) are included in other assets in the Consolidated Statements of Condition. Changes in the fair value of MSRs are included in other income (loss) in the Consolidated Statements of Net Income. The following table summarizes MSRs capitalized and amortized for the years ended December 31, 2015, 2014 and 2013 : Years Ended December 31, 2015 2014 2013 (In thousands) Mortgage servicing rights: Balance at beginning of year $ 4,729 $ 4,103 $ 1,083 Cumulative effect of net change in accounting principle — — 471 Addition of Legacy United mortgage servicing rights — 764 — Change in fair value recognized in net income (586 ) (1,269 ) 1,347 Issuances/additions 2,931 1,131 1,202 Balance at end of year $ 7,074 $ 4,729 $ 4,103 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | Note 8. PREMISES AND EQUIPMENT Premises and equipment at December 31, 2015 and 2014 are summarized as follows: At December 31, Estimated Useful Life 2015 2014 (In thousands) Land and improvements $ 950 $ 950 0 - 15 years Buildings 40,375 40,001 10 - 39.5 years Furniture and equipment 27,468 27,618 3 - 10 years Leasehold improvements 8,961 9,261 5 - 10 years Assets under capitalized leases 4,902 4,902 5 - 10 years Construction in progress — 586 82,656 83,318 Accumulated depreciation and amortization (27,877 ) (25,653 ) Premises and equipment, net $ 54,779 $ 57,665 Depreciation and amortization expense was $5.3 million , $3.8 million and $2.4 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Construction in progress at December 31, 2014 related to renovations on several of the Company’s offices and branches. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | Note 9. OTHER REAL ESTATE OWNED Other real estate owned (“OREO”) totaled $755,000 at December 31, 2015 and consisted of $604,000 of commercial real estate properties and $151,000 of residential real estate properties, which are held for sale. At December 31, 2014 , other real estate owned was $2.2 million and consisted of $923,000 of commercial real estate properties and $1.2 million of residential real estate properties. The decrease in OREO from the prior year is due to the sale of 12 properties. As a result of the Merger, $2.0 million in OREO was acquired. Other income totaling $3,000 , $11,000 and $23,000 was generated in 2015, 2014 and 2013 , respectively, from the rental of OREO property. OREO operating expenses were $127,000 , $579,000 and $587,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. The following is a summary of OREO activity for the dates indicated: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at beginning of year $ 2,239 $ 1,529 $ 2,846 Additions 1,099 2,339 3,097 Acquisition of Legacy United — 2,044 — Write-downs (118 ) (213 ) (287 ) Proceeds from sales (2,683 ) (3,869 ) (4,042 ) Gain (loss) on sales 218 409 (85 ) Balance at end of year $ 755 $ 2,239 $ 1,529 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Note 10. OTHER ASSETS The components of Other Assets at December 31, 2015 and 2014 are summarized below: At December 31, 2015 2014 (In thousands) Current tax receivable $ 4,770 $ 14,391 Partnership investments 21,441 13,461 Mortgage servicing rights 7,074 4,729 Derivative assets 12,910 4,074 Investment receivable 20 2,762 Other 12,766 9,715 Total other assets $ 58,981 $ 49,132 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | Note 11. DEPOSITS Deposits at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (In thousands) Demand and NOW $ 1,019,161 $ 902,460 Regular savings 508,377 528,614 Money markets 1,182,422 1,047,302 Time deposits 1,727,111 1,556,935 Total deposits $ 4,437,071 $ 4,035,311 Time deposits in denominations of $250,000 or more were $253.7 million and $265.4 million as of December 31, 2015 and 2014 , respectively. Contractual maturities of time deposits as of December 31, 2015 are summarized below: December 31, 2015 (In thousands) 2016 $ 1,061,959 2017 471,007 2018 95,520 2019 22,042 2020 76,583 $ 1,727,111 Included in time deposits are brokered deposits which amounted to $392.0 million and $241.9 million at December 31, 2015 and 2014 , respectively. Included in money market deposits at December 31, 2015 and 2014 are brokered deposits of $123.1 million and $111.8 million , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
BORROWINGS | Note 12. BORROWINGS Federal Home Loan Bank Advances Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of December 31, 2015 and 2014 are summarized below: December 31, 2015 December 31, 2014 Amount Weighted- Average Rate Amount Weighted- Average Rate (Dollars in thousands) 2015 $ — — % $ 435,763 0.38 % 2016 637,580 0.60 19,714 1.53 2017 151,000 1.76 66,000 2.72 2018 120,795 1.54 16,784 2.19 2019 20,000 1.63 20,000 1.63 Thereafter 16,130 2.21 17,300 2.19 $ 945,505 0.95 % $ 575,561 0.84 % The total carrying value of advances from the FHLBB at December 31, 2015 was $949.0 million , which includes a remaining fair value adjustment of $3.5 million on advances acquired in the Merger. At December 31, 2014 , the carrying value of FHLBB advances was $581.0 million , which includes a remaining fair value adjustment of $5.4 million on advances acquired in the Merger. At December 31, 2015 , eight advances totaling $41.0 million with interest rates ranging from 3.19% to 4.49% , which are scheduled to mature between 2017 and 2018 , are callable by the FHLBB. Advances are collateralized by first mortgage loans and investment securities with an estimated eligible collateral value of $1.3 billion and $853.8 million at December 31, 2015 and 2014 , respectively. In addition to the outstanding advances, the Bank also has access to an unused line of credit with the FHLBB amounting to $10.0 million at December 31, 2015 and 2014 . In accordance with an agreement with the FHLBB, the qualified collateral must be free and clear of liens, pledges and have a discounted value equal to the aggregate amount of the line of credit and outstanding advances. At December 31, 2015 , the Bank could borrow immediately an additional $265.1 million from the FHLBB, inclusive of the line of credit. The Bank is required to acquire and hold shares of capital stock in the FHLBB in an amount at least equal to the sum of 0.35% of the aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the beginning of each year, and up to 4.5% of its advances (borrowings) from the FHLBB. The carrying value of FHLBB stock approximates fair value based on the redemption provisions of the stock. At December 31, 2015 , the Bank had $51.2 million in FHLBB capital stock. Repurchase Agreements The following table presents the Company’s outstanding borrowings under repurchase agreements as of December 31, 2015 and December 31, 2014 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (Dollars in thousands) December 31, 2015 Repurchase Agreements U.S. Treasury and agency securities $ 19,278 $ 25,000 $ 20,000 $ — $ 64,278 December 31, 2014 Repurchase Agreements U.S. Treasury and agency securities $ 41,335 $ 49,242 $ — $ 20,000 $ 110,577 As of December 31, 2015 and 2014 , advances outstanding under wholesale reverse repurchase agreements totaled $45.0 million and $69.2 million , respectively. The outstanding advances at December 31, 2015 consisted of three individual borrowings with remaining terms of 3 years or less and a weighted average cost of 1.51% . The outstanding advances at December 31, 2014 had a weighted average cost of 1.07% . Retail repurchase agreements are for a term of one day and are backed by the purchasers’ interest in certain U.S. Government Agency securities or government-sponsored securities. As of December 31, 2015 , retail repurchase agreements totaled $19.3 million . The Company had $41.3 million of retail repurchase agreements at December 31, 2014. Subordinated Debentures On September 23, 2014, the Company closed its public offering of $75.0 million of its 5.75% Subordinated Notes due October 1, 2024 (the “Notes”). The Notes were offered to the public at par. The Company plans to use the proceeds for general corporate purposes. Interest on the Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2015. The carrying value, net of issuance costs, totaled $73.9 million and $73.8 million at December 31, 2015 and 2014 , respectively. The Company assumed junior subordinated debt as a result of the Merger in the form of trust preferred securities issued through a private placement offering with a face amount of $7.7 million . The Company recorded a fair value acquisition discount of $2.3 million on May 1, 2014. The remaining unamortized discount was $2.1 million and $2.2 million at December 31, 2015 and 2014, respectively. This issue has a maturity date of March 15, 2036 and bears a floating rate of interest that reprices quarterly at the 3-month LIBOR rate plus 1.85% . The interest rate at December 31, 2015 was 2.46% . A special redemption provision allows the Company to redeem this issue at par on March 15, June 15, September 15, or December 15 of any year subsequent to March 15, 2011. Other Borrowings The Company acquired secured borrowings totaling $2.8 million in the Merger. These borrowings related to two transfers of financial assets that did not meet the definition of a participating interest and did not meet sale accounting criteria; therefore, they are accounted for as secured borrowings and classified as long-term debt on the Consolidated Statements of Condition. Subsequent to the Merger, one of the financial assets paid off and the remaining balance was $1.7 million at December 31, 2015 . The Company has capital lease obligations for three of its leased banking branches, which were acquired in the Merger. At December 31, 2015 , the balance of capital lease obligations totaled $4.5 million . See Note 8 in th e Notes to Consolidated Financial Statements for further information. Other Sources of Wholesale Funding The Bank has relationships with brokered sweep deposit providers by which funds are deposited by the counterparties at the Bank’s request. Amounts outstanding under these agreements are reported as interest-bearing deposits and totaled $123.1 million at a cost of 0.45% at December 31, 2015 and $111.8 million at a cost of 0.47% at December 31, 2014 . The Bank maintains open dialogue with the brokered sweep providers and has the ability to increase the deposit balances upon request, up to certain limits based upon internal policy requirements. Additionally, the Company has unused federal funds lines of credit with six counterparties totaling $137.5 million at December 31, 2015 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 13. INCOME TAXES The components of the income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 (In thousands) Current tax provision (benefit) Federal $ 1,302 $ (13,905 ) $ 4,842 State 1,345 311 117 Total current 2,647 (13,594 ) 4,959 Deferred tax provision (benefit) Federal 3,275 7,482 410 State 307 (121 ) — Total deferred 3,582 7,361 410 Total income tax expense (benefit) $ 6,229 $ (6,233 ) $ 5,369 For the years ended December 31, 2015, 2014 and 2013 , the provision for income taxes differs from the amount computed by applying the statutory Federal income tax rate of 35% to pre-tax income for the following reasons: Years Ended December 31, 2015 2014 2013 (In thousands) Provision for income tax at statutory rate $ 19,554 $ 192 $ 6,859 Increase (decrease) resulting from: State income taxes, net of federal benefit 1,074 124 76 Increase in cash surrender value of bank-owned life insurance (1,266 ) (1,065 ) (732 ) Dividend received deduction (471 ) (276 ) (24 ) Tax exempt interest and disallowed interest expense (3,826 ) (1,740 ) (808 ) Employee Stock Ownership Plan 25 153 193 Nondeductible acquisition costs — 440 — Excess parachute payments 442 1,615 — Investment tax credits (8,649 ) (5,596 ) — Other, net (654 ) (80 ) (195 ) Total provision (benefit) for income taxes $ 6,229 $ (6,233 ) $ 5,369 Effective income tax rate (benefit) 11.1 % (11.4 )% 27.4 % The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: December 31, 2015 2014 (In thousands) Deferred tax assets: Loans $ 14,558 $ 17,601 Investment security losses 150 440 Net unrealized losses on securities available for sale 2,107 — Net unrealized losses on interest rate swaps 1,603 390 Pension, deferred compensation and post-retirement liabilities 2,723 4,279 Stock incentive award plan 2,044 2,871 Deposits - purchase accounting adjustment 891 2,149 Accrued expenses 8,043 3,124 Tax credits 3,539 5,116 Other 3,166 4,484 Gross deferred tax assets 38,824 40,454 Valuation allowance (2,706 ) (2,463 ) Gross deferred tax assets, net of valuation allowance 36,118 37,991 Deferred tax liabilities: Net unrealized gains on securities available for sale — (455 ) Other purchase accounting adjustments (3,024 ) (3,703 ) Gross deferred tax liabilities (3,024 ) (4,158 ) Net deferred tax asset $ 33,094 $ 33,833 The Company assesses the realizability of our deferred tax assets and whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The Company considers projections of future taxable income during the periods in which deferred tax assets and liabilities are scheduled to reverse. Additionally, in determining the availability of operating loss carrybacks and other tax attributes, both projected future taxable income and tax planning strategies are considered in making this assessment. Based upon the level of available historical taxable income, the opportunity for the net operating loss carrybacks, and projections for the Company’s future taxable income over the periods which the Company’s deferred tax assets are realizable, the Company believes it is more likely than not that it will realize the full federal benefit of these deductible differences at December 31, 2015 and 2014 . Net operating losses may be carried back to the preceding two taxable years for Federal income tax purposes and forward to the succeeding 20 taxable years for Federal and State income tax purposes, subject to certain limitations. At December 31, 2015 , the Company had net operating loss carryforwards of $ 1.8 million for Federal income tax purposes, which will begin to expire in 2023. These losses, subject to an annual limitation, were obtained through the acquisition of Legacy United Bank. As of December 31, 2015 and 2014 , the Company had a valuation allowance of $ 2.7 million and $ 2.5 million , respectively, against its state deferred tax asset absent net operating loss carryforwards, in connection with the creation of a Connecticut Passive Investment Company pursuant to legislation enacted in 1998. As of December 31, 2015 and 2014 , the Company had $ 174.3 million and $168.4 million , respectively, in Connecticut net operating loss carryforwards that will begin to expire in 2023 and for which a 100% valuation allowance has been established. Under the Passive Investment Company legislation, Connecticut Passive Investment Companies are not subject to the Connecticut Corporate Business Tax and dividends paid by the passive investment company to the Company are exempt from the Connecticut Corporate Business Tax. The change in the valuation allowance was recognized through the effective tax rate. For the year ended December 31, 2015 , the Company generated tax credits of $10.1 million . The Company generated approximately $ 6.6 million in Federal and State tax credits in 2014 associated with investment tax credits that arose in 2014 either obtained from the acquisition of Legacy United or through direct investment. The credit benefit is recognized through the effective tax rate in the year in which they become available. Retained earnings at December 31, 2015 includes a contingency reserve for loan losses of approximately $3.8 million , which represents the tax positions that existed at December 31, 1987, and is maintained in accordance with provisions of the Internal Revenue Code applicable to mutual savings banks. Amounts transferred to the reserve have been claimed as deductions from taxable income, and, if the reserve is used for purposes other than to absorb losses on loans, a Federal income tax liability could be incurred. It is not anticipated that the Company will incur a Federal income tax liability relating to this reserve balance, and accordingly, deferred income taxes of approximately $1.4 million at December 31, 2015 have not been recognized. As of December 31, 2015 and 2014 , there were $375,000 and $252,000 in uncertain tax positions related to federal and state income tax matters based upon tax positions that related to the current year, respectively. Prior to 2014, there were no material uncertain tax positions related to income tax matters. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2015, 2014 and 2013 . The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 and after. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | Note 14. DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of December 31, 2015 and 2014 is as follows: Notional Amount Weighted- Average Remaining Maturity Weighted-Average Rate Estimated Fair Value Net Received Paid (In thousands) (In years) (In thousands) December 31, 2015 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 150,000 7.99 TBD (1 ) 2.46 % $ (2,072 ) Interest rate swaps 280,000 2.65 0.46 % 1.28 % (2,020 ) Fair value hedges: Interest rate swaps 35,000 1.72 1.04 % 0.48 % (2 ) 24 Non-hedging derivatives: Forward loan sale commitments 25,060 0.00 (13 ) Derivative loan commitments 9,403 0.00 223 Loan level swaps - dealer (3) 333,981 9.05 1.94 % 3.93 % (12,059 ) Loan level swaps - borrowers (3) 333,981 9.05 3.93 % 1.94 % 12,152 Total $ 1,167,425 $ (3,765 ) December 31, 2014 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 150,000 6.34 TBD (1 ) 2.45 % $ (1,069 ) Interest rate swaps 25,000 2.41 0.23 % 0.90 % 72 Fair value hedges: Interest rate swaps 35,000 2.72 1.04 % 0.24 % (2 ) (82 ) Non-hedging derivatives: Forward loan sale commitments 14,091 0.00 (14 ) Derivative loan commitments 8,839 0.00 213 Loan level swaps - dealer (3) 86,446 8.69 1.98 % 4.34 % 3,678 Loan level swaps - borrowers (3) 86,446 8.69 4.34 % 1.98 % (3,678 ) Total $ 405,822 $ (880 ) (1) The receiver leg of the cash flow hedges is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for the cash flow hedges is January 4, 2016. (2) The paying leg is one month LIBOR plus a fixed spread ; above rate in effect as of December 31, 2015 . (3) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using cash flow hedges are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company has not recorded any hedge ineffectiveness since inception. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $1.9 million from accumulated other comprehensive loss to interest expense during the next 12 months. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 36 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of December 31, 2015 , the Company had ten outstanding interest rate swaps with a notional value of $430.0 million that were designated as cash flow hedges of interest rate risk. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. During the years ended December 31, 2015 and 2014 , amounts recognized as interest expense related to hedge ineffectiveness were negligible. The net reduction of interest income was negligible for the year ended December 31, 2015 . The Company recognized a net reduction of interest income of approximately $24,000 for the year ended December 31, 2014 related to net settlements on the derivatives. As of December 31, 2015 , the Company had three outstanding interest rate swaps with a notional of $35.0 million that were designated as fair value hedges of interest rate risk. Non-Designated Hedges Loan Level Interest Rate Swaps Qualifying derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers, which the Company implemented during the second quarter of 2013. The Company executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. As of December 31, 2015 , the Company had fifty-one borrower-facing interest rate swaps with an aggregate notional amount of $334.0 million and fifty-one broker-facing interest rate swaps also with an aggregate notional value amount of $334.0 million related to this program. As of December 31, 2015 , the Company had three risk participation agreements with two counterparties related to a loan level interest rate swap with three of its commercial banking customers. Of these agreements, two were entered into in conjunction with credit enhancements provided to the borrowers by the counterparties; therefore, if the borrowers default, the counterparties are responsible for a percentage of the exposure. During the third quarter of 2015, one agreement was entered into in conjunction with credit enhancements provided to the borrower by the Bank, whereby the Bank is responsible for a percentage of the exposure to the counterparty. At December 31, 2015 , the notional amount of this risk participation agreement was $6.3 million , reflecting the counterparty participation of 3.1% . The risk participation agreements are a guarantee of performance on a derivative and accordingly, are recorded at fair value on the Company’s Consolidated Statements of Condition. At December 31, 2015 , the notional amount of the remaining two risk participation agreements was $6.4 million , reflecting the counterparty participation level of 46.9% . Derivative Loan Commitments The Company enters into mortgage loan commitments that are also referred to as derivative loan commitments, if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, 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. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, 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. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Fair Values of Derivative Instruments on the Company’s Consolidated Statements of Financial Condition The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of December 31, 2015 and 2014 : Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Dec 31, Dec 31, Balance Sheet Location Dec 31, Dec 31, (In thousands) (In thousands) Derivatives designated as hedging instruments: Interest rate swap - cash flow hedge Other Assets $ 478 $ 140 Other Liabilities $ 4,570 $ 1,137 Interest rate swap - fair value hedge Other Assets 50 34 Other Liabilities 26 116 Total derivatives designated as hedging instruments $ 528 $ 174 $ 4,596 $ 1,253 Derivatives not designated as hedging instruments: Forward loan sale commitment Other Assets $ 7 $ 7 Other Liabilities $ 20 $ 21 Derivative loan commitment Other Assets 223 213 — — Interest rate swap - with customers Other Assets 12,152 3,678 Other Liabilities — — Interest rate swap - with counterparties — — Other Liabilities 12,059 3,816 Interest rate swap -risk participation agreement Other Assets — 1 — — Total derivatives not designated as hedging $ 12,382 $ 3,899 $ 12,079 $ 3,837 Effect of Derivative Instruments in the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity The tables below present the effect of derivative instruments in the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 : Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps $ (3,108 ) $ (8,385 ) $ 7,537 Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps $ (12 ) $ — $ — Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, Derivatives in Fair Value Hedging Relationships Location on Gain (Loss) Recognized in Income 2015 2014 2013 (In thousands) Interest Rate Swaps Interest income $ 106 $ 101 $ (183 ) Amount of Gain (Loss) Recognized in Income on Hedged Items For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps Interest income $ (106 ) $ (101 ) $ 183 The table below presents the effect of derivative instruments in the Company’s Consolidated Statements of Net Income for derivatives not designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 : Amount of Gain (Loss) Recognized for the Years Ended December 31, 2015 2014 2013 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitment $ 10 $ 193 $ (6 ) Forward loan sale commitments (1 ) (33 ) (19 ) Interest rate swaps 231 (70 ) 70 Interest rate swap - risk participation agreement — (1 ) — $ 240 $ 89 $ 45 Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness or fails to maintain a well-capitalized rating, then the Company could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty. As of December 31, 2015 and 2014 , there was no collateral posted by the counterparties to the Company related to these agreements, respectively. As of December 31, 2015 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $16.9 million . As of December 31, 2015 , the Company has minimum collateral posting thresholds with five of its derivative counterparties and has posted collateral with a market value of $16.4 million against its obligations under these agreements. A degree of netting occurs on occasions where the Company has exposure to a counterparty and the counterparty has exposure to the Company. If the Company had breached any of these provisions at December 31, 2015 , it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. As of December 31, 2015 and 2014 , the fair value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for non-performance risk, related to these agreements was $2.1 million and $1.1 million , respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 15. FAIR VALUE MEASUREMENT Fair value estimates are made as of a specific point in time based on the characteristics of the assets and liabilities and relevant market information. The fair value estimates are measured within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 : Quoted prices are available in active markets for identical assets and liabilities as of the reporting date. The quoted price is not adjusted because of the size of the position relative to trading volume. Level 2 : Pricing inputs are observable for assets and liabilities, either directly or indirectly but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies. Level 3 : Pricing inputs are unobservable for assets and liabilities and include situations where there is little, if any, market activity and the determination of fair value requires significant judgment or estimation. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such instances, the determination of which category within the fair value hierarchy is appropriate for any given asset and liability is based on the lowest level of input that is significant to the fair value of the asset and liability. When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates and could be material. Derived fair value estimates may not be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument. Fair value estimates for financial instrument fair value disclosures are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company. Loans Held for Sale: The Company has elected the fair value option for its portfolio of residential real estate mortgage loans held for sale to reduce certain timing differences and better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them. The aggregate principal amount of the residential real estate mortgage loans held for sale was $9.8 million and $8.1 million at December 31, 2015 and 2014 , respectively. The aggregate fair value of these loans as of the same dates was $10.1 million and $8.2 million , respectively. There were no residential real estate mortgage loans held for sale 90 days or more past due at December 31, 2015 and 2014 . Changes in the fair value of mortgage loans held for sale are reported as a component of income from mortgage banking activities in the Consolidated Statements of Net Income. The following table presents the gains (losses) in fair value related to mortgage loans held for sale for the periods indicated: Years Ended December 31, 2015 2014 (In thousands) Mortgage loans held for sale $ (50 ) $ 195 Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables detail the assets and liabilities carried at fair value on a recurring basis as of December 31, 2015 and 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during years ended December 31, 2015 and 2014 . Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2015 Available for Sale Securities: U.S. Government and government-sponsored enterprise obligations $ 10,089 $ — $ 10,089 $ — Government-sponsored residential mortgage-backed securities 145,861 — 145,861 — Government-sponsored residential collateralized debt obligations 286,967 — 286,967 — Government-sponsored commercial mortgage-backed securities 20,965 — 20,965 — Government-sponsored commercial collateralized debt obligations 128,972 — 128,972 — Asset-backed securities 159,901 — 15,388 144,513 Corporate debt securities 59,960 — 58,403 1,557 Obligations of states and political subdivisions 201,115 — 201,115 — Marketable equity securities 45,339 3,227 42,112 — Total available for sale securities $ 1,059,169 $ 3,227 $ 909,872 $ 146,070 Mortgage loan derivative assets $ 230 $ — $ 230 $ — Mortgage loan derivative liabilities 20 — 20 — Loans held for sale 10,136 — 10,136 — Mortgage servicing rights 7,074 — — 7,074 Interest rate swap assets 12,680 — 12,680 — Interest rate swap liabilities 16,655 — 16,655 — December 31, 2014 Available for Sale Securities: U.S. Government and government-sponsored enterprise obligations $ 6,822 $ — $ 6,822 $ — Government-sponsored residential mortgage-backed securities 167,419 — 167,419 — Government-sponsored residential collateralized debt obligations 238,133 — 238,133 — Government-sponsored commercial mortgage-backed securities 68,298 — 68,298 — Government-sponsored commercial collateralized debt obligations 129,686 — 129,686 — Asset-backed securities 178,755 — 43,166 135,589 Corporate debt securities 42,245 — 40,627 1,618 Obligations of states and political subdivisions 195,772 — 195,772 — Marketable equity securities 25,881 3,299 22,582 — Total available for sale securities $ 1,053,011 $ 3,299 $ 912,505 $ 137,207 Mortgage loan derivative assets $ 220 $ — $ 220 $ — Mortgage loan derivative liabilities 21 — 21 — Loans held for sale 8,220 — 8,220 — Mortgage servicing rights 4,729 — — 4,729 Interest rate swap assets 3,853 — 3,853 — Interest rate swap liabilities 4,931 — 4,931 — The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value: For the Years Ended December 31, 2015 2014 (In thousands) Balance of available for sale securities, at beginning of period $ 137,207 $ 72,963 Purchases 10,794 72,115 Principal payments (1,392 ) (6,915 ) Total unrealized gains (losses) included in other comprehensive income (539 ) (956 ) Balance at end of period $ 146,070 $ 137,207 Balance of mortgage servicing rights at beginning of period $ 4,729 $ 4,103 Addition of Legacy United mortgage servicing rights — 764 Issuances 2,931 1,131 Change in fair value recognized in net income (586 ) (1,269 ) Balance at end of period $ 7,074 $ 4,729 The following valuation methodologies are used for assets that are recorded at fair value on a recurring basis. Available for Sale Securities: Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. Level 1 securities are those traded on active markets for identical securities including U.S. treasury securities, equity securities and mutual funds. Level 2 securities include U.S. Government agency obligations, U.S. Government-sponsored enterprises, mortgage-backed securities, obligations of states and political subdivisions, corporate and other debt securities. Level 3 securities include private placement securities and thinly traded equity securities. All fair value measurements are obtained from a third party pricing service and are not adjusted by management. Matrix pricing is used for pricing most obligations of states and political subdivisions, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on securities relationships to other benchmark quoted securities. The grouping of securities is completed according to insurer, credit support, state of issuance and rating to incorporate additional spreads and municipal bond yield curves. The valuation of the Company’s asset-backed securities is determined utilizing an approach that combines advanced analytics with structural and fundamental cash flow analysis based upon observed market based yields. The third party provider’s model analyzes each instrument’s underlying collateral given observable collateral characteristics and credit statistics to extrapolate future performance and project cash flows, by incorporating expectations of default probabilities, recovery rates, prepayment speeds, loss severities and a derived discount rate. The Company has determined that due to the liquidity and significance of unobservable inputs, that asset-backed securities are classified in Level 3 of the valuation hierarchy. The Company holds one pooled trust preferred security. The security’s fair value is based on unobservable issuer-provided financial information and discounted cash flow models derived from the underlying structured pool and therefore is classified as Level 3. Loans Held for Sale: The fair value of residential mortgage loans held for sale is estimated using quoted market prices for loans with similar characteristics provided by government-sponsored entities. Any changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk The Company has determined that loans held for sale are classified in Level 2 of the valuation hierarchy. Mortgage Servicing Rights: A mortgage servicing right (“MSR”) asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The fair value of servicing rights is provided by a third party and 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 recorded monthly, as the cash flows derived from the valuation model change the fair 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. Derivatives: Derivative instruments related to commitments for loans to be sold are carried at fair value. Fair value is determined through quotes obtained from actively traded mortgage markets. Any change in fair value for rate lock commitments to the borrower is based upon the change in market interest rates between making the rate lock commitment and the measurement date and, for forward loan sale commitments to the investor, is based upon the change in market interest rates from entering into the forward loan sales contract and the measurement date. Both the rate lock commitments to the borrowers and the forward loan sale commitments to investors are derivatives pursuant to the requirements of FASB ASC 815-10; however, the Company has not designated them as hedging instruments. Accordingly, they are marked to fair value through earnings. The Company’s intention is to sell the majority of its fixed rate mortgage loans with original terms of 30 years on a servicing retained basis as well as certain 10 , 15 and 20 year loans. The servicing value has been included in the pricing of the rate lock commitments. The Company estimates a fallout rate of approximately 11% based upon historical averages in determining the fair value of rate lock commitments. Although the use of historical averages is based upon unobservable data, the Company believes that this input is insignificant to the valuation and, therefore, has concluded that the fair value measurements meet the Level 2 criteria. The Company continually reassesses the significance of the fallout rate on the fair value measurement and updates the fallout rate accordingly. Hedging derivatives include interest rate swaps as part of management’s strategy to manage interest rate risk. 