Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 51,097,426 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 870.7 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 36,434 | $ 56,661 |
Short-term investments | 61,530 | 32,007 |
Total cash and cash equivalents | 97,964 | 88,668 |
Available for sale securities-at fair value | 973,347 | 1,050,370 |
Available for sale securities | 1,050,787 | |
Held to maturity securities-at amortized cost | 0 | 13,598 |
Loans held for sale | 78,788 | 114,073 |
Loans receivable (net of allowance for loan losses of $51,636 in 2018 and $47,099 in 2017) | 5,622,589 | 5,307,678 |
Federal Home Loan Bank stock, at cost | 41,407 | 50,194 |
Accrued interest receivable | 24,823 | 22,332 |
Deferred tax asset-net | 32,706 | 25,656 |
Premises and equipment-net | 68,657 | 67,508 |
Goodwill | 116,769 | 115,281 |
Core deposit intangible | 6,027 | 4,491 |
Cash surrender value of bank-owned life insurance | 193,429 | 148,300 |
Other assets | 100,368 | 105,593 |
Total Assets | 7,356,874 | 7,114,159 |
Deposits: | ||
Non-interest-bearing | 799,785 | 778,576 |
Interest-bearing | 4,870,814 | 4,419,645 |
Total deposits | 5,670,599 | 5,198,221 |
Mortgagors’ and investors’ escrow accounts | 4,685 | 7,545 |
Advances from the Federal Home Loan Bank | 797,271 | 1,046,458 |
Other borrowings | 102,355 | 118,596 |
Accrued expenses and other liabilities | 69,446 | 50,011 |
Total liabilities | 6,644,356 | 6,420,831 |
Commitments and contingencies (notes 6 and 19) | ||
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 shares authorized; 51,104,783 and 51,044,752 shares issued and outstanding at December 31, 2018 and 2017, respectively) | 539,476 | 537,576 |
Additional paid-in capital | 1,933 | 4,713 |
Unearned compensation — ESOP | (5,238) | (5,466) |
Retained earnings | 206,761 | 168,345 |
Accumulated other comprehensive loss, net of tax | (30,414) | (11,840) |
Total stockholders’ equity | 712,518 | 693,328 |
Total Liabilities and Stockholders’ Equity | $ 7,356,874 | $ 7,114,159 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses, loans receivable | $ 51,636 | $ 47,099 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 51,104,783 | 51,044,752 |
Common stock, shares outstanding (in shares) | 51,104,783 | 51,044,752 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | |||
Loans | $ 237,026 | $ 200,734 | $ 179,819 |
Securities-taxable interest | 22,994 | 22,550 | 19,678 |
Securities-non-taxable interest | 9,469 | 9,679 | 8,392 |
Securities-dividends | 2,823 | 2,902 | 3,920 |
Interest-bearing deposits | 726 | 389 | 343 |
Total interest and dividend income | 273,038 | 236,254 | 212,152 |
Interest expense: | |||
Deposits | 57,841 | 33,565 | 25,576 |
Borrowed funds | 23,682 | 18,447 | 15,477 |
Total interest expense | 81,523 | 52,012 | 41,053 |
Net interest income | 191,515 | 184,242 | 171,099 |
Provision for loan losses | 8,914 | 9,396 | 13,437 |
Net interest income after provision for loan losses | 182,601 | 174,846 | 157,662 |
Non-interest income: | |||
Service charges and fees | 26,771 | 25,374 | 21,014 |
Income from mortgage banking activities | 4,759 | 5,539 | 8,227 |
Bank-owned life insurance income | 6,294 | 5,462 | 3,394 |
Gain on sales of securities, net | 145 | 782 | 1,961 |
Net loss on limited partnership investments | (2,176) | (3,023) | (3,995) |
Other income | 904 | 431 | 238 |
Total non-interest income | 36,697 | 34,565 | 30,839 |
Non-interest expense: | |||
Salaries and employee benefits | 91,295 | 80,061 | 75,384 |
Occupancy and equipment | 20,488 | 16,902 | 14,986 |
Service bureau fees | 8,901 | 9,263 | 8,741 |
Professional fees | 4,418 | 4,305 | 3,917 |
Marketing and promotions | 4,101 | 4,047 | 3,049 |
FDIC insurance assessments | 2,740 | 3,076 | 3,573 |
Core deposit intangible amortization | 1,350 | 1,411 | 1,604 |
FHLBB prepayment penalties | 0 | 0 | 1,454 |
Other | 24,474 | 23,685 | 22,020 |
Total non-interest expense | 157,767 | 142,750 | 134,728 |
Income before income taxes | 61,531 | 66,661 | 53,773 |
Provision for income taxes | 1,625 | 12,043 | 4,112 |
Net income | $ 59,906 | $ 54,618 | $ 49,661 |
Net income per share: | |||
Basic (usd per share) | $ 1.18 | $ 1.09 | $ 1 |
Diluted (usd per share) | $ 1.17 | $ 1.07 | $ 0.99 |
Weighted-average shares outstanding: | |||
Basic (in shares) | 50,555,212 | 50,283,071 | 49,731,149 |
Diluted (in shares) | 51,012,239 | 50,922,652 | 50,089,030 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 59,906 | $ 54,618 | $ 49,661 | |
Securities available for sale: | ||||
Unrealized holding (losses) gains | (22,207) | 4,731 | (5,063) | |
Reclassification adjustment for gains realized in income | [1] | (145) | (782) | (1,961) |
Net unrealized (losses) gains | (22,352) | 3,949 | (7,024) | |
Tax effect - benefit (expense) | 5,107 | (1,416) | 2,529 | |
Net-of-tax amount - securities available for sale | (17,245) | 2,533 | (4,495) | |
Interest rate swaps designated as cash flow hedges: | ||||
Unrealized gains (losses) | 1,516 | (313) | (1,472) | |
Reclassification adjustment for losses recognized in interest expense | [2] | 613 | 1,487 | 2,362 |
Net unrealized gains | 2,129 | 1,174 | 890 | |
Tax effect - expense | (470) | (423) | (321) | |
Net-of-tax amount - interest rate swaps | 1,659 | 751 | 569 | |
Pension and Other Post-retirement plans: | ||||
Losses arising during the period | (783) | (220) | (1,358) | |
Reclassification adjustment for prior service costs recognized in net periodic benefit cost | [3] | 7 | 7 | 7 |
Reclassification adjustment for losses recognized in net periodic benefit cost | [4] | 493 | 571 | 495 |
Net change in (losses) gains and prior service costs | (283) | 358 | (856) | |
Tax effect - benefit (expense) | 62 | (129) | 308 | |
Net-of-tax amount - pension and other post-retirement plans | (221) | 229 | (548) | |
Total other comprehensive (loss) income | (15,807) | 3,513 | (4,474) | |
Comprehensive income | $ 44,099 | $ 58,131 | $ 45,187 | |
[1] | Amounts are included in gain on sales of securities, net in the Consolidated Statements of Net Income. Income tax expense associated with the reclassification adjustment for the years ended December 31, 2018, 2017 and 2016 was $32, $282 and $707, respectively. | |||
[2] | Amounts are included in interest expense on borrowed funds in the Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment for the years ended December 31, 2018, 2017 and 2016 was $135, $536 and $851, respectively. | |||
[3] | Amounts are included in salaries and employee benefits expense in the Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment for the years ended December 31, 2018, 2017 and 2016 was $2, $3, and $3, respectively. | |||
[4] | Amounts are included in salaries and employee benefits expense in the Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment for the years ended December 31, 2018, 2017 and 2016 was $109, $206 and $178, respectively. |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense associated with the reclassification adjustment for gains realized in net income | $ 32 | $ 282 | $ 707 |
Income tax benefit associated with the reclassification adjustment from AOCI for borrowed funds | 135 | 536 | 851 |
Income tax benefit associated with the reclassification adjustment for prior service costs under post-retirement plans | 2 | 3 | 3 |
Income tax benefit associated with the reclassification adjustment for losses (benefit) recognized in net periodic benefit cost under post-retirement plans | $ 109 | $ 206 | $ 178 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned Compensation - ESOP | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2015 | 49,941,428 | |||||
Balance at Dec. 31, 2015 | $ 625,521 | $ 519,587 | $ 10,722 | $ (5,922) | $ 112,013 | $ (10,879) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 45,187 | 49,661 | (4,474) | |||
Share-based compensation expense | 2,252 | 2,252 | ||||
ESOP shares released or committed to be released | 308 | 80 | 228 | |||
Shares issued for stock options exercised (in shares) | 655,689 | |||||
Shares issued for stock options exercised | 6,275 | $ 8,958 | (2,683) | |||
Shares issued for restricted stock grants (in shares) | 215,814 | |||||
Shares issued for restricted stock grants | 0 | $ 3,368 | (3,368) | |||
Shares cancelled for restricted stock forfeitures (in shares) | (4,814) | |||||
Shares cancelled for restricted stock forfeitures | 0 | $ (65) | 65 | |||
Cancellation of shares for tax withholding (in shares) | (21,446) | |||||
Cancellation of shares for tax withholding | (327) | $ 0 | (327) | |||
Tax effects of share-based awards | 486 | 486 | ||||
Dividends declared ($0.46, $0.48, and $0.48 per common share) | (23,836) | (23,836) | ||||