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 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 following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at December 31, 2015 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Asset-backed securities $ 144,513 Discounted Cash Flow Discount Rates 1.5% - 6.7% (5.5%) Cumulative Default % 6.1% - 11.8% (8.7%) Loss Given Default 1.8% - 3.9% (2.8%) Corporate debt - pooled trust $ 1,557 Discounted Cash Flow Discount Rate 7.0% (7.0%) preferred security Cumulative Default % 2.8% - 42.1% (12.2%) Loss Given Default 85% - 100% (94.2%) Mortgage servicing rights $ 7,074 Discounted Cash Flow Discount Rate 9.0% - 18.0% (10.5%) Cost to Service $50 - $110 ($61.37) Float Earnings Rate 0.25% (0.25%) Asset-backed securities : Given the level of market activity for the asset backed securities in the portfolio, the discount rates utilized in the fair value measurement were derived by analyzing current market yields for comparable securities and research reports issued by brokers and dealers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of the asset backed securities in the portfolio included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the default percentages and the fair value measurement. When default percentages increase, the fair value decreases. Corporate debt : Given the level of market activity the trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement were derived by analyzing current market yields for trust preferred securities of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of the collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral. As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When default percentages increase, the fair value decreases. Mortgage servicing rights : The discount rate utilized in the fair value measurement was derived by analyzing recent and historical pricing for MSRs. Adjustments were then made for various loan and investor types underlying these MSRs. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of MSR’s include cost to service, an input that is not as simple as taking total costs and dividing by a number of loans. It is a figure informed by marginal cost and pricing for MSRs by competing firms, taking other assumptions into consideration. It is different for different loan types. There is an inverse correlation between the cost to service and the fair value measurement. When the cost assumption increase, the fair value decreases. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with generally accepted accounting principles; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2015 and 2014 . The following tables detail the assets carried at fair value on a non-recurring basis at December 31, 2015 and 2014 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value: Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2015 Impaired loans $ 2,096 $ — $ — $ 2,096 Other real estate owned 755 — — 755 Total $ 2,851 $ — $ — $ 2,851 December 31, 2014 Impaired loans $ 2,863 $ — $ — $ 2,863 Other real estate owned 2,239 — — 2,239 Total $ 5,102 $ — $ — $ 5,102 The following is a description of the valuation methodologies used for assets that are recorded at fair value on a non-recurring basis: Other Real Estate Owned: The Company classifies property acquired through foreclosure or acceptance of deed-in-lieu of foreclosure, as other real estate owned (“OREO”) in its financial statements. Upon foreclosure, the property securing the loan is recorded at fair value as determined by real estate appraisals less the estimated selling expense. Appraisals are based upon observable market data such as comparable sales within the real estate market. Assumptions are also made based on management’s judgment of the appraisals and current real estate market conditions and therefore these assets are classified as non-recurring Level 3 assets in the fair value hierarchy. Impaired Loans : Accounting standards require that a creditor recognize the impairment of a loan if the present value of expected future cash flows discounted at the loan’s effective interest rate (or, alternatively, the observable market price of the loan or the fair value of the collateral) is less than the recorded investment in the impaired loan. Non-recurring fair value adjustments to collateral dependent loans are recorded, when necessary, to reflect partial write-downs and the specific reserve allocations based upon observable market price or current appraised value of the collateral less selling costs and discounts based on management’s judgment of current conditions. Based on the significance of management’s judgment, the Company records collateral dependent impaired loans as non-recurring Level 3 fair value measurements. Gains (losses) on assets recorded at fair value at year-end on a non-recurring basis are as follows: For the Years Ended December 31, 2015 2014 2013 (In thousands) Impaired loans $ (274 ) $ (1,865 ) $ (977 ) Other real estate owned (218 ) (409 ) (85 ) Total $ (492 ) $ (2,274 ) $ (1,062 ) Disclosures about Fair Value of Financial Instruments The following methods and assumptions were used by management to estimate the fair value of each additional class of financial instruments for which it is practicable to estimate that value. Cash and Cash Equivalents: Carrying value is assumed to represent fair value for cash and due from banks and short-term investments, which have original maturities of 90 days or less. Loans Receivable - net: The fair value of the net loan portfolio is determined by discounting the estimated future cash flows using the prevailing interest rates and appropriate credit and prepayment risk adjustments as of period-end at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-performing loans is estimated using the Bank’s prior credit experience. Federal Home Loan Bank of Boston (“FHLBB”) stock: FHLBB stock is a non-marketable equity security which is assumed to have a fair value equal to its carrying value due to the fact that it can only be redeemed by the FHLB Boston at par value. Accrued Interest Receivable: Carrying value is assumed to represent fair value. Deposits and Mortgagors’ and Investors’ Escrow Accounts: The fair value of demand, non-interest- bearing checking, savings and certain money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using rates offered for deposits of similar remaining maturities as of period-end. FHLBB Advances and Other Borrowings: The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings. As of December 31, 2015 and 2014 , the carrying value and estimated fair values of the Company’s financial instruments are as described below: Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2015 Financial assets: Cash and cash equivalents $ 95,176 $ 95,176 $ — $ — $ 95,176 Available for sale securities 1,059,169 3,227 909,872 146,070 1,059,169 Held to maturity securities 14,565 — 15,683 — 15,683 Loans held for sale 10,136 — 10,136 — 10,136 Loans receivable-net 4,587,062 — — 4,629,243 4,629,243 FHLBB stock 51,196 — — 51,196 51,196 Accrued interest receivable 15,740 — — 15,740 15,740 Derivative assets 12,910 — 12,910 — 12,910 Mortgage servicing rights 7,074 — — 7,074 7,074 Financial liabilities: Deposits 4,437,071 — — 4,436,456 4,436,456 Mortgagors’ and investors’ escrow accounts 13,526 — — 13,526 13,526 FHLBB advances and other borrowings 1,099,020 — 1,096,452 — 1,096,452 Derivative liabilities 16,675 — 16,675 — 16,675 December 31, 2014 Financial assets: Cash and cash equivalents $ 86,952 $ 86,952 $ — $ — $ 86,952 Available for sale securities 1,053,011 3,299 912,505 137,207 1,053,011 Held to maturity securities 15,368 — 16,713 — 16,713 Loans held for sale 8,220 — 8,220 — 8,220 Loans receivable-net 3,877,063 — — 3,919,432 3,919,432 FHLBB stock 31,950 — — 31,950 31,950 Accrued interest receivable 14,212 — — 14,212 14,212 Derivative assets 4,073 — 4,073 — 4,073 Mortgage servicing rights 4,729 — — 4,729 4,729 Financial liabilities: Deposits 4,035,311 — — 3,899,658 3,899,658 Mortgagors’ and investors’ escrow accounts 13,004 — — 13,004 13,004 FHLBB advances and other borrowings 777,314 — — 773,786 773,786 Derivative liabilities 4,952 — 4,952 — 4,952 Certain financial instruments and all nonfinancial investments are exempt from disclosure requirements. Accordingly, the aggregate fair value of amounts presented above may not necessarily represent the underlying fair value of the Company. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | Note 16. SHARE-BASED COMPENSATION PLANS The Company maintains and operates the Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”) as approved by the Company’s Board and stockholders. The 2006 Plan allows the Company to use stock options, stock awards, stock appreciation rights and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company. The 2006 Plan allows for the issuance of a maximum of 349,830 restricted stock shares and 1,326,467 stock options. There were no restricted shares or stock options granted from the Plan in 2015 . The Company maintains and operates the Rockville Financial, Inc. 2012 Stock Incentive Award Plan (the “2012 Plan”) as approved by the Company’s Board and stockholders. The 2012 Plan allows the Company to use stock options, stock awards, stock appreciation rights and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company. The 2012 Plan allows for the issuance of a maximum of 684,395 restricted stock shares and 1,710,989 stock options. There were 27,330 restricted shares and no stock option awards granted from the 2012 Plan in 2015 . None of the restricted shares granted are performance vested. In connection with the Merger, the Company assumed the following Legacy United share-based compensation plans: (a) United Financial Bancorp, Inc. 2006 Stock-Based Incentive Plan, (b) United Financial Bancorp, Inc. 2008 Equity Incentive Plan, (c) CNB Financial Corp. 2008 Equity Incentive Plan, and (d) CNB Amended and Restated Stock Option Plan collectively referred to as “the Legacy United Stock Plans.” On October 29, 2015, a special meeting of stockholders was held and the shareholders approved the 2015 Omnibus Stock Incentive Plan (the “2015 Plan”). The 2015 Plan allows the Company to use stock options, stock awards, and performance awards to attract, retain and reward performance of qualified employees and others who contribute to the success of the Company. The 2015 Plan reserves a total of up to 4,050,000 shares (the “Cap”) of Company common stock for issuance upon the grant or exercise of awards made pursuant to the 2015 Plan. Of these shares, the Company may grant shares in the form of restricted stock, performance shares and other stock-based awards and may grant stock options. However, the number of shares issuable will be adjusted by a “fungible ratio” of 2.35 . This means that for each share award other than a stock option share or a stock appreciation right share, each 1 share awarded shall be deemed to be 2.35 shares awarded. The 2015 Plan became effective on October 29, 2015 by the approval of the Company’s shareholders, and upon shareholder approval no other awards may be granted from the 2006 Plan, the 2012 Plan, or the Legacy United Stock Plans. As of December 31, 2015, there were 3,503,590 awards remaining available for future grants under the 2015 Plan. Total employee and Director share-based compensation expense recognized for stock options and restricted stock was $1.1 million with a related tax benefit recorded of $388,000 for the year ended December 31, 2015 . Of the total expense, the amount for Director share-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $252,000 , the amount for officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $707,000 , and merger and acquisition expense (in the Consolidated Statements of Net Income as non-interest expense) was $117,000 due to the acceleration of vesting as a result of an executive officer exercising a merger related change in control agreement. Total employee and Director share-based compensation expense recognized for stock options and restricted stock was $1.4 million , with a related tax benefit recorded of $500,000 , and $2.5 million with a related tax benefit recorded of $855,000 , respectively for the year ended December 31, 2014 . Of the total expense, the amount for Director share-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $301,000 , the amount for officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and benefits expense) was $1.1 million , and merger and acquisition expense recognized (in the Consolidated Statements of Net Income as non-interest expense) was $2.6 million reflecting Director and officer expense due to the accelerated vesting of all outstanding stock options and restricted stock which occurred on the effective date of the Merger. Total employee and Director share-based compensation expense recognized for stock options and restricted stock was $2.7 million, with a related tax benefit recorded of $921,000 , for the year ended December 31, 2013 , of which Director share-based compensation expense recognized (in the Consolidated Statements of Net Income as other non-interest expense) was $722,000 and officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and benefits expense) was $1.9 million. The total charge of $2.7 million includes $357,000 related to 24,932 vested restricted shares used for income tax withholding payments on behalf of certain executives. The fair values of stock option and restricted stock awards, measured at grant date, are amortized to compensation expense on a straight-line basis over the vesting period. The Company accelerates the recognition of compensation costs for 2006 and 2012 Plans share-based awards granted to retirement-eligible employees and Directors and employees and Directors who become retirement-eligible prior to full vesting of the award because the Company’s incentive compensation plans allow for full vesting at the time an employee or Director retires. The 2015 Plan does not accelerate upon retirement. Share-based compensation granted to non-retirement-eligible individuals pursuant to the 2006 Plan and share-based compensation granted to all individuals pursuant to the 2012 and 2015 Plans are expensed over the normal vesting period as established by each plan. Stock Options: The following table presents the activity related to the Company’s stock options outstanding, including options that have stock appreciation rights (“SARs”), as of and for the year ended December 31, 2015 : Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 3,390,469 $ 10.70 Granted — — Exercised (678,363 ) 9.75 2.4 Forfeited, expired, or canceled (62,371 ) 13.48 Outstanding at December 31, 2015 2,649,735 $ 10.88 5.4 $ 5.7 Stock options vested and exercisable at December 31, 2015 2,446,573 $ 10.64 5.2 $ 5.7 On May 2, 2014, the Company registered 1,291,793 options at an exercise price of $9.36 per share (adjusted for the exchange ratio) pursuant to its Registration Statement on Form S-8 under which the Company assumed all outstanding fully vested stock options under the Legacy United Stock Plans, which include options that were granted as SARs. These options have terms expiring between 2014 and 2022. As of April 30, 2014, the effective time of the Merger, all outstanding Company stock options, including those held by directors and executive officers, became fully vested in accordance with the change in control provisions within the merger agreement. The expense related to the accelerated vesting recorded during the second quarter of 2014 totaled $1.1 million and was included in non-interest expenses as merger related expense. As of December 31, 2015 , the unrecognized cost related to the stock options awarded under the 2006 and 2012 Plans of $313,000 will be recognized over a weighted-average period of 2.7 years. The Company used the Black-Scholes option pricing model for estimating the fair value of stock options granted. There were no stock options granted in 2015. The weighted-average estimated fair values of stock option grants and the assumptions that were used in calculating such fair values for the years 2014 and 2013 were based on estimates at the date of grant as follows: 2014 2013 Weighted per share average fair value of options granted $ 1.95 $ 1.80 Assumptions: Risk-free interest rate 1.94 % 1.61 % Expected volatility 19.90 % 20.33 % Expected dividend yield 2.92 % 3.03 % Expected life of options granted 6.0 years 6.0 years The expected volatility was determined using the Company’s historical trading volatility since the closing of the second-step conversion dated March 3, 2011. The Company estimates option forfeitures using historical data on employee terminations. The expected life of stock options granted represents the period of time that stock options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the stock option is based on the average five- and seven-year U.S. Treasury Note yield curve in effect at the date of grant. The expected dividend yield reflects an estimate of the dividends the Company expects to declare over the expected life of the options granted. Stock options provide grantees the option to purchase shares of common stock at a specified exercise price and expire ten years from the date of grant. Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. The following table presents the activity for unvested restricted stock for the year ended December 31, 2015 : Number of Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2014 124,536 $ 13.66 Granted 259,845 13.08 Vested (57,233 ) 13.63 Forfeited (1,135 ) 13.22 Unvested as of December 31, 2015 326,013 $ 13.20 The fair value of restricted shares that vested during the years ended December 31, 2015, 2014 and 2013 was $780,000 , $3.0 million, and $2.0 million, respectively. The weighted-average grant date fair value of restricted stock granted during the years ended December 31, 2015, 2014 and 2013 was $13.08 , $13.64 and $13.20 , respectively. As of April 30, 2014, the effective time of the merger, all outstanding Company restricted stock awards, including those held by directors and executive officers, became fully vested in accordance with the change in control provisions within the merger agreement. The expense related to the accelerated vesting recorded during the second quarter of 2014 was $1.5 million , and was included in non-interest expenses as merger related expense. As of December 31, 2015 , there was $3.4 million of total unrecognized compensation cost related to unvested restricted stock which is expected to be recognized over a weighted-average period of 2.4 years. Of the remaining unvested restricted stock, 99,811 shares will vest in 2016, 105,854 shares will vest in 2017 and 120,348 shares will vest in 2018. All unvested restricted stock shares are expected to vest. Employee Stock Ownership Plan: In connection with the reorganization and stock offering completed in 2005, the Company established an ESOP for eligible employees of the Bank, and authorized the Company to lend funds to the ESOP to purchase 699,659 or 3.6% of the shares issued in the initial public offering. Upon completion of the 2005 reorganization, the ESOP borrowed $4.4 million from the Company to purchase 437,287 shares of common stock. Additional shares of 59,300 and 203,072 were subsequently purchased by the ESOP in the open market at a total cost of $817,000 and $2.7 million in 2006 and 2005, respectively, with additional funds borrowed from the Company. The interest rate for the original ESOP loan was the prime rate plus one percent , or 4.25% as of December 31, 2014. As the loan was repaid to the Company, shares were released from collateral and allocated to the accounts of the participants. There is no outstanding balance as the loan was paid in full on December 31, 2014 . Principal payments of $7.8 million have been made on the loan since inception. As part of the second-step conversion and stock offering completed in 2011, the Bank authorized the Company to lend funds to the ESOP to purchase 684,395 shares, 276,017 shares of which were purchased during the public offering at a cost of $10.00 per share. In March 2011, the remaining shares totaling 408,378 were subsequently purchased by the ESOP in the open market at an average cost of $10.56 per share, or $4.3 million . The interest rate for the second ESOP loan is the prime rate plus one percent , or 4.50% as of December 31, 2015 . As of December 31, 2015 , the outstanding balance for the loan was $6.3 million , with a remaining term of 25 years. Principal payments of $721,000 have been made on the loan since inception. Dividends paid in 2015 totaling $273,000 on all unallocated ESOP shares were offset to the interest payable on the note owed by the Company. The total ESOP expense was $299,000 , $1.7 million and $1.7 million for the years ended December 31, 2015, 2014 and 2013 , respectively. At December 31, 2015 , there were 114,066 allocated and 570,329 unallocated ESOP shares and the unallocated shares had an aggregate fair value of $7.3 million . Effective January 1, 2014, the Company merged its ESOP with its Defined Contribution Plan, or 401(k). In addition to employer matching cash contributions to the 401(k) Plan, shares released from the pay down on the ESOP loans will be allocated to all participants in the 401(k) Plan. |
PENSION PLANS AND OTHER POST-RE
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS | Note 17. PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS Defined Benefit, Supplemental and Other Post-retirement Plans Legacy Rockville offered a noncontributory defined benefit pension plan through December 31, 2012 for eligible employees who met certain minimum service and age requirements hired before January 1, 2005. Pension plan benefits were based upon employee earnings during the period of credited service. The pension plan was frozen effective December 31, 2012. Employees hired on or after January 1, 2005 receive no benefits under the plan. All other employees accrue no additional retirement benefits on or after January 1, 2013, and the amount of their qualified retirement income will not exceed the amount of benefits determined as of December 31, 2012. The Company also has supplemental retirement plans (the “Supplemental Plans”) that provide benefits for certain key officers. Benefits under the Supplemental Plans are based on a predetermined formula and are reduced by other benefits. The liability arising from these plans is being accrued over the participants’ remaining periods of service so that at the expected retirement dates, the present value of the annual payments will have been expensed. The Company also provides an unfunded post-retirement medical, health and life insurance benefit plan for retirees and employees hired prior to March 31, 1993. The following table sets forth changes in the benefit obligation, changes in plan assets and the funded status of the pension plan and post-retirement benefit plans for the years ended December 31, 2015, 2014 and 2013 : Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands ) Change in Benefit Obligation: Benefit obligation at beginning of year $ 30,571 $ 24,224 $ 27,226 $ 1,368 $ 1,191 $ 1,199 $ 2,218 $ 1,926 $ 2,547 Service cost 60 75 50 24 25 38 23 19 35 Interest cost 1,162 1,145 1,048 40 54 48 80 85 91 Plan participants’ contributions — — — — — — 28 26 26 Actuarial loss (gain) (3,821 ) 6,460 (3,291 ) (79 ) 166 (159 ) (413 ) 271 (661 ) Benefits paid and administration expenses (857 ) (1,333 ) (809 ) (31 ) (484 ) (28 ) (95 ) (109 ) (112 ) Curtailments, settlements, special termination benefits — — — (393 ) 416 93 — — — Benefit obligation at end of year $ 27,115 $ 30,571 $ 24,224 $ 929 $ 1,368 $ 1,191 $ 1,841 $ 2,218 $ 1,926 Change in Plan Assets: Fair value of plan assets at beginning of year $ 26,519 $ 26,258 $ 22,782 $ — $ — $ — $ — $ — $ — Actual return (loss) on plan assets (422 ) 1,594 4,285 — — — — — — Employer contributions — — — 424 484 28 67 83 86 Plan participants’ contributions — — — — — — 28 26 26 Benefits paid and administration expenses (857 ) (1,333 ) (809 ) (31 ) (484 ) (28 ) (95 ) (109 ) (112 ) Settlements — — — (393 ) — — — — — Fair value of plan assets at end of year $ 25,240 $ 26,519 $ 26,258 $ — $ — $ — $ — $ — $ — Funded Status: Overfunded (underfunded) status at end of year $ (1,875 ) $ (4,052 ) $ 2,034 $ (929 ) $ (1,368 ) $ (1,191 ) $ (1,841 ) $ (2,218 ) $ (1,926 ) Amounts Recognized in the Consolidated Statements of Condition Accrued expenses and other liabilities $ (1,875 ) $ (4,052 ) $ 2,034 $ (929 ) $ (1,368 ) $ (1,191 ) $ (1,841 ) $ (2,218 ) $ (1,926 ) The components of accumulated other comprehensive loss related to pensions and other post-retirement benefits and related tax effects at December 31, 2015, 2014 and 2013 are summarized below: Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Prior service cost $ — $ — $ — $ 85 $ 92 $ 273 $ — $ — $ — Net loss (gain) 7,050 9,362 2,625 79 202 103 (134 ) 297 15 Total accumulated other comprehensive loss (income) 7,050 9,362 2,625 164 294 376 (134 ) 297 15 Deferred tax (asset) liability (2,540 ) (3,278 ) (844 ) (59 ) (69 ) (131 ) 48 (97 ) (5 ) Net impact on accumulated other comprehensive loss $ 4,510 $ 6,084 $ 1,781 $ 105 $ 225 $ 245 $ (86 ) $ 200 $ 10 The following table sets forth the components of net periodic benefit costs and other amounts recognized in other comprehensive income (loss) for the retirement plans for the years ended December 31, 2015, 2014 and 2013 : Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 60 $ 75 $ 50 $ 24 $ 25 $ 38 $ 23 $ 19 $ 35 Interest cost 1,162 1,145 1,048 40 54 48 80 85 91 Expected return on plan assets (1,824 ) (1,595 ) (1,734 ) — — — — — — Amortization of net actuarial losses (gains) 738 (277 ) 784 3 2 5 18 (10 ) 66 Amortization of prior service cost — — — 7 12 23 — — — Settlement charge — — — 39 651 199 — — — Net periodic benefit cost (income) 136 (652 ) 148 113 744 313 121 94 192 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) (1,574 ) 6,460 (5,842 ) (80 ) 100 (159 ) (413 ) 271 (661 ) Change in prior service cost (credit) — — — — (168 ) (105 ) — — — Amortization of net (loss) gain (738 ) 277 (784 ) (3 ) (2 ) (5 ) (18 ) 10 (66 ) Amortization of prior service cost — — — (7 ) (12 ) (23 ) — — — Loss recognized due to settlement — — — (39 ) — — — — — Total recognized in other comprehensive income (loss) (2,312 ) 6,737 (6,626 ) (129 ) (82 ) (292 ) (431 ) 281 (727 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (2,176 ) $ 6,085 $ (6,478 ) $ (16 ) $ 662 $ 21 $ (310 ) $ 375 $ (535 ) Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during 2016 are $495,000 , $7,000 and $0 for the qualified pension plan, supplemental executive retirement plan and other post-retirement benefits plan, respectively. Weighted-average assumptions used to determine pension benefit obligations at December 31, follow: Qualified Pension Supplemental Retirement Plans Other Post-Retirement Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.45 % 3.85 % 4.30 % 3.70 % 4.25 % 3.70 % Expected return on plan assets 7.00 % 7.00 % — % — % — % — % Rate of compensation increase — % — % 4.00 % 4.00 % 4.00 % 4.00 % Weighted-average assumptions used to determine net benefit pension expense for the years ended December 31, follow: Qualified Pension Supplemental Retirement Plans Other Post-Retirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.85 % 4.80 % 3.90 % 3.70 % 4.70 % 3.80 % 3.70 % 4.55 % 3.65 % Expected return on plan assets 7.00 % 7.25 % 8.00 % — % — % — % — % — % — % Rate of compensation increase — % — % — % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % The accumulated post-retirement benefit obligation for the other post-retirement benefits was $1.8 million and $2.2 million as of December 31, 2015 and 2014 , respectively. The Company does not intend to apply for the government subsidy under Medicare Part-D for post-retirement prescription drug benefits. Therefore, the impact of the subsidy is not reflected in the development of the liabilities for the plan. As of December 31, 2013, prescription drug benefits are included in the post-retirement benefits offered to employees hired prior to March 1, 1993. The expected long-term rate of return is based on current and expected asset allocations, as well as the long-term historical risks and returns with each asset class within the plan portfolio. A lower expected rate of return on plan assets increases pension costs. The discount rate assumption used to measure the post-retirement benefit obligations is set by reference to high-quality bond indices, as well as certain yield curves. The Citigroup Pension Liability Index was used as a benchmark. A higher discount rate decreases the present value of benefit obligations and decreases pension expense. Assumed Healthcare Trend Rates The Company’s accumulated other post-retirement benefit obligations take into account certain cost-sharing provisions. The annual rate of increase in the cost of covered benefits (i.e., healthcare cost trend rate) is assumed to be 7% at December 31, 2015 . Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one percentage point change in the assumed healthcare cost trend rate would have the following effects: 1% Increase 1% Decrease (In thousands) Effect on post-retirement benefit obligation $ 2,039 $ (1,675 ) Effect on total service and interest 101 (80 ) Plan Assets The fair value of major categories of pension plan assets as of December 31, 2015 and 2014 are as follows: Total Fair Value Percent (In thousands) December 31, 2015 Fixed income funds $ 10,135 40 % Domestic equity funds 7,557 30 International equity funds 4,572 18 Hedge funds 2,697 11 Money market funds 279 1 Total $ 25,240 100 % December 31, 2014 Domestic equity funds $ 11,900 45 % International equity funds 1,051 4 Fixed income funds 3,719 14 Domestic bond funds 7,996 30 International bond funds 790 3 Real estate REIT index funds 1,063 4 Total $ 26,519 100 % All plan assets are measured at fair value in Level 1 based on quoted market prices in an active exchange market. The Company’s investment goal is to obtain a competitive risk adjusted return on the Pension Plan assets commensurate with prudent investment practices and the plan’s responsibility to provide retirement benefits for its participants, retirees and their beneficiaries. The 2015 targeted allocation for fixed income, domestic equity securities, international equity securities, and hedge funds was 40% , 30% , 20% and 10% , respectively. The Pension Plan’s investment policy does not explicitly designate allowable or prohibited investments; instead, it provides guidance regarding investment diversification and other prudent investment practices to limit the risk of loss. The Plan’s asset allocation targets are strategic and long-term in nature and are designed to take advantage of the risk reducing impacts of asset class diversification. Plan assets are periodically rebalanced to their asset class targets to reduce risk and to retain the portfolio’s strategic risk/return profile. Investments within each asset category are further diversified with regard to investment style and concentration of holdings. Contributions There were no contributions to the Qualified Pension Plan in 2015 and 2014. The Company does not expect to make any contributions to the Qualified Pension Plan in 2016. Estimated Future Benefit Payments The benefit payments, which reflect expected future service, as appropriate, expected to be paid are as follows: Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits (In thousands) Years Ending December 31, 2016 $ 930 $ 28 $ 100 2017 980 28 110 2018 1,060 41 100 2019 1,170 41 110 2020 1,300 41 110 Years 2021-2025 7,070 265 570 Multi-Employer Defined Benefit Plan As a result of the Merger, the Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (the “Pentegra DB Plan”), a tax-qualified defined-benefit pension plan. The Pentegra DB Plan’s Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multi-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The funded status (market value of plan assets divided by funding target) of the Pentegra DB Plan as of July 1, 2015 and 2014 was 114.4% and 120.4% , respectively, per the actuarial valuation reports. Market value of plan assets reflects contributions received through June 30, 2015. The Company’s contributions to the Pentegra DB Plan will not be more than 5% of the total contributions to the Pentegra DB Plan. A $50,000 contribution, recorded as pension expense, was made in 2015, and a $50,000 contribution was accrued in 2014 and paid in 2015. The Company will make the future required contributions and incur applicable pension expense going forward. 401(k) Plan The Company has a tax-qualified 401(k) plan for the benefit of its eligible employees. Beginning January 1, 2005, the 401(k) Plan was amended to pay all employees, even those who do not contribute to the 401(k) Plan, an automatic 3% of pay “safe harbor” contribution that is fully vested to participants of the 401(k) Plan. For employees hired on or after January 1, 2005, the Company also will make a discretionary matching contribution equal to a uniform percentage of the amount of the salary reduction the employee elected to defer, which percentage will be determined each year by the Company. In connection with the pension plan being frozen at December 31, 2012, the Company provides additional benefits to the impacted employees defined benefit through the 401(k) Plan beginning January 1, 2013 for a five year period. Effective January 1, 2014, the Company merged its Employee Stock Ownership Plan with its 401(k) Plan. The Company recorded expenses of $2.1 million , $515,000 , and $1.5 million related to the plan for the years ended December 31, 2015, 2014 and 2013 , respectively. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | Note 18. REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items, as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2015 and 2014 that the Company and the Bank met all capital adequacy requirements to which they are subject. As of December 31, 2015 , the most recent notification from the FDIC categorized the Bank as well- capitalized under the regulatory framework for prompt corrective action. To be categorized as well- capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since then that management believes have changed the Bank’s category. Prompt corrective provisions are not applicable to bank holding companies. The following is a summary of the Bank’s regulatory capital amounts and ratios as of December 31, 2015 and 2014 compared to the FDIC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy. Also included is a summary of United Financial Bancorp, Inc.’s regulatory capital and ratios as of December 31, 2015 and 2014 : Actual Minimum For Capital Adequacy Purposes Minimum To Be Well- Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) United Bank: December 31, 2015 Total capital to risk weighted assets $ 558,969 11.2 % $ 398,552 8.0 % $ 498,190 10.0 % Common equity tier 1 capital to risk weighted assets 523,786 10.5 224,266 4.5 323,940 6.5 Tier 1 capital to risk weighted assets 523,786 10.5 299,022 6.0 398,695 8.0 Tier 1 capital to total average assets 523,786 8.9 234,882 4.0 293,602 5.0 December 31, 2014 Total capital to risk weighted assets $ 513,960 12.9 % $ 317,750 8.0 % $ 397,187 10.0 % Tier 1 capital to risk weighted assets 487,713 12.3 158,864 4.0 238,296 6.0 Tier 1 capital to total average assets 487,713 9.3 210,221 4.0 262,776 5.0 United Financial Bancorp, Inc.: December 31, 2015 Total capital to risk weighted assets $ 628,915 12.5 % $ 401,542 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 518,732 10.3 225,972 4.5 N/A N/A Tier 1 capital to risk weighted assets 518,732 10.3 301,296 6.0 N/A N/A Tier 1 capital to total average assets 518,732 8.9 233,926 4.0 N/A N/A December 31, 2014 Total capital to risk weighted assets $ 579,109 14.6 % $ 317,973 8.0 % N/A N/A Tier 1 capital to risk weighted assets 477,862 12.0 159,022 4.0 N/A N/A Tier 1 capital to total average assets 477,862 9.1 210,049 4.0 N/A N/A Our ability to pay dividends to our stockholders is substantially dependent upon the Bank’s ability to pay dividends to the Company. The Federal Reserve guidance sets forth the supervisory expectation that bank holding companies will inform and consult with Federal Reserve staff in advance of issuing a dividend that exceeds earnings for the quarter and should not pay dividends in a rolling four quarter period in an amount that exceeds net income for that period. Federal law also prohibits the Bank from paying dividends that would be greater than its undivided profits after deducting statutory bad debt in excess of its allowance for loan losses. The FDIC may limit a savings bank’s ability to pay dividends. No dividends may be paid to the Bank’s shareholder if such dividends would reduce stockholders’ equity below the amount of the liquidation account required by the Connecticut conversion regulations. Connecticut law restricts the amount of dividends that the Bank can pay based on net income included in retained earnings for the current year and the preceding two years. As of December 31, 2015 , $30.8 million was available for the payment of dividends. Connecticut banking laws grant banks broad lending authority. With certain limited exceptions, any one obligor under this statutory authority may not exceed 10% and 15%, respectively, of a bank’s capital and allowance for loan losses. Basel III In July 2013, federal banking regulators approved final rules that implement changes to the regulatory capital framework for U.S. banks. The rules set minimum requirements for both the quantity and quality of capital held by community banking institutions. The final rule includes a new minimum ratio of common equity Tier 1 capital to risk weighted assets of 4.5% , raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% , and includes a minimum leverage ratio of 4% for all banking organizations. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in period for the rules began for the Company on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule. Management believes that the Company’s capital levels will remain characterized as “well-capitalized” under the new rules. The following table provides a reconciliation of the Company’s total consolidated equity to the capital amounts for the Bank reflected in the preceding table: December 31, 2015 2014 (In thousands) Total consolidated equity $ 625,521 $ 602,408 Adjustments: Decrease (increase) in equity under United Financial Bancorp, Inc. 5,054 8,252 Accumulated other comprehensive loss 10,879 6,490 Disallowed goodwill and other intangible assets (116,816 ) (121,637 ) Disallowed deferred tax assets (852 ) (7,800 ) Tier 1 capital 523,786 487,713 Allowance for loan losses and off-balance sheet credit losses 35,124 26,141 Unrealized gains on available-for-sale securities includible in total risk-based capital 59 106 Total risk-based capital $ 558,969 $ 513,960 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | Note 19. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, 2015 December 31, 2014 (In thousands) Benefit plans: Unrecognized net actuarial loss $ (7,080 ) $ (9,952 ) Tax effect 2,551 3,443 Net-of-tax amount (4,529 ) (6,509 ) Securities available for sale: Net unrealized gain (loss) (5,821 ) 1,030 Tax effect 2,088 (374 ) Net-of-tax amount (3,733 ) 656 Interest rate swaps: Net unrealized loss (4,092 ) (996 ) Tax effect 1,475 359 Net-of-tax amount (2,617 ) (637 ) $ (10,879 ) $ (6,490 ) |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | Note 20. NET INCOME PER SHARE The following table sets forth the calculation of basic and diluted net income per share for the years ended December 31, 2015, 2014 and 2013 : Years Ended December 31, (In thousands, except share data) 2015 2014 2013 Net income $ 49,640 $ 6,782 $ 14,227 Adjusted weighted-average common shares outstanding 49,495,381 43,491,441 29,471,397 Less: average number of treasury shares — — 2,618,178 Less: average number of unvested ESOP award shares 582,574 662,347 791,277 Weighted-average basic shares outstanding 48,912,807 42,829,094 26,061,942 Dilutive effect of stock options 472,759 440,423 364,278 Weighted-average diluted shares 49,385,566 43,269,517 26,426,220 Net income per share: Basic $ 1.01 $ 0.16 $ 0.55 Diluted $ 1.00 $ 0.16 $ 0.54 For the years ended December 31, 2015, 2014 and 2013 , respectively, 638,000 , 328,000 , and 373,000 options were anti-dilutive and therefore excluded from the earnings per share calculation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 21. OTHER COMMITMENTS AND CONTINGENCIES Leases: The Company leases certain of its branches and other office facilities under non-cancelable capital and operating lease agreements. Many of these leases contain renewal options and escalation clauses which provide for increased rental expense. In addition to rental payments, the branch leases require payments for executory costs. The Company also leases certain equipment under non-cancelable operating leases. Future minimum rental commitments under the terms of these leases, including option periods, by year and in the aggregate, are as follows as of December 31, 2015 : (In thousands) 2016 $ 5,145 2017 4,831 2018 4,487 2019 4,388 2020 4,093 Thereafter 22,046 $ 44,990 Total rental expense charged to operations for all cancelable and non-cancelable operating leases was $5.1 million , $5.8 million and $2.6 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The rental expense increase in 2014 compared to 2013 was due largely to the addition of the Legacy United branch offices as a result of the Merger. The Company, as a landlord, leases space to third party tenants under non-cancelable operating leases. In addition to base rent, the leases require payments for executory costs. Future minimum rental receivable under the non-cancelable leases are as follows as of December 31, 2015 : (In thousands) 2016 $ 522 2017 522 2018 490 $ 1,534 Rental income is recorded as a reduction to occupancy and equipment expense in the accompanying Consolidated Statements of Net Income and amounted to $490,000 , $407,000 and $318,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. Legal Matters: The Company is involved in various legal proceedings that have arisen in the normal course of business. The Company is not involved in any legal proceedings deemed to be material as of December 31, 2015 . Financial Instruments With Off-Balance Sheet Risk: In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit through issuing standby letters of credit and undisbursed portions of construction loans and involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral obligations is deemed worthless. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at December 31, 2015 and 2014 : December 31, 2015 2014 (In thousands) Commitments to extend credit: Commitment to grant loans $ 219,407 $ 128,766 Undisbursed construction loans 103,140 144,118 Undisbursed home equity lines of credit 320,140 321,346 Undisbursed commercial lines of credit 302,700 295,639 Standby letters of credit 9,477 12,547 Unused credit card lines 6,725 — Unused checking overdraft lines of credit 1,293 1,304 Total $ 962,882 $ 903,720 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include residential and commercial property, accounts receivable, inventory, property, plant and equipment, deposits, and securities. Other Commitments The Company invests in partnerships, including low income housing tax credit, new markets housing tax credit, and alternative energy tax credit partnerships. The net carrying balance of these investments totaled $21.4 million at December 31, 2015 and is included in other assets in the consolidated statement of condition. At December 31, 2015 , the Company was contractually committed under these limited partnership agreements to make additional capital contributions of $6.3 million , which constitutes our maximum potential obligation to these partnerships. |
SELECTED QUARTERLY CONSOLIDATED
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) | Note 22. SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) The Company’s quarterly results of operations were as follows: 2015 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter (In thousands, except per share data) Interest and dividend income $ 49,714 $ 49,625 $ 48,711 $ 48,295 $ 48,209 $ 47,201 $ 40,767 $ 19,702 Interest expense 9,021 7,982 7,808 6,952 6,317 5,008 3,888 2,794 Net interest income 40,693 41,643 40,903 41,343 41,892 42,193 36,879 16,908 Provision for loan losses 3,780 3,252 4,462 1,511 4,333 2,633 2,080 450 Net interest income after provision for loan losses 36,913 38,391 36,441 39,832 37,559 39,560 34,799 16,458 Non-interest income 8,463 7,818 9,371 6,835 3,001 4,076 6,319 3,209 Other non-interest expense 35,305 31,876 30,357 30,657 45,076 34,922 46,177 18,257 Income (loss) before income taxes 10,071 14,333 15,455 16,010 (4,516 ) 8,714 (5,059 ) 1,410 Provision (benefit) for income taxes 169 952 2,123 2,985 (5,937 ) (1,271 ) 512 463 Net income (loss) $ 9,902 $ 13,381 $ 13,332 $ 13,025 $ 1,421 $ 9,985 $ (5,571 ) $ 947 Earnings per share: Basic $ 0.20 $ 0.27 $ 0.27 $ 0.27 $ 0.03 $ 0.19 $ (0.13 ) $ 0.04 Diluted $ 0.20 $ 0.27 $ 0.27 $ 0.26 $ 0.03 $ 0.19 $ (0.13 ) $ 0.04 Stock Price (per share): High $ 14.16 $ 13.87 $ 13.91 $ 14.47 $ 14.67 $ 13.91 $ 14.31 $ 14.63 Low $ 12.45 $ 12.14 $ 12.25 $ 12.00 $ 12.66 $ 12.01 $ 12.21 $ 12.56 Subsequent to the completion of the Merger on April 30, 2014, the Company had significant increases in net interest income, non-interest income and non-interest expense. In the first, second, third, and fourth quarters of 2014, the Company recorded merger related expenses of $1.8 million , $20.9 million , $4.0 million , and $10.1 million , respectively. There were no merger related expenses in the first three quarters of 2015, and $1.6 million in the fourth quarter of 2015. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | Note 23. PARENT COMPANY FINANCIAL INFORMATION The following represents the Company’s Condensed Statements of Condition as of December 31, 2015 and 2014 and Condensed Statements of Net Income and Cash Flows for the years ended December 31, 2015, 2014 and 2013 which should be read in conjunction with the Consolidated Financial Statements and related notes: Condensed Statements of Condition At December 31, 2015 2014 (In thousands) Assets: Cash and due from banks $ 28,825 $ 51,519 Investment in United Bank 630,575 610,660 Due from United Bank 9,374 15,677 Other assets 37,938 5,594 Total Assets $ 706,712 $ 683,450 Liabilities and Stockholders’ Equity: Accrued expenses and other liabilities $ 81,191 $ 81,042 Stockholders’ equity 625,521 602,408 Total Liabilities and Stockholders’ Equity $ 706,712 $ 683,450 Condensed Statements of Net Income For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest and dividend income: Interest on investments $ 103 $ 35 $ 1 Interest expense 4,682 1,353 — Net interest income (expense) (4,579 ) (1,318 ) 1 Non-interest income 434 73 — Non-interest expenses: General and administrative 4,714 7,257 5,528 Total non-interest expense 4,714 7,257 5,528 Loss before tax benefit and equity in undistributed net income of United Bank (8,859 ) (8,502 ) (5,527 ) Income tax benefit 3,094 2,566 1,602 Loss before equity in undistributed net income of United Bank (5,765 ) (5,936 ) (3,925 ) Equity in undistributed net income of United Bank 55,405 12,718 18,152 Net income $ 49,640 $ 6,782 $ 14,227 Condensed Statements of Cash Flows For the Years ended December 31, 2015 2014 2013 (In thousands) Cash flows from operating activities: Net income $ 49,640 $ 6,782 $ 14,227 Adjustments to reconcile net income to net cash used in operating activities: Amortization of purchase accounting marks, net 75 41 — Amortization of subordinated debt issuance costs, net 127 34 — Share-based compensation expense 1,076 3,957 2,665 ESOP expense 299 1,727 2,064 Undistributed income of United Bank (55,405 ) (12,718 ) (18,152 ) Deferred tax provision 188 959 555 Tax benefit of stock-based awards 317 (820 ) (65 ) Net change in: Due from United Bank 6,491 (5,395 ) (850 ) Other assets (32,532 ) 3,582 (3,190 ) Accrued expenses and other liabilities (370 ) (1,831 ) 1,124 Net cash used in operating activities (30,094 ) (3,682 ) (1,622 ) Cash flows from investing activities: Dividends from United Bank 30,913 13,310 11,197 Cash acquired from United Financial Bancorp, Inc., net — 6,546 — Net cash provided by investing activities 30,913 19,856 11,197 Cash flows from financing activities: Proceeds from debt offering, net of expenses — 73,733 — Common stock repurchased (5,171 ) (47,249 ) (30,028 ) Proceeds from the exercise of stock options 4,765 2,246 805 Cancellation of shares for tax withholding (311 ) (1,367 ) (357 ) Tax benefit of share-based awards (317 ) 820 65 Cash dividends paid on common stock (22,479 ) (18,008 ) (10,453 ) Net cash provided by (used in) financing activities (23,513 ) 10,175 (39,968 ) Net increase (decrease) in cash and cash equivalents (22,694 ) 26,349 (30,393 ) Cash and cash equivalents — beginning of year 51,519 25,170 55,563 Cash and cash equivalents — end of year $ 28,825 $ 51,519 $ 25,170 Supplemental disclosures of cash flow information: Cash paid for income taxes (net) $ (6,744 ) $ 3,599 $ 6,228 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Financial Statement Presentation | Nature of Operations and Financial Statement Presentation On April 30, 2014, Rockville Financial, Inc. (“Rockville”) completed its merger with United Financial Bancorp, Inc. (“Legacy United”) and changed its legal entity name to United Financial Bancorp, Inc. (the “Company”). In connection with this merger, Rockville Bank, the Company’s principal asset and wholly-owned subsidiary, completed its merger with Legacy United’s banking subsidiary, United Bank, and changed its name to United Bank (the “Bank”). Discussions throughout this report related to the merger with Legacy United are referred to as the “Merger”. The results of operations of Legacy United or assets acquired are included only from the dates of acquisition. The consolidated financial statements and the accompanying notes presented in this report include the accounts of the Company, the Bank, and the Bank’s wholly-owned subsidiaries, United Bank Mortgage Company, United Bank Investment Corp., Inc., United Bank Commercial Properties, Inc., United Bank Residential Properties, Inc., United Northeast Financial Advisors, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, and UCB Securities, Inc. II. The Company is a bank holding company under the Bank Holding Company Act of 1956, as amended, headquartered in Glastonbury, Connecticut and incorporated under the laws of Connecticut in 2004. At December 31, 2015 , the Company’s principal asset was all of the outstanding capital stock of United Bank, a wholly-owned subsidiary of the Company. The Company, through United Bank and various subsidiaries, delivers financial services to individuals, families and businesses primarily throughout Connecticut and western Massachusetts and the surrounding regions through 53 banking offices, its commercial loan and mortgage loan production offices, 63 ATMs, telephone banking, mobile banking and its online website (www.bankatunited.com). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and to general practices in the financial services industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the realizability of deferred tax assets, the valuation of derivative instruments and hedging activities, the evaluation of securities for other-than-temporary impairment, and the valuation of assets/liabilities acquired in business combinations and review of goodwill for impairment. Certain reclassifications have been made to prior periods’ consolidated financial statements to conform to the 2015 presentation. These reclassifications had no impact on the Company’s consolidated financial position, results of operations or net change in cash equivalents. All significant intercompany transactions have been eliminated. |
Common Share Repurchases | Common Share Repurchases The Company is chartered in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Notwithstanding the foregoing, prior to December 31, 2014, the Consolidated Statements of Changes in Shareholders’ Equity refers to repurchased shares as “treasury stock.” |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and short term investments with original maturities of three months or less. |
Securities | Securities Securities are classified at the time of purchase as “available for sale,” “held to maturity,” or “trading.” Classification is re-evaluated at each quarter end for consistency with corporate goals and objectives. Debt securities held to maturity are those which the Bank has the ability and intent to hold to maturity. Securities held to maturity are recorded at amortized cost. Amortized cost includes the amortization of premiums or accretion of discounts using the level yield method. Such amortization and accretion is included in interest income from securities. Securities classified as available for sale are recorded at fair value. Unrealized gains and losses, net of taxes, are calculated each reporting period and presented as a separate component of other comprehensive income (“OCI”). Securities bought and held for the purpose of selling in the near term are classified as trading. Trading securities, if any, are recorded at fair value with calculated gains and losses recognized in non-interest income in the respective accounting period. The Company did not have a trading portfolio at December 31, 2015 and 2014 . Securities transferred from available for sale to held to maturity are recorded at fair value at the time of transfer. The respective gain or loss is reclassified as a separate component of OCI and amortized as an adjustment to interest income using the level yield method. The Company did not transfer any securities from available for sale to held to maturity during 2015, 2014 and 2013 . See Note 6 in the Notes to Consolidated Financial Statements for further information. Securities are reviewed quarterly for other-than-temporary impairment (“OTTI”). All securities classified as held to maturity or available for sale that are in an unrealized loss position are evaluated for OTTI. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the financial condition and near-term prospects of the issuer and guarantor, where applicable. If the Company intends to sell the security or, if it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis, or for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis, the security is written down to fair value and the respective write-down is recorded in non-interest income in the Consolidated Statements of Net Income. If the Company does not intend to sell the security and if it is more likely than not that the Company will not be required to sell the security prior to recovery of its amortized cost basis, only the credit component of any impairment charge of a debt security would be recognized as a loss in non-interest income in the Consolidated Statements of Net Income. The remaining impairment would be recorded in OCI. A decline in the value of an equity security that is considered to have OTTI is recorded as a loss in non-interest income in the Consolidated Statements of Net Income. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recognized as either assets or liabilities and are recorded at fair value on the Company’s Consolidated Statements of Condition. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. Derivatives executed with the same counterparty are generally subject to netting arrangements; however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in non-interest income. |
Derivative Loan Commitments | Derivative Loan Commitments Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the Consolidated Statements of Condition in other assets and other liabilities with changes in their fair values recorded in other non-interest income. Fair value is based on the value of servicing rights and the interest rate differential from the commitment date to the current valuation date of the underlying mortgage loans. In estimating fair value, the Company assigns a probability to a loan commitment based on an expectation that it will be exercised and the loan will be funded. Subsequent to inception, changes in the fair value of the loan commitment are recognized based on changes in the fair value of the underlying mortgage loan due to interest rate changes, changes in the probability the derivative loan commitment will be exercised, and the passage of time. In estimating fair value, the Company assigns a probability to a loan commitment based on an expectation that it will be exercised and the loan will be funded. |
Forward Loan Sale Commitments | Forward Loan Sale Commitments To protect against the portfolio risks inherent in derivative loan commitments or rate locks associated with fixed rate residential lending, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans and long-term interest rate risk that may result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. The Company estimates the fair value of its forward loan sales commitments using a methodology similar to that used for derivative loan commitments, excluding the valuation of servicing rights. Forward loan sale commitments are recognized at fair value on the Consolidated Statements of Condition in other assets and other liabilities with changes in fair value recorded in other non-interest income. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank system, is required to maintain an investment in capital stock of the Federal Home Loan Bank of Boston (“FHLBB”) based primarily on its level of borrowings from the FHLBB. Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Company currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. |
Loans Held For Sale | Loans Held For Sale The Company primarily classifies newly originated residential real estate mortgage loans as held for sale based on intent, which is determined when loans are rate locked. Residential real estate mortgage loans not designated as held for sale are retained based upon available liquidity, interest rate risk management and other business purposes. The Company has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, Financial Instruments , for closed loans intended for sale. The Company elected the fair value option in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Fair values are estimated using quoted loan market prices. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value related to forward sale commitments and interest rate lock commitments. Gains or losses on sales of loans are included in non-interest income. Direct loan origination costs and fees are deferred upon origination and are recognized as part of the gain or loss on the date of sale. Residential loans are sold by the Company without recourse. The Company currently sells these loans servicing retained, with the exception of a limited volume of government production sold servicing released. |
Loans | Loans Loans we originate and intend to hold in our portfolio are stated at current unpaid principal balances, net of deferred loan origination costs and fees. Commitment fees for which the likelihood of exercise is remote are recognized over the loan commitment period on a straight-line basis. Loans that we acquired in the merger with Legacy United were recorded at fair value with no carryover of the related allowance for loan losses at the time of acquisition. Determining the fair value of the loans involved estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The Company’s loan portfolio includes residential real estate, commercial real estate, construction, commercial business and installment and collateral segments. Residential real estate loans include one-to-four family owner occupied first mortgages, second mortgages and equity lines of credit. A loan is classified as a troubled debt restructure (“TDR”) when certain concessions have been made to the original contractual terms, such as reductions of interest rates or deferral of interest or principal payments, due to the borrowers’ financial difficulties. All TDR loans are initially classified as impaired and generally remain impaired as TDRs for the remaining life of the loan. Impaired and TDR classification may be removed if the borrower demonstrates compliance with the modified terms and the restructuring agreement specifies an interest rate equal to that which would be provided to a borrower with similar credit at the time of restructuring. |
Interest and Fees on Loans | Interest and Fees on Loans Interest on loans is accrued and included in interest income based on contractual rates applied to principal amounts outstanding. Accrual of interest is discontinued, and previously accrued income is reversed, when loan payments are 90 days or more past due or when, in the judgment of management, collectability of the loan or loan interest becomes uncertain. Past due status is based on the contractual payment terms of the loan. Subsequent recognition of income occurs only to the extent payment is received subject to management’s assessment of the collectability of the remaining interest and principal. A non-accrual loan is restored to accrual status when the loan is brought current, collectability of interest and principal is no longer in doubt and six months of continuous payments have been received. Loan origination fees and direct loan origination costs (including loan commitment fees) are deferred, and the net amount is recognized as an adjustment of the related loan’s yield utilizing the interest method over the contractual life of the loan. Fair value acquisition adjustments are determined as of the date of acquisition based upon facts and circumstances, including the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Subsequent to acquisition, the fair value acquisition adjustments are generally amortized over the remaining life of the loan under the interest method, or a constant effective yield method. For ASC 310-30 loans, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”), the interest method is applicable to a loan or a pool of loans as determined by characteristics including but not limited to borrower type, loan purpose, geographic location and collateral type. In recording the acquisition data fair values of acquired impaired loans, management calculates a non-accretable difference (the credit component of the purchased loans) and an accretable difference (the yield component of the purchased loans). For changes in cash flows expected to be collected, we adjust the amount of accretable yield recognized on a prospective basis over the remaining lives of the loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a reserve established through a provision for loan losses charged to expense and represents management’s best estimate of probable losses incurred within the existing loan portfolio as of the balance sheet date. The level of the allowance reflects management’s view of trends in loan loss activity, current loan portfolio quality and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific loans; however, the allowance is available for any loan that is charged off. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans (or portions thereof) deemed to be uncollectible. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loans losses, as further described below. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the loan segments. Management uses a rolling average of historical losses based on a three -year loss history to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels and trends in delinquencies; level and trend of charge-offs and recoveries; trends in volume and types of loans; effects of changes in risk selection and underwriting standards, changes in risk selection and underwriting standards; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. There were no changes in the Company’s methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Bank establishes maximum loan-to-value and debt-to-income ratios and minimum credit scores as an integral component of the underwriting criteria. Loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the income and credit quality of the individual borrower. Within the qualitative allowance factors, national and local economic trends including unemployment rates and potential declines in property value, are key elements reviewed as a component of establishing the appropriate allocation. Overall economic conditions, unemployment rates and housing price trends will influence the underlying credit quality of these segments. Commercial real estate – Loans in this segment are primarily income-producing properties throughout Connecticut, western Massachusetts, and other select markets in the Northeast. The underlying cash flows generated by the properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on the credit quality in this segment. Management obtains rent rolls annually, continually monitors the cash flows of these loans and performs stress testing. Construction loans – Loans in this segment primarily include commercial real estate development and residential subdivision loans for which payment is derived from the sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial business loans – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy and its effect on business profitability and cash flow could have an effect on the credit quality in this segment. Installment and collateral loans – Loans in this segment are secured or unsecured and repayment is dependent on the credit quality of the individual borrower. A significant portion of these loans are secured by boats. For acquired loans accounted for under ASC 310-30, our allowance for loan losses is estimated based upon our expected cash flows for these loans. To the extent that we experience a deterioration in borrower credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loans. Allocated component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Residential and installment and collateral loans are evaluated for impairment if payments are 90 days or more delinquent. Updated property evaluations are obtained at time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. When a loan is determined to be impaired, the Company makes a determination if the repayment of the obligation is collateral dependent. As a majority of impaired loans are collateralized by real estate, appraisals on the underlying value of the property securing the obligation are utilized in determining the specific impairment amount that is allocated to the loan as a component of the allowance calculation. If the loan is collateral dependent, an updated appraisal is obtained within a short period of time from the date the loan is determined to be impaired; typically no longer than 30 days for a residential property and 90 days for a commercial real estate property. The appraisal and the appraised value are reviewed for adequacy and then further discounted for estimated disposition costs and the period of time until resolution, in order to determine the impairment amount. The Company updates the appraised value at least annually and on a more frequent basis if current market factors indicate a potential change in valuation. The majority of the Company’s loans are collateralized by real estate located in central and eastern Connecticut and western Massachusetts in addition to a portion of the commercial real estate loan portfolio located in the Northeast region of the United States. Accordingly, the collateral value of a substantial portion of the Company’s loan portfolio and real estate acquired through foreclosure is susceptible to changes in market conditions in these areas. Unallocated component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The allowance for loan losses has been determined in accordance with GAAP, under which the Company is required to maintain an allowance for probable losses at the balance sheet date. The Company is responsible for the timely and periodic determination of the amount of the allowance required. Management believes that the allowance for loan losses is adequate to cover specifically identifiable losses, as well as, estimated losses inherent in our portfolio that are probable, but not specifically identifiable. While management regularly evaluates the adequacy of the allowance for loan losses, future additions to the allowance may be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. |
Servicing | Servicing The Company services mortgage loans for others. Mortgage servicing assets are recognized at fair value as separate assets when rights are acquired through purchase or through sale of financial assets. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. The Company’s servicing asset valuation is performed by an independent third party using a static valuation model representing a projection of a single interest rate/market environment into the future and discounting the resulting assumed cash flow back to present value. Discount rates, servicing costs, float earnings rates and delinquency information as well as the use of the medium PSA quotations provided by Security Industry and Financial Market Association are used to calculate the value of the servicing asset. Capitalized servicing rights are reported in other assets at fair value, with changes in fair value recorded in income from mortgage banking activities. |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired through, or in lieu of, loan foreclosure is held for sale and is initially recorded at fair value, less costs to sell, at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance and any direct write-downs are included in non-interest expense. Gains and losses on the sale of other real estate owned are recorded in other income (loss) in the Consolidated Statements of Net Income. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance (“BOLI”) represents life insurance on certain current and former employees who have consented to allow the Bank to be the beneficiary of those policies. BOLI is recorded as an asset at cash surrender value. Increases in the cash surrender value of the policies, as well as insurance proceeds received, are recorded in non-interest income and are not subject to income tax. Management reviews the credit quality and financial strength of the insurance carriers on a quarterly and annual basis. BOLI with any individual carrier is limited to 15% of capital plus reserves. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets and no condition both constrains the transferee from taking advantage of that right and provides more than a trivial benefit for the transferor, and (3) the Company does not maintain effective control over the transferred assets through either: (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets which range from 3 to 39 1/2 years. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms excluding lease extension periods. Maintenance and repairs are expensed as incurred and improvements are capitalized. |
Marketing and Promotions | Marketing and Promotions Marketing and promotions costs are expensed as incurred. |