Balance (in shares) at Dec. 31, 2016 | 50,786,671 | |||||
Balance at Dec. 31, 2016 | 655,866 | $ 531,848 | 7,227 | (5,694) | 137,838 | (15,353) |
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 58,131 | 54,618 | 3,513 | |||
Common stock repurchased (in shares) | (80,000) | |||||
Common stock repurchased | (1,312) | $ (1,312) | ||||
Share-based compensation expense | 2,699 | 2,699 | ||||
ESOP shares released or committed to be released | 400 | 172 | 228 | |||
Shares issued for stock options exercised (in shares) | 240,638 | |||||
Shares issued for stock options exercised | 2,460 | $ 4,317 | (1,857) | |||
Shares issued for restricted stock grants (in shares) | 155,180 | |||||
Shares issued for restricted stock grants | 0 | $ 2,850 | (2,850) | |||
Shares cancelled for restricted stock forfeitures (in shares) | (9,242) | |||||
Shares cancelled for restricted stock forfeitures | 0 | $ (127) | 127 | |||
Cancellation of shares for tax withholding (in shares) | (48,495) | |||||
Cancellation of shares for tax withholding | (805) | (805) | ||||
Dividends declared ($0.46, $0.48, and $0.48 per common share) | $ (24,111) | (24,111) | ||||
Balance (in shares) at Dec. 31, 2017 | 51,044,752 | 51,044,752 | ||||
Balance at Dec. 31, 2017 | $ 693,328 | $ 537,576 | 4,713 | (5,466) | 168,345 | (11,840) |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of ASU No. 2018-02 (see Note 17) | 2,600 | (2,600) | ||||
Balance (in shares) at Dec. 31, 2017 | 51,044,752 | 51,044,752 | ||||
Balance at Dec. 31, 2017 | $ 693,328 | $ 537,576 | 4,713 | (5,466) | 168,345 | (11,840) |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of ASU No. 2018-02 (see Note 17) | 2,590 | (2,590) | ||||
Comprehensive income | 44,099 | 59,906 | (15,807) | |||
Common stock repurchased (in shares) | (333,900) | |||||
Common stock repurchased | (5,157) | $ (5,157) | ||||
Share-based compensation expense | 2,481 | 2,481 | ||||
ESOP shares released or committed to be released | $ 378 | 150 | 228 | |||
Shares issued for stock options exercised (in shares) | 278,830 | 250,828 | ||||
Shares issued for stock options exercised | $ 2,247 | $ 4,211 | (1,964) | |||
Shares issued for restricted stock grants (in shares) | 199,830 | |||||
Shares issued for restricted stock grants | 0 | $ 3,173 | (3,173) | |||
Shares cancelled for restricted stock forfeitures (in shares) | (19,363) | |||||
Shares cancelled for restricted stock forfeitures | 0 | $ (327) | 327 | |||
Cancellation of shares for tax withholding (in shares) | (37,364) | |||||
Cancellation of shares for tax withholding | (601) | $ 0 | (601) | |||
Dividends declared ($0.46, $0.48, and $0.48 per common share) | $ (24,257) | (24,257) | ||||
Balance (in shares) at Dec. 31, 2018 | 51,104,783 | 51,104,783 | ||||
Balance at Dec. 31, 2018 | $ 712,518 | $ 539,476 | $ 1,933 | $ (5,238) | 206,761 | (30,414) |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of ASU No. 2016-01 (see Note 5) | $ 177 | $ (177) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings | |||
Dividends declared/ paid per common share (usd per share) | $ 0.48 | $ 0.48 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 59,906,000 | $ 54,618,000 | $ 49,661,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 8,914,000 | 9,396,000 | 13,437,000 |
Amortization of premiums and discounts on investments, net | 4,033,000 | 4,066,000 | 5,410,000 |
Amortization of intangible assets and purchase accounting marks, net | 1,911,000 | 1,292,000 | (1,019,000) |
Amortization of subordinated debt issuance costs | 126,000 | 126,000 | 126,000 |
Share-based compensation expense | 2,481,000 | 2,699,000 | 2,252,000 |
ESOP expense | 378,000 | 400,000 | 308,000 |
Loss on extinguishment of debt | 0 | 0 | 1,454,000 |
Tax effects of share-based awards | 0 | 0 | (486,000) |
Gains on sales of securities, net | (145,000) | (782,000) | (1,961,000) |
Net unrealized loss on marketable equity securities | 62,000 | 0 | 0 |
Loans originated for sale | (372,286,000) | (384,195,000) | (422,183,000) |
Principal balance of loans sold | 407,571,000 | 332,639,000 | 369,802,000 |
Increase in mortgage servicing asset | (3,006,000) | (1,629,000) | (3,030,000) |
Gain on sales of other real estate owned | (291,000) | (409,000) | (121,000) |
Net change in mortgage banking fair value adjustment | 1,501,000 | (1,303,000) | 139,000 |
Loss on disposal of equipment | 68,000 | 365,000 | 178,000 |
Write-downs of other real estate owned | 362,000 | 424,000 | 126,000 |
Depreciation and amortization of premises and equipment | 8,370,000 | 5,919,000 | 5,516,000 |
Net loss on limited partnership investments | 2,176,000 | 3,023,000 | 3,995,000 |
Deferred income tax (benefit) expense | (2,464,000) | 12,338,000 | (4,352,000) |
Increase in cash surrender value of bank-owned life insurance | (5,859,000) | (4,656,000) | (3,324,000) |
Income recognized from death benefit on bank-owned life insurance | (435,000) | (806,000) | (70,000) |
Net change in: | |||
Deferred loan fees and premiums | (2,992,000) | (3,158,000) | (4,618,000) |
Accrued interest receivable | (2,491,000) | (3,561,000) | (3,031,000) |
Other assets | (18,857,000) | (14,527,000) | (4,327,000) |
Accrued expenses and other liabilities | 19,157,000 | 866,000 | (4,195,000) |
Net cash provided by (used in) operating activities | 108,190,000 | 13,145,000 | (313,000) |
Cash flows from investing activities: | |||
Proceeds from sales of available for sale securities | 59,761,000 | ||
Proceeds from sales of available for sale securities | 315,339,000 | 268,162,000 | |
Proceeds from calls and maturities of available for sale securities | 41,235,000 | 102,289,000 | 27,076,000 |
Principal payments on available for sale securities | 64,335,000 | 76,674,000 | 95,490,000 |
Principal payments on held to maturity securities | 0 | 402,000 | 496,000 |
Purchases of available for sale securities | (100,774,000) | ||
Purchases of available for sale securities | (501,803,000) | (385,386,000) | |
Redemption of FHLBB and other restricted stock | 16,950,000 | 11,223,000 | 3,392,000 |
Purchase of FHLBB stock | (8,163,000) | (6,324,000) | (5,672,000) |
Proceeds from sale of other real estate owned | 2,792,000 | 2,569,000 | 2,158,000 |
Purchases of loans | (274,865,000) | (259,656,000) | (176,301,000) |
Cash paid for acquisition net of cash acquired | (6,832,000) | 0 | 0 |
Loan originations, net of principal repayments | (50,399,000) | (186,957,000) | (119,817,000) |
Purchase of bank-owned life insurance | (40,000,000) | (10,000,000) | (40,000,000) |
Proceeds from bank-owned life insurance death benefit | 1,082,000 | 1,892,000 | 689,000 |
Surrender of bank-owned life insurance | 0 | 33,075,000 | 0 |
Receivable of bank-owned life insurance | 26,713,000 | (26,713,000) | 0 |
Proceeds from sales of equipment | 0 | 1,039,000 | 686,000 |
Purchases of premises and equipment | (7,359,000) | (23,131,000) | (3,465,000) |
Net cash used in investing activities | (275,524,000) | (470,082,000) | (332,492,000) |
Cash flows from financing activities: | |||
Net increase in non-interest-bearing deposits | 21,209,000 | 70,526,000 | 50,332,000 |
Net increase in interest-bearing deposits | 451,370,000 | 417,251,000 | 225,103,000 |
Net decrease in mortgagors’ and investors’ escrow accounts | (2,860,000) | (5,809,000) | (172,000) |
Net change in short-term FHLBB advances | (218,500,000) | (52,500,000) | 41,800,000 |
Proceeds from long-term FHLBB advances | 950,000 | 125,000,000 | 105,000,000 |
Repayments of long-term FHLBB borrowings and penalty | (1,317,000) | (1,520,000) | (10,989,000) |
Prepayments of FHLBB Advances | 0 | 0 | (37,796,000) |
Repayments of called FHLBB advances | (30,000,000) | (70,000,000) | 0 |
Net decrease in other borrowings | (16,454,000) | (4,519,000) | (27,303,000) |
Proceeds from exercise of stock options | 2,247,000 | 2,460,000 | 6,275,000 |
Common stock repurchased | (5,157,000) | (1,312,000) | 0 |
Cancellation of shares for tax withholding | (601,000) | (805,000) | (327,000) |
Tax effects of share-based awards | 0 | 0 | 486,000 |
Cash dividends paid on common stock | (24,257,000) | (24,111,000) | (23,836,000) |
Net cash provided by financing activities | 176,630,000 | 454,661,000 | 328,573,000 |
Net increase (decrease) in cash and cash equivalents | 9,296,000 | (2,276,000) | (4,232,000) |
Cash and cash equivalents - beginning of year | 88,668,000 | 90,944,000 | 95,176,000 |
Cash and cash equivalents - end of year | 97,964,000 | 88,668,000 | 90,944,000 |
Cash paid during the year for: | |||
Interest | 80,305,000 | 53,012,000 | 43,709,000 |
Income taxes, net | 1,835,000 | 4,574,000 | 3,655,000 |