Impairment of Long-Lived Assets Other Than Goodwill | Impairment of Long-Lived Assets Other Than Goodwill Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value through a charge to non-interest expense. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Goodwill | Goodwill Goodwill is recognized for the excess of the acquisition cost over the fair values of the net assets acquired. Goodwill is not amortized and is instead reviewed for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying value. Any impairment write-down is charged to non-interest expense in the Consolidated Statements of Net Income. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. |
Investments in Limited Partnerships | Investments in Limited Partnerships The Company evaluates investments including joint ventures, low income housing tax credit partnerships and other limited partnerships to determine whether consolidation is necessary. The Company applies the equity method of accounting to its investments in limited partnerships. The Company has interests in limited partnerships that own and operate affordable housing and rehabilitation projects as well as alternative energy projects. Investments in these projects serve as an element of the Bank’s compliance with the Community Reinvestment Act and in serving the interest of public welfare, and the Company receives tax benefits in the form of deductions for operating losses and tax credits. The tax credits generally may be used to reduce taxes currently payable or may be carried back one year or forward 20 years to recapture or reduce taxes. The Company regularly evaluates the partnership investments for impairment. The tax credits are recorded in the years they become available to reduce income taxes through the provision for income taxes, while basis adjustments under the equity method or impairment are recorded in loss on investments in limited partnerships on the Consolidated Statements of Net Income. |
Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits The Company has a noncontributory defined benefit pension plan that provides benefits for full-time employees hired before January 1, 2005, meeting certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined. The Company’s funding policy is to contribute an amount needed to meet the minimum funding standards established by the Employee Retirement Security Act of 1974 (“ERISA”). The compensation cost of an employees’ pension benefit is recognized on the projected unit cost method over the employee’s approximate service period. As of December 31, 2012, the Company froze its noncontributory defined benefit pension plan, at which time participants in the plan stopped earning additional benefits under the plan. The Company began providing additional benefits to these employees under the Bank’s 401(k) Plan as of January 1, 2013. See Note 17, “Pension Plans and Other Post-Retirement Benefits”, for further information on these benefits. In addition to the qualified plan, the Company has supplemental retirement plans for certain key officers. These plans, which are nonqualified, were designed to offset the impact of changes in the pension plan that limit benefits for highly compensated employees under qualified pension plans. The Compensation cost of an employee’s pension benefit is recognized on the projected unit credit method over the employee’s approximate service period. The aggregate cost method is utilized for funding purposes. The Company accounts for its defined benefit pension plan using an actuarial model that allocates pension costs over the service period of employees in the plan. The Company accounts for the over-funded or under-funded status of its defined benefit plan as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss. The Company also provides certain health care and life insurance benefits for retired employees hired prior to March 1, 1993. Participants become eligible for the benefits if they retire after reaching age 62 with five or more years of service. Benefits are paid in fixed amounts depending on length of service at retirement. The Company accrues for the estimated costs of these benefits through charges to expense during the years that employees render service; however, the Company does not fund this plan. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a framework for measuring fair value and expands disclosures about fair value measurements. The required disclosures about fair value measurements have been included in Note 15, “Fair Value Measurement” in the Notes to Consolidated Financial Statements. |
Earnings per Common Share | Earnings per Common Share Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares outstanding for the period. If rights to dividends on unvested options/awards are non-forfeitable, these unvested options/awards are considered outstanding in the computation of basic earnings per share. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Unearned Employee Stock Ownership Plan (“ESOP”) shares are not considered outstanding for calculating basic and diluted earnings per common share. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. |
ESOP | Employee Stock Ownership Plan Unearned Employee Stock Ownership Plan (“ESOP”) shares are shown as a reduction of stockholders’ equity and presented as unearned compensation - ESOP. During the period the ESOP shares are committed to be released, the Company recognizes compensation cost equal to the average fair value of the ESOP shares. When the shares are released, unearned common shares held by the ESOP are reduced by the cost of the ESOP shares released and the differential between the fair value and the cost is recorded in additional paid-in capital. The loan receivable from the ESOP to the Company is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s Consolidated Statements of Condition. Effective January 1, 2014, the Company merged its ESOP with its Defined Contribution Plan, or 401(k) Plan. |
Share-Based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. These costs are recognized on a straight-line basis over the vesting period during which an employee is required to provide services in exchange for the award; the requisite service period. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options granted. When determining the estimated fair value of stock options granted, the Company utilizes various assumptions regarding the expected volatility of the stock price, estimated forfeitures using historical data on employee terminations, the risk-free interest rate for periods within the contractual life of the stock option, and the expected dividend yield that the Company expects over the expected life of the options granted. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted monthly based on actual forfeiture experience. The Company measures the fair value of the restricted stock using the closing market price of the Company’s common stock on the date of grant. The Company expenses the grant date fair value of the Company’s stock options and restricted stock with a corresponding increase in equity. |
Off-balance Sheet Financial Instruments | Off-balance Sheet Financial Instruments In the ordinary course of business, the Company enters into off-balance sheet financial instruments, consisting primarily of credit related financial instruments. These financial instruments are recorded in the Consolidated Financial Statements when they are funded or related fees are incurred or received. |
Segment Information | Segment Information As a community oriented financial institution, substantially all of the Company’s operations involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of these community-banking operations, which constitutes the Company’s only operating segment for financial reporting purposes. |
Recent Accounting Pronouncements | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 Leases (Topic 842) . This ASU introduces a lessee model that brings most leases on the balance sheet and aligns many of the underlying principles of the new lessor model with those in the new revenue recognition standard, ASC 606, Revenue From Contracts with Customers . The new leases standard represents a whole-sale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e. calendar periods beginning on January 1, 2019), and interim periods therein. Early adoption will be permitted for all entities. Management is currently analyzing the impact on the Company’s Consolidated Financial Statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures and limited liability companies, at fair value through net income. This new requirement does not apply to investments that qualify for the equity method of accounting or to those that result in consolidation of these investments. The ASU supersedes current guidance and no longer requires equity securities with readily determinable fair value to be classified into categories (i.e. trading or available for sale). The ASU clarifies that when identifying observable price changes, an entity should consider relevant transactions “that are known or can reasonably be known“ and that an entity is not required to spend undue cost and effort to identify such transactions. The ASU also indicates that an entity should consider a security’s rights and obligations, such as voting rights, distribution rights and preferences, and conversion features, when evaluating whether the security issued by the same issuer is similar to the equity security held by the entity. The ASU further provides for the elimination of disclosure requirements related to financial instruments measured at amortized cost. For public business entities, the new standard will require disclosure of fair value using the exit price notion for all financial instruments measured at amortized cost. Pursuant to the ASU, recognition and measurement will take effect for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all entities, the ASU permits early adoption of the instrument-specific credit risk provision. Management is currently analyzing the impact on the Company’s Consolidated Financial Statements. Business Combinations In September 2015, the FASB issued ASU No. 2015-16 Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments which aims to simplify accounting for adjustments made to provisional amounts recognized in a business combination . The requirement per GAAP to retrospectively apply measurement-period adjustments to provisional amounts was eliminated. The new guidance requires that the acquiring company recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. In addition, an entity is required to present separately, on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not been issued. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this ASU with earlier application permitted for financial statements that have not yet been made available for issuance. This ASU is not expected to have an impact on the Company’s Consolidated Financial Statements. Revenue from Contracts In August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defer the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016 including interim reporting periods within that reporting period. This ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements. Intangibles-Goodwill and Other-Internal-Use Software In April 2015, the FASB issued 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. The ASU provides criteria for customers in a cloud computing arrangement to use to determine whether the arrangement includes a license of software. When a cloud computing arrangement includes a license of software, the customer will capitalize the fee attributable to the software license portion of the arrangement when the criteria for capitalization of internal-use software are met. When a cloud computing arrangement does not include a license of software, the customer will account for the arrangement as a service contract and expense the cost as the services are received. The ASU supersedes the guidance that required companies to analogize to lease accounting when determining the asset acquired in a software licensing arrangement. Entities may elect to adopt the ASU either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. For public business entities, the standard is effective for annual and interim periods in fiscal years beginning after December 15, 2015. For all other entities, the standard is effective for annual periods beginning after December 15, 2015, and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted for all entities. Entities that elect prospective transition should disclose the nature of, and reason for, the change in accounting policy, the transition method, and a qualitative description of the financial statement line items affected by the change. Entities that elect retrospective transition should also disclose quantitative information about the effects of the accounting change. This information should include the cumulative effect of the change on retained earnings or other components of equity or net assets in the statement of financial position as of the beginning of the earliest period presented. This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. Interest-Imputation of Interest . In April 2015, the FASB issued ASU No. 2015-03, ( Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. For public business entities, the guidance in the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is allowed for all entities for financial statements that have not been previously issued. Entities would apply the new guidance retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). This ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
MERGER (Tables)
MERGER (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of Merger | The following table summarizes the Merger on April 30, 2014: (Dollars and shares in thousands) Transaction Related Items Legacy United Goodwill Other Identifiable Intangibles Shares Issued Value of Legacy United Exercisable Options Total Purchase Price Balance at April 30, 2014 Assets Equity $ 2,442,525 $ 304,505 $ 114,211 $ 10,585 26,706 $ 4,909 $ 356,394 |
GOODWILL AND CORE DEPOSIT INT35
GOODWILL AND CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The changes in the carrying amount of goodwill and core deposit intangible assets are summarized as follows: Goodwill Core Deposit Intangible (In thousands) Balance at December 31, 2013 $ 1,070 $ — Acquisition of Legacy United 114,170 10,585 Amortization expense — (1,283 ) Balance at December 31, 2014 $ 115,240 $ 9,302 Adjustments 41 — Amortization expense — (1,796 ) Balance at December 31, 2015 $ 115,281 $ 7,506 Estimated amortization expense for the years ending December 31, 2016 $ 1,604 2017 1,411 2018 1,219 2019 1,026 2020 834 2021 and thereafter 1,412 Total remaining $ 7,506 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available for Sale and Held to Maturity Securities | The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities at December 31, 2015 and 2014 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2015 (In thousands) Available for sale: Debt securities: U.S. Government and government-sponsored enterprise obligations $ 10,159 $ 13 $ (83 ) $ 10,089 Government-sponsored residential mortgage-backed securities 146,434 731 (1,304 ) 145,861 Government-sponsored residential collateralized debt obligations 287,515 855 (1,403 ) 286,967 Government-sponsored commercial mortgage-backed securities 21,144 21 (200 ) 20,965 Government-sponsored commercial collateralized debt obligations 128,617 626 (271 ) 128,972 Asset-backed securities 162,895 43 (3,037 ) 159,901 Corporate debt securities 62,356 91 (2,487 ) 59,960 Obligations of states and political subdivisions 201,217 1,561 (1,663 ) 201,115 Total debt securities 1,020,337 3,941 (10,448 ) 1,013,830 Marketable equity securities, by sector: Banks 41,558 1,099 (544 ) 42,113 Industrial 109 34 — 143 Mutual funds 2,854 65 (4 ) 2,915 Oil and gas 132 36 — 168 Total marketable equity securities 44,653 1,234 (548 ) 45,339 Total available for sale securities $ 1,064,990 $ 5,175 $ (10,996 ) $ 1,059,169 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 2,205 $ 244 $ — $ 2,449 Obligations of states and political subdivisions 12,360 884 (10 ) 13,234 Total held to maturity securities $ 14,565 $ 1,128 $ (10 ) $ 15,683 December 31, 2014 Available for sale: Debt securities: U.S. Government and government-sponsored enterprise obligations $ 6,965 $ 94 $ (237 ) $ 6,822 Government-sponsored residential mortgage-backed securities 165,199 2,379 (159 ) 167,419 Government-sponsored residential collateralized debt obligations 237,128 1,365 (360 ) 238,133 Government-sponsored commercial mortgage-backed securities 67,470 1,081 (253 ) 68,298 Government-sponsored commercial collateralized debt obligations 129,547 737 (598 ) 129,686 Asset-backed securities 181,198 272 (2,715 ) 178,755 Corporate debt securities 43,907 35 (1,697 ) 42,245 Obligations of states and political subdivisions 194,857 1,572 (657 ) 195,772 Total debt securities 1,026,271 7,535 (6,676 ) 1,027,130 Marketable equity securities, by sector: Banks 22,645 277 (340 ) 22,582 Industrial 109 76 — 185 Mutual funds 2,824 89 (3 ) 2,910 Oil and gas 131 73 — 204 Total marketable equity securities 25,709 515 (343 ) 25,881 Total available for sale securities $ 1,051,980 $ 8,050 $ (7,019 ) $ 1,053,011 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 2,971 $ 339 $ — $ 3,310 Obligations of states and political subdivisions 12,397 1,006 — 13,403 Total held to maturity securities $ 15,368 $ 1,345 $ — $ 16,713 |
Amortized Cost and Fair Value of Debt Securities | The amortized cost and fair value of debt securities at December 31, 2015 by contractual maturities are presented below. Actual maturities may differ from contractual maturities because the securities may be called or repaid without any penalties. Because mortgage-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary: Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Maturity: Within 1 year $ 529 $ 529 $ — $ — After 1 year through 5 years 9,340 9,190 1,193 1,202 After 5 years through 10 years 66,078 65,077 — — After 10 years 197,785 196,368 11,167 12,032 273,732 271,164 12,360 13,234 Government-sponsored mortgage-backed securities 146,434 145,861 2,205 2,449 Government-sponsored residential collateralized debt obligations 287,515 286,967 — — Government-sponsored commercial mortgage-backed securities 21,144 20,965 — — Government-sponsored commercial collateralized debt obligations 128,617 128,972 — — Asset-backed securities 162,895 159,901 — — Total debt securities $ 1,020,337 $ 1,013,830 $ 14,565 $ 15,683 |
Available for Sale Securities | For the years ended December 31, 2015, 2014 and 2013 , proceeds from the sale of available for sale securities and gross realized gains and losses on the sale of available for sale securities are presented below: For the Years Ended December 31, 2015 2014 2013 (In thousands) Proceeds from the sale of available for sale securities $ 280,564 $ 511,044 $ 44,880 Gross gains on the sale of available for sale securities 3,090 2,711 804 Gross losses on the sale of available for sale securities 2,151 1,483 219 |
Summary of Gross Unrealized Losses and Fair Value | The following table summarizes gross unrealized losses and fair value, aggregated by category and length of time the securities have been in a continuous unrealized loss position, as of December 31, 2015 and 2014 : Less than 12 months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (In thousands) December 31, 2015 Available for sale: Debt securities: U.S. Government and government sponsored enterprise obligations $ 4,867 $ (66 ) $ 4,977 $ (17 ) $ 9,844 $ (83 ) Government-sponsored residential mortgage-backed securities 107,142 (1,183 ) 7,195 (121 ) 114,337 (1,304 ) Government-sponsored residential collateralized debt obligations 152,278 (1,357 ) 3,506 (46 ) 155,784 (1,403 ) Government-sponsored commercial mortgage-backed securities 16,207 (200 ) — — 16,207 (200 ) Government-sponsored commercial collateralized debt obligations 38,151 (221 ) 3,496 (50 ) 41,647 (271 ) Asset-backed securities 93,723 (1,233 ) 49,462 (1,804 ) 143,185 (3,037 ) Corporate debt securities 42,102 (797 ) 6,720 (1,690 ) 48,822 (2,487 ) Obligations of states and political subdivisions 47,878 (946 ) 42,685 (717 ) 90,563 (1,663 ) Total debt securities 502,348 (6,003 ) 118,041 (4,445 ) 620,389 (10,448 ) Marketable equity securities 18,449 (287 ) 6,176 (261 ) 24,625 (548 ) Total available for sale securities $ 520,797 $ (6,290 ) $ 124,217 $ (4,706 ) $ 645,014 $ (10,996 ) Held to Maturity: Debt Securities: Obligations of states and political subdivisions $ 1,104 $ (10 ) — — $ 1,104 $ (10 ) Total held to maturity securities $ 1,104 $ (10 ) — — $ 1,104 $ (10 ) December 31, 2014 Available for sale: Debt securities: U.S. Government and government sponsored enterprise obligations $ — $ — $ 4,757 $ (237 ) $ 4,757 $ (237 ) Government-sponsored residential mortgage-backed securities 1,492 (11 ) 19,785 (148 ) 21,277 (159 ) Government-sponsored residential collateralized debt obligations 35,769 (124 ) 17,443 (236 ) 53,212 (360 ) Government-sponsored commercial mortgage-backed securities 14,118 (15 ) 16,337 (238 ) 30,455 (253 ) Government-sponsored commercial collateralized debt obligations 62,477 (551 ) 4,991 (47 ) 67,468 (598 ) Asset-backed securities 128,808 (2,080 ) 20,146 (635 ) 148,954 (2,715 ) Corporate debt securities 30,634 (501 ) 5,054 (1,196 ) 35,688 (1,697 ) Obligations of states and political subdivisions 55,029 (419 ) 18,568 (238 ) 73,597 (657 ) Total debt securities 328,327 (3,701 ) 107,081 (2,975 ) 435,408 (6,676 ) Marketable equity securities: 12,716 (340 ) 140 (3 ) 12,856 (343 ) Total $ 341,043 $ (4,041 ) $ 107,221 $ (2,978 ) $ 448,264 $ (7,019 ) |
LOANS RECEIVABLE AND ALLOWANC37
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Company's Loan Portfolio | A summary of the Company’s loan portfolio at December 31, 2015 and 2014 is as follows: December 31, 2015 2014 (In thousands) Real estate loans: Residential $ 1,611,197 $ 1,413,739 Commercial 1,995,332 1,678,936 Construction 171,006 185,843 Total real estate loans 3,777,535 3,278,518 Commercial business loans 603,332 613,596 Installment and collateral loans 233,064 5,752 Total loans 4,613,931 3,897,866 Net deferred loan costs and premiums 7,018 4,006 Allowance for loan losses (33,887 ) (24,809 ) Loans — net $ 4,587,062 $ 3,877,063 |
Summary Of Changes In Purchased Accounting Adjustments, Accretable And Nonaccretable Yields Of Acquired Loans [Table Text Block] | The following table summarizes the activity in the non-accretable purchased accounting adjustments for purchased credit impaired acquired loans for the periods presented: For the Year Ended December 31, 2015 2014 (In thousands) Balance at beginning of period $ (7,989 ) $ — Acquisitions (3,674 ) (8,650 ) Accretion 223 648 Paid off 2,533 13 Reclassification to accretable 3,097 — Balance at end of year $ (5,810 ) $ (7,989 ) |
Summary of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses for the years ended December 31, 2015, 2014 and 2013 are as follows: Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral Unallocated Total (In thousands) December 31, 2015 Balance, beginning of year $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 Provision (credit) for loan losses 3,155 6,291 891 1,693 292 683 13,005 Loans charged off (1,171 ) (1,018 ) (466 ) (2,513 ) (324 ) — (5,492 ) Recoveries of loans previously charged off 281 342 — 839 103 — 1,565 Balance, end of year $ 10,192 $ 15,033 $ 1,895 $ 5,827 $ 146 $ 794 $ 33,887 December 31, 2014 Balance, beginning of year $ 6,396 $ 8,288 $ 829 $ 3,394 $ 29 $ 247 $ 19,183 Provision (credit) for loan losses 3,250 1,880 641 3,723 138 (136 ) 9,496 Loans charged off (1,894 ) (750 ) — (1,406 ) (139 ) — (4,189 ) Recoveries of loans previously charged off 175 — — 97 47 — 319 Balance, end of year $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 December 31, 2013 Balance, beginning of year $ 6,194 $ 8,051 $ 807 $ 2,916 $ 29 $ 480 $ 18,477 Provision (credit) for loan losses 876 382 272 650 99 (233 ) 2,046 Loans charged off (811 ) (145 ) (250 ) (190 ) (124 ) — (1,520 ) Recoveries of loans previously charged off 137 — — 18 25 — 180 Balance, end of year $ 6,396 $ 8,288 $ 829 $ 3,394 $ 29 $ 247 $ 19,183 |
Summary of Allowance for Loan Losses and Impaired Loans | Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2015 and 2014 follows: Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral Unallocated Total (In thousands) December 31, 2015 Allowance related to loans individually evaluated and deemed impaired $ 74 $ — $ 147 $ 121 $ — $ — $ 342 Allowance related to loans collectively evaluated and not deemed impaired 10,118 15,033 1,748 5,531 146 794 33,370 Allowance related to loans acquired with deteriorated credit quality — — — 175 — — 175 Total allowance for loan losses $ 10,192 $ 15,033 $ 1,895 $ 5,827 $ 146 $ 794 $ 33,887 Loans deemed impaired $ 20,592 $ 17,960 $ 4,660 $ 13,035 $ 8 $ — $ 56,255 Loans not deemed impaired 1,590,605 1,975,349 166,346 588,982 230,061 — 4,551,343 Loans acquired with deteriorated credit quality — 2,023 — 1,315 2,995 — 6,333 Total loans $ 1,611,197 $ 1,995,332 $ 171,006 $ 603,332 $ 233,064 $ — $ 4,613,931 December 31, 2014 Allowance related to loans individually evaluated and deemed impaired $ 28 $ 316 $ 33 $ 882 $ — $ — $ 1,259 Allowance related to loans collectively evaluated and not deemed impaired 7,899 9,102 1,437 4,710 75 111 23,334 Allowance related to loans acquired with deteriorated credit quality — — — 216 — — 216 Total allowance for loan losses $ 7,927 $ 9,418 $ 1,470 $ 5,808 $ 75 $ 111 $ 24,809 Loans deemed impaired $ 15,981 $ 19,514 $ 2,610 $ 5,846 $ 46 $ — $ 43,997 Loans not deemed impaired 1,397,758 1,654,917 180,548 604,055 5,706 — 3,842,984 Loans acquired with deteriorated credit quality — 4,505 2,685 3,695 — — 10,885 Total loans $ 1,413,739 $ 1,678,936 $ 185,843 $ 613,596 $ 5,752 $ — $ 3,897,866 |
Summary of Past Due and Non-Accrual Loans | The following is a summary of past due and non-accrual loans at December 31, 2015 and 2014 : 30-59 Days Past Due 60-89 Days Past Due Past Due 90 Days or More Total Past Due Past Due 90 Days or More and Still Accruing Loans on Non-accrual (In thousands) December 31, 2015 Real estate loans: Residential $ 10,516 $ 2,758 $ 8,485 $ 21,759 $ 238 $ 19,122 Commercial 4,054 2,689 6,024 12,767 — 11,620 Construction 214 449 2,135 2,798 — 2,808 Commercial business 526 266 2,804 3,596 66 4,244 Installment and collateral 17 3 8 28 3 8 Total $ 15,327 $ 6,165 $ 19,456 $ 40,948 $ 307 $ 37,802 December 31, 2014 Real estate loans: Residential $ 18,913 $ 3,954 $ 7,320 $ 30,187 $ — $ 13,972 Commercial 7,734 3,967 9,509 21,210 2,361 12,514 Construction 1,403 227 695 2,325 84 611 Commercial business 2,782 3,812 7,486 14,080 2,307 5,217 Installment and collateral 34 — 12 46 — 44 Total $ 30,866 $ 11,960 $ 25,022 $ 67,848 $ 4,752 $ 32,358 |
Summary of Impaired Loans with and without Valuation Allowance | The following is a summary of impaired loans with and without a valuation allowance as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) Impaired loans without a valuation allowance: Real estate loans: Residential $ 19,315 $ 22,829 $ 15,233 $ 17,143 Commercial 17,960 20,381 18,408 21,202 Construction 4,442 6,869 2,384 2,441 Commercial business loans 12,634 14,477 3,804 6,129 Installment and collateral loans 8 11 46 34 Total 54,359 64,567 39,875 46,949 Impaired loans with a valuation allowance: Real estate loans: Residential 1,277 1,292 $ 74 748 892 $ 28 Commercial — — — 1,106 1,271 316 Construction 218 218 147 226 226 33 Commercial business loans 401 401 121 2,042 2,098 882 Total 1,896 1,911 342 4,122 4,487 1,259 Total impaired loans $ 56,255 $ 66,478 $ 342 $ 43,997 $ 51,436 $ 1,259 |
Average Recorded Investment in Impaired Loans | The following is a summary of average recorded investment in impaired loans and interest income recognized on those loans for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended For the Year Ended For the Year Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Impaired loans: Real estate loans: Residential $ 18,213 $ 616 $ 12,721 $ 451 $ 9,999 $ 432 Commercial 18,424 694 11,868 284 4,407 45 Construction 3,784 299 2,646 81 2,720 46 Commercial business loans 7,835 431 3,087 121 1,525 46 Installment and collateral loans 24 — 110 1 36 2 Total $ 48,280 $ 2,040 $ 30,432 $ 938 $ 18,687 $ 571 |
Schedule of Troubled Debt Restructurings | The following table provides detail of TDR balances for the periods presented: At December 31, At December 31, (In thousands) Recorded investment in TDRs: Accrual status $ 18,453 $ 11,638 Non-accrual status 5,611 4,169 Total recorded investment in TDRs $ 24,064 $ 15,807 Accruing TDRs performing under modified terms more than one year $ 5,821 $ 1,919 Specific reserves for TDRs included in the balance of allowance for loan losses $ 223 $ 380 Additional funds committed to borrowers in TDR status $ 513 $ 210 |
Troubled Debt Restructurings | Loans restructured as TDRs during 2015 and 2014 are set forth in the following table: For the Year Ended For the Year Ended (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential real estate 38 $ 4,632 $ 4,642 16 $ 2,497 $ 2,497 Commercial real estate 2 791 791 6 1,450 1,450 Construction 2 564 564 15 4,161 4,161 Commercial business 8 9,180 9,680 8 1,121 1,121 Installment & collateral — — — 1 2 2 Total TDRs 50 $ 15,167 $ 15,677 46 $ 9,231 $ 9,231 The following table provides information on how loans were modified as TDRs during the periods indicated: For the Year Ended December 31, 2015 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Residential real estate $ — $ 1,202 $ 1,659 $ 814 $ 967 Commercial real estate 538 — 253 — — Construction 564 — — — — Commercial business 9,673 — 7 — — Total $ 10,775 $ 1,202 $ 1,919 $ 814 $ 967 For the Year Ended December 31, 2014 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Residential real estate $ 80 $ 1,008 $ — $ 732 $ 677 Commercial real estate 448 564 438 — — Construction 3,980 — — — 181 Commercial business 548 — 57 — 516 Installment and collateral — — — 2 — Total $ 5,056 $ 1,572 $ 495 734 $ 1,374 Loans restructured as TDRs during 2013 totaled $8.3 million consisting of 19 loans. The majority of the balance was concentrated in commercial real estate, consisting of four loans, for which the maturity was extended. TDRs that subsequently defaulted within twelve months of restructuring during the years ended December 31, 2015 and 2014 follows: For the Year Ended For the Year Ended (Dollars in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Residential real estate 5 $ 769 — $ — Commercial real estate 2 806 2 3,360 Total troubled debt restructuring 7 $ 1,575 2 $ 3,360 |
Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at December 31, 2015 and 2014 : Residential Real Estate Commercial Real Estate Construction Commercial Business Installment and Collateral (In thousands) December 31, 2015 Loans rated 1 — 5 $ 1,589,095 $ 1,909,091 $ 156,607 $ 568,248 $ 233,054 Loans rated 6 1,379 48,522 10,860 8,382 — Loans rated 7 20,720 37,719 3,539 26,655 10 Loans rated 8 — — — 47 — Loans rated 9 3 — — — — $ 1,611,197 $ 1,995,332 $ 171,006 $ 603,332 $ 233,064 December 31, 2014 Loans rated 1 — 5 $ 1,396,866 $ 1,606,420 $ 174,629 $ 570,808 $ 5,488 Loans rated 6 1,981 28,616 4,652 21,589 — Loans rated 7 14,892 43,900 6,562 21,154 264 Loans rated 8 — — — 45 — Loans rated 9 — — — — — $ 1,413,739 $ 1,678,936 $ 185,843 $ 613,596 $ 5,752 |
Schedule Of Changes In Loans Outstanding To Related Parties | Changes in loans outstanding to such related parties for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 (In thousands) Balance, beginning of year $ 3,722 $ 2,020 Loans related to parties who terminated service during the year (1,495 ) (948 ) Additional loans and advances 875 2,848 Repayments (457 ) (198 ) Balance, end of year $ 2,645 $ 3,722 |
Summary of Mortgage Servicing Rights Capitalized and Amortized | Mortgage servicing rights (“MSRs”) are included in other assets in the Consolidated Statements of Condition. Changes in the fair value of MSRs are included in other income (loss) in the Consolidated Statements of Net Income. The following table summarizes MSRs capitalized and amortized for the years ended December 31, 2015, 2014 and 2013 : Years Ended December 31, 2015 2014 2013 (In thousands) Mortgage servicing rights: Balance at beginning of year $ 4,729 $ 4,103 $ 1,083 Cumulative effect of net change in accounting principle — — 471 Addition of Legacy United mortgage servicing rights — 764 — Change in fair value recognized in net income (586 ) (1,269 ) 1,347 Issuances/additions 2,931 1,131 1,202 Balance at end of year $ 7,074 $ 4,729 $ 4,103 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31, 2015 and 2014 are summarized as follows: At December 31, Estimated Useful Life 2015 2014 (In thousands) Land and improvements $ 950 $ 950 0 - 15 years Buildings 40,375 40,001 10 - 39.5 years Furniture and equipment 27,468 27,618 3 - 10 years Leasehold improvements 8,961 9,261 5 - 10 years Assets under capitalized leases 4,902 4,902 5 - 10 years Construction in progress — 586 82,656 83,318 Accumulated depreciation and amortization (27,877 ) (25,653 ) Premises and equipment, net $ 54,779 $ 57,665 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate [Abstract] | |
Summary of Activity for Other Real Estate Owned | The following is a summary of OREO activity for the dates indicated: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at beginning of year $ 2,239 $ 1,529 $ 2,846 Additions 1,099 2,339 3,097 Acquisition of Legacy United — 2,044 — Write-downs (118 ) (213 ) (287 ) Proceeds from sales (2,683 ) (3,869 ) (4,042 ) Gain (loss) on sales 218 409 (85 ) Balance at end of year $ 755 $ 2,239 $ 1,529 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The components of Other Assets at December 31, 2015 and 2014 are summarized below: At December 31, 2015 2014 (In thousands) Current tax receivable $ 4,770 $ 14,391 Partnership investments 21,441 13,461 Mortgage servicing rights 7,074 4,729 Derivative assets 12,910 4,074 Investment receivable 20 2,762 Other 12,766 9,715 Total other assets $ 58,981 $ 49,132 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Summary of Deposits | Deposits at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (In thousands) Demand and NOW $ 1,019,161 $ 902,460 Regular savings 508,377 528,614 Money markets 1,182,422 1,047,302 Time deposits 1,727,111 1,556,935 Total deposits $ 4,437,071 $ 4,035,311 |
Summary of Contractual Maturities of Time Deposits | Contractual maturities of time deposits as of December 31, 2015 are summarized below: December 31, 2015 (In thousands) 2016 $ 1,061,959 2017 471,007 2018 95,520 2019 22,042 2020 76,583 $ 1,727,111 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Contractual Maturities and Weighted-Average Rates of Outstanding Advances | Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of December 31, 2015 and 2014 are summarized below: December 31, 2015 December 31, 2014 Amount Weighted- Average Rate Amount Weighted- Average Rate (Dollars in thousands) 2015 $ — — % $ 435,763 0.38 % 2016 637,580 0.60 19,714 1.53 2017 151,000 1.76 66,000 2.72 2018 120,795 1.54 16,784 2.19 2019 20,000 1.63 20,000 1.63 Thereafter 16,130 2.21 17,300 2.19 $ 945,505 0.95 % $ 575,561 0.84 % |
Schedule of Repurchase Agreements | The following table presents the Company’s outstanding borrowings under repurchase agreements as of December 31, 2015 and December 31, 2014 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (Dollars in thousands) December 31, 2015 Repurchase Agreements U.S. Treasury and agency securities $ 19,278 $ 25,000 $ 20,000 $ — $ 64,278 December 31, 2014 Repurchase Agreements U.S. Treasury and agency securities $ 41,335 $ 49,242 $ — $ 20,000 $ 110,577 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of the income tax expense (benefit) for the years ended December 31, 2015, 2014 and 2013 are as follows: 2015 2014 2013 (In thousands) Current tax provision (benefit) Federal $ 1,302 $ (13,905 ) $ 4,842 State 1,345 311 117 Total current 2,647 (13,594 ) 4,959 Deferred tax provision (benefit) Federal 3,275 7,482 410 State 307 (121 ) — Total deferred 3,582 7,361 410 Total income tax expense (benefit) $ 6,229 $ (6,233 ) $ 5,369 |
Summary of Provision for Income Taxes | For the years ended December 31, 2015, 2014 and 2013 , the provision for income taxes differs from the amount computed by applying the statutory Federal income tax rate of 35% to pre-tax income for the following reasons: Years Ended December 31, 2015 2014 2013 (In thousands) Provision for income tax at statutory rate $ 19,554 $ 192 $ 6,859 Increase (decrease) resulting from: State income taxes, net of federal benefit 1,074 124 76 Increase in cash surrender value of bank-owned life insurance (1,266 ) (1,065 ) (732 ) Dividend received deduction (471 ) (276 ) (24 ) Tax exempt interest and disallowed interest expense (3,826 ) (1,740 ) (808 ) Employee Stock Ownership Plan 25 153 193 Nondeductible acquisition costs — 440 — Excess parachute payments 442 1,615 — Investment tax credits (8,649 ) (5,596 ) — Other, net (654 ) (80 ) (195 ) Total provision (benefit) for income taxes $ 6,229 $ (6,233 ) $ 5,369 Effective income tax rate (benefit) 11.1 % (11.4 )% 27.4 % |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: December 31, 2015 2014 (In thousands) Deferred tax assets: Loans $ 14,558 $ 17,601 Investment security losses 150 440 Net unrealized losses on securities available for sale 2,107 — Net unrealized losses on interest rate swaps 1,603 390 Pension, deferred compensation and post-retirement liabilities 2,723 4,279 Stock incentive award plan 2,044 2,871 Deposits - purchase accounting adjustment 891 2,149 Accrued expenses 8,043 3,124 Tax credits 3,539 5,116 Other 3,166 4,484 Gross deferred tax assets 38,824 40,454 Valuation allowance (2,706 ) (2,463 ) Gross deferred tax assets, net of valuation allowance 36,118 37,991 Deferred tax liabilities: Net unrealized gains on securities available for sale — (455 ) Other purchase accounting adjustments (3,024 ) (3,703 ) Gross deferred tax liabilities (3,024 ) (4,158 ) Net deferred tax asset $ 33,094 $ 33,833 |
DERIVATIVES AND HEDGING ACTIV44
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about interest rate swap agreements and non-hedging derivative assets and liabilities as of December 31, 2015 and 2014 is as follows: Notional Amount Weighted- Average Remaining Maturity Weighted-Average Rate Estimated Fair Value Net Received Paid (In thousands) (In years) (In thousands) December 31, 2015 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 150,000 7.99 TBD (1 ) 2.46 % $ (2,072 ) Interest rate swaps 280,000 2.65 0.46 % 1.28 % (2,020 ) Fair value hedges: Interest rate swaps 35,000 1.72 1.04 % 0.48 % (2 ) 24 Non-hedging derivatives: Forward loan sale commitments 25,060 0.00 (13 ) Derivative loan commitments 9,403 0.00 223 Loan level swaps - dealer (3) 333,981 9.05 1.94 % 3.93 % (12,059 ) Loan level swaps - borrowers (3) 333,981 9.05 3.93 % 1.94 % 12,152 Total $ 1,167,425 $ (3,765 ) December 31, 2014 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 150,000 6.34 TBD (1 ) 2.45 % $ (1,069 ) Interest rate swaps 25,000 2.41 0.23 % 0.90 % 72 Fair value hedges: Interest rate swaps 35,000 2.72 1.04 % 0.24 % (2 ) (82 ) Non-hedging derivatives: Forward loan sale commitments 14,091 0.00 (14 ) Derivative loan commitments 8,839 0.00 213 Loan level swaps - dealer (3) 86,446 8.69 1.98 % 4.34 % 3,678 Loan level swaps - borrowers (3) 86,446 8.69 4.34 % 1.98 % (3,678 ) Total $ 405,822 $ (880 ) (1) The receiver leg of the cash flow hedges is floating rate and indexed to the 3-month USD-LIBOR-BBA, as determined two London banking days prior to the first day of each calendar quarter, commencing with the earliest effective trade. The earliest effective trade date for the cash flow hedges is January 4, 2016. (2) The paying leg is one month LIBOR plus a fixed spread ; above rate in effect as of December 31, 2015 . (3) The Company offers a loan level hedging product to qualifying commercial borrowers that seek to mitigate risk to rising interest rates. As such, the Company enters into equal and offsetting trades with dealer counterparties. |
Tabular Disclosure of Fair Values of Derivative Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition as of December 31, 2015 and 2014 : Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Dec 31, Dec 31, Balance Sheet Location Dec 31, Dec 31, (In thousands) (In thousands) Derivatives designated as hedging instruments: Interest rate swap - cash flow hedge Other Assets $ 478 $ 140 Other Liabilities $ 4,570 $ 1,137 Interest rate swap - fair value hedge Other Assets 50 34 Other Liabilities 26 116 Total derivatives designated as hedging instruments $ 528 $ 174 $ 4,596 $ 1,253 Derivatives not designated as hedging instruments: Forward loan sale commitment Other Assets $ 7 $ 7 Other Liabilities $ 20 $ 21 Derivative loan commitment Other Assets 223 213 — — Interest rate swap - with customers Other Assets 12,152 3,678 Other Liabilities — — Interest rate swap - with counterparties — — Other Liabilities 12,059 3,816 Interest rate swap -risk participation agreement Other Assets — 1 — — Total derivatives not designated as hedging $ 12,382 $ 3,899 $ 12,079 $ 3,837 |
Schedule of Effect of Derivative Financial Instruments on Income Statement | The tables below present the effect of derivative instruments in the Company’s Consolidated Statements of Net Income and Changes in Stockholders’ Equity designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 : Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps $ (3,108 ) $ (8,385 ) $ 7,537 Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps $ (12 ) $ — $ — Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, Derivatives in Fair Value Hedging Relationships Location on Gain (Loss) Recognized in Income 2015 2014 2013 (In thousands) Interest Rate Swaps Interest income $ 106 $ 101 $ (183 ) Amount of Gain (Loss) Recognized in Income on Hedged Items For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest Rate Swaps Interest income $ (106 ) $ (101 ) $ 183 The table below presents the effect of derivative instruments in the Company’s Consolidated Statements of Net Income for derivatives not designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 : Amount of Gain (Loss) Recognized for the Years Ended December 31, 2015 2014 2013 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitment $ 10 $ 193 $ (6 ) Forward loan sale commitments (1 ) (33 ) (19 ) Interest rate swaps 231 (70 ) 70 Interest rate swap - risk participation agreement — (1 ) — $ 240 $ 89 $ 45 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | The following table presents the gains (losses) in fair value related to mortgage loans held for sale for the periods indicated: Years Ended December 31, 2015 2014 (In thousands) Mortgage loans held for sale $ (50 ) $ 195 |
Schedule of Assets Recorded at Fair Value on Recurring Basis | The following tables detail the assets and liabilities carried at fair value on a recurring basis as of December 31, 2015 and 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. There were no transfers in and out of Level 1, Level 2 and Level 3 measurements during years ended December 31, 2015 and 2014 . Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2015 Available for Sale Securities: U.S. Government and government-sponsored enterprise obligations $ 10,089 $ — $ 10,089 $ — Government-sponsored residential mortgage-backed securities 145,861 — 145,861 — Government-sponsored residential collateralized debt obligations 286,967 — 286,967 — Government-sponsored commercial mortgage-backed securities 20,965 — 20,965 — Government-sponsored commercial collateralized debt obligations 128,972 — 128,972 — Asset-backed securities 159,901 — 15,388 144,513 Corporate debt securities 59,960 — 58,403 1,557 Obligations of states and political subdivisions 201,115 — 201,115 — Marketable equity securities 45,339 3,227 42,112 — Total available for sale securities $ 1,059,169 $ 3,227 $ 909,872 $ 146,070 Mortgage loan derivative assets $ 230 $ — $ 230 $ — Mortgage loan derivative liabilities 20 — 20 — Loans held for sale 10,136 — 10,136 — Mortgage servicing rights 7,074 — — 7,074 Interest rate swap assets 12,680 — 12,680 — Interest rate swap liabilities 16,655 — 16,655 — December 31, 2014 Available for Sale Securities: U.S. Government and government-sponsored enterprise obligations $ 6,822 $ — $ 6,822 $ — Government-sponsored residential mortgage-backed securities 167,419 — 167,419 — Government-sponsored residential collateralized debt obligations 238,133 — 238,133 — Government-sponsored commercial mortgage-backed securities 68,298 — 68,298 — Government-sponsored commercial collateralized debt obligations 129,686 — 129,686 — Asset-backed securities 178,755 — 43,166 135,589 Corporate debt securities 42,245 — 40,627 1,618 Obligations of states and political subdivisions 195,772 — 195,772 — Marketable equity securities 25,881 3,299 22,582 — Total available for sale securities $ 1,053,011 $ 3,299 $ 912,505 $ 137,207 Mortgage loan derivative assets $ 220 $ — $ 220 $ — Mortgage loan derivative liabilities 21 — 21 — Loans held for sale 8,220 — 8,220 — Mortgage servicing rights 4,729 — — 4,729 Interest rate swap assets 3,853 — 3,853 — Interest rate swap liabilities 4,931 — 4,931 — |
Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs | The following table presents additional information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value: For the Years Ended December 31, 2015 2014 (In thousands) Balance of available for sale securities, at beginning of period $ 137,207 $ 72,963 Purchases 10,794 72,115 Principal payments (1,392 ) (6,915 ) Total unrealized gains (losses) included in other comprehensive income (539 ) (956 ) Balance at end of period $ 146,070 $ 137,207 Balance of mortgage servicing rights at beginning of period $ 4,729 $ 4,103 Addition of Legacy United mortgage servicing rights — 764 Issuances 2,931 1,131 Change in fair value recognized in net income (586 ) (1,269 ) Balance at end of period $ 7,074 $ 4,729 |
Fair Value Inputs, Assets, Quantitative Information | The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Company utilized Level 3 inputs to determine fair value at December 31, 2015 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range (Weighted Average) Asset-backed securities $ 144,513 Discounted Cash Flow Discount Rates 1.5% - 6.7% (5.5%) Cumulative Default % 6.1% - 11.8% (8.7%) Loss Given Default 1.8% - 3.9% (2.8%) Corporate debt - pooled trust $ 1,557 Discounted Cash Flow Discount Rate 7.0% (7.0%) preferred security Cumulative Default % 2.8% - 42.1% (12.2%) Loss Given Default 85% - 100% (94.2%) Mortgage servicing rights $ 7,074 Discounted Cash Flow Discount Rate 9.0% - 18.0% (10.5%) Cost to Service $50 - $110 ($61.37) Float Earnings Rate 0.25% (0.25%) |
Summary of Assets Recorded at Fair Value on Non-Recurring Basis | There were no liabilities measured at fair value on a non-recurring basis at December 31, 2015 and 2014 . The following tables detail the assets carried at fair value on a non-recurring basis at December 31, 2015 and 2014 and indicate the fair value hierarchy of the valuation technique utilized by the Company to determine fair value: Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In thousands) December 31, 2015 Impaired loans $ 2,096 $ — $ — $ 2,096 Other real estate owned 755 — — 755 Total $ 2,851 $ — $ — $ 2,851 December 31, 2014 Impaired loans $ 2,863 $ — $ — $ 2,863 Other real estate owned 2,239 — — 2,239 Total $ 5,102 $ — $ — $ 5,102 |
Summary of Losses on Assets Recorded at Fair Value on Non-Recurring Basis | osses) on assets recorded at fair value at year-end on a non-recurring basis are as follows: For the Years Ended December 31, 2015 2014 2013 (In thousands) Impaired loans $ (274 ) $ (1,865 ) $ (977 ) Other real estate owned (218 ) (409 ) (85 ) Total $ (492 ) $ (2,274 ) $ (1,062 ) |
Summary of Carrying Value and Estimated Fair Values of Financial Instruments | As of December 31, 2015 and 2014 , the carrying value and estimated fair values of the Company’s financial instruments are as described below: Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2015 Financial assets: Cash and cash equivalents $ 95,176 $ 95,176 $ — $ — $ 95,176 Available for sale securities 1,059,169 3,227 909,872 146,070 1,059,169 Held to maturity securities 14,565 — 15,683 — 15,683 Loans held for sale 10,136 — 10,136 — 10,136 Loans receivable-net 4,587,062 — — 4,629,243 4,629,243 FHLBB stock 51,196 — — 51,196 51,196 Accrued interest receivable 15,740 — — 15,740 15,740 Derivative assets 12,910 — 12,910 — 12,910 Mortgage servicing rights 7,074 — — 7,074 7,074 Financial liabilities: Deposits 4,437,071 — — 4,436,456 4,436,456 Mortgagors’ and investors’ escrow accounts 13,526 — — 13,526 13,526 FHLBB advances and other borrowings 1,099,020 — 1,096,452 — 1,096,452 Derivative liabilities 16,675 — 16,675 — 16,675 December 31, 2014 Financial assets: Cash and cash equivalents $ 86,952 $ 86,952 $ — $ — $ 86,952 Available for sale securities 1,053,011 3,299 912,505 137,207 1,053,011 Held to maturity securities 15,368 — 16,713 — 16,713 Loans held for sale 8,220 — 8,220 — 8,220 Loans receivable-net 3,877,063 — — 3,919,432 3,919,432 FHLBB stock 31,950 — — 31,950 31,950 Accrued interest receivable 14,212 — — 14,212 14,212 Derivative assets 4,073 — 4,073 — 4,073 Mortgage servicing rights 4,729 — — 4,729 4,729 Financial liabilities: Deposits 4,035,311 — — 3,899,658 3,899,658 Mortgagors’ and investors’ escrow accounts 13,004 — — 13,004 13,004 FHLBB advances and other borrowings 777,314 — — 773,786 773,786 Derivative liabilities 4,952 — 4,952 — 4,952 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity Related to Stock Options | The following table presents the activity related to the Company’s stock options outstanding, including options that have stock appreciation rights (“SARs”), as of and for the year ended December 31, 2015 : Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 3,390,469 $ 10.70 Granted — — Exercised (678,363 ) 9.75 2.4 Forfeited, expired, or canceled (62,371 ) 13.48 Outstanding at December 31, 2015 2,649,735 $ 10.88 5.4 $ 5.7 Stock options vested and exercisable at December 31, 2015 2,446,573 $ 10.64 5.2 $ 5.7 |
Weighted-Average Estimated Fair Values of Stock Option Grants | The weighted-average estimated fair values of stock option grants and the assumptions that were used in calculating such fair values for the years 2014 and 2013 were based on estimates at the date of grant as follows: 2014 2013 Weighted per share average fair value of options granted $ 1.95 $ 1.80 Assumptions: Risk-free interest rate 1.94 % 1.61 % Expected volatility 19.90 % 20.33 % Expected dividend yield 2.92 % 3.03 % Expected life of options granted 6.0 years 6.0 years |
Activity for Restricted Stock | The following table presents the activity for unvested restricted stock for the year ended December 31, 2015 : Number of Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2014 124,536 $ 13.66 Granted 259,845 13.08 Vested (57,233 ) 13.63 Forfeited (1,135 ) 13.22 Unvested as of December 31, 2015 326,013 $ 13.20 |
PENSION PLANS AND OTHER POST-47
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Changes in Benefit Obligation, Plan Assets and Funded Status of Pension Plans and Post-Retirement Benefit Plans | The following table sets forth changes in the benefit obligation, changes in plan assets and the funded status of the pension plan and post-retirement benefit plans for the years ended December 31, 2015, 2014 and 2013 : Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands ) Change in Benefit Obligation: Benefit obligation at beginning of year $ 30,571 $ 24,224 $ 27,226 $ 1,368 $ 1,191 $ 1,199 $ 2,218 $ 1,926 $ 2,547 Service cost 60 75 50 24 25 38 23 19 35 Interest cost 1,162 1,145 1,048 40 54 48 80 85 91 Plan participants’ contributions — — — — — — 28 26 26 Actuarial loss (gain) (3,821 ) 6,460 (3,291 ) (79 ) 166 (159 ) (413 ) 271 (661 ) Benefits paid and administration expenses (857 ) (1,333 ) (809 ) (31 ) (484 ) (28 ) (95 ) (109 ) (112 ) Curtailments, settlements, special termination benefits — — — (393 ) 416 93 — — — Benefit obligation at end of year $ 27,115 $ 30,571 $ 24,224 $ 929 $ 1,368 $ 1,191 $ 1,841 $ 2,218 $ 1,926 Change in Plan Assets: Fair value of plan assets at beginning of year $ 26,519 $ 26,258 $ 22,782 $ — $ — $ — $ — $ — $ — Actual return (loss) on plan assets (422 ) 1,594 4,285 — — — — — — Employer contributions — — — 424 484 28 67 83 86 Plan participants’ contributions — — — — — — 28 26 26 Benefits paid and administration expenses (857 ) (1,333 ) (809 ) (31 ) (484 ) (28 ) (95 ) (109 ) (112 ) Settlements — — — (393 ) — — — — — Fair value of plan assets at end of year $ 25,240 $ 26,519 $ 26,258 $ — $ — $ — $ — $ — $ — Funded Status: Overfunded (underfunded) status at end of year $ (1,875 ) $ (4,052 ) $ 2,034 $ (929 ) $ (1,368 ) $ (1,191 ) $ (1,841 ) $ (2,218 ) $ (1,926 ) Amounts Recognized in the Consolidated Statements of Condition Accrued expenses and other liabilities $ (1,875 ) $ (4,052 ) $ 2,034 $ (929 ) $ (1,368 ) $ (1,191 ) $ (1,841 ) $ (2,218 ) $ (1,926 ) |
Components of Accumulated Other Comprehensive Income Related to Pensions and Other Post-Retirement Benefits, on Pre-Tax Basis | The components of accumulated other comprehensive loss related to pensions and other post-retirement benefits and related tax effects at December 31, 2015, 2014 and 2013 are summarized below: Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands ) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Prior service cost $ — $ — $ — $ 85 $ 92 $ 273 $ — $ — $ — Net loss (gain) 7,050 9,362 2,625 79 202 103 (134 ) 297 15 Total accumulated other comprehensive loss (income) 7,050 9,362 2,625 164 294 376 (134 ) 297 15 Deferred tax (asset) liability (2,540 ) (3,278 ) (844 ) (59 ) (69 ) (131 ) 48 (97 ) (5 ) Net impact on accumulated other comprehensive loss $ 4,510 $ 6,084 $ 1,781 $ 105 $ 225 $ 245 $ (86 ) $ 200 $ 10 |
Components of Net Periodic Benefit Costs and Other Amounts Recognized in Accumulated Other Comprehensive Loss for Retirement Plans | The following table sets forth the components of net periodic benefit costs and other amounts recognized in other comprehensive income (loss) for the retirement plans for the years ended December 31, 2015, 2014 and 2013 : Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 60 $ 75 $ 50 $ 24 $ 25 $ 38 $ 23 $ 19 $ 35 Interest cost 1,162 1,145 1,048 40 54 48 80 85 91 Expected return on plan assets (1,824 ) (1,595 ) (1,734 ) — — — — — — Amortization of net actuarial losses (gains) 738 (277 ) 784 3 2 5 18 (10 ) 66 Amortization of prior service cost — — — 7 12 23 — — — Settlement charge — — — 39 651 199 — — — Net periodic benefit cost (income) 136 (652 ) 148 113 744 313 121 94 192 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) (1,574 ) 6,460 (5,842 ) (80 ) 100 (159 ) (413 ) 271 (661 ) Change in prior service cost (credit) — — — — (168 ) (105 ) — — — Amortization of net (loss) gain (738 ) 277 (784 ) (3 ) (2 ) (5 ) (18 ) 10 (66 ) Amortization of prior service cost — — — (7 ) (12 ) (23 ) — — — Loss recognized due to settlement — — — (39 ) — — — — — Total recognized in other comprehensive income (loss) (2,312 ) 6,737 (6,626 ) (129 ) (82 ) (292 ) (431 ) 281 (727 ) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (2,176 ) $ 6,085 $ (6,478 ) $ (16 ) $ 662 $ 21 $ (310 ) $ 375 $ (535 ) |
Summary of Weighted-Average Assumptions Used to Determine Pension Benefit Obligations | Weighted-average assumptions used to determine pension benefit obligations at December 31, follow: Qualified Pension Supplemental Retirement Plans Other Post-Retirement Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.45 % 3.85 % 4.30 % 3.70 % 4.25 % 3.70 % Expected return on plan assets 7.00 % 7.00 % — % — % — % — % Rate of compensation increase — % — % 4.00 % 4.00 % 4.00 % 4.00 % |
Summary of Weighted-Average Assumptions Used to Determine Net Benefit Pension Expense | Weighted-average assumptions used to determine net benefit pension expense for the years ended December 31, follow: Qualified Pension Supplemental Retirement Plans Other Post-Retirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 3.85 % 4.80 % 3.90 % 3.70 % 4.70 % 3.80 % 3.70 % 4.55 % 3.65 % Expected return on plan assets 7.00 % 7.25 % 8.00 % — % — % — % — % — % — % Rate of compensation increase — % — % — % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % 4.00 % |
Summary of Change in Assumed Healthcare Cost Trend Rate | A one percentage point change in the assumed healthcare cost trend rate would have the following effects: 1% Increase 1% Decrease (In thousands) Effect on post-retirement benefit obligation $ 2,039 $ (1,675 ) Effect on total service and interest 101 (80 ) |
Summary of Pension Plan Assets | The fair value of major categories of pension plan assets as of December 31, 2015 and 2014 are as follows: Total Fair Value Percent (In thousands) December 31, 2015 Fixed income funds $ 10,135 40 % Domestic equity funds 7,557 30 International equity funds 4,572 18 Hedge funds 2,697 11 Money market funds 279 1 Total $ 25,240 100 % December 31, 2014 Domestic equity funds $ 11,900 45 % International equity funds 1,051 4 Fixed income funds 3,719 14 Domestic bond funds 7,996 30 International bond funds 790 3 Real estate REIT index funds 1,063 4 Total $ 26,519 100 % |
Summary of Estimated Future Benefit Payments | The benefit payments, which reflect expected future service, as appropriate, expected to be paid are as follows: Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits (In thousands) Years Ending December 31, 2016 $ 930 $ 28 $ 100 2017 980 28 110 2018 1,060 41 100 2019 1,170 41 110 2020 1,300 41 110 Years 2021-2025 7,070 265 570 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Amounts and Ratios | The following is a summary of the Bank’s regulatory capital amounts and ratios as of December 31, 2015 and 2014 compared to the FDIC’s requirements for classification as a well-capitalized institution and for minimum capital adequacy. Also included is a summary of United Financial Bancorp, Inc.’s regulatory capital and ratios as of December 31, 2015 and 2014 : Actual Minimum For Capital Adequacy Purposes Minimum To Be Well- Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) United Bank: December 31, 2015 Total capital to risk weighted assets $ 558,969 11.2 % $ 398,552 8.0 % $ 498,190 10.0 % Common equity tier 1 capital to risk weighted assets 523,786 10.5 224,266 4.5 323,940 6.5 Tier 1 capital to risk weighted assets 523,786 10.5 299,022 6.0 398,695 8.0 Tier 1 capital to total average assets 523,786 8.9 234,882 4.0 293,602 5.0 December 31, 2014 Total capital to risk weighted assets $ 513,960 12.9 % $ 317,750 8.0 % $ 397,187 10.0 % Tier 1 capital to risk weighted assets 487,713 12.3 158,864 4.0 238,296 6.0 Tier 1 capital to total average assets 487,713 9.3 210,221 4.0 262,776 5.0 United Financial Bancorp, Inc.: December 31, 2015 Total capital to risk weighted assets $ 628,915 12.5 % $ 401,542 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 518,732 10.3 225,972 4.5 N/A N/A Tier 1 capital to risk weighted assets 518,732 10.3 301,296 6.0 N/A N/A Tier 1 capital to total average assets 518,732 8.9 233,926 4.0 N/A N/A December 31, 2014 Total capital to risk weighted assets $ 579,109 14.6 % $ 317,973 8.0 % N/A N/A Tier 1 capital to risk weighted assets 477,862 12.0 159,022 4.0 N/A N/A Tier 1 capital to total average assets 477,862 9.1 210,049 4.0 N/A N/A |
Reconciliation of Company's Total Consolidated Equity to Capital Amounts | The following table provides a reconciliation of the Company’s total consolidated equity to the capital amounts for the Bank reflected in the preceding table: December 31, 2015 2014 (In thousands) Total consolidated equity $ 625,521 $ 602,408 Adjustments: Decrease (increase) in equity under United Financial Bancorp, Inc. 5,054 8,252 Accumulated other comprehensive loss 10,879 6,490 Disallowed goodwill and other intangible assets (116,816 ) (121,637 ) Disallowed deferred tax assets (852 ) (7,800 ) Tier 1 capital 523,786 487,713 Allowance for loan losses and off-balance sheet credit losses 35,124 26,141 Unrealized gains on available-for-sale securities includible in total risk-based capital 59 106 Total risk-based capital $ 558,969 $ 513,960 |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, 2015 December 31, 2014 (In thousands) Benefit plans: Unrecognized net actuarial loss $ (7,080 ) $ (9,952 ) Tax effect 2,551 3,443 Net-of-tax amount (4,529 ) (6,509 ) Securities available for sale: Net unrealized gain (loss) (5,821 ) 1,030 Tax effect 2,088 (374 ) Net-of-tax amount (3,733 ) 656 Interest rate swaps: Net unrealized loss (4,092 ) (996 ) Tax effect 1,475 359 Net-of-tax amount (2,617 ) (637 ) $ (10,879 ) $ (6,490 ) |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share | The following table sets forth the calculation of basic and diluted net income per share for the years ended December 31, 2015, 2014 and 2013 : Years Ended December 31, (In thousands, except share data) 2015 2014 2013 Net income $ 49,640 $ 6,782 $ 14,227 Adjusted weighted-average common shares outstanding 49,495,381 43,491,441 29,471,397 Less: average number of treasury shares — — 2,618,178 Less: average number of unvested ESOP award shares 582,574 662,347 791,277 Weighted-average basic shares outstanding 48,912,807 42,829,094 26,061,942 Dilutive effect of stock options 472,759 440,423 364,278 Weighted-average diluted shares 49,385,566 43,269,517 26,426,220 Net income per share: Basic $ 1.01 $ 0.16 $ 0.55 Diluted $ 1.00 $ 0.16 $ 0.54 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Terms of Leases | Future minimum rental commitments under the terms of these leases, including option periods, by year and in the aggregate, are as follows as of December 31, 2015 : (In thousands) 2016 $ 5,145 2017 4,831 2018 4,487 2019 4,388 2020 4,093 Thereafter 22,046 $ 44,990 |
Future Minimum Rental Receivable Under Non-Cancelable Leases | Future minimum rental receivable under the non-cancelable leases are as follows as of December 31, 2015 : (In thousands) 2016 $ 522 2017 522 2018 490 $ 1,534 |
Financial Instruments Contract Amounts Represent Credit Risk | Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at December 31, 2015 and 2014 : December 31, 2015 2014 (In thousands) Commitments to extend credit: Commitment to grant loans $ 219,407 $ 128,766 Undisbursed construction loans 103,140 144,118 Undisbursed home equity lines of credit 320,140 321,346 Undisbursed commercial lines of credit 302,700 295,639 Standby letters of credit 9,477 12,547 Unused credit card lines 6,725 — Unused checking overdraft lines of credit 1,293 1,304 Total $ 962,882 $ 903,720 |
SELECTED QUARTERLY CONSOLIDAT52
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information of Company | 2015 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter (In thousands, except per share data) Interest and dividend income $ 49,714 $ 49,625 $ 48,711 $ 48,295 $ 48,209 $ 47,201 $ 40,767 $ 19,702 Interest expense 9,021 7,982 7,808 6,952 6,317 5,008 3,888 2,794 Net interest income 40,693 41,643 40,903 41,343 41,892 42,193 36,879 16,908 Provision for loan losses 3,780 3,252 4,462 1,511 4,333 2,633 2,080 450 Net interest income after provision for loan losses 36,913 38,391 36,441 39,832 37,559 39,560 34,799 16,458 Non-interest income 8,463 7,818 9,371 6,835 3,001 4,076 6,319 3,209 Other non-interest expense 35,305 31,876 30,357 30,657 45,076 34,922 46,177 18,257 Income (loss) before income taxes 10,071 14,333 15,455 16,010 (4,516 ) 8,714 (5,059 ) 1,410 Provision (benefit) for income taxes 169 952 2,123 2,985 (5,937 ) (1,271 ) 512 463 Net income (loss) $ 9,902 $ 13,381 $ 13,332 $ 13,025 $ 1,421 $ 9,985 $ (5,571 ) $ 947 Earnings per share: Basic $ 0.20 $ 0.27 $ 0.27 $ 0.27 $ 0.03 $ 0.19 $ (0.13 ) $ 0.04 Diluted $ 0.20 $ 0.27 $ 0.27 $ 0.26 $ 0.03 $ 0.19 $ (0.13 ) $ 0.04 Stock Price (per share): High $ 14.16 $ 13.87 $ 13.91 $ 14.47 $ 14.67 $ 13.91 $ 14.31 $ 14.63 Low $ 12.45 $ 12.14 $ 12.25 $ 12.00 $ 12.66 $ 12.01 $ 12.21 $ 12.56 |
PARENT COMPANY FINANCIAL INFO53
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Condition | Condensed Statements of Condition At December 31, 2015 2014 (In thousands) Assets: Cash and due from banks $ 28,825 $ 51,519 Investment in United Bank 630,575 610,660 Due from United Bank 9,374 15,677 Other assets 37,938 5,594 Total Assets $ 706,712 $ 683,450 Liabilities and Stockholders’ Equity: Accrued expenses and other liabilities $ 81,191 $ 81,042 Stockholders’ equity 625,521 602,408 Total Liabilities and Stockholders’ Equity $ 706,712 $ 683,450 |
Condensed Statements of Net Income | Condensed Statements of Net Income For the Years Ended December 31, 2015 2014 2013 (In thousands) Interest and dividend income: Interest on investments $ 103 $ 35 $ 1 Interest expense 4,682 1,353 — Net interest income (expense) (4,579 ) (1,318 ) 1 Non-interest income 434 73 — Non-interest expenses: General and administrative 4,714 7,257 5,528 Total non-interest expense 4,714 7,257 5,528 Loss before tax benefit and equity in undistributed net income of United Bank (8,859 ) (8,502 ) (5,527 ) Income tax benefit 3,094 2,566 1,602 Loss before equity in undistributed net income of United Bank (5,765 ) (5,936 ) (3,925 ) Equity in undistributed net income of United Bank 55,405 12,718 18,152 Net income $ 49,640 $ 6,782 $ 14,227 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years ended December 31, 2015 2014 2013 (In thousands) Cash flows from operating activities: Net income $ 49,640 $ 6,782 $ 14,227 Adjustments to reconcile net income to net cash used in operating activities: Amortization of purchase accounting marks, net 75 41 — Amortization of subordinated debt issuance costs, net 127 34 — Share-based compensation expense 1,076 3,957 2,665 ESOP expense 299 1,727 2,064 Undistributed income of United Bank (55,405 ) (12,718 ) (18,152 ) Deferred tax provision 188 959 555 Tax benefit of stock-based awards 317 (820 ) (65 ) Net change in: Due from United Bank 6,491 (5,395 ) (850 ) Other assets (32,532 ) 3,582 (3,190 ) Accrued expenses and other liabilities (370 ) (1,831 ) 1,124 Net cash used in operating activities (30,094 ) (3,682 ) (1,622 ) Cash flows from investing activities: Dividends from United Bank 30,913 13,310 11,197 Cash acquired from United Financial Bancorp, Inc., net — 6,546 — Net cash provided by investing activities 30,913 19,856 11,197 Cash flows from financing activities: Proceeds from debt offering, net of expenses — 73,733 — Common stock repurchased (5,171 ) (47,249 ) (30,028 ) Proceeds from the exercise of stock options 4,765 2,246 805 Cancellation of shares for tax withholding (311 ) (1,367 ) (357 ) Tax benefit of share-based awards (317 ) 820 65 Cash dividends paid on common stock (22,479 ) (18,008 ) (10,453 ) Net cash provided by (used in) financing activities (23,513 ) 10,175 (39,968 ) Net increase (decrease) in cash and cash equivalents (22,694 ) 26,349 (30,393 ) Cash and cash equivalents — beginning of year 51,519 25,170 55,563 Cash and cash equivalents — end of year $ 28,825 $ 51,519 $ 25,170 Supplemental disclosures of cash flow information: Cash paid for income taxes (net) $ (6,744 ) $ 3,599 $ 6,228 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)yearofficeatm | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of banking offices | office | 53 | ||
Number of ATMs | atm | 63 | ||
Stock's quoted market value | $ 0 | ||
Period after termination of membership in FHLBB that must pass before stock is redeemable | 5 years | ||
Impairment Charges | $ 0 | $ 0 | |
Period of continuous payments for non-accrual loans to be restored to accrual status | 6 months | ||
Historical loss factor number of years | 3 years | ||
BOLI limit with any individual carrier, as percentage of capital plus reserves (percent) | 15.00% | ||
Write-downs of long-lived assets were recorded for any period presented | $ 0 | 0 | $ 0 |
Goodwill impairment during period | 0 | 0 | 0 |
Uncertain tax positions | $ 375,000 | $ 252,000 | $ 0 |
Tax position | A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. | ||
Eligible age required for the benefits | year | 62 | ||
Minimum age of eligible participants for life insurance and postretirement health care benefits description | Participants become eligible for the benefits if they retire after reaching age 62 with five or more years of service. | ||
Minimum years of service for the benefits | 5 years | ||
ESOP merge with Defined Contribution Plan | In September, 2013, the Company announced that it will merge its ESOP with its Defined Contribution Plan, or 401(k), effective January 1, 2014. | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Premises and equipment, estimated useful life | 3 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Loan payments days | 90 days | ||
Collateral dependent days | 90 days | ||
Premises and equipment, estimated useful life | 39 years 6 months | ||
Maximum | Residential Real Estate | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of days before which impairment evaluation is likely to happen | 30 days | ||
Maximum | Commercial Real Estate | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Commercial real estate property | 90 days |
MERGER - Additional Information
MERGER - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 30, 2014USD ($)location$ / sharesshares |
Loans At Acquisition Date [Line Items] | |
Number of branch location | 35 |
Express Drive-Up | |
Loans At Acquisition Date [Line Items] | |
Number of branch location | 2 |
Loan Production Offices | |
Loans At Acquisition Date [Line Items] | |
Number of branch location | 2 |
Legacy United | |
Loans At Acquisition Date [Line Items] | |
Acquired common shares outstanding, percentage | 100.00% |
Shares issued to acquiree entity | shares | 1.3472 |
Total consideration paid at closing | $ | $ 356,394 |
Closing price of the common share (in dollars per share) | $ / shares | $ 13.16 |
MERGER- Summary of Merger (Deta
MERGER- Summary of Merger (Detail) - USD ($) $ in Thousands | Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans At Acquisition Date [Line Items] | ||||
Goodwill | $ 115,281 | $ 115,240 | $ 1,070 | |
Legacy United | ||||
Loans At Acquisition Date [Line Items] | ||||
Assets | $ 2,442,525 | |||
Equity | 304,505 | |||
Goodwill | 114,211 | |||
Other Identifiable Intangibles | 10,585 | |||
Shares Issued | 26,706 | |||
Value of Legacy United Exercisable Options | 4,909 | |||
Total Purchase Price | $ 356,394 |
GOODWILL AND CORE DEPOSIT INT57
GOODWILL AND CORE DEPOSIT INTANGIBLES - Schedule of Goodwill and Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | |||
Beginning balance | $ 115,240 | $ 1,070 | |
Acquisition of Legacy United | 114,170 | ||
Adjustments | 41 | ||
Ending balance | 115,281 | 115,240 | $ 1,070 |
Core Deposit Intangible | |||
Beginning balance | 9,302 | 0 | |
Acquisition of Legacy United | 10,585 | ||
Amortization expense | (1,796) | (1,283) | 0 |
Adjustments | 0 | ||
Ending balance | $ 7,506 | $ 9,302 | $ 0 |
GOODWILL AND CORE DEPOSIT INT58
GOODWILL AND CORE DEPOSIT INTANGIBLES - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Estimated amortization expense for the years ending December 31, | |||