Transfer of loans to other real estate owned | 2,098,000 | 2,848,000 | 3,298,000 |
(Decrease) increase in due to broker, investment purchases | 0 | (6,000) | 6,000 |
Acquisition of non-cash assets and liabilities: | |||
Fair value of assets acquired | 2,292,000 | 0 | 0 |
Fair value of liabilities assumed | $ 109,380,000 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Financial Statement Presentation The consolidated financial statements and the accompanying notes presented in this report include the accounts of the United Financial Bancorp, Inc., United 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 Wealth Management, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, United Financial Realty HC, Inc. and UCB Securities, Inc. II. In addition, the Bank has a real estate investment trust subsidiary, United Financial Business Trust I, which is a wholly owned subsidiary of United Financial Realty HC, Inc. The Company is a bank holding company under the Bank Holding Company Act of 1956, as amended, headquartered in Hartford, Connecticut and incorporated under the laws of Connecticut in 2004. At December 31, 2018 , 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 58 banking offices, its commercial loan and mortgage loan production offices, 71 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 review of goodwill for impairment. Certain reclassifications have been made to prior periods’ consolidated financial statements to conform to the 2018 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. 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, if any, are those which the Company 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 during any of the periods presented. 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 any of the periods presented. 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. Prior to January 1, 2018, marketable equity securities were classified as available for sale and a decline in the value of an equity security considered to have OTTI was recorded as a loss in non-interest income in the Consolidated Statements of Net Income. Effective January 1, 2018, all equity securities were recorded at fair value in other assets in the Consolidated Statements of Condition, with unrealized gains and losses recognized in non-interest income in the Consolidated Statements of Net Income. See Note 5, “Securities.” 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. 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. 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 To Be Announced (“TBA”) as well as cash (“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. These forward loan sale commitments 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 Company, 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 the 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 Company 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, 2018 and 2017 . 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. Gains or losses on sales of loans are included in non-interest income in the Consolidated Statements of Net 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 the Company originates and intends to hold in the portfolio are stated at current unpaid principal balances, net of deferred loan origination costs and fees, the allowance for loan losses, and charge-offs. Commitment fees for which the likelihood of exercise is remote are recognized over the loan commitment period on a straight-line basis. Acquired loans are recorded at fair value with no carryover of the related allowance for loan losses at the time of acquisition. The Company’s loan portfolio includes owner-occupied commercial real estate, investor non-owner occupied commercial real estate, commercial and residential construction, commercial business, residential real estate, home equity and other consumer loan segments. Residential real estate loans include one-to-four family owner-occupied first mortgages. 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 or the straight-line method over the expected life of the loan, where applicable. 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 date 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, the Company adjusts 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 12-quarter 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; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. The general component of the allowance for loan losses also includes a reserve based upon historical loss experience for loans which were acquired and have subsequently evidenced deterioration following initial acquisition. Our acquired loan portfolio is comprised of purchased loans that show no evidence of credit deterioration subsequent to acquisition and therefore these loans are not part of the covered portfolio. Acquired impaired loans are loans with evidence of deterioration upon acquisition and are not considered in the covered portfolio in establishing the allowance for loan loss. There were no changes in the Company’s methodology pertaining to the general component of the allowance for loan losses during 2018. 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 and home equity loans – The Company 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. Owner-occupied and investor non-owner occupied commercial real estate (“CRE”) – Loans in these segments 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. Other consumer – 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, the non-accretable discount is estimated based upon our expected cash flows for these loans. To the extent that the Company experiences a deterioration in borrower credit quality resulting in a decrease in the expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on the Company’s 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 business, 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. Updated property evaluations are obtained at the time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent. 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. 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. Loans which are placed on non-accrual status, or deemed troubled debt restructures, are considered impaired by the Company and subject to impairment testing for possible partial or full charge-off when loss can be reasonably determined. Generally, when all contractual payments on a loan are not expected to be collected, or the loan has failed to make contractual payments for a period of 90 days or more, a loan is placed on non-accrual status. In accordance with the Company's loan policy, losses on open and closed end consumer loans are recognized within a period of 120 days past due. For commercial loans, there is no threshold in terms of days past due for losses to be recognized as a result of the complexity in reasonably determining losses within a set time frame. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. 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 Public Securities Association (“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 on the Consolidated Statements of Condition, with changes in fair value recorded in income from mortgage banking activities in the Consolidated Statements of Net Income. 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. At December 31, 2018 and 2017 , the Company had $1.4 million and $2.2 million , respectively, of other real estate owned included in other assets on the Consolidated Statements of Condition. 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 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 in excess of carrying value, are recorded in non-interest income in the Consolidated Statements of Net 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. Expected lease terms include lease option periods to the extent that the exercise of such options are reasonably assured. 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 in the fourth quarter, 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 o |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | Note 2. RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Principles Previously Disclosed Effective January 1, 2018, the following list identifies Accounting Standards Updates (“ASUs”) adopted by the Company: • ASU No. 2014-09, Revenue From Contracts with Customers (Topic 606) • ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-210): Recognition and Measurement of Financial Assets and Financial Liabilities • ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments • ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory • ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash • ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business • ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost • ASU No. 2017-09, Compensation, Stock Compensation (Topic 718): Scope of Modified Accounting • ASU No. 2017-12, Derivatives & Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities • ASU No. 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income See Notes 5, “Securities”, and 17, “Accumulated Other Comprehensive Loss” for further discussion of the impact upon adoption of ASU No. 2016-01, ASU No. 2017-12, and ASU No. 2018-02. The adoption of all other accounting standards listed above did not have a material impact on the Company’s Consolidated Financial Statements. Accounting Standards Issued but Not Yet Adopted The following list identifies ASUs applicable to the Company that have been issued but are not yet effective: Disclosure In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this Update remove the disclosure requirements that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this Update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted and amendments should be applied on a retrospective basis to all periods presented. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU updates disclosure requirements of ASC 820 in order to improve the effectiveness of the disclosures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments affecting changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are to be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. Compensation In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting as a part of its simplification initiative. Under this guidance, the inclusion of share-based payments for nonemployees as payment for goods or services will be added under the scope of Topic 718. Recognition for costs of issuance of share-based payments to nonemployees is expected to be similar to how companies recognize these same costs for employees. This ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU is not expected to have a significant impact to the Company’s Consolidated Financial Statements. Receivables In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. Under the new guidance, the premium on bonds purchased at a premium will be amortized to the bond’s call date rather than the date of maturity to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. The Company adopted ASU No. 2017-08 effective January 1, 2019, which reduced premiums on callable debt securities by approximately $10.2 million (pre-tax), with the offset being recorded as a cumulative-effect adjustment directly to retained earnings. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of US GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are US Securities and Exchange Commission filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The impact on adoption is a one-time adjustment to retained earnings. The Company is evaluating the provisions of ASU No. 2016-13 and will closely monitor developments and additional guidance to determine the potential impact on the Company’s Consolidated Financial Statements which is expected to increase loan loss reserves, the amount of which is uncertain at this time. The Company has implemented a committee led by the Bank’s Chief Credit Officer, which includes the Chief Financial Officer, to assist in identifying, implementing and evaluating the impact of the required changes to loan loss estimation models and processes. The Company has evaluated portfolio segments and methodologies and is currently evaluating expected loss modeling as well as controls and procedures. Leases In February 2016, the FASB issued 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 guidance will be effective for public business entities for annual periods beginning after December 15, 2018 and interim periods therein. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements (Topic 842), which revised the transition approach which no longer requires leases to be recognized at the beginning of the earliest period presented using a modified retrospective approach. Instead, adopters can take can take the prospective approach upon transition which allows entities to not recast comparative periods upon transition. There are also a number of optional practical expedients that entities may elect to apply. On December 10, 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, which further provides narrow-scope improvements to accounting for lessors. Specifically, this ASU addressed sales taxes and other similar taxes collected from lessees, certain lessor costs paid directly by lessees and recognition of variable payments for contracts with lease and nonlease components. These updates should help lessors with their implementation and ongoing application of the leases standard without compromising information provided to users of financial statements. Upon adoption of this ASU on January 1, 2019, the Company recorded an increase in assets of $45.0 million and an increase in liabilities of $45.0 million on the Consolidated Statements of Condition as a result of recognizing the right-of-use assets and lease liabilities. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLES | Note 3. 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, 2016 $ 115,281 $ 5,902 Amortization expense — (1,411 ) Balance at December 31, 2017 $ 115,281 $ 4,491 Amortization expense — (1,350 ) Acquisitions 1,488 2,886 Balance at December 31, 2018 $ 116,769 $ 6,027 Estimated amortization expense for the years ending December 31, 2019 $ 1,538 2020 1,293 2021 1,048 2022 803 2023 558 2024 and thereafter 787 Total remaining $ 6,027 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 $1.4 million , $1.4 million , and $1.6 million for the years ended December 31, 2018, 2017 and 2016 , respectively. On October 5, 2018, the Company acquired six branches which were accounted for under FASB ASC 805, Business Combinations. In addition to the acquired branches, the Company assumed $109.4 million of branch deposits and $2.3 million of fixed assets. The purchase price of $6.9 million was allocated based on the estimated fair market values of the assets and liabilities acquired. |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | Note 4. 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, 2018 and 2017 , the Company was required to have cash and liquid assets of $36.2 million and $36.3 million , respectively, to meet these requirements. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | Note 5. SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities at December 31, 2018 and 2017 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 (In thousands) Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 208,916 $ — $ (4,818 ) $ 204,098 Government-sponsored residential collateralized debt obligations 172,468 270 (2,019 ) 170,719 Government-sponsored commercial mortgage-backed securities 28,694 — (1,016 ) 27,678 Government-sponsored commercial collateralized debt obligations 155,091 — (6,865 ) 148,226 Asset-backed securities 102,371 15 (1,891 ) 100,495 Corporate debt securities 86,462 48 (3,280 ) 83,230 Obligations of states and political subdivisions 250,593 425 (12,117 ) 238,901 Total available for sale debt securities $ 1,004,595 $ 758 $ (32,006 ) $ 973,347 December 31, 2017 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 235,646 $ 779 $ (946 ) $ 235,479 Government-sponsored residential collateralized debt obligations 134,652 16 (1,556 ) 133,112 Government-sponsored commercial mortgage-backed securities 33,449 7 (201 ) 33,255 Government-sponsored commercial collateralized debt obligations 151,035 — (3,793 ) 147,242 Asset-backed securities 166,559 1,253 (673 ) 167,139 Corporate debt securities 88,571 1,104 (539 ) 89,136 Obligations of states and political subdivisions 249,531 1,436 (5,960 ) 245,007 Total debt securities 1,059,443 4,595 (13,668 ) 1,050,370 Marketable equity securities, by sector: Industrial 109 100 — 209 Oil and gas 131 77 — 208 Total marketable equity securities 240 177 — 417 Total available for sale securities $ 1,059,683 $ 4,772 $ (13,668 ) $ 1,050,787 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 1,318 $ 111 $ — $ 1,429 Obligations of states and political subdivisions 12,280 679 (88 ) 12,871 Total held to maturity securities $ 13,598 $ 790 $ (88 ) $ 14,300 At December 31, 2018 , the net unrealized loss on securities available for sale of $31.2 million , net of income taxes of $6.9 million , or $24.4 million , was included in accumulated other comprehensive loss. At December 31, 2017 , the net