2,016 | $ 1,604 | ||
2,017 | 1,411 | ||
2,018 | 1,219 | ||
2,019 | 1,026 | ||
2,020 | 834 | ||
2021 and thereafter | 1,412 | ||
Core deposit intangible | $ 7,506 | $ 9,302 | $ 0 |
GOODWILL AND CORE DEPOSIT INT59
GOODWILL AND CORE DEPOSIT INTANGIBLES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible amortization | $ 1,796 | $ 1,283 | $ 0 |
Legacy United | Core Deposit Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposits, estimated useful life | 10 years | ||
Core deposit intangible amortization | $ 1,800 | $ 1,300 |
RESTRICTIONS ON CASH AND DUE 60
RESTRICTIONS ON CASH AND DUE FROM BANKS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Cash and liquid assets | $ 24 | $ 22.7 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale and Held to Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt securities: | ||
Amortized Cost | $ 1,020,337 | $ 1,026,271 |
Gross Unrealized Gains | 3,941 | 7,535 |
Gross Unrealized Losses | (10,448) | (6,676) |
Fair Value | 1,013,830 | 1,027,130 |
Marketable equity securities, by sector: | ||
Amortized Cost | 44,653 | 25,709 |
Gross Unrealized Gains | 1,234 | 515 |
Gross Unrealized Losses | (548) | (343) |
Fair Value | 45,339 | 25,881 |
Amortized Cost | 1,064,990 | 1,051,980 |
Gross Unrealized Gains | 5,175 | 8,050 |
Gross Unrealized Losses | (10,996) | (7,019) |
Available for sale securities | 1,059,169 | 1,053,011 |
Debt securities: | ||
Amortized Cost | 14,565 | 15,368 |
Unrecognized Holding Gain | 1,128 | 1,345 |
Unrecognized Holding Loss | (10) | 0 |
Held to maturity securities | 15,683 | 16,713 |
U.S. Government and government-sponsored enterprise obligations | ||
Debt securities: | ||
Amortized Cost | 10,159 | 6,965 |
Gross Unrealized Gains | 13 | 94 |
Gross Unrealized Losses | (83) | (237) |
Fair Value | 10,089 | 6,822 |
Government-sponsored residential mortgage-backed securities | ||
Debt securities: | ||
Amortized Cost | 146,434 | 165,199 |
Gross Unrealized Gains | 731 | 2,379 |
Gross Unrealized Losses | (1,304) | (159) |
Fair Value | 145,861 | 167,419 |
Debt securities: | ||
Amortized Cost | 2,205 | 2,971 |
Unrecognized Holding Gain | 244 | 339 |
Unrecognized Holding Loss | 0 | 0 |
Held to maturity securities | 2,449 | 3,310 |
Government-sponsored residential collateralized debt obligations | ||
Debt securities: | ||
Amortized Cost | 287,515 | 237,128 |
Gross Unrealized Gains | 855 | 1,365 |
Gross Unrealized Losses | (1,403) | (360) |
Fair Value | 286,967 | 238,133 |
Government-sponsored commercial mortgage-backed securities | ||
Debt securities: | ||
Amortized Cost | 21,144 | 67,470 |
Gross Unrealized Gains | 21 | 1,081 |
Gross Unrealized Losses | (200) | (253) |
Fair Value | 20,965 | 68,298 |
Government-sponsored commercial collateralized debt obligations | ||
Debt securities: | ||
Amortized Cost | 128,617 | 129,547 |
Gross Unrealized Gains | 626 | 737 |
Gross Unrealized Losses | (271) | (598) |
Fair Value | 128,972 | 129,686 |
Asset-backed securities | ||
Debt securities: | ||
Amortized Cost | 162,895 | 181,198 |
Gross Unrealized Gains | 43 | 272 |
Gross Unrealized Losses | (3,037) | (2,715) |
Fair Value | 159,901 | 178,755 |
Corporate debt securities | ||
Debt securities: | ||
Amortized Cost | 62,356 | 43,907 |
Gross Unrealized Gains | 91 | 35 |
Gross Unrealized Losses | (2,487) | (1,697) |
Fair Value | 59,960 | 42,245 |
Obligations of states and political subdivisions | ||
Debt securities: | ||
Amortized Cost | 201,217 | 194,857 |
Gross Unrealized Gains | 1,561 | 1,572 |
Gross Unrealized Losses | (1,663) | (657) |
Fair Value | 201,115 | 195,772 |
Debt securities: | ||
Amortized Cost | 12,360 | 12,397 |
Unrecognized Holding Gain | 884 | 1,006 |
Unrecognized Holding Loss | (10) | 0 |
Held to maturity securities | 13,234 | 13,403 |
Banks | ||
Marketable equity securities, by sector: | ||
Amortized Cost | 41,558 | 22,645 |
Gross Unrealized Gains | 1,099 | 277 |
Gross Unrealized Losses | (544) | (340) |
Fair Value | 42,113 | 22,582 |
Industrial | ||
Marketable equity securities, by sector: | ||
Amortized Cost | 109 | 109 |
Gross Unrealized Gains | 34 | 76 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 143 | 185 |
Mutual funds | ||
Marketable equity securities, by sector: | ||
Amortized Cost | 2,854 | 2,824 |
Gross Unrealized Gains | 65 | 89 |
Gross Unrealized Losses | (4) | (3) |
Fair Value | 2,915 | 2,910 |
Oil and gas | ||
Marketable equity securities, by sector: | ||
Amortized Cost | 132 | 131 |
Gross Unrealized Gains | 36 | 73 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 168 | $ 204 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)securityissue | |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized gain (loss) on securities available for sale | $ (5,800,000) | $ (1,000,000) |
Net unrealized gain (loss) on securities available for sale, income taxes (benefit) | (2,100,000) | (374,000) |
Accumulated other comprehensive income (loss) | $ (3,700,000) | $ (656,000) |
Encumbered securities | security | 114 | |
Fair value pledged for derivative collateral | $ 446,000,000 | |
Aggregate book value of Company's stockholders' equity (percent in excess of) | 10.00% | 10.00% |
Estimated fair value of obligations of states and political subdivisions | $ 214,400,000 | |
General obligation bonds | 101,900,000 | |
Obligations of political subdivisions | $ 78,800,000 | |
Number of issues had unrealized losses for less than twelve months | security | 146 | 155 |
Unrealized losses equaling cost basis for less than twelve months (percent) | 1.20% | |
Number of issues had unrealized losses for twelve months or more | 96 | 78 |
Unrealized losses equaling cost basis for twelve months or more (percent) | 3.70% | |
Individual unrealized loss that represent an other than temporary impairment | $ 0 | |
Number of pooled trust securities | security | 1 | |
Yield on security | 0.00% | |
Variable rate basis, description | Three month LIBOR |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Debt Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Within 1 year | $ 529 | |
After 1 year through 5 years | 9,340 | |
After 5 years through 10 years | 66,078 | |
After 10 years | 197,785 | |
Total single maturity | 273,732 | |
Amortized Cost | 1,020,337 | $ 1,026,271 |
Fair Value | ||
Within 1 year | 529 | |
After 1 year through 5 years | 9,190 | |
After 5 years through 10 years | 65,077 | |
After 10 years | 196,368 | |
Total single maturity | 271,164 | |
Fair Value | 1,013,830 | 1,027,130 |
Amortized Cost | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,193 | |
After 5 years through 10 years | 0 | |
After 10 years | 11,167 | |
Total single maturity | 12,360 | |
Amortized Cost | 14,565 | 15,368 |
Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,202 | |
After 5 years through 10 years | 0 | |
After 10 years | 12,032 | |
Total single maturity | 13,234 | |
Fair Value | 15,683 | 16,713 |
Obligations of states and political subdivisions | ||
Amortized Cost | ||
Amortized Cost | 201,217 | 194,857 |
Fair Value | ||
Fair Value | 201,115 | 195,772 |
Fair Value | ||
Fair Value | 13,234 | 13,403 |
Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
Securities without single maturity | 146,434 | |
Amortized Cost | 146,434 | 165,199 |
Fair Value | ||
Securities without single maturity | 145,861 | |
Fair Value | 145,861 | 167,419 |
Amortized Cost | ||
Securities without single maturity | 2,205 | |
Fair Value | ||
Securities without single maturity | 2,449 | |
Fair Value | 2,449 | 3,310 |
Government-sponsored residential collateralized debt obligations | ||
Amortized Cost | ||
Securities without single maturity | 287,515 | |
Amortized Cost | 287,515 | 237,128 |
Fair Value | ||
Securities without single maturity | 286,967 | |
Fair Value | 286,967 | 238,133 |
Amortized Cost | ||
Securities without single maturity | 0 | |
Fair Value | ||
Securities without single maturity | 0 | |
Government-sponsored commercial mortgage-backed securities | ||
Amortized Cost | ||
Securities without single maturity | 21,144 | |
Amortized Cost | 21,144 | 67,470 |
Fair Value | ||
Securities without single maturity | 20,965 | |
Fair Value | 20,965 | 68,298 |
Amortized Cost | ||
Securities without single maturity | 0 | |
Fair Value | ||
Securities without single maturity | 0 | |
Government-sponsored commercial collateralized debt obligations | ||
Amortized Cost | ||
Securities without single maturity | 128,617 | |
Amortized Cost | 128,617 | 129,547 |
Fair Value | ||
Securities without single maturity | 128,972 | |
Fair Value | 128,972 | 129,686 |
Amortized Cost | ||
Securities without single maturity | 0 | |
Fair Value | ||
Securities without single maturity | 0 | |
Asset-backed securities | ||
Amortized Cost | ||
Securities without single maturity | 162,895 | |
Amortized Cost | 162,895 | 181,198 |
Fair Value | ||
Securities without single maturity | 159,901 | |
Fair Value | 159,901 | $ 178,755 |
Amortized Cost | ||
Securities without single maturity | 0 | |
Fair Value | ||
Securities without single maturity | $ 0 |
SECURITIES - Available for Sa64
SECURITIES - Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale Securities [Abstract] | |||
Proceeds from the sale of available for sale securities | $ 280,564 | $ 511,044 | $ 44,880 |
Gross gains on the sale of available for sale securities | 3,090 | 2,711 | 804 |
Gross losses on the sale of available for sale securities | $ 2,151 | $ 1,483 | $ 219 |
SECURITIES - Summary of Gross U
SECURITIES - Summary of Gross Unrealized Losses and Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 520,797 | $ 341,043 |
More than 12 months | 124,217 | 107,221 |
Fair Value | 645,014 | 448,264 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (6,290) | (4,041) |
More than 12 Months | (4,706) | (2,978) |
Unrealized Losses | (10,996) | (7,019) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 1,104 | |
More than 12 months | 0 | |
Fair Value | 1,104 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (10) | |
More than 12 months | 0 | |
Unrealized Losses | (10) | |
Total debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 502,348 | 328,327 |
More than 12 months | 118,041 | 107,081 |
Fair Value | 620,389 | 435,408 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (6,003) | (3,701) |
More than 12 Months | (4,445) | (2,975) |
Unrealized Losses | (10,448) | (6,676) |
U.S. Government and government-sponsored enterprise obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 4,867 | 0 |
More than 12 months | 4,977 | 4,757 |
Fair Value | 9,844 | 4,757 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (66) | 0 |
More than 12 Months | (17) | (237) |
Unrealized Losses | (83) | (237) |
Government-sponsored residential mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 107,142 | 1,492 |
More than 12 months | 7,195 | 19,785 |
Fair Value | 114,337 | 21,277 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (1,183) | (11) |
More than 12 Months | (121) | (148) |
Unrealized Losses | (1,304) | (159) |
Government-sponsored residential collateralized debt obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 152,278 | 35,769 |
More than 12 months | 3,506 | 17,443 |
Fair Value | 155,784 | 53,212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (1,357) | (124) |
More than 12 Months | (46) | (236) |
Unrealized Losses | (1,403) | (360) |
Government-sponsored commercial mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 16,207 | 14,118 |
More than 12 months | 0 | 16,337 |
Fair Value | 16,207 | 30,455 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (200) | (15) |
More than 12 Months | 0 | (238) |
Unrealized Losses | (200) | (253) |
Government-sponsored commercial collateralized debt obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 38,151 | 62,477 |
More than 12 months | 3,496 | 4,991 |
Fair Value | 41,647 | 67,468 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (221) | (551) |
More than 12 Months | (50) | (47) |
Unrealized Losses | (271) | (598) |
Asset-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 93,723 | 128,808 |
More than 12 months | 49,462 | 20,146 |
Fair Value | 143,185 | 148,954 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (1,233) | (2,080) |
More than 12 Months | (1,804) | (635) |
Unrealized Losses | (3,037) | (2,715) |
Corporate debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 42,102 | 30,634 |
More than 12 months | 6,720 | 5,054 |
Fair Value | 48,822 | 35,688 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (797) | (501) |
More than 12 Months | (1,690) | (1,196) |
Unrealized Losses | (2,487) | (1,697) |
Obligations of states and political subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 47,878 | 55,029 |
More than 12 months | 42,685 | 18,568 |
Fair Value | 90,563 | 73,597 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (946) | (419) |
More than 12 Months | (717) | (238) |
Unrealized Losses | (1,663) | (657) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 1,104 | |
More than 12 months | 0 | |
Fair Value | 1,104 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (10) | |
More than 12 months | 0 | |
Unrealized Losses | (10) | |
Marketable equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 18,449 | 12,716 |
More than 12 months | 6,176 | 140 |
Fair Value | 24,625 | 12,856 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months | (287) | (340) |
More than 12 Months | (261) | (3) |
Unrealized Losses | $ (548) | $ (343) |
LOANS RECEIVABLE AND ALLOWANC66
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Company's Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real estate loans: | ||||
Total real estate loans | $ 3,777,535 | $ 3,278,518 | ||
Commercial business loans | 603,332 | 613,596 | ||
Installment and collateral loans | 233,064 | 5,752 | ||
Total loans | 4,613,931 | 3,897,866 | ||
Net deferred loan costs and premiums | 7,018 | 4,006 | ||
Allowance for loan losses | (33,887) | (24,809) | $ (19,183) | $ (18,477) |
Loans — net | 4,587,062 | 3,877,063 | ||
Residential | ||||
Real estate loans: | ||||
Total real estate loans | 1,611,197 | 1,413,739 | ||
Commercial | ||||
Real estate loans: | ||||
Total real estate loans | 1,995,332 | 1,678,936 | ||
Construction | ||||
Real estate loans: | ||||
Total real estate loans | $ 171,006 | $ 185,843 |
LOANS RECEIVABLE AND ALLOWANC67
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Accretable Yields for Purchased Credit Impaired Loans (Details) - Purchased Credit Impaired Loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Purchased Accounting Adjustments for Purchased Credit Impaired Loans | ||
Balance at beginning of period | $ (7,989) | $ 0 |
Acquisition | (3,674) | (8,650) |
Accretion | 223 | 648 |
Paid off | 2,533 | 13 |
Reclassification to accretable | 3,097 | 0 |
Balance at end of period | $ (5,810) | $ (7,989) |
LOANS RECEIVABLE AND ALLOWANC68
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)gradeloan_portfolioSpeedcontract | Dec. 31, 2014USD ($)Speedcontract | Dec. 31, 2013USD ($)loan | Apr. 30, 2014USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Eligible loan collateral to support available borrowing capacity at the FHLBB | $ 978,200,000 | |||
Eligible loan collateral to support available borrowing capacity at the FRB | 185,000,000 | |||
Gross loans | 4,613,931,000 | $ 3,897,866,000 | ||
Loans not deemed impaired | 4,551,343,000 | 3,842,984,000 | ||
Loans determined to be impaired | $ 56,255,000 | 43,997,000 | ||
Number of loan portfolios purchased | loan_portfolio | 3 | |||
Significant purchases | $ 330,500,000 | |||
Significant purchases, net | 324,300,000 | |||
Net recorded carrying amount of loans | 4,587,062,000 | $ 3,877,063,000 | ||
Additional funds advanced in connection with impaired loans | $ 0 | |||
Number of loans with extended maturities | contract | 7 | 2 | ||
Number of grade | grade | 9 | |||
Related party loan description | Related party loans were made on the same terms as those for comparable loans and transactions with unrelated parties, other than certain mortgage loans which were made to employees with over one year of service with the Company which have rates 0.50% below market rates at the time of origination. | |||
Minimum years of service for employee to receive mortgage loans below market rates | 1 year | |||
Rates below market rates at the time of origination | 0.50% | |||
Aggregate principal balance of loans serviced for third parties | $ 863,700,000 | $ 559,100,000 | $ 408,000,000 | |
Servicing fee income | $ 1,300,000 | $ 964,000,000 | 685,000,000 | |
Average prepayment speed | Speed | 183 | 187 | ||
Minimum | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Internal rates of return used for determination of fair value | 9.50% | 8.40% | ||
Maximum | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Internal rates of return used for determination of fair value | 11.50% | 10.40% | ||
Legacy United | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | $ 1,880,000,000 | |||
Loans not deemed impaired | 1,860,000,000 | |||
Fair value of loans not deemed impaired | 1,830,000,000 | |||
Estimate of cash flows not expected to be collected on acquired performing loans | 29,100,000 | |||
Loans determined to be impaired | $ 18,500,000 | |||
Net recorded carrying amount of loans | $ 6,300,000 | |||
Loans outstanding | 12,100,000 | |||
Troubled Debt Restructurings | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Recorded investment in TDRs | $ 24,064,000 | $ 15,807,000 | $ 8,300,000 | |
Number of contracts | loan | 19 | |||
Number of loans with extended maturities | loan | 4 | |||
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans with extended maturities | contract | 2 | 2 |
LOANS RECEIVABLE AND ALLOWANC69
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | $ 24,809 | $ 19,183 | $ 24,809 | $ 19,183 | $ 18,477 | ||||||
Provision for loan losses | $ 3,780 | $ 3,252 | $ 4,462 | 1,511 | $ 4,333 | $ 2,633 | $ 2,080 | 450 | 13,005 | 9,496 | 2,046 |
Loans charged off | (5,492) | (4,189) | (1,520) | ||||||||
Recoveries of loans previously charged off | 1,565 | 319 | 180 | ||||||||
Balance, end of year | 33,887 | 24,809 | 33,887 | 24,809 | 19,183 | ||||||
Residential Real Estate | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 7,927 | 6,396 | 7,927 | 6,396 | 6,194 | ||||||
Provision for loan losses | 3,155 | 3,250 | 876 | ||||||||
Loans charged off | (1,171) | (1,894) | (811) | ||||||||
Recoveries of loans previously charged off | 281 | 175 | 137 | ||||||||
Balance, end of year | 10,192 | 7,927 | 10,192 | 7,927 | 6,396 | ||||||
Commercial Real Estate | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 9,418 | 8,288 | 9,418 | 8,288 | 8,051 | ||||||
Provision for loan losses | 6,291 | 1,880 | 382 | ||||||||
Loans charged off | (1,018) | (750) | (145) | ||||||||
Recoveries of loans previously charged off | 342 | 0 | 0 | ||||||||
Balance, end of year | 15,033 | 9,418 | 15,033 | 9,418 | 8,288 | ||||||
Construction | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 1,470 | 829 | 1,470 | 829 | 807 | ||||||
Provision for loan losses | 891 | 641 | 272 | ||||||||
Loans charged off | (466) | 0 | (250) | ||||||||
Recoveries of loans previously charged off | 0 | 0 | 0 | ||||||||
Balance, end of year | 1,895 | 1,470 | 1,895 | 1,470 | 829 | ||||||
Commercial | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 5,808 | 3,394 | 5,808 | 3,394 | 2,916 | ||||||
Provision for loan losses | 1,693 | 3,723 | 650 | ||||||||
Loans charged off | (2,513) | (1,406) | (190) | ||||||||
Recoveries of loans previously charged off | 839 | 97 | 18 | ||||||||
Balance, end of year | 5,827 | 5,808 | 5,827 | 5,808 | 3,394 | ||||||
Installment and Collateral | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 75 | 29 | 75 | 29 | 29 | ||||||
Provision for loan losses | 292 | 138 | 99 | ||||||||
Loans charged off | (324) | (139) | (124) | ||||||||
Recoveries of loans previously charged off | 103 | 47 | 25 | ||||||||
Balance, end of year | 146 | 75 | 146 | 75 | 29 | ||||||
Unallocated | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | $ 111 | $ 247 | 111 | 247 | 480 | ||||||
Provision for loan losses | 683 | (136) | (233) | ||||||||
Loans charged off | 0 | 0 | 0 | ||||||||
Recoveries of loans previously charged off | 0 | 0 | 0 | ||||||||
Balance, end of year | $ 794 | $ 111 | $ 794 | $ 111 | $ 247 |
LOANS RECEIVABLE AND ALLOWANC70
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for Loan Losses and Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | $ 342 | $ 1,259 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 33,370 | 23,334 | ||
Allowance related to loans acquired with deteriorated credit quality | 175 | 216 | ||
Total allowance for loan losses | 33,887 | 24,809 | $ 19,183 | $ 18,477 |
Loans deemed impaired | 56,255 | 43,997 | ||
Loans not deemed impaired | 4,551,343 | 3,842,984 | ||
Loans acquired with deteriorated credit quality | 6,333 | 10,885 | ||
Total loans | 4,613,931 | 3,897,866 | ||
Residential Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 74 | 28 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 10,118 | 7,899 | ||
Allowance related to loans acquired with deteriorated credit quality | 0 | 0 | ||
Total allowance for loan losses | 10,192 | 7,927 | 6,396 | 6,194 |
Loans deemed impaired | 20,592 | 15,981 | ||
Loans not deemed impaired | 1,590,605 | 1,397,758 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total loans | 1,611,197 | 1,413,739 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 316 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 15,033 | 9,102 | ||
Allowance related to loans acquired with deteriorated credit quality | 0 | 0 | ||
Total allowance for loan losses | 15,033 | 9,418 | 8,288 | 8,051 |
Loans deemed impaired | 17,960 | 19,514 | ||
Loans not deemed impaired | 1,975,349 | 1,654,917 | ||
Loans acquired with deteriorated credit quality | 2,023 | 4,505 | ||
Total loans | 1,995,332 | 1,678,936 | ||
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 147 | 33 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 1,748 | 1,437 | ||
Allowance related to loans acquired with deteriorated credit quality | 0 | 0 | ||
Total allowance for loan losses | 1,895 | 1,470 | 829 | 807 |
Loans deemed impaired | 4,660 | 2,610 | ||
Loans not deemed impaired | 166,346 | 180,548 | ||
Loans acquired with deteriorated credit quality | 0 | 2,685 | ||
Total loans | 171,006 | 185,843 | ||
Commercial Business | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 121 | 882 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 5,531 | 4,710 | ||
Allowance related to loans acquired with deteriorated credit quality | 175 | 216 | ||
Total allowance for loan losses | 5,827 | 5,808 | 3,394 | 2,916 |
Loans deemed impaired | 13,035 | 5,846 | ||
Loans not deemed impaired | 588,982 | 604,055 | ||
Loans acquired with deteriorated credit quality | 1,315 | 3,695 | ||
Total loans | 603,332 | 613,596 | ||
Installment and Collateral | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 146 | 75 | ||
Allowance related to loans acquired with deteriorated credit quality | 0 | 0 | ||
Total allowance for loan losses | 146 | 75 | 29 | 29 |
Loans deemed impaired | 8 | 46 | ||
Loans not deemed impaired | 230,061 | 5,706 | ||
Loans acquired with deteriorated credit quality | 2,995 | 0 | ||
Total loans | 233,064 | 5,752 | ||
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 794 | 111 | ||
Allowance related to loans acquired with deteriorated credit quality | 0 | 0 | ||
Total allowance for loan losses | 794 | 111 | $ 247 | $ 480 |
Loans deemed impaired | 0 | 0 | ||
Loans not deemed impaired | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Total loans | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWANC71
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate loans: | ||
30-59 Days Past Due | $ 15,327 | $ 30,866 |
60-89 Days Past Due | 6,165 | 11,960 |
Past Due 90 Days or More | 19,456 | 25,022 |
Total Past Due | 40,948 | 67,848 |
Past Due 90 Days or More and Still Accruing | 307 | 4,752 |
Loans on Non-accrual | 37,802 | 32,358 |
Residential Real Estate | ||
Real estate loans: | ||
30-59 Days Past Due | 10,516 | 18,913 |
60-89 Days Past Due | 2,758 | 3,954 |
Past Due 90 Days or More | 8,485 | 7,320 |
Total Past Due | 21,759 | 30,187 |
Past Due 90 Days or More and Still Accruing | 238 | 0 |
Loans on Non-accrual | 19,122 | 13,972 |
Commercial Real Estate | ||
Real estate loans: | ||
30-59 Days Past Due | 4,054 | 7,734 |
60-89 Days Past Due | 2,689 | 3,967 |
Past Due 90 Days or More | 6,024 | 9,509 |
Total Past Due | 12,767 | 21,210 |
Past Due 90 Days or More and Still Accruing | 0 | 2,361 |
Loans on Non-accrual | 11,620 | 12,514 |
Construction | ||
Real estate loans: | ||
30-59 Days Past Due | 214 | 1,403 |
60-89 Days Past Due | 449 | 227 |
Past Due 90 Days or More | 2,135 | 695 |
Total Past Due | 2,798 | 2,325 |
Past Due 90 Days or More and Still Accruing | 0 | 84 |
Loans on Non-accrual | 2,808 | 611 |
Commercial | ||
Real estate loans: | ||
30-59 Days Past Due | 526 | 2,782 |
60-89 Days Past Due | 266 | 3,812 |
Past Due 90 Days or More | 2,804 | 7,486 |
Total Past Due | 3,596 | 14,080 |
Past Due 90 Days or More and Still Accruing | 66 | 2,307 |
Loans on Non-accrual | 4,244 | 5,217 |
Installment and Collateral | ||
Real estate loans: | ||
30-59 Days Past Due | 17 | 34 |
60-89 Days Past Due | 3 | 0 |
Past Due 90 Days or More | 8 | 12 |
Total Past Due | 28 | 46 |
Past Due 90 Days or More and Still Accruing | 3 | 0 |
Loans on Non-accrual | $ 8 | $ 44 |
LOANS RECEIVABLE AND ALLOWANC72
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Impaired Loans with and without Valuation Allowance (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | $ 54,359 | $ 39,875 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 64,567 | 46,949 |
Recorded Investment, Impaired loans with a valuation allowance | 1,896 | 4,122 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 1,911 | 4,487 |
Recorded Investment, Total impaired loans | 56,255 | 43,997 |
Unpaid Principal Balance, Total impaired loans | 66,478 | 51,436 |
Allowance related to loans individually evaluated and deemed impaired | 342 | 1,259 |
Residential Real Estate | ||
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | 19,315 | 15,233 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 22,829 | 17,143 |
Recorded Investment, Impaired loans with a valuation allowance | 1,277 | 748 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 1,292 | 892 |
Recorded Investment, Total impaired loans | 20,592 | 15,981 |
Allowance related to loans individually evaluated and deemed impaired | 74 | 28 |
Commercial Real Estate | ||
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | 17,960 | 18,408 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 20,381 | 21,202 |
Recorded Investment, Impaired loans with a valuation allowance | 0 | 1,106 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 0 | 1,271 |
Recorded Investment, Total impaired loans | 17,960 | 19,514 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 316 |
Construction | ||
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | 4,442 | 2,384 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 6,869 | 2,441 |
Recorded Investment, Impaired loans with a valuation allowance | 218 | 226 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 218 | 226 |
Recorded Investment, Total impaired loans | 4,660 | 2,610 |
Allowance related to loans individually evaluated and deemed impaired | 147 | 33 |
Commercial Business | ||
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | 12,634 | 3,804 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 14,477 | 6,129 |
Recorded Investment, Impaired loans with a valuation allowance | 401 | 2,042 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 401 | 2,098 |
Recorded Investment, Total impaired loans | 13,035 | 5,846 |
Allowance related to loans individually evaluated and deemed impaired | 121 | 882 |
Installment and Collateral | ||
Real estate loans: | ||
Recorded Investment, Impaired loans without a valuation allowance | 8 | 46 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 11 | 34 |
Recorded Investment, Total impaired loans | 8 | 46 |
Allowance related to loans individually evaluated and deemed impaired | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWANC73
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | $ 48,280 | $ 30,432 | $ 18,687 |
Interest Income Recognized without a valuation allowance | 2,040 | 938 | 571 |
Residential Real Estate | |||
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | 18,213 | 12,721 | 9,999 |
Interest Income Recognized without a valuation allowance | 616 | 451 | 432 |
Commercial Real Estate | |||
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | 18,424 | 11,868 | 4,407 |
Interest Income Recognized without a valuation allowance | 694 | 284 | 45 |
Construction | |||
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | 3,784 | 2,646 | 2,720 |
Interest Income Recognized without a valuation allowance | 299 | 81 | 46 |
Commercial | |||
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | 7,835 | 3,087 | 1,525 |
Interest Income Recognized without a valuation allowance | 431 | 121 | 46 |
Installment and Collateral | |||
Real estate loans: | |||
Average Recorded Investment without a valuation allowance | 24 | 110 | 36 |
Interest Income Recognized without a valuation allowance | $ 0 | $ 1 | $ 2 |
LOANS RECEIVABLE AND ALLOWANC74
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Non-accrual status | $ 37,802 | $ 32,358 | |
Troubled Debt Restructurings | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Accrual status | 18,453 | 11,638 | |
Non-accrual status | 5,611 | 4,169 | |
Total recorded investment in TDRs | 24,064 | 15,807 | $ 8,300 |
Accruing TDRs performing under modified terms more than one year | 5,821 | 1,919 | |
Specific reserves for TDRs included in the balance of allowance for loan losses | 223 | 380 | |
Additional funds committed to borrowers in TDR status | $ 513 | $ 210 |
LOANS RECEIVABLE AND ALLOWANC75
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 50 | 46 |
Pre-Modification Outstanding Recorded Investment | $ 15,167 | $ 9,231 |
Post-Modification Outstanding Recorded Investment | $ 15,677 | $ 9,231 |
Number of contracts of debt restructurings that subsequently defaulted | contract | 7 | 2 |
Recorded investment on debt restructurings that subsequently defaulted | $ 1,575 | $ 3,360 |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 38 | 16 |
Pre-Modification Outstanding Recorded Investment | $ 4,632 | $ 2,497 |
Post-Modification Outstanding Recorded Investment | $ 4,642 | $ 2,497 |
Number of contracts of debt restructurings that subsequently defaulted | contract | 5 | 0 |
Recorded investment on debt restructurings that subsequently defaulted | $ 769 | $ 0 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 2 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 791 | $ 1,450 |
Post-Modification Outstanding Recorded Investment | $ 791 | $ 1,450 |
Number of contracts of debt restructurings that subsequently defaulted | contract | 2 | 2 |
Recorded investment on debt restructurings that subsequently defaulted | $ 806 | $ 3,360 |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 2 | 15 |
Pre-Modification Outstanding Recorded Investment | $ 564 | $ 4,161 |
Post-Modification Outstanding Recorded Investment | $ 564 | $ 4,161 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 8 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 9,180 | $ 1,121 |
Post-Modification Outstanding Recorded Investment | $ 9,680 | $ 1,121 |
Installment and Collateral | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 2 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 2 |
LOANS RECEIVABLE AND ALLOWANC76
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of How Loans Were Modified as TDRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | $ 10,775 | $ 5,056 |
Adjusted Interest Rates | 1,202 | 1,572 |
Adjusted Rate and Maturity | 1,919 | 495 |
Payment Deferral | 814 | 734 |
Other | 967 | 1,374 |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | 0 | 80 |
Adjusted Interest Rates | 1,202 | 1,008 |
Adjusted Rate and Maturity | 1,659 | 0 |
Payment Deferral | 814 | 732 |
Other | 967 | 677 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | 538 | 448 |
Adjusted Interest Rates | 0 | 564 |
Adjusted Rate and Maturity | 253 | 438 |
Payment Deferral | 0 | 0 |
Other | 0 | 0 |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | 564 | 3,980 |
Adjusted Interest Rates | 0 | 0 |
Adjusted Rate and Maturity | 0 | 0 |
Payment Deferral | 0 | 0 |
Other | 0 | 181 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | 9,673 | 548 |
Adjusted Interest Rates | 0 | 0 |
Adjusted Rate and Maturity | 7 | 57 |
Payment Deferral | 0 | 0 |
Other | $ 0 | 516 |
Installment and Collateral | ||
Financing Receivable, Modifications [Line Items] | ||
Extended Maturity | 0 | |
Adjusted Interest Rates | 0 | |
Adjusted Rate and Maturity | 0 | |
Payment Deferral | 2 | |
Other | $ 0 |
LOANS RECEIVABLE AND ALLOWANC77
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | $ 3,777,535 | $ 3,278,518 |
Commercial Business | 603,332 | 613,596 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,611,197 | 1,413,739 |
Residential Real Estate | Loans rated 1-5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,589,095 | 1,396,866 |
Residential Real Estate | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,379 | 1,981 |
Residential Real Estate | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 20,720 | 14,892 |
Residential Real Estate | Loans rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Residential Real Estate | Loans rated 9 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 3 | 0 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,995,332 | 1,678,936 |
Commercial Real Estate | Loans rated 1-5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,909,091 | 1,606,420 |
Commercial Real Estate | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 48,522 | 28,616 |
Commercial Real Estate | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 37,719 | 43,900 |
Commercial Real Estate | Loans rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial Real Estate | Loans rated 9 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 171,006 | 185,843 |
Construction | Loans rated 1-5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 156,607 | 174,629 |
Construction | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 10,860 | 4,652 |
Construction | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 3,539 | 6,562 |
Construction | Loans rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Construction | Loans rated 9 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial Business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 603,332 | 613,596 |
Commercial Business | Loans rated 1-5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 568,248 | 570,808 |
Commercial Business | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 8,382 | 21,589 |
Commercial Business | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 26,655 | 21,154 |
Commercial Business | Loans rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 47 | 45 |
Commercial Business | Loans rated 9 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial Business | 0 | 0 |
Installment and Collateral | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | 233,064 | 5,752 |
Installment and Collateral | Loans rated 1-5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | 233,054 | 5,488 |
Installment and Collateral | Loans rated 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | 0 | 0 |
Installment and Collateral | Loans rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | 10 | 264 |
Installment and Collateral | Loans rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | 0 | 0 |