unrealized loss on securities available for sale of $8.9 million , net of income taxes of $3.2 million , or $5.7 million , was included in accumulated other comprehensive loss. Effective January 1, 2018, the Company adopted ASU No. 2017-12, Derivatives & Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which improves and simplifies the accounting rules around hedge accounting. As allowed by the ASU, upon adoption, the Company transferred its held to maturity portfolio to its available for sale portfolio. The amortized cost and fair value of debt securities at December 31, 2018 , 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, collateralized debt obligations, and asset-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary: Available for Sale Amortized Cost Fair Value (In thousands) Maturity: Within 1 year $ — $ — After 1 year through 5 years 13,803 13,620 After 5 years through 10 years 88,828 84,815 After 10 years 234,424 223,696 337,055 322,131 Government-sponsored residential mortgage-backed securities 208,916 204,098 Government-sponsored residential collateralized debt obligations 172,468 170,719 Government-sponsored commercial mortgage-backed securities 28,694 27,678 Government-sponsored commercial collateralized debt obligations 155,091 148,226 Asset-backed securities 102,371 100,495 Total debt securities $ 1,004,595 $ 973,347 Effective January 1, 2018, the Company adopted ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which required the Company to recognize the changes in fair value of marketable equity securities in the Consolidated Statement of Net Income. The cumulative-effect adjustment resulting from the adoption of this new standard was a one-time adjustment that increased retained earnings and increased accumulated other comprehensive losses on January 1, 2018 by $177,000 . For the year ended December 31, 2018, there was $62,000 in unrealized losses on marketable equity securities recognized in other income in the Consolidated Statement of Net Income. At December 31, 2018, the fair value of marketable equity securities was $356,000 , which includes gross unrealized gains of $116,000 , and is included in other assets on the Consolidated Statement of Condition. At December 31, 2018 , the Company had 87 securities, with a fair value of $438.8 million , pledged as derivative collateral and collateral for reverse repurchase borrowings. See Notes 10 and 12. For the years ended December 31, 2018, 2017 and 2016 , 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, 2018 2017 2016 (In thousands) Proceeds from the sale of available for sale securities $ 59,761 $ 315,339 $ 268,162 Gross realized gains on the sale of available for sale securities 453 3,774 2,880 Gross realized losses on the sale of available for sale securities 308 2,992 919 As of December 31, 2018 , 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, 2018 and 2017 . 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, 2018 , the estimated fair value of this portfolio was $238.9 million , with no significant geographic exposure concentrations. Of the total state and political subdivisions, $103.3 million were representative of general obligation bonds for which $57.1 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, 2018 and 2017 : 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, 2018 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 97,634 $ (1,590 ) $ 106,464 $ (3,228 ) $ 204,098 $ (4,818 ) Government-sponsored residential collateralized debt obligations 5,093 (54 ) 107,291 (1,965 ) 112,384 (2,019 ) Government-sponsored commercial mortgage-backed securities — — 27,678 (1,016 ) 27,678 (1,016 ) Government-sponsored commercial collateralized debt obligations 15,787 (176 ) 132,439 (6,689 ) 148,226 (6,865 ) Asset-backed securities 62,444 (1,272 ) 23,426 (619 ) 85,870 (1,891 ) Corporate debt securities 43,937 (1,394 ) 33,245 (1,886 ) 77,182 (3,280 ) Obligations of states and political subdivisions 89,312 (2,204 ) 137,590 (9,913 ) 226,902 (12,117 ) Total available for sale securities $ 314,207 $ (6,690 ) $ 568,133 $ (25,316 ) $ 882,340 $ (32,006 ) December 31, 2017 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities 41,961 (203 ) 83,545 (743 ) 125,506 (946 ) Government-sponsored residential collateralized debt obligations 82,758 (740 ) 43,359 (816 ) 126,117 (1,556 ) Government-sponsored commercial mortgage-backed securities 21,196 (74 ) 10,895 (127 ) 32,091 (201 ) Government-sponsored commercial collateralized debt obligations 27,965 (291 ) 119,277 (3,502 ) 147,242 (3,793 ) Asset-backed securities 64,259 (602 ) 4,756 (71 ) 69,015 (673 ) Corporate debt securities 25,403 (257 ) 10,764 (282 ) 36,167 (539 ) Obligations of states and political subdivisions 26,341 (312 ) 116,624 (5,648 ) 142,965 (5,960 ) Total available for sale securities $ 289,883 $ (2,479 ) $ 389,220 $ (11,189 ) $ 679,103 $ (13,668 ) Held to maturity: Debt securities: Obligations of states and political subdivisions $ 2,130 $ (24 ) $ 1,032 $ (64 ) $ 3,162 $ (88 ) Total held to maturity securities $ 2,130 $ (24 ) $ 1,032 $ (64 ) $ 3,162 $ (88 ) Of the securities summarized above as of December 31, 2018 , 95 issues had unrealized losses equaling 2.1% of the amortized cost basis for less than twelve months and 155 issues had unrealized losses equaling 4.3% of the amortized cost basis for twelve months or more. As of December 31, 2017 , 75 issues had unrealized losses for less than twelve months and 100 issues had losses for twelve months or more. Management believes that no individual unrealized loss as of December 31, 2018 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, changes in market credit spread levels or credit risk. The following paragraphs outline the Company’s position related to unrealized losses in its investment securities portfolio at December 31, 2018 : Government-sponsored obligations. The unrealized losses on the Company’s government-sponsored collateralized debt obligations and mortgage-backed securities were caused by the increase in interest rates and interest rate expectations. 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 losses on obligations of states and political subdivisions relates to securities with no geographic concentration. The unrealized losses were due to an upward shift in interest rates 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 relates to securities with no company specific concentration. The unrealized losses were due to an upward shift in interest rates that resulted in a negative impact to the respective bonds’ pricing, relative to the time of purchase. Asset-backed securities . The unrealized losses on certain securities within the Company’s asset-backed securities portfolio were largely driven by slight increases in the spreads of certain managers over comparable securities’ managers relative to the time of purchase. Based on the credit profiles and asset qualities of the individual securities, management does not believe that the securities have suffered from any credit related losses at this time. 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. |
LOANS RECEIVABLE AND ALLOWANCE
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS RECEIVABLE AND ALLOANCE FOR LOAN LOSSES | Note 6. LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES A summary of the Company’s loan portfolio at December 31, 2018 and 2017 is as follows: December 31, 2018 2017 Amount Percent Amount Percent (In thousands) Commercial real estate loans Owner occupied commercial real estate $ 443,398 7.8 % $ 445,820 8.3 % Investor non-owner occupied commercial real estate 1,911,070 33.8 1,854,459 34.7 Commercial construction 87,493 1.5 78,083 1.5 Total commercial real estate loans 2,441,961 43.1 2,378,362 44.5 Commercial business loans 886,770 15.7 840,312 15.7 Consumer loans Residential real estate 1,313,373 23.2 1,204,401 22.6 Home equity 583,454 10.3 583,180 10.9 Residential construction 20,632 0.4 40,947 0.8 Other consumer 410,249 7.3 292,781 5.5 Total consumer loans 2,327,708 41.2 2,121,309 39.8 Total loans 5,656,439 100.0 % 5,339,983 100.0 % Net deferred loan costs and premiums 17,786 14,794 Allowance for loan losses (51,636 ) (47,099 ) Loans - net $ 5,622,589 $ 5,307,678 At December 31, 2018 , the Company had pledged $1.44 billion and $169.0 million of eligible loan collateral to support available borrowing capacity at the FHLBB and FRB, respectively. See Note 10. Acquired Loans: As of December 31, 2018 and 2017, gross loans acquired from the Merger totaled $497.9 million and $670.7 million , with remaining fair value adjustments of $2.2 million and $2.1 million , respectively. A portion of these loans was determined to have evidence of credit deterioration at acquisition date, which is accounted for in accordance with ASC 310-30. The net recorded carrying amount of these purchased credit-impaired loans totaled $177,000 and $230,000 as of December 31, 2018 and 2017, respectively. In 2015, the Company purchased loan portfolios consisting of marine finance consumer loans, home improvement loans and home equity lines of credit. The Company continued to purchase home equity lines of credit in 2016, 2017, and 2018. Furthermore, in 2017, the Company purchased two additional loan portfolios consisting of consumer home improvement loans and manufactured home loans. The outstanding principal balance of purchased loans serviced by others at December 31, 2018 and 2017 was $546.4 million and $470.4 million , respectively. The impaired loans are accounted for in accordance with ASC 310-30. At December 31, 2018 , the net recorded carrying amount of total loans accounted for under ASC 310-30 was $3.3 million and the aggregate outstanding principal balance was $3.5 million . Allowance for Loan Losses. Changes in the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 are as follows: Owner-occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) December 31, 2018 Balance, beginning of year $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Provision for loan losses 618 1,103 73 1,445 732 407 4,301 235 8,914 Loans charged off — (81 ) (21 ) (1,653 ) (547 ) (628 ) (2,967 ) — (5,897 ) Recoveries of loans previously charged off 87 73 — 561 92 183 524 — 1,520 Balance, end of year $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 December 31, 2017 Balance, beginning of year $ 3,765 $ 14,869 $ 1,913 $ 8,730 $ 7,854 $ 2,858 $ 1,353 $ 1,456 $ 42,798 Provision for loan losses 60 1,623 195 2,988 428 1,085 2,728 289 9,396 Loans charged off (103 ) (735 ) (507 ) (1,984 ) (736 ) (779 ) (1,840 ) — (6,684 ) Recoveries of loans previously charged off 32 159 — 874 148 94 282 — 1,589 Balance, end of year $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 December 31, 2016 Balance, beginning of year $ 2,174 $ 12,859 $ 1,895 $ 5,827 $ 7,801 $ 2,391 $ 146 $ 794 $ 33,887 Provision for loan losses 1,704 2,806 15 3,364 1,022 1,096 2,768 662 13,437 Loans charged off (169 ) (1,207 ) — (1,018 ) (1,043 ) (742 ) (1,710 ) — (5,889 ) Recoveries of loans previously charged off 56 411 3 557 74 113 149 — 1,363 Balance, end of year $ 3,765 $ 14,869 $ 1,913 $ 8,730 $ 7,854 $ 2,858 $ 1,353 $ 1,456 $ 42,798 Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2018 and 2017 follows: Owner-occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) December 31, 2018 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 92 $ 114 $ 120 $ 1 $ 243 $ — $ 570 Allowance related to loans collectively evaluated and not deemed impaired 4,459 17,011 1,561 10,847 7,851 3,219 4,138 1,980 51,066 Total allowance for loan losses $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Loans deemed impaired $ 3,034 $ 6,895 $ 1,047 $ 5,219 $ 20,114 $ 8,257 $ 1,318 $ — $ 45,884 Loans not deemed impaired 440,364 1,903,998 107,078 881,551 1,291,255 575,197 407,851 — 5,607,294 Loans acquired with deteriorated credit quality — 177 — — 2,004 — 1,080 — 3,261 Total loans $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 $ — $ 5,656,439 December 31, 2017 Allowance related to loans individually evaluated and deemed impaired $ 60 $ — $ — $ 400 $ 60 $ — $ — $ — $ 520 Allowance related to loans collectively evaluated and not deemed impaired 3,694 15,916 1,601 10,208 7,634 3,258 2,523 1,745 46,579 Total allowance for loan losses $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Loans deemed impaired $ 2,300 $ 8,414 $ 2,273 $ 5,681 $ 18,301 $ 8,547 $ 395 $ — $ 45,911 Loans not deemed impaired 443,520 1,845,815 116,757 834,631 1,186,100 574,633 290,898 — 5,292,354 Loans acquired with deteriorated credit quality — 230 — — — — 1,488 — 1,718 Total loans $ 445,820 $ 1,854,459 $ 119,030 $ 840,312 $ 1,204,401 $ 583,180 $ 292,781 $ — $ 5,339,983 Past Due and Non-Accrual Loans . The following is a summary of past due and non-accrual loans at December 31, 2018 and 2017 : 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, 2018 Owner-occupied CRE $ 1,745 $ 7 $ 352 $ 2,104 $ — $ 2,503 Investor CRE 1,306 91 546 1,943 — 1,131 Construction 331 — 913 1,244 — 913 Commercial business loans 5,455 1,582 2,803 9,840 1,387 2,481 Residential real estate 11,214 5,216 9,448 25,878 2,004 16,214 Home equity 1,498 779 4,349 6,626 — 6,192 Other consumer 1,123 359 1,393 2,875 154 1,243 Total $ 22,672 $ 8,034 $ 19,804 $ 50,510 $ 3,545 $ 30,677 December 31, 2017 Owner-occupied CRE $ 1,195 $ 455 $ 1,297 $ 2,947 $ — $ 1,735 Investor CRE 849 92 1,212 2,153 206 1,821 Construction — — 1,398 1,398 — 1,398 Commercial business loans 1,069 3,465 1,219 5,753 650 4,987 Residential real estate 3,187 2,297 5,633 11,117 — 14,860 Home equity 1,319 498 3,281 5,098 — 6,466 Other consumer 947 241 491 1,679 97 395 Total $ 8,566 $ 7,048 $ 14,531 $ 30,145 $ 953 $ 31,662 At December 31, 2018 and 2017 , loans reported as past due 90 days or more and still accruing totaled $3.5 million and $953,000 , respectively, and represent loans that were evaluated by management and maintained on accrual status based on an evaluation of the borrower and/or related guarantors. Impaired Loans . The following is a summary of impaired loans with and without a valuation allowance as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) Impaired loans without a valuation allowance: Owner-occupied CRE $ 3,034 $ 3,422 $ 2,183 $ 2,891 Investor CRE 6,895 7,153 8,414 8,577 Construction 333 1,339 2,273 2,658 Commercial business loans 5,105 7,325 2,446 3,317 Residential real estate 18,244 20,153 16,645 17,929 Home equity 8,132 9,483 8,547 9,583 Other consumer 725 725 395 398 Total 42,468 49,600 40,903 45,353 Impaired loans with a valuation allowance: Construction $ 714 $ 965 $ 92 $ — $ — $ — Commercial business loans 114 122 114 3,235 3,767 400 Residential real estate 1,870 2,069 120 1,656 1,711 60 Owner-occupied CRE — — — 117 117 60 Home equity 125 130 1 — — — Other consumer 593 593 243 — — — Total 3,416 3,879 570 5,008 5,595 520 Total impaired loans $ 45,884 $ 53,479 $ 570 $ 45,911 $ 50,948 $ 520 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, 2018, 2017 and 2016 : 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: Owner-occupied CRE $ 2,573 $ 134 $ 2,840 $ 97 $ 3,924 $ 150 Investor CRE 8,147 318 9,736 370 11,363 447 Construction 1,481 21 2,429 87 4,087 124 Commercial business loans 4,588 337 7,562 258 12,167 282 Residential real estate 18,940 752 17,519 789 16,485 715 Home equity 8,176 229 7,788 281 5,856 202 Other consumer 704 1 1,197 — 819 1 Total $ 44,609 $ 1,792 $ 49,071 $ 1,882 $ 54,701 $ 1,921 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 . The restructuring of a loan is considered a TDR 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 $ 15,208 $ 14,249 Non-accrual status 6,971 8,475 Total recorded investment in TDRs $ 22,179 $ 22,724 Accruing TDRs performing under modified terms more than one year $ 12,609 $ 7,783 Specific reserves for TDRs included in the balance of allowance for loan losses $ 213 $ 520 Additional funds committed to borrowers in TDR status $ 7 $ 29 Loans restructured as TDRs during 2018 , 2017 , and 2016 are set forth in the following table: For the Year Ended December 31, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Construction 1 $ 965 $ 965 Commercial business loans 1 2,455 2,455 Residential real estate 11 3,965 3,975 Home equity 12 768 752 Total TDRs 25 $ 8,153 $ 8,147 For the Year Ended December 31, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Investor CRE 1 $ 5,038 $ 5,038 Commercial business loans 5 482 482 Residential real estate 9 1,598 1,627 Home equity 21 2,476 2,483 Total TDRs 36 $ 9,594 $ 9,630 For the Year Ended December 31, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Owner-occupied CRE 5 $ 654 $ 666 Construction 2 67 67 Commercial business loans 8 3,033 5,006 Residential real estate 13 1,320 1,329 Home equity 18 1,572 1,574 Other consumer 1 132 132 Total TDRs 47 6,778 8,774 The following table provides information on how loans were modified as TDRs during the periods indicated: For the Year Ended December 31, 2018 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Construction $ 965 $ — $ — $ — $ — Commercial business loans 2,455 — — — — Residential real estate 11 — 583 3,371 — Home equity 97 — 671 — — Total $ 3,528 $ — $ 1,254 $ 3,371 $ — For the Year Ended December 31, 2017 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Investor