Installment and Collateral | Loans rated 9 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment and Collateral | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWANC78
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Changes in Loans Outstanding to Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Loans Outstanding, Related Parties | ||
Balance, beginning of year | $ 3,722 | $ 2,020 |
Loans related to parties who terminated service during the year | (1,495) | (948) |
Additional loans and advances | 875 | 2,848 |
Repayments | (457) | (198) |
Balance, end of year | $ 2,645 | $ 3,722 |
LOANS RECEIVABLE AND ALLOWANC79
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Mortgage Servicing Rights Capitalized and Amortized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage servicing rights: | |||
Balance of mortgage servicing rights at beginning of period | $ 4,729 | $ 4,103 | $ 1,083 |
Cumulative effect of net change in accounting principle | 0 | 0 | 471 |
Issuances/additions | 2,931 | 1,131 | 1,202 |
Change in fair value recognized in net income | (586) | (1,269) | 1,347 |
Balance at end of year | 7,074 | 4,729 | 4,103 |
Legacy United | |||
Mortgage servicing rights: | |||
Issuances/additions | $ 0 | $ 764 | $ 0 |
PREMISES AND EQUIPMENT - Premis
PREMISES AND EQUIPMENT - Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 82,656 | $ 83,318 |
Accumulated depreciation and amortization | (27,877) | (25,653) |
Premises and equipment, net | $ 54,779 | 57,665 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 39 years 6 months | |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 950 | 950 |
Land and Improvements [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 0 years | |
Land and Improvements [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 15 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 40,375 | 40,001 |
Buildings [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Buildings [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 39 years 6 months | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 27,468 | 27,618 |
Furniture and Equipment [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 3 years | |
Furniture and Equipment [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 8,961 | 9,261 |
Leasehold Improvements [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 5 years | |
Leasehold Improvements [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,902 | 4,902 |
Assets Held under Capital Leases [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 5 years | |
Assets Held under Capital Leases [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 0 | $ 586 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 5,340 | $ 3,762 | $ 2,383 |
OTHER REAL ESTATE OWNED - Addit
OTHER REAL ESTATE OWNED - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Property | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Real Estate Properties [Line Items] | ||||
Real estate properties | $ 755 | $ 2,239 | $ 1,529 | $ 2,846 |
Real estate properties sold | Property | 12 | |||
Other real estate acquired as a result of the merger | $ 0 | 2,044 | 0 | |
Other real estate owned operating expenses | 127 | 579 | 587 | |
Commercial Real Estate | ||||
Real Estate Properties [Line Items] | ||||
Real estate properties | 604 | 923 | ||
Residential Real Estate | ||||
Real Estate Properties [Line Items] | ||||
Real estate properties | 151 | 1,200 | ||
Real Estate [Member] | ||||
Real Estate Properties [Line Items] | ||||
Income from rental of other real estate owned property | $ 3 | $ 11 | $ 23 |
OTHER REAL ESTATE OWNED - Summa
OTHER REAL ESTATE OWNED - Summary of Activity for Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned | |||
Balance at beginning of year | $ 2,239 | $ 1,529 | $ 2,846 |
Additions | 1,099 | 2,339 | 3,097 |
Acquisition of Legacy United | 0 | 2,044 | 0 |
Write-downs | (118) | (213) | (287) |
Proceeds from sales | (2,683) | (3,869) | (4,042) |
Gain (loss) on sales | 218 | 409 | (85) |
Balance at end of year | $ 755 | $ 2,239 | $ 1,529 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Current tax receivable | $ 4,770 | $ 14,391 | ||
Partnership investments | 21,441 | 13,461 | ||
Mortgage servicing rights | 7,074 | 4,729 | $ 4,103 | $ 1,083 |
Derivative assets | 12,910 | 4,074 | ||
Investment receivable | 20 | 2,762 | ||
Other | 12,766 | 9,715 | ||
Total other assets | $ 58,981 | $ 49,132 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Demand and NOW | $ 1,019,161 | $ 902,460 |
Regular savings | 508,377 | 528,614 |
Money markets | 1,182,422 | 1,047,302 |
Time deposits | 1,727,111 | 1,556,935 |
Total deposits | $ 4,437,071 | $ 4,035,311 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Time deposits in denominations of $250,000 or more | $ 253.7 | $ 265.4 |
Brokered time deposits | 392 | 241.9 |
Brokered money market deposits | $ 123.1 | $ 111.8 |
DEPOSITS - Summary of Contractu
DEPOSITS - Summary of Contractual Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
2,016 | $ 1,061,959 | |
2,017 | 471,007 | |
2,018 | 95,520 | |
2,019 | 22,042 | |
2,020 | 76,583 | |
Contractual maturities of time deposits, Total | $ 1,727,111 | $ 1,556,935 |
BORROWINGS - Contractual Maturi
BORROWINGS - Contractual Maturities and Weighted-Average Rates of Outstanding Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
2,015 | $ 0 | $ 435,763 |
2,016 | 637,580 | 19,714 |
2,017 | 151,000 | 66,000 |
2,018 | 120,795 | 16,784 |
2,019 | 20,000 | 20,000 |
Thereafter | 16,130 | 17,300 |
Total federal home loan bank advances | $ 945,505 | $ 575,561 |
Weighted-Average rate in 2015 | 0.00% | 0.38% |
Weighted-Average rate in 2016 | 0.60% | 1.53% |
Weighted-Average rate in 2017 | 1.76% | 2.72% |
Weighted-Average rate in 2018 | 1.54% | 2.19% |
Weighted-Average rate in 2019 | 1.63% | 1.63% |
Weighted-Average rate Thereafter | 2.21% | 2.19% |
Weighted-Average rate, net | 0.95% | 0.84% |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2015USD ($)loanTransfercounterpartyadvance | Dec. 31, 2014USD ($) | Sep. 23, 2014USD ($) | May. 01, 2014USD ($) | Apr. 30, 2014USD ($)Transferleased_bank_branch | |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Advances from FHLBB | $ 949,000,000 | $ 581,000,000 | |||
Fair value adjustment on FHLBB advances acquired in the Merger | 3,500,000 | 5,400,000 | |||
Estimated eligible collateral value | 1,300,000,000 | 853,800,000 | |||
Unused line of credit | 10,000,000 | 10,000,000 | |||
Additional borrowings | $ 265,100,000 | ||||
Percent of aggregate principal amount | 0.35% | ||||
Borrowings from the FHLBB (percent) | 4.50% | ||||
Federal Home Loan Bank Stock | $ 51,196,000 | 31,950,000 | |||
Other borrowings | 150,017,000 | $ 196,341,000 | |||
Borrowings acquired in the Merger | $ 1,700,000 | $ 2,800,000 | |||
Number of transfers | Transfer | 2 | ||||
Number of transferred paid off | Transfer | 1 | ||||
Number of leased bank branches | leased_bank_branch | 3 | ||||
Capital lease obligations | $ 4,500,000 | ||||
Wholesale Reverse Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Weighted average cost (percent) | 1.51% | 1.07% | |||
Other borrowings | $ 45,000,000 | $ 69,200,000 | |||
Number of individual borrowings, wholesale reverse purchase agreements | loan | 3 | ||||
Wholesale reverse repurchase agreements, remaining term | 3 years | ||||
Retail Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Other borrowings | $ 19,300,000 | $ 41,300,000 | |||
Brokered Sweep Deposit | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Percentage of other borrowings at cost | 0.45% | 0.47% | |||
Other borrowings | $ 123,100,000 | $ 111,800,000 | |||
Number of counterparties to unused federal funds lines of credit | counterparty | 6 | ||||
Unused federal funds lines of credit | $ 137,500,000 | ||||
Federal Home Loan Bank, Advances, Callable Option | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Advances from FHLBB | $ 41,000,000 | ||||
Number of advances | advance | 8 | ||||
Interest rates, Minimum | 3.19% | ||||
Interest rates, Maximum | 4.49% | ||||
Federal Home Loan Bank, Advances, Callable Option | Minimum | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Federal home loan bank advances, maturity year | 2,017 | ||||
Federal Home Loan Bank, Advances, Callable Option | Maximum | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Federal home loan bank advances, maturity year | 2,018 | ||||
Subordinated Debt | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Junior subordinated debt, face amount | $ 7,700,000 | ||||
Fair value acquisition discount | $ 2,100,000 | 2,200,000 | $ 2,300,000 | ||
Basis spread on variable rate | 1.85% | ||||
Percentage of other borrowings at cost | 2.46% | ||||
Subordinated Debt | Subordinated Notes Due October 2024 | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||||
Subordinated notes, face amount | $ 75,000,000 | ||||
Subordinated notes, stated interest rate | 5.75% | ||||
Subordinated notes, carrying value | $ 73,900,000 | $ 73,800,000 |
BORROWINGS - Outstanding Borrow
BORROWINGS - Outstanding Borrowings Under Repurchase Agreement (Details) - US Treasury and Government - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | $ 64,278 | $ 110,577 |
Overnight | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 19,278 | 41,335 |
Up to 1 Year | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 25,000 | 49,242 |
1 - 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 20,000 | 0 |
Greater than 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | $ 0 | $ 20,000 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax provision (benefit) | |||||||||||
Federal | $ 1,302 | $ (13,905) | $ 4,842 | ||||||||
State | 1,345 | 311 | 117 | ||||||||
Total current | 2,647 | (13,594) | 4,959 | ||||||||
Deferred tax provision (benefit) | |||||||||||
Federal | 3,275 | 7,482 | 410 | ||||||||
State | 307 | (121) | 0 | ||||||||
State | 3,582 | 7,361 | 410 | ||||||||
Total income tax expense (benefit) | $ 169 | $ 952 | $ 2,123 | $ 2,985 | $ (5,937) | $ (1,271) | $ 512 | $ 463 | $ 6,229 | $ (6,233) | $ 5,369 |
INCOME TAXES - Summary of Provi
INCOME TAXES - Summary of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Provision for income tax at statutory rate | $ 19,554 | $ 192 | $ 6,859 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal benefit | 1,074 | 124 | 76 | ||||||||
Increase in cash surrender value of bank-owned life insurance | (1,266) | (1,065) | (732) | ||||||||
Dividend received deduction | (471) | (276) | (24) | ||||||||
Tax exempt interest and disallowed interest expense | (3,826) | (1,740) | (808) | ||||||||
Employee Stock Ownership Plan | 25 | 153 | 193 | ||||||||
Nondeductible acquisition costs | 0 | 440 | 0 | ||||||||
Excess parachute payments | 442 | 1,615 | 0 | ||||||||
Investment tax credits | (8,649) | (5,596) | 0 | ||||||||
Other, net | (654) | (80) | (195) | ||||||||
Total income tax expense (benefit) | $ 169 | $ 952 | $ 2,123 | $ 2,985 | $ (5,937) | $ (1,271) | $ 512 | $ 463 | $ 6,229 | $ (6,233) | $ 5,369 |
Effective income tax rate (benefit) | 11.10% | (11.40%) | 27.40% |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Loans | $ 14,558 | $ 17,601 |
Investment security losses | 150 | 440 |
Net unrealized losses on securities available for sale | 2,107 | 0 |
Net unrealized losses on interest rate swaps | 1,603 | 390 |
Pension, deferred compensation and post-retirement liabilities | 2,723 | 4,279 |
Stock incentive award plan | 2,044 | 2,871 |
Deposits - purchase accounting adjustment | 891 | 2,149 |
Accrued expenses | 8,043 | 3,124 |
Tax credits | 3,539 | 5,116 |
Other | 3,166 | 4,484 |
Gross deferred tax assets | 38,824 | 40,454 |
Valuation allowance | (2,706) | (2,463) |
Gross deferred tax assets, net of valuation allowance | 36,118 | 37,991 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available for sale | 0 | (455) |
Other purchase accounting adjustments | (3,024) | (3,703) |
Gross deferred tax liabilities | (3,024) | (4,158) |
Net deferred tax asset | $ 33,094 | $ 33,833 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Federal net operating loss | $ 1,800,000 | ||
Valuation allowance | 2,706,000 | $ 2,463,000 | |
Tax credit carryforward | 10,100,000 | ||
Contingency reserve for loan losses | 3,800,000 | ||
Unrecognized deferred income taxes | 1,400,000 | ||
Uncertain tax positions | 375,000 | 252,000 | $ 0 |
Accrued interest and penalties | 0 | 0 | $ 0 |
Investment Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 6,600,000 | ||
Connecticut | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss | $ 174,300,000 | $ 168,400,000 |
DERIVATIVES AND HEDGING ACTIV95
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,167,425 | $ 405,822 |
Estimated Fair Value Net | (3,765) | (880) |
Not Designated as Hedging Instrument | Forward Loan Sale Commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,060 | $ 14,091 |
Weighted-Average Maturity (in years) | 0 years | 0 years |
Estimated Fair Value Net | $ (13) | $ (14) |
Not Designated as Hedging Instrument | Derivative Loan Commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 9,403 | $ 8,839 |
Weighted-Average Maturity (in years) | 0 years | 0 years |
Estimated Fair Value Net | $ 223 | $ 213 |
Not Designated as Hedging Instrument | Loan Level Swaps Dealer | ||
Derivative [Line Items] | ||
Notional Amount | $ 333,981 | $ 86,446 |
Weighted-Average Maturity (in years) | 9 years 17 days | 8 years 8 months 9 days |
Weighted- Average Interest Rate Swaps, Rate Received | 1.94% | 1.98% |
Weighted-Average Interest Rate Swaps, Paid | 3.93% | 4.34% |
Estimated Fair Value Net | $ (12,059) | $ 3,678 |
Not Designated as Hedging Instrument | Loan Level Rate Swaps Borrower | ||
Derivative [Line Items] | ||
Notional Amount | $ 333,981 | $ 86,446 |
Weighted-Average Maturity (in years) | 9 years 17 days | 8 years 8 months 9 days |
Weighted- Average Interest Rate Swaps, Rate Received | 3.93% | 4.34% |
Weighted-Average Interest Rate Swaps, Paid | 1.94% | 1.98% |
Estimated Fair Value Net | $ 12,152 | $ (3,678) |
Cash flow hedges | Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amount | $ 280,000 | $ 25,000 |
Weighted-Average Maturity (in years) | 2 years 7 months 25 days | 2 years 4 months 28 days |
Weighted- Average Interest Rate Swaps, Rate Received | 0.46% | 0.23% |
Weighted-Average Interest Rate Swaps, Paid | 1.28% | 0.90% |
Estimated Fair Value Net | $ (2,020) | $ 72 |
Cash flow hedges | Designated as Hedging Instrument | Interest Rate Swap | Future Borrowings | ||
Derivative [Line Items] | ||
Notional Amount | $ 150,000 | $ 150,000 |
Weighted-Average Maturity (in years) | 7 years 11 months 25 days | 6 years 4 months 2 days |
Weighted-Average Interest Rate Swaps, Paid | 2.46% | 2.45% |
Estimated Fair Value Net | $ (2,072) | $ (1,069) |
Fair value hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 35,000 | |
Fair value hedges | Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amount | $ 35,000 | $ 35,000 |
Weighted-Average Maturity (in years) | 1 year 8 months 21 days | 2 years 8 months 19 days |
Weighted- Average Interest Rate Swaps, Rate Received | 1.04% | 1.04% |
Weighted-Average Interest Rate Swaps, Paid | 0.48% | 0.24% |
Estimated Fair Value Net | $ 24 | $ (82) |
DERIVATIVES AND HEDGING ACTIV96
DERIVATIVES AND HEDGING ACTIVITIES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)counterpartyborrowerderivative | Dec. 31, 2014USD ($) | Sep. 30, 2015derivative | |
Derivative [Line Items] | |||
Notional amount | $ 1,167,425,000 | $ 405,822,000 | |
Amount of collateral | 0 | 0 | |
Fair value of net derivative, asset position | $ 16,900,000 | ||
Number of counterparties above threshold | counterparty | 5 | ||
Fair value of net derivative | $ 2,100,000 | 1,100,000 | |
Cash flow hedges | Interest Rate Contract | |||
Derivative [Line Items] | |||
Estimated reduction/increase to interest expense | $ (1,900,000) | ||
Forecasted transactions period | 36 months | ||
Fair value hedges | Interest Rate Swap | |||
Derivative [Line Items] | |||
Net reduction to interest expense | 24,000 | ||
Minimum | |||
Derivative [Line Items] | |||
Amount of collateral | $ 16,400,000 | ||
Designated as Hedging Instrument | Cash flow hedges | Interest Rate Contract | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 10 | ||
Notional amount | $ 430,000,000 | ||
Designated as Hedging Instrument | Cash flow hedges | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 280,000,000 | 25,000,000 | |
Designated as Hedging Instrument | Fair value hedges | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 3 | ||
Notional amount | $ 35,000,000 | ||
Designated as Hedging Instrument | Fair value hedges | Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 35,000,000 | $ 35,000,000 | |
Not Designated as Hedging Instrument | Borrower | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 51 | ||
Notional amount | $ 334,000,000 | ||
Not Designated as Hedging Instrument | Brokerage Activities | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 51 | ||
Notional amount | $ 334,000,000 | ||
Not Designated as Hedging Instrument | Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By Counterparty | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 2 | ||
Notional amount | $ 6,400,000 | ||
Counterparty participation level, percent | 46.90% | ||
Not Designated as Hedging Instrument | Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By The Bank | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 1 | ||
Notional amount | $ 6,300,000 | ||
Counterparty participation level, percent | 3.10% | ||
Not Designated as Hedging Instrument | Interest rate swap - risk participation agreement | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 3 | ||
Number of customers | borrower | 3 | ||
Number of counterparties | counterparty | 2 |
DERIVATIVES AND HEDGING ACTIV97
DERIVATIVES AND HEDGING ACTIVITIES - Tabular Disclosure of Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 528 | $ 174 |
Derivative Liabilities | 4,596 | 1,253 |
Designated as Hedging Instrument | Other Assets | Interest Rate Swap | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 478 | 140 |
Designated as Hedging Instrument | Other Assets | Interest Rate Swap | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 50 | 34 |
Designated as Hedging Instrument | Other Liabilities | Interest Rate Swap | Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4,570 | 1,137 |
Designated as Hedging Instrument | Other Liabilities | Interest Rate Swap | Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 26 | 116 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 12,382 | 3,899 |
Derivative Liabilities | 12,079 | 3,837 |
Not Designated as Hedging Instrument | Other Assets | Interest Rate Swap | With Customers | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 12,152 | 3,678 |
Not Designated as Hedging Instrument | Other Assets | Interest Rate Swap | With Counterparties | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Not Designated as Hedging Instrument | Other Assets | Interest Rate Swap | Risk Participation Agreement | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 1 |
Not Designated as Hedging Instrument | Other Assets | Forward Loan Sale Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7 | 7 |
Not Designated as Hedging Instrument | Other Assets | Derivative Loan Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 223 | 213 |
Not Designated as Hedging Instrument | Other Liabilities | Interest Rate Swap | With Customers | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Interest Rate Swap | With Counterparties | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 12,059 | 3,816 |
Not Designated as Hedging Instrument | Other Liabilities | Interest Rate Swap | Risk Participation Agreement | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Other Liabilities | Forward Loan Sale Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 20 | 21 |
Not Designated as Hedging Instrument | Other Liabilities | Derivative Loan Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0 | $ 0 |
DERIVATIVES AND HEDGING ACTIV98
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Effect of Derivative Financial Instruments on Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) For the Years Ended December 31, | $ (3,108) | $ (8,385) | $ 7,537 |
Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) For the Years Ended December 31, | (12) | 0 | 0 |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | 106 | 101 | (183) |
Amount of Gain (Loss) Recognized in Income on Hedged Items For the Years Ended December 31, | (106) | (101) | 183 |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | 240 | 89 | 45 |
Not Designated as Hedging Instrument | Derivative Loan Commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | 10 | 193 | (6) |
Not Designated as Hedging Instrument | Forward Loan Sale Commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | (1) | (33) | (19) |
Not Designated as Hedging Instrument | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | 231 | (70) | 70 |
Not Designated as Hedging Instrument | Interest rate swap - risk participation agreement | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives For the Years Ended December 31, | $ 0 | $ (1) | $ 0 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)securitytrust_security | Dec. 31, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential real estate mortgage loans held for sale | $ 9,800,000 | $ 8,100,000 |
Loans held for sale, fair value | 10,100,000 | 8,200,000 |
Residential real estate mortgage loans held for sale, 90 days or more past due | 0 | 0 |
Transfers in and out of Level 1, Level 2 and Level 3 measurements | $ 0 | 0 |
Number of pooled trust securities | security | 1 | |
Fixed rate mortgage loans term (in years) | 30 years | |
Maturity period, term 1 (in years) | 10 years | |
Maturity period, term 2 (in years) | 15 years | |
Maturity period, term 3 (in years) | 20 years | |
Estimates fallout rate based upon historical average (percent) | 11.00% | |
Liabilities measured at fair value on a non-recurring basis | $ 0 | $ 0 |
Short-term investments, maturity period | 90 days | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of pooled trust securities | trust_security | 1 |
FAIR VALUE MEASUREMENT - Change
FAIR VALUE MEASUREMENT - Changes in Fair Value of Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net Gain From Sales of Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Mortgage loans held for sale | $ (50) | $ 195 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Assets Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 1,059,169 | $ 1,053,011 |
Mortgage loan derivative assets | 12,910 | 4,074 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,059,169 | 1,053,011 |
Mortgage servicing rights | 7,074 | 4,729 |
Interest rate swap assets | 12,680 | 3,853 |
Interest rate swap liabilities | 16,655 | 4,931 |
Recurring | Mortgage Loan Derivative Assets & Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loan derivative assets | 230 | 220 |
Derivative liabilities | 20 | 21 |
Loans held for sale | 10,136 | 8,220 |
Recurring | Government-sponsored residential collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 286,967 | 238,133 |
Recurring | Government-sponsored commercial collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 128,972 | 129,686 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 159,901 | 178,755 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 59,960 | 42,245 |
Recurring | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 201,115 | 195,772 |
Recurring | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 145,861 | 167,419 |
Recurring | Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,965 | 68,298 |
Recurring | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 45,339 | 25,881 |
Recurring | U.S. Government and government-sponsored enterprise obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,089 | 6,822 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 3,227 | 3,299 |
Mortgage servicing rights | 0 | 0 |
Interest rate swap assets | 0 | 0 |
Interest rate swap liabilities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage Loan Derivative Assets & Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loan derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Loans held for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 3,227 | 3,299 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government and government-sponsored enterprise obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 909,872 | 912,505 |
Mortgage servicing rights | 0 | 0 |
Interest rate swap assets | 12,680 | 3,853 |
Interest rate swap liabilities | 16,655 | 4,931 |
Recurring | Other Observable Inputs (Level 2) | Mortgage Loan Derivative Assets & Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loan derivative assets | 230 | 220 |
Derivative liabilities | 20 | 21 |
Loans held for sale | 10,136 | 8,220 |
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 286,967 | 238,133 |
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 128,972 | 129,686 |
Recurring | Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 15,388 | 43,166 |
Recurring | Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 58,403 | 40,627 |
Recurring | Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 201,115 | 195,772 |
Recurring | Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 145,861 | 167,419 |
Recurring | Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,965 | 68,298 |
Recurring | Other Observable Inputs (Level 2) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 42,112 | 22,582 |
Recurring | Other Observable Inputs (Level 2) | U.S. Government and government-sponsored enterprise obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,089 | 6,822 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 146,070 | 137,207 |
Mortgage servicing rights | 7,074 | 4,729 |
Interest rate swap assets | 0 | 0 |
Interest rate swap liabilities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Loan Derivative Assets & Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loan derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Loans held for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 144,513 | 135,589 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,557 | 1,618 |
Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government and government-sponsored enterprise obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Sch102
FAIR VALUE MEASUREMENT - Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Asset at Amortized Cost | |||
Balance of mortgage servicing rights at beginning of period | $ 4,729 | $ 4,103 | $ 1,083 |
Cumulative effect of change in accounting principle | 0 | 0 | 471 |
Balance at end of year | 7,074 | 4,729 | 4,103 |
Recurring | Mortgage servicing rights | |||
Servicing Asset at Amortized Cost | |||
Balance of mortgage servicing rights at beginning of period | 4,729 | 4,103 | |
Addition of Legacy United mortgage servicing rights | 0 | 764 | |
Issuances | 2,931 | 1,131 | |
Change in fair value recognized in net income | (586) | (1,269) | |
Balance at end of year | 7,074 | 4,729 | 4,103 |
Recurring | Available for Sale Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |||
Balance of available for sale securities, at beginning of period | 137,207 | 72,963 | |
Purchases | 10,794 | 72,115 | |
Principal payments | (1,392) | (6,915) | |
Total unrealized gains (losses) included in other comprehensive income | (539) | (956) | |
Balance at end of period | $ 146,070 | $ 137,207 | $ 72,963 |
FAIR VALUE MEASUREMENT - Add103
FAIR VALUE MEASUREMENT - Additional Quantitative Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | $ 1,059,169,000 | $ 1,053,011,000 |
Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | 1,059,169,000 | 1,053,011,000 |
Mortgage servicing rights | 7,074,000 | 4,729,000 |
Recurring | Asset-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | 159,901,000 | 178,755,000 |
Recurring | Corporate debt securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | 59,960,000 | 42,245,000 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | 146,070,000 | 137,207,000 |
Mortgage servicing rights | 7,074,000 | 4,729,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | $ 144,513,000 | 135,589,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 1.50% | |
Cumulative Default % | 6.10% | |
Loss Given Default | 1.80% | |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 6.70% | |
Cumulative Default % | 11.80% | |
Loss Given Default | 3.90% | |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | Discounted cash flow | Weighted Average [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 5.50% | |
Cumulative Default % | 8.70% | |
Loss Given Default | 2.80% | |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Available for sale securities | $ 1,557,000 | $ 1,618,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 7.00% | |
Cumulative Default % | 2.80% | |
Loss Given Default | 85.00% | |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 7.00% | |
Cumulative Default % | 42.10% | |
Loss Given Default | 100.00% | |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Discounted cash flow | Weighted Average [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 7.00% | |
Cumulative Default % | 12.20% | |
Loss Given Default | 94.20% | |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortgage servicing rights | $ 7,074,000 | |
Recurring | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Minimum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 9.00% | |
Cost to Service | $ 50 | |
Float Earnings Rate | 0.25% | |
Recurring | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Maximum | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 18.00% | |
Cost to Service | $ 110 | |
Float Earnings Rate | 0.25% | |
Recurring | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Discounted cash flow | Weighted Average [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount Rates | 10.50% | |
Cost to Service | $ 61.37 | |
Float Earnings Rate | 0.25% |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 2,096 | $ 2,863 |
Other real estate owned | 755 | 2,239 |
Total | 2,851 | 5,102 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,096 | 2,863 |
Other real estate owned | 755 | 2,239 |
Total | $ 2,851 | $ 5,102 |
FAIR VALUE MEASUREMENT - Sum105
FAIR VALUE MEASUREMENT - Summary of Losses on Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ (274) | $ (1,865) | $ (977) |
Other real estate owned | 218 | 409 | 85 |
Total | $ (492) | $ (2,274) | $ (1,062) |
FAIR VALUE MEASUREMENT - Sum106
FAIR VALUE MEASUREMENT - Summary of Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Available for sale securities | $ 1,059,169 | $ 1,053,011 |
Held to maturity securities | 15,683 | 16,713 |
Loans held for sale | 10,100 | 8,200 |
Financial liabilities: | ||
Federal Home Loan Bank and other borrowings | 949,003 | 580,973 |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 95,176 | 86,952 |
Available for sale securities | 1,059,169 | 1,053,011 |
Held to maturity securities | 14,565 | 15,368 |
Loans held for sale | 10,136 | 8,220 |
Loans receivable-net | 4,587,062 | 3,877,063 |
FHLBB stock | 51,196 | 31,950 |
Accrued interest receivable | 15,740 | 14,212 |
Derivative assets | 12,910 | 4,073 |
Mortgage servicing rights | 7,074 | 4,729 |
Financial liabilities: | ||
Deposits | 4,437,071 | 4,035,311 |
Mortgagors’ and investors’ escrow accounts | 13,526 | 13,004 |
Federal Home Loan Bank and other borrowings | 1,099,020 | |
FHLBB advances and other borrowings | 777,314 | |
Derivative liabilities | 16,675 | 4,952 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 95,176 | 86,952 |
Available for sale securities | 1,059,169 | 1,053,011 |
Held to maturity securities | 15,683 | 16,713 |
Loans held for sale | 10,136 | 8,220 |
Loans receivable-net | 4,629,243 | 3,919,432 |
FHLBB stock | 51,196 | 31,950 |
Accrued interest receivable | 15,740 | 14,212 |
Derivative assets | 12,910 | 4,073 |
Mortgage servicing rights | 7,074 | 4,729 |
Financial liabilities: | ||
Deposits | 4,436,456 | 3,899,658 |
Mortgagors’ and investors’ escrow accounts | 13,526 | 13,004 |
Federal Home Loan Bank and other borrowings | 1,096,452 | |
FHLBB advances and other borrowings | 773,786 | |
Derivative liabilities | 16,675 | 4,952 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 95,176 | 86,952 |
Available for sale securities | 3,227 | 3,299 |
Held to maturity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable-net | 0 | 0 |
FHLBB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
Federal Home Loan Bank and other borrowings | 0 | |
FHLBB advances and other borrowings | 0 | |
Derivative liabilities | 0 | 0 |
Fair Value [Member] | Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 909,872 | 912,505 |
Held to maturity securities | 15,683 | 16,713 |
Loans held for sale | 10,136 | 8,220 |
Loans receivable-net | 0 | 0 |
FHLBB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 12,910 | 4,073 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
Federal Home Loan Bank and other borrowings | 1,096,452 | |
FHLBB advances and other borrowings | 0 | |
Derivative liabilities | 16,675 | 4,952 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 146,070 | 137,207 |
Held to maturity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable-net | 4,629,243 | 3,919,432 |
FHLBB stock | 51,196 | 31,950 |
Accrued interest receivable | 15,740 | 14,212 |
Derivative assets | 0 | 0 |
Mortgage servicing rights | 7,074 | 4,729 |
Financial liabilities: | ||
Deposits | 4,436,456 | 3,899,658 |
Mortgagors’ and investors’ escrow accounts | 13,526 | 13,004 |
Federal Home Loan Bank and other borrowings | 0 | |
FHLBB advances and other borrowings | 773,786 | |
Derivative liabilities | $ 0 | $ 0 |
SHARE-BASED COMPENSATION PLA107
SHARE-BASED COMPENSATION PLANS - Plans (Detail) $ in Thousands | May. 02, 2014shares | Apr. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shares | Oct. 29, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock awards, Granted (shares) | 0 | ||||||
Value of vested restricted shares used for income tax withholding | $ | $ 357 | ||||||
Vested restricted shares used for income tax withholding | 24,932 | ||||||
Employee and Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | $ 1,100 | $ 2,700 | |||||
Tax benefit recorded | $ | 388 | 921 | |||||
Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | 252 | $ 301 | 722 | ||||
Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | 707 | 1,100 | $ 1,900 | ||||
Share-based compensation | $ | $ 2,600 | $ 117 | |||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 259,845 | ||||||
Share-based compensation | $ | $ 1,500 | ||||||
Restricted Stock | Employee and Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | 2,500 | ||||||
Tax benefit recorded | $ | 855 | ||||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation | $ | $ 1,100 | ||||||
Stock Option | Employee and Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ | 1,400 | ||||||
Tax benefit recorded | $ | $ 500 | ||||||
Legacy United | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock awards, Granted (shares) | 1,291,793 | ||||||
2006 Stock Incentive Award Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized under the plan | 349,830 | ||||||
Granted (in shares) | 0 | ||||||
2006 Stock Incentive Award Plan | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized under the plan | 1,326,467 | ||||||
Stock awards, Granted (shares) | 0 | ||||||
2012 Stock Incentive Award Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized under the plan | 684,395 | ||||||
Granted (in shares) | 27,330 | ||||||