CRE $ — $ — $ — $ — $ 5,038 Commercial business loans 211 — — — 271 Residential real estate 266 — 234 929 169 Home equity 938 — 824 714 — Total $ 1,415 $ — $ 1,058 $ 1,643 $ 5,478 For the Year Ended December 31, 2016 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Owner-occupied CRE $ 510 $ — $ 86 $ — $ 58 Construction 23 — 44 — — Commercial business loans 2,350 — 243 348 92 Residential real estate 87 — 672 561 — Home equity — 261 707 604 — Other consumer — — 132 — — Total $ 2,970 $ 261 $ 1,884 $ 1,513 $ 150 TDRs that subsequently defaulted within twelve months of restructuring during the years ended December 31, 2018, 2017 and 2016 follows: For the Year Ended For the Year Ended For the Year Ended Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) Residential real estate 1 $ 98 3 $ 170 3 $ 456 Home equity 2 26 — — 1 151 Construction 1 715 — — — — Commercial business — — — — 2 495 Total troubled debt restructuring 4 $ 839 3 $ 170 6 1,102 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 charge-off is processed through the allowance for loan losses. Commercial real estate loans, commercial construction loans, and commercial business loans also contain payment modification agreements and a like assessment of the underlying collateral value 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 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 other consumer 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, home equity, and other consumer 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, construction 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, 2018 and 2017 : Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer (In thousands) December 31, 2018 Loans rated 1 — 5 $ 410,403 $ 1,884,767 $ 104,848 $ 844,541 $ 1,294,623 $ 576,509 $ 407,935 Loans rated 6 17,134 6,544 1,994 28,385 2,429 740 — Loans rated 7 15,861 19,759 1,283 13,844 16,321 6,205 2,314 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 December 31, 2017 Loans rated 1 — 5 $ 423,720 $ 1,829,762 $ 117,583 $ 811,604 $ 1,186,753 $ 576,592 $ 292,386 Loans rated 6 4,854 10,965 49 15,816 1,948 89 — Loans rated 7 17,246 13,732 1,398 12,892 15,700 6,499 395 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 445,820 $ 1,854,459 $ 119,030 $ 840,312 $ 1,204,401 $ 583,180 $ 292,781 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, 2018 and 2017 are as follows: 2018 2017 (In thousands) Balance, beginning of year $ 1,896 $ 2,285 Loans related to parties who terminated service during the year (235 ) (776 ) Payoffs (832 ) — Additional loans and advances 763 600 Repayments (35 ) (213 ) Balance, end of year $ 1,557 $ 1,896 As of December 31, 2018 and 2017 , 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 $1.47 billion , $1.25 billion and $1.05 billion as of December 31, 2018, 2017 and 2016 , respectively. The balances of these loans are not included on the accompanying Consolidated Statements of Condition. During the years ended December 31, 2018, 2017 and 2016 , the Company received servicing fee income in the amount of $2.9 million , $2.3 million and $1.7 million , respectively, which are included in income from mortgage banking activities 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, 2018 , the fair value of servicing rights was determined using pretax internal rates of return ranging from 11.8% to 13.8% and the Public Securities Association (“PSA”) Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 150 . At December 31, 2017 , the fair value of servicing rights was determined using pretax internal rates of return ranging from 9.7% to 11.7% and the PSA Standard Prepayment model to estimate prepayments on the portfolio with an average prepayment speed of 180 . 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 income from mortgage banking activities in the Consolidated Statements of Net Income. The following table summarizes MSRs capitalized along with related fair value adjustments for the years ended December 31, 2018, 2017 and 2016 : Years Ended December 31, 2018 2017 2016 (In thousands) Mortgage servicing rights: Balance at beginning of year $ 11,733 $ 10,104 $ 7,074 Change in fair value recognized in income (751 ) (1,791 ) 567 Issuances/additions 3,757 3,420 2,463 Balance at end of year $ 14,739 $ 11,733 $ 10,104 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | Note 7. PREMISES AND EQUIPMENT Premises and equipment at December 31, 2018 and 2017 are summarized as follows: At December 31, Estimated Useful Life 2018 2017 (In thousands) Land and improvements $ 1,031 $ 964 up to 15 years Buildings 35,217 36,756 10 - 39.5 years Furniture and equipment 40,903 36,867 3 - 10 years Leasehold improvements 32,021 25,175 5 - 10 years Assets under capitalized leases 4,902 4,902 5 - 10 years 114,074 104,664 Accumulated depreciation and amortization (45,417 ) (37,156 ) Premises and equipment, net $ 68,657 $ 67,508 Depreciation and amortization expense was $8.4 million , $5.9 million and $5.5 million for the years ended December 31, 2018, 2017 and 2016 , respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | Note 8. OTHER ASSETS The components of other assets at December 31, 2018 and 2017 are summarized below: At December 31, 2018 2017 (In thousands) Current income tax receivable $ 3,436 $ 5,705 Partnership investments 51,504 38,160 Mortgage servicing rights 14,739 11,733 Derivative assets 13,523 11,741 Other real estate owned 1,389 2,154 Receivable on surrendered BOLI policies — 26,713 Prepaid expenses 6,802 4,521 Other 8,975 4,866 Total other assets $ 100,368 $ 105,593 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | Note 9. DEPOSITS Deposits at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (In thousands) Demand and NOW $ 1,653,574 $ 1,573,404 Regular savings 498,026 504,115 Money markets 1,736,459 1,325,754 Time deposits 1,782,540 1,794,948 Total deposits $ 5,670,599 $ 5,198,221 Time deposits in denominations of $250,000 or more were $570.9 million and $529.1 million as of December 31, 2018 and 2017 , respectively. Contractual maturities of time deposits as of December 31, 2018 are summarized below: December 31, 2018 (In thousands) 2019 $ 1,034,233 2020 497,587 2021 227,372 2022 15,864 2023 7,484 $ 1,782,540 Included in time deposits are brokered deposits which amounted to $179.6 million and $259.1 million at December 31, 2018 and 2017 , respectively. Included in money market deposits at December 31, 2018 and 2017 are brokered deposits of $432.5 million and $389.1 million , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
BORROWINGS | Note 10. BORROWINGS Federal Home Loan Bank Advances Contractual maturities and weighted-average rates of outstanding advances from the FHLBB as of December 31, 2018 and 2017 are summarized below: December 31, 2018 December 31, 2017 Amount Weighted- Average Rate Amount Weighted- Average Rate (Dollars in thousands) 2018 $ — — % $ 929,274 1.56 % 2019 785,000 2.55 75,000 1.76 2020 8,000 2.33 8,000 2.33 2021 — — — — 2022 — — — — 2023 2,557 2.51 — — Thereafter 1,531 2.58 33,680 1.14 $ 797,088 2.54 % $ 1,045,954 1.57 % The total carrying value of advances from the FHLBB at December 31, 2018 and 2017 was $797.3 million and $1.05 billion , respectively, which includes a remaining fair value adjustment of $183,000 and $504,000 , respectively, on advances acquired in the Merger. At December 31, 2018 , the Company had no outstanding advances that are callable by the FHLBB. Advances are collateralized by first mortgage loans and investment securities with an estimated eligible collateral value of $2.37 billion and $2.28 billion at December 31, 2018 and 2017 , respectively. In addition to the outstanding advances, the Company also has access to an unused line of credit with the FHLBB amounting to $10.0 million at December 31, 2018 and 2017 . 