2012 Stock Incentive Award Plan | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized under the plan | 1,710,989 | ||||||
Stock awards, Granted (shares) | 0 | ||||||
2015 Omnibus Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized under the plan | 4,050,000 | ||||||
Fungible ratio | 2.35 | ||||||
Shares available for future grants | 3,503,590 |
SHARE-BASED COMPENSATION PLA108
SHARE-BASED COMPENSATION PLANS - Activity Related to Stock Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Stock Options (shares) | |
Outstanding, beginning balance (in shares) | shares | 3,390,469 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (678,363) |
Forfeited, expired or canceled (in shares) | shares | (62,371) |
Outstanding, ending balance (in shares) | shares | 2,649,735 |
Stock options vested and exercisable at end of period (in shares) | shares | 2,446,573 |
Stock Options, Weighted- Average Exercise Price (usd per share) | |
Outstanding, beginning balance (usd per share) | $ / shares | $ 10.70 |
Granted (usd per share) | $ / shares | 0 |
Exercised (usd per share) | $ / shares | 9.75 |
Forfeited or expired (usd per share) | $ / shares | 13.48 |
Outstanding, ending balance (usd per share) | $ / shares | 10.88 |
Stock options vested and exercisable at end of period (in dollars per share) | $ / shares | $ 10.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted Average Remaining Contractual Term, Outstanding at end of period (in years) | 5 years 5 months |
Weighted Average Remaining Contractual Term, Stock options vested and exercisable at end of period (in years) | 5 years 2 months |
Aggregate Intrinsic Value, Exercised | $ | $ 2.4 |
Aggregate Intrinsic Value, Outstanding | $ | 5.7 |
Aggregate Intrinsic Value, Stock options vested and exercisable | $ | $ 5.7 |
SHARE-BASED COMPENSATION PLA109
SHARE-BASED COMPENSATION PLANS - Weighted-Average Estimated Fair Values of Stock Option Grants (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted per share average fair value of options granted (usd per share) | $ 1.95 | $ 1.80 |
Assumptions: | ||
Risk-free interest rate (percent) | 1.94% | 1.61% |
Expected volatility (percent) | 19.90% | 20.33% |
Expected dividend yield (percent) | 2.92% | 3.03% |
Expected life of options granted (in years) | 6 years | 6 years |
SHARE-BASED COMPENSATION PLA110
SHARE-BASED COMPENSATION PLANS - Stock Options - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May. 02, 2014 | Jun. 30, 2014 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, Granted (shares) | 0 | ||
Common stock granted expiration period | 10 years | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation | $ 1,100 | ||
Compensation cost not yet recognized | $ 313 | ||
Cost not yet recognized, period for recognition | 2 years 8 months | ||
Legacy United | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, Granted (shares) | 1,291,793 | ||
Exercisable options, weighted-average exercise price (usd per share) | $ 9.36 |
SHARE-BASED COMPENSATION PLA111
SHARE-BASED COMPENSATION PLANS - Activity for Restricted Stock (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares, Restricted Stock Activity (shares) | |||
Beginning balance (in shares) | 124,536 | ||
Granted (in shares) | 259,845 | ||
Vested (in shares) | (57,233) | ||
Forfeited (in shares) | (1,135) | ||
Ending balance (in shares) | 326,013 | 124,536 | |
Restricted Stock Options, Weighted Average Grant Date Fair Value (usd per share) | |||
Beginning balance (usd per share) | $ 13.66 | ||
Granted (usd per share) | 13.08 | $ 13.64 | $ 13.20 |
Vested (usd per share) | 13.63 | ||
Forfeited (usd per share) | 13.22 | ||
Ending balance (usd per share) | $ 13.20 | $ 13.66 |
SHARE-BASED COMPENSATION PLA112
SHARE-BASED COMPENSATION PLANS - Restricted Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted stock expected to vest current (in shares) | 99,811 | |||
Unvested restricted stock expected year one (in shares) | 105,854 | |||
Unvested restricted stock expected year two (in shares) | 120,348 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of vested options | $ 780 | $ 3,000 | $ 2,000 | |
Granted, weighted average grant date fair value (usd per share) | $ 13.08 | $ 13.64 | $ 13.20 | |
Share-based compensation | $ 1,500 | |||
Compensation cost not yet recognized | $ 3,400 | |||
Cost not yet recognized, period for recognition | 2 years 5 months |
SHARE-BASED COMPENSATION PLA113
SHARE-BASED COMPENSATION PLANS - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | 132 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESOP expense | $ 299,000 | $ 1,727,000 | $ 1,707,000 | |||
Allocated ESOP shares | 114,066 | 114,066 | ||||
Unallocated ESOP shares | 570,329 | 570,329 | ||||
Aggregate fair value of unallocated shares | $ 7,300,000 | |||||
Employee Stock Ownership Plan 2005 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued in initial public offering | 699,659 | |||||
Percentage of shares issued in initial public offering | 3.60% | |||||
Borrowings from the company | $ 4,400,000 | |||||
Purchase of common stock (in shares) | 437,287 | |||||
Additional shares purchased by the ESOP in the open market | 59,300 | 203,072 | ||||
Total cost incurred for the additional shares purchased by ESOP | $ 817,000 | $ 2,700,000 | ||||
Employee stock ownership plan effective rate | 4.25% | |||||
Employee stock ownership plan loan outstanding balance | $ 0 | $ 0 | ||||
Employee stock ownership plan, due date | Dec. 31, 2014 | |||||
Principal payments | $ 7,800,000 | |||||
Employee Stock Ownership Plan 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued in initial public offering | 684,395 | |||||
Purchase of common stock (in shares) | 276,017 | |||||
Employee stock ownership plan effective rate | 4.50% | 4.50% | ||||
Employee stock ownership plan loan outstanding balance | $ 6,300,000 | $ 6,300,000 | ||||
Principal payments | 721,000 | |||||
Dividends paid | $ 273,000 | |||||
Initial public offering cost (usd per share) | $ 10 | $ 10 | ||||
Remaining shares | 408,378 | |||||
Average cost, per share | $ 10.56 | |||||
Average cost, incurred for the purchase of shares in the open market | $ 4,300,000 | |||||
Employee stock ownership plan remaining term to repayment | 25 years | |||||
Prime Rate [Member] | Employee Stock Ownership Plan 2005 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Interest rate for the ESOP loan | 1.00% | |||||
Prime Rate [Member] | Employee Stock Ownership Plan 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Interest rate for the ESOP loan | 1.00% |
PENSION PLANS AND OTHER POST114
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Changes in Benefit Obligation, Plan Assets and Funded Status of Pension Plans and Post-Retirement Benefit Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | $ 26,519 | ||
Fair value of plan assets at end of year | 25,240 | $ 26,519 | |
Qualified Pension Plan | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 30,571 | 24,224 | $ 27,226 |
Service cost | 60 | 75 | 50 |
Interest cost | 1,162 | 1,145 | 1,048 |
Plan participants’ contributions | 0 | 0 | 0 |
Actuarial loss (gain) | (3,821) | 6,460 | (3,291) |
Benefits paid and administration expenses | (857) | (1,333) | (809) |
Curtailments, settlements, special termination benefits | 0 | 0 | 0 |
Benefit obligation at end of year | 27,115 | 30,571 | 24,224 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 26,519 | 26,258 | 22,782 |
Actual return (loss) on plan assets | (422) | 1,594 | 4,285 |
Employer contributions | 0 | 0 | 0 |
Plan participants’ contributions | 0 | 0 | 0 |
Benefits paid and administration expenses | (857) | (1,333) | (809) |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 25,240 | 26,519 | 26,258 |
Funded Status: | |||
Overfunded (underfunded) status at end of year | (1,875) | (4,052) | 2,034 |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | (1,875) | (4,052) | 2,034 |
Supplemental Executive Retirement Plans | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 1,368 | 1,191 | 1,199 |
Service cost | 24 | 25 | 38 |
Interest cost | 40 | 54 | 48 |
Plan participants’ contributions | 0 | 0 | 0 |
Actuarial loss (gain) | (79) | 166 | (159) |
Benefits paid and administration expenses | (31) | (484) | (28) |
Curtailments, settlements, special termination benefits | (393) | 416 | 93 |
Benefit obligation at end of year | 929 | 1,368 | 1,191 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Actual return (loss) on plan assets | 0 | 0 | 0 |
Employer contributions | 424 | 484 | 28 |
Plan participants’ contributions | 0 | 0 | 0 |
Benefits paid and administration expenses | (31) | (484) | (28) |
Settlements | (393) | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded Status: | |||
Overfunded (underfunded) status at end of year | (929) | (1,368) | (1,191) |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | (929) | (1,368) | (1,191) |
Other Post - Retirement Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 2,218 | 1,926 | 2,547 |
Service cost | 23 | 19 | 35 |
Interest cost | 80 | 85 | 91 |
Plan participants’ contributions | 28 | 26 | 26 |
Actuarial loss (gain) | (413) | 271 | (661) |
Benefits paid and administration expenses | (95) | (109) | (112) |
Curtailments, settlements, special termination benefits | 0 | 0 | 0 |
Benefit obligation at end of year | 1,841 | 2,218 | 1,926 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Actual return (loss) on plan assets | 0 | 0 | 0 |
Employer contributions | 67 | 83 | 86 |
Plan participants’ contributions | 28 | 26 | 26 |
Benefits paid and administration expenses | (95) | (109) | (112) |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded Status: | |||
Overfunded (underfunded) status at end of year | (1,841) | (2,218) | (1,926) |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | $ (1,841) | $ (2,218) | $ (1,926) |
PENSION PLANS AND OTHER POST115
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of Accumulated Other Comprehensive Income Related to Pensions and Other Post-Retirement Benefits, on Pre-Tax Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Qualified Pension Plan | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | $ 0 | $ 0 | $ 0 |
Net loss (gain) | 7,050 | 9,362 | 2,625 |
Total accumulated other comprehensive loss (income) | 7,050 | 9,362 | 2,625 |
Deferred tax (asset) liability | (2,540) | (3,278) | (844) |
Net impact on accumulated other comprehensive loss | 4,510 | 6,084 | 1,781 |
Supplemental Executive Retirement Plans | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | 85 | 92 | 273 |
Net loss (gain) | 79 | 202 | 103 |
Total accumulated other comprehensive loss (income) | 164 | 294 | 376 |
Deferred tax (asset) liability | (59) | (69) | (131) |
Net impact on accumulated other comprehensive loss | 105 | 225 | 245 |
Other Post - Retirement Benefits | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | 0 | 0 | 0 |
Net loss (gain) | (134) | 297 | 15 |
Total accumulated other comprehensive loss (income) | (134) | 297 | 15 |
Deferred tax (asset) liability | 48 | (97) | (5) |
Net impact on accumulated other comprehensive loss | $ (86) | $ 200 | $ 10 |
PENSION PLANS AND OTHER POST116
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs and Other Amounts Recognized in Accumulated Other Comprehensive Loss for Retirement Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Change in prior service cost (credit) | $ 0 | $ (168) | $ (105) |
Qualified Pension Plan | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | 60 | 75 | 50 |
Interest cost | 1,162 | 1,145 | 1,048 |
Expected return on plan assets | (1,824) | (1,595) | (1,734) |
Amortization of net actuarial losses (gains) | 738 | (277) | 784 |
Amortization of prior service cost | 0 | 0 | 0 |
Settlement charge | 0 | 0 | 0 |
Net periodic benefit cost (income) | 136 | (652) | 148 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | (1,574) | 6,460 | (5,842) |
Change in prior service cost (credit) | 0 | 0 | 0 |
Amortization of net (loss) gain | (738) | 277 | (784) |
Amortization of prior service cost | 0 | 0 | 0 |
Loss recognized due to settlement | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (2,312) | 6,737 | (6,626) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (2,176) | 6,085 | (6,478) |
Supplemental Executive Retirement Plans | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | 24 | 25 | 38 |
Interest cost | 40 | 54 | 48 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial losses (gains) | 3 | 2 | 5 |
Amortization of prior service cost | 7 | 12 | 23 |
Settlement charge | 39 | 651 | 199 |
Net periodic benefit cost (income) | 113 | 744 | 313 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | (80) | 100 | (159) |
Change in prior service cost (credit) | 0 | (168) | (105) |
Amortization of net (loss) gain | (3) | (2) | (5) |
Amortization of prior service cost | (7) | (12) | (23) |
Loss recognized due to settlement | (39) | 0 | 0 |
Total recognized in other comprehensive income (loss) | (129) | (82) | (292) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (16) | 662 | 21 |
Other Post - Retirement Benefits | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | 23 | 19 | 35 |
Interest cost | 80 | 85 | 91 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial losses (gains) | 18 | (10) | 66 |
Amortization of prior service cost | 0 | 0 | 0 |
Settlement charge | 0 | 0 | 0 |
Net periodic benefit cost (income) | 121 | 94 | 192 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | (413) | 271 | (661) |
Change in prior service cost (credit) | 0 | 0 | 0 |
Amortization of net (loss) gain | (18) | 10 | (66) |
Amortization of prior service cost | 0 | 0 | 0 |
Loss recognized due to settlement | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (431) | 281 | (727) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (310) | $ 375 | $ (535) |
PENSION PLANS AND OTHER POST117
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Weighted-Average Assumptions Used to Determine Pension Benefit Obligations (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Qualified Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.45% | 3.85% |
Expected return on plan assets (percent) | 7.00% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% |
Supplemental Executive Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.30% | 3.70% |
Expected return on plan assets (percent) | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% |
Other Post - Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.25% | 3.70% |
Expected return on plan assets (percent) | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% |
PENSION PLANS AND OTHER POST118
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Weighted-Average Assumptions Used to Determine Net Benefit Pension Expense (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.85% | 4.80% | 3.90% |
Expected return on plan assets (percent) | 7.00% | 7.25% | 8.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 4.70% | 3.80% |
Expected return on plan assets (percent) | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Other Post - Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 4.55% | 3.65% |
Expected return on plan assets (percent) | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
PENSION PLANS AND OTHER POST119
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | Jul. 01, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated post-retirement benefit obligation | $ 1,800,000 | $ 2,200,000 | |||
Annual rate of increase in cost of covered benefits | 7.00% | ||||
Percentage of contribution fully vested to participants of the 401(k) Plan | 3.00% | ||||
Vesting period | 5 years | ||||
Company's contribution to 401 (k) plan | $ 2,100,000 | 515,000 | $ 1,500,000 | ||
Pentegra DB Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contribution, percentage | 5.00% | ||||
Company contribution | $ 50,000 | 50,000 | |||
Funded percentage | 114.40% | 120.40% | |||
Qualified Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2015 | 495,000 | ||||
Company contribution | 0 | 0 | 0 | ||
Supplemental Executive Retirement Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2015 | 7,000 | ||||
Company contribution | 424,000 | 484,000 | 28,000 | ||
Other Post - Retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2015 | 0 | ||||
Company contribution | $ 67,000 | $ 83,000 | $ 86,000 | ||
Marketable equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 40.00% | ||||
Total debt securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 30.00% | ||||
Real Estate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 20.00% | ||||
Cash [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 10.00% |
PENSION PLANS AND OTHER POST120
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Change in Assumed Healthcare Cost Trend Rate (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |
Effect on post-retirement benefit obligation increase | $ 2,039 |
Effect on total service and interest increase | 101 |
Effect on post-retirement benefit obligation decrease | (1,675) |
Effect on total service and interest decrease | $ (80) |
PENSION PLANS AND OTHER POST121
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 25,240 | $ 26,519 |
Percent of plan assets | 100.00% | 100.00% |
Domestic Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 10,135 | $ 11,900 |
Percent of plan assets | 40.00% | 45.00% |
International Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 7,557 | $ 1,051 |
Percent of plan assets | 30.00% | 4.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 4,572 | $ 3,719 |
Percent of plan assets | 18.00% | 14.00% |
Domestic Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 2,697 | $ 7,996 |
Percent of plan assets | 11.00% | 30.00% |
International Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 279 | $ 790 |
Percent of plan assets | 1.00% | 3.00% |
Real Estate REIT Index Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, total | $ 1,063 | |
Percent of plan assets | 4.00% |
PENSION PLANS AND OTHER POST122
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Qualified Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 930 |
2,017 | 980 |
2,018 | 1,060 |
2,019 | 1,170 |
2,020 | 1,300 |
Years 2021-2025 | 7,070 |
Supplemental Executive Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 28 |
2,017 | 28 |
2,018 | 41 |
2,019 | 41 |
2,020 | 41 |
Years 2021-2025 | 265 |
Other Post - Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 100 |
2,017 | 110 |
2,018 | 100 |
2,019 | 110 |
2,020 | 110 |
Years 2021-2025 | $ 570 |
REGULATORY MATTERS - Regulatory
REGULATORY MATTERS - Regulatory Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Actual, Amount | $ 558,969 | $ 513,960 |
Tier 1 capital to risk weighted assets, Actual, Amount | 523,786 | 487,713 |
United Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Actual, Amount | 558,969 | 513,960 |
Common equity tier 1 capital to risk weighted assets, Actual, Amount | 523,786 | |
Tier 1 capital to risk weighted assets, Actual, Amount | 523,786 | 487,713 |
Tier 1 capital to total average assets, Actual, Amount | $ 523,786 | $ 487,713 |
Total capital to risk weighted assets, Actual, Ratio | 11.20% | 12.90% |
Common equity tier 1 capital to risk weighted assets, Actual, Ratio | 10.50% | |
Tier 1 capital to risk weighted assets, Actual, Ratio | 10.50% | 12.30% |
Tier 1 capital to total average assets, Actual, Ratio | 8.90% | 9.30% |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 398,552 | $ 317,750 |
Common equity tier 1 capital to risk weighted assets, Minimum for Capital Adequacy Purposes, Amount | 224,266 | |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | 299,022 | 158,864 |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount | $ 234,882 | $ 210,221 |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets, Minimum for Capital Adequacy Purposes, Ratio | 4.50% | |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 498,190 | $ 397,187 |
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 323,940 | |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 398,695 | 238,296 |
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 293,602 | $ 262,776 |
Total capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Common equity tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | |
Tier 1 capital to risk weighted assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% |
Tier 1 capital to total average assets, Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
United Financial Bancorp, Inc | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to risk weighted assets, Actual, Amount | $ 628,915 | $ 579,109 |
Common equity tier 1 capital to risk weighted assets, Actual, Amount | 518,732 | |
Tier 1 capital to risk weighted assets, Actual, Amount | 518,732 | 477,862 |
Tier 1 capital to total average assets, Actual, Amount | $ 518,732 | $ 477,862 |
Total capital to risk weighted assets, Actual, Ratio | 12.50% | 14.60% |
Common equity tier 1 capital to risk weighted assets, Actual, Ratio | 10.30% | |
Tier 1 capital to risk weighted assets, Actual, Ratio | 10.30% | 12.00% |
Tier 1 capital to total average assets, Actual, Ratio | 8.90% | 9.10% |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | $ 401,542 | $ 317,973 |
Common equity tier 1 capital to risk weighted assets, Minimum for Capital Adequacy Purposes, Amount | 225,972 | |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Amount | 301,296 | 159,022 |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Amount | $ 233,926 | $ 210,049 |
Total capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets, Minimum for Capital Adequacy Purposes, Ratio | 4.50% | |
Tier 1 capital to risk weighted assets, Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 capital to total average assets, Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
REGULATORY MATTERS - Additional
REGULATORY MATTERS - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Banking and Thrift [Abstract] | |
Amount available for the payment of dividends | $ 30.8 |
REGULATORY MATTERS - Reconcilia
REGULATORY MATTERS - Reconciliation of Company's Total Consolidated Equity to Capital Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Banking and Thrift [Abstract] | ||||
Total consolidated equity | $ 625,521 | $ 602,408 | $ 299,382 | $ 320,611 |
Adjustments: | ||||
Decrease (increase) in equity under United Financial Bancorp, Inc. | 5,054 | 8,252 | ||
Accumulated other comprehensive loss | 10,879 | 6,490 | ||
Disallowed goodwill and other intangible assets | (116,816) | (121,637) | ||
Disallowed deferred tax assets | (852) | (7,800) | ||
Tier 1 capital | 523,786 | 487,713 | ||
Allowance for loan losses and off-balance sheet credit losses | 35,124 | 26,141 | ||
Unrealized gains on available-for-sale securities includible in total risk-based capital | 59 | 106 | ||
Total risk-based capital | $ 558,969 | $ 513,960 |
ACCUMULATED OTHER COMPREHENS126
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss, Included in Stockholders' Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss, net of tax | $ (10,879) | $ (6,490) |
Net Unrealized Gain (Loss) on Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (7,080) | (9,952) |
Accumulated other comprehensive income (loss), tax | 2,551 | 3,443 |
Accumulated other comprehensive loss, net of tax | (4,529) | (6,509) |
Net Unrealized Gain on Available For Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (5,821) | 1,030 |
Accumulated other comprehensive income (loss), tax | 2,088 | (374) |
Accumulated other comprehensive loss, net of tax | (3,733) | 656 |
Net Unrealized Gain (Loss) on Interest Rate Swaps [Member} | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (4,092) | (996) |
Accumulated other comprehensive income (loss), tax | 1,475 | 359 |
Accumulated other comprehensive loss, net of tax | $ (2,617) | $ (637) |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | |||||||||||
Net income | $ 9,902 | $ 13,381 | $ 13,332 | $ 13,025 | $ 1,421 | $ 9,985 | $ (5,571) | $ 947 | $ 49,640 | $ 6,782 | $ 14,227 |
Adjusted weighted-average common shares outstanding (in shares) | 49,495,381 | 43,491,441 | 29,471,397 | ||||||||
Less: average number of treasury shares (in shares) | 0 | 0 | 2,618,178 | ||||||||
Less: average number of unvested ESOP award shares (in shares) | 582,574 | 662,347 | 791,277 | ||||||||
Weighted-average basic shares outstanding (in shares) | 48,912,807 | 42,829,094 | 26,061,942 | ||||||||
Dilutive effect of stock options (in shares) | 472,759 | 440,423 | 364,278 | ||||||||
Weighted-average diluted shares (in shares) | 49,385,566 | 43,269,517 | 26,426,220 | ||||||||
Net income per share: | |||||||||||
Basic (usd per share) | $ 0.20 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.03 | $ 0.19 | $ (0.13) | $ 0.04 | $ 1.01 | $ 0.16 | $ 0.55 |
Diluted (usd per share) | $ 0.20 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.03 | $ 0.19 | $ (0.13) | $ 0.04 | $ 1 | $ 0.16 | $ 0.54 |
NET INCOME PER SHARE - Addition
NET INCOME PER SHARE - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive options excluded from earnings per share calculation | 638 | 328 | 373 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Commitments Under Terms of Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 5,145 |
2,017 | 4,831 |
2,018 | 4,487 |
2,019 | 4,388 |
2,020 | 4,093 |
Thereafter | 22,046 |
Future minimum rental commitments under the terms of leases | $ 44,990 |
COMMITMENTS AND CONTINGENCIE130
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rental expense charged to operations for all cancelable and non-cancelable operating leases | $ 5,100 | $ 5,800 | $ 2,600 |
Rental income | $ 490 | $ 407 | $ 318 |
COMMITMENTS AND CONTINGENCIE131
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Receivable Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,016 | $ 522 |
2,017 | 522 |
2,018 | 490 |
Future minimum rental receivable under the non-cancelable leases | $ 1,534 |
COMMITMENTS AND CONTINGENCIE132
COMMITMENTS AND CONTINGENCIES - Financial Instruments Contract Amounts Represent Credit Risk (Detail) - Commitments to Extend Credit [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 962,882 | $ 903,720 |
Commitment to Grant Loans [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 219,407 | 128,766 |
Undisbursed Construction Loans [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 103,140 | 144,118 |
Undisbursed Home Equity Lines of Credit [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 320,140 | 321,346 |
Undisbursed Commercial Lines of Credit [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 302,700 | 295,639 |
Standby Letters of Credit [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 9,477 | 12,547 |
Unused Credit Card Lines [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 6,725 | 0 |
Unused Checking Overdraft Lines of Credit [Member] | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 1,293 | $ 1,304 |
COMMITMENTS AND CONTINGENCIE133
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - Tax Credit Partnership [Member} $ in Millions | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
Net carrying balance of investments | $ 21.4 |
Capital contribution commitments | $ 6.3 |
SELECTED QUARTERLY CONSOLIDA134
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) - Quarterly Financial Information of Company (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 49,714 | $ 49,625 | $ 48,711 | $ 48,295 | $ 48,209 | $ 47,201 | $ 40,767 | $ 19,702 | $ 196,345 | $ 155,879 | $ 77,517 |
Interest expense | 9,021 | 7,982 | 7,808 | 6,952 | 6,317 | 5,008 | 3,888 | 2,794 | 31,763 | 18,007 | 10,460 |
Net interest income | 40,693 | 41,643 | 40,903 | 41,343 | 41,892 | 42,193 | 36,879 | 16,908 | 164,582 | 137,872 | 67,057 |
Provision for loan losses | 3,780 | 3,252 | 4,462 | 1,511 | 4,333 | 2,633 | 2,080 | 450 | 13,005 | 9,496 | 2,046 |
Net interest income after provision for loan losses | 36,913 | 38,391 | 36,441 | 39,832 | 37,559 | 39,560 | 34,799 | 16,458 | 151,577 | 128,376 | 65,011 |
Non-interest income | 8,463 | 7,818 | 9,371 | 6,835 | 3,001 | 4,076 | 6,319 | 3,209 | 32,487 | 16,605 | 17,051 |
Other non-interest expense | 35,305 | 31,876 | 30,357 | 30,657 | 45,076 | 34,922 | 46,177 | 18,257 | 128,195 | 144,432 | 62,466 |
Income before income taxes | 10,071 | 14,333 | 15,455 | 16,010 | (4,516) | 8,714 | (5,059) | 1,410 | 55,869 | 549 | 19,596 |
Provision (benefit) for income taxes | 169 | 952 | 2,123 | 2,985 | (5,937) | (1,271) | 512 | 463 | 6,229 | (6,233) | 5,369 |
Net income | $ 9,902 | $ 13,381 | $ 13,332 | $ 13,025 | $ 1,421 | $ 9,985 | $ (5,571) | $ 947 | $ 49,640 | $ 6,782 | $ 14,227 |
Earnings per share: | |||||||||||
Basic (usd per share) | $ 0.20 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.03 | $ 0.19 | $ (0.13) | $ 0.04 | $ 1.01 | $ 0.16 | $ 0.55 |
Diluted (usd per share) | 0.20 | 0.27 | 0.27 | 0.26 | 0.03 | 0.19 | (0.13) | 0.04 | $ 1 | $ 0.16 | $ 0.54 |
Stock Price (per share): | |||||||||||
High (usd per share) | 14.16 | 13.87 | 13.91 | 14.47 | 14.67 | 13.91 | 14.31 | 14.63 | |||
Low (usd per share) | $ 12.45 | $ 12.14 | $ 12.25 | $ 12 | $ 12.66 | $ 12.01 | $ 12.21 | $ 12.56 |
SELECTED QUARTERLY CONSOLIDA135
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) - Additional Information (Detail) - USD ($) | 3 Months Ended | |||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||
Merger related expenses | $ 1,600,000 | $ 0 | $ 0 | $ 0 | $ 10,100,000 | $ 4,000,000 | $ 20,900,000 | $ 1,800,000 |
PARENT COMPANY FINANCIAL INF136
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash and due from banks | $ 47,602 | $ 43,416 | ||
Other assets | 58,981 | 49,132 | ||
Total Assets | 6,228,541 | 5,476,809 | ||
Liabilities and Stockholders’ Equity: | ||||
Accrued expenses and other liabilities | 53,403 | 48,772 | ||
Stockholders’ equity | 625,521 | 602,408 | $ 299,382 | $ 320,611 |
Total Liabilities and Stockholders’ Equity | 6,228,541 | 5,476,809 | ||
Parent Company | ||||
Assets: | ||||
Cash and due from banks | 28,825 | 51,519 | ||
Investment in United Bank | 630,575 | 610,660 | ||
Due from United Bank | 9,374 | 15,677 | ||
Other assets | 37,938 | 5,594 | ||
Total Assets | 706,712 | 683,450 | ||
Liabilities and Stockholders’ Equity: | ||||
Accrued expenses and other liabilities | 81,191 | 81,042 | ||
Stockholders’ equity | 625,521 | 602,408 | ||
Total Liabilities and Stockholders’ Equity | $ 706,712 | $ 683,450 |
PARENT COMPANY FINANCIAL INF137
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and dividend income: | |||||||||||
Interest expense | $ 9,021 | $ 7,982 | $ 7,808 | $ 6,952 | $ 6,317 | $ 5,008 | $ 3,888 | $ 2,794 | $ 31,763 | $ 18,007 | $ 10,460 |
Net interest income | 40,693 | 41,643 | 40,903 | 41,343 | 41,892 | 42,193 | 36,879 | 16,908 | 164,582 | 137,872 | 67,057 |
Non-interest income | 8,463 | 7,818 | 9,371 | 6,835 | 3,001 | 4,076 | 6,319 | 3,209 | 32,487 | 16,605 | 17,051 |
Non-interest expenses: | |||||||||||
Total non-interest expense | 35,305 | 31,876 | 30,357 | 30,657 | 45,076 | 34,922 | 46,177 | 18,257 | 128,195 | 144,432 | 62,466 |
Income before income taxes | 10,071 | 14,333 | 15,455 | 16,010 | (4,516) | 8,714 | (5,059) | 1,410 | 55,869 | 549 | 19,596 |
Income tax benefit | (169) | (952) | (2,123) | (2,985) | 5,937 | 1,271 | (512) | (463) | (6,229) | 6,233 | (5,369) |
Net income | $ 9,902 | $ 13,381 | $ 13,332 | $ 13,025 | $ 1,421 | $ 9,985 | $ (5,571) | $ 947 | 49,640 | 6,782 | 14,227 |
Parent Company | |||||||||||
Interest and dividend income: | |||||||||||
Interest on investments | 103 | 35 | 1 | ||||||||
Interest expense | 4,682 | 1,353 | 0 | ||||||||
Net interest income | (4,579) | (1,318) | 1 | ||||||||
Non-interest income | 434 | 73 | 0 | ||||||||
Non-interest expenses: | |||||||||||
General and administrative | 4,714 | 7,257 | 5,528 | ||||||||
Total non-interest expense | 4,714 | 7,257 | 5,528 | ||||||||
Income before income taxes | (8,859) | (8,502) | (5,527) | ||||||||
Income tax benefit | 3,094 | 2,566 | 1,602 | ||||||||
Loss before equity in undistributed net income of United Bank | (5,765) | (5,936) | (3,925) | ||||||||
Equity in undistributed net income of United Bank | 55,405 | 12,718 | 18,152 | ||||||||
Net income | $ 49,640 | $ 6,782 | $ 14,227 |
PARENT COMPANY FINANCIAL INF138
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 9,902 | $ 13,381 | $ 13,332 | $ 13,025 | $ 1,421 | $ 9,985 | $ (5,571) | $ 947 | $ 49,640 | $ 6,782 | $ 14,227 |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Amortization of purchase accounting marks, net | (10,835) | (10,899) | 0 | ||||||||
Amortization of subordinated debt issuance costs, net | 126 | 34 | 0 | ||||||||
Share-based compensation expense | 1,076 | 3,957 | 2,665 | ||||||||
ESOP expense | 299 | 1,727 | 1,707 | ||||||||
Tax benefit of stock-based awards | 317 | (820) | (65) | ||||||||
Net change in: | |||||||||||
Other assets | (16,172) | (33,243) | (4,340) | ||||||||
Net cash provided by (used in) operating activities | 50,770 | (9,599) | 24,142 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash used in investing activities | (747,977) | (595,384) | (301,824) | ||||||||
Cash flows from financing activities: | |||||||||||
Cancellation of shares for tax withholding | (311) | (1,367) | (357) | ||||||||
Tax effects of share-based awards | (317) | 820 | 65 | ||||||||
Cash dividend paid on common stock | (22,479) | (18,008) | (10,453) | ||||||||
Net cash provided by financing activities | 705,431 | 646,700 | 287,602 | ||||||||
Net increase in cash and cash equivalents | 8,224 | 41,717 | 9,920 | ||||||||
Cash and cash equivalents - beginning of year | 86,952 | 45,235 | 86,952 | 45,235 | 35,315 | ||||||
Cash and cash equivalents - end of year | 95,176 | 86,952 | 95,176 | 86,952 | 45,235 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 49,640 | 6,782 | 14,227 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Amortization of purchase accounting marks, net | 75 | 41 | 0 | ||||||||
Amortization of subordinated debt issuance costs, net | 127 | 34 | 0 | ||||||||
Share-based compensation expense | 1,076 | 3,957 | 2,665 | ||||||||
ESOP expense | 299 | 1,727 | 2,064 | ||||||||
Undistributed income of United Bank | (55,405) | (12,718) | (18,152) | ||||||||
Deferred tax provision | 188 | 959 | 555 | ||||||||
Tax benefit of stock-based awards | 317 | (820) | (65) | ||||||||
Net change in: | |||||||||||
Due from United Bank | 6,491 | (5,395) | (850) | ||||||||
Other assets | (32,532) | 3,582 | (3,190) | ||||||||
Accrued expenses and other liabilities | (370) | (1,831) | 1,124 | ||||||||
Net cash provided by (used in) operating activities | (30,094) | (3,682) | (1,622) | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from United Bank | 30,913 | 13,310 | 11,197 | ||||||||
Cash acquired from United Financial Bancorp, Inc., net | 0 | 6,546 | 0 | ||||||||
Net cash used in investing activities | 30,913 | 19,856 | 11,197 | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from debt offering, net of expenses | 0 | 73,733 | 0 | ||||||||
Common stock repurchased | (5,171) | (47,249) | (30,028) | ||||||||
Proceeds from the exercise of stock options | 4,765 | 2,246 | 805 | ||||||||
Cancellation of shares for tax withholding | (311) | (1,367) | (357) | ||||||||
Tax effects of share-based awards | (317) | 820 | 65 | ||||||||
Cash dividend paid on common stock | (22,479) | (18,008) | (10,453) | ||||||||
Net cash provided by financing activities | (23,513) | 10,175 | (39,968) | ||||||||
Net increase in cash and cash equivalents | (22,694) | 26,349 | (30,393) | ||||||||
Cash and cash equivalents - beginning of year | $ 51,519 | $ 25,170 | 51,519 | 25,170 | 55,563 | ||||||
Cash and cash equivalents - end of year | $ 28,825 | $ 51,519 | 28,825 | 51,519 | 25,170 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for income taxes (net) | $ (6,744) | $ 3,599 | $ 6,228 |