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, 2018 , the Company could borrow immediately an additional $532.6 million from the FHLBB, inclusive of the line of credit. The Company 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, 2018 , the Company had $41.4 million in FHLBB capital stock. Repurchase Agreements The following table presents the Company’s outstanding borrowings, and related collateral, under repurchase agreements as of December 31, 2018 and 2017 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (Dollars in thousands) December 31, 2018 Repurchase Agreements U.S. Treasury and agency securities $ 8,361 $ 10,000 $ — $ — $ 18,361 December 31, 2017 Repurchase Agreements U.S. Treasury and agency securities $ 14,591 $ 10,000 $ 10,000 $ — $ 34,591 At December 31, 2018 and 2017 , advances outstanding under wholesale reverse repurchase agreements totaled $10.0 million and $20.0 million , respectively. The outstanding advances at December 31, 2018 consisted of one individual borrowing with a remaining term of less than one year and a weighted average cost of 2.44% . The outstanding advances at December 31, 2017 consisted of two individual borrowings with remaining terms of three years or less and a weighted average cost of 2.59% . The Company pledged investment securities with a market value of $12.5 million and $23.0 million as collateral for these borrowings at December 31, 2018 and 2017 , respectively. Retail repurchase agreements are for a term of one day and are backed by the purchasers’ interest in certain U.S. Treasury and Agency securities. At December 31, 2018 and 2017 , retail repurchase agreements totaled $8.4 million and $14.6 million , respectively. The Company pledged investment securities with a market value of $25.4 million and $ 28.8 million as collateral for these borrowings at December 31, 2018 and 2017 , respectively. Given that the repurchase agreements are secured by investment securities valued at market value, the collateral position is susceptible to change based upon variation in the market value of the securities that can arise due to fluctuations in interest rates, among other things. In the event that the interest rate changes result in a decrease in the value of the pledged securities, additional securities will be required to be pledged in order to secure the borrowings. Due to the short term nature of the majority of the repurchase agreements, Management believes the risk of further encumbered securities pose a minimal impact to the Company’s liquidity position. 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 has used 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 $74.3 million and $74.1 million at December 31, 2018 and 2017 , 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 $1.8 million and $1.9 million at December 31, 2018 and 2017 , 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, 2018 was 2.81% . 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 has capital lease obligations for three of its leased banking branches, which were acquired in the Merger. At December 31, 2018 , the balance of capital lease obligations totaled $3.8 million . See Note 7 in th e Notes to Consolidated Financial Statements for further information. Other Sources of Wholesale Funding The Company has relationships with brokered sweep deposit providers by which funds are deposited by the counterparties at the Company’s request. Amounts outstanding under these agreements are reported as interest-bearing deposits and totaled $432.5 million at a cost of 2.44% at December 31, 2018 and $389.1 million at a cost of 1.32% at December 31, 2017 . The Company 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 four counterparties totaling $140.0 million at December 31, 2018 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 11. INCOME TAXES The components of the income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows: 2018 2017 2016 (In thousands) Current tax provision (benefit): Federal $ 1,617 $ (1,289 ) $ 6,262 State 2,472 994 2,202 Total current 4,089 (295 ) 8,464 Deferred tax provision (benefit): Federal (2,683 ) 9,518 (3,698 ) State 219 1,421 (654 ) Effect of tax rate change due to tax reform — 1,399 — Total deferred (2,464 ) 12,338 (4,352 ) Total income tax expense $ 1,625 $ 12,043 $ 4,112 For the years ended December 31, 2018, 2017 and 2016 , the provision for income taxes differs from the amount computed by applying the statutory Federal income tax rates of 21% for 2018 and 35% for 2017 and 2016 to pre-tax income for the following reasons: Years Ended December 31, 2018 2017 2016 (In thousands) Provision for income tax at statutory rate $ 12,922 $ 23,332 $ 18,820 Increase (decrease) resulting from: State income taxes, net of federal benefit 2,334 1,298 1,006 Increase in cash surrender value of bank-owned life insurance (1,322 ) (1,912 ) (1,188 ) Dividend received deduction (14 ) (179 ) (544 ) Tax exempt interest net of disallowed interest expense (3,138 ) (4,778 ) (3,726 ) Employee Stock Ownership Plan 32 60 28 Nondeductible acquisition costs 45 — — Investment tax credits (7,486 ) (9,581 ) (10,541 ) Effect of tax rate change due to tax reform — 1,399 — Adjustment to prior year provisional amount for tax rate change (1,709 ) — — Gain on surrender of BOLI — 2,377 — Other, net (39 ) 27 257 Total provision for income taxes $ 1,625 $ 12,043 $ 4,112 Effective income tax rate 2.6 % 18.1 % 7.6 % The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below: December 31, 2018 2017 (In thousands) Deferred tax assets: Loans $ 14,206 $ 12,939 Investment security losses 302 54 Net unrealized losses on securities available for sale 7,444 2,160 Net unrealized losses on interest rate swaps — 511 Pension, deferred compensation and post-retirement liabilities 1,553 2,228 Stock incentive award plan 1,225 1,251 Accrued expenses 3,219 — Tax attributes - tax credits and net operating losses 25,261 23,489 Other 3,813 1,827 Gross deferred tax assets 57,023 44,459 Valuation allowance (637 ) (565 ) Gross deferred tax assets, net of valuation allowance 56,386 43,894 Deferred tax liabilities: Other purchase accounting adjustments (1,278 ) (1,583 ) Partnerships (17,972 ) (12,251 ) Deferred loan origination costs (4,404 ) (4,070 ) Accrued expenses — (334 ) Net unrealized gains on interest rate swaps (26 ) — Gross deferred tax liabilities (23,680 ) (18,238 ) Net deferred tax asset $ 32,706 $ 25,656 The Company assesses the realizability of 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, 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, 2018 and 2017 . Under the Tax Cuts & Jobs Act of 2017, net operating losses may no longer be carried back to the preceding two taxable years for Federal income tax purposes but can now be carried forward indefinitely for Federal income tax purposes, subject to certain limitations. At December 31, 2018 , the Company had net operating loss carryforwards of $ 900,000 for Federal income tax purposes, which will begin to expire in 2029. These losses, subject to an annual limitation, were obtained through an acquisition. As of December 31, 2018 and 2017 , the Company had a valuation allowance of $ 637,000 and $ 565,000 , 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, 2018 and 2017 , the Company had $ 197.2 million and $201.6 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. As of December 31, 2018 , the Company generated Federal and state tax credits of $8.4 million as compared to $ 11.6 million in Federal and state tax credits in 2017 . These investment tax credits arose primarily from direct investment by the Company. These credit benefits are recognized through the effective tax rate in the year in which they are generated. Retained earnings at December 31, 2018 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 $827,000 at December 31, 2018 have not been recognized. As of December 31, 2018, 2017, and 2016 , there were $568,000 , $688,000 , and $497,000 respectively, recorded in uncertain tax benefit positions related to federal and state income tax matters based upon tax positions that related to the current year. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2018, 2017 and 2016 . 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, 2015 and after. On December 22, 2017, the Tax Act was enacted resulting in, amongst other tax reform items, a reduction in the Company's applicable U.S. Federal corporate tax rate from 35% to 21% effective January 1, 2018. As a result of this rate reduction and changes in other provisions of the Tax Act, upon completion of the Company’s 2017 tax returns in October 2018 and the assessment of the provision to the income tax return for the 2017 tax year, the Company incurred an adjustment of $1.7 million of additional tax benefit in 2018. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | Note 12. 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, 2018 and 2017 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, 2018 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 5.22 TBD (1 ) 2.67 % $ (356 ) Interest rate swaps 395,000 4.02 2.59 % 2.51 % 457 Non-hedging derivatives: Forward loan sale commitments 85,043 0.00 (681 ) Derivative loan commitments 8,491 0.00 194 Interest rate swap 7,500 7.54 (686 ) Loan level swaps - dealer (3) 640,760 6.88 4.20 % 4.10 % 2,068 Loan level swaps - borrowers (3) 640,760 6.88 4.10 % 4.20 % (2,074 ) Forward starting loan level swaps - dealer (3) 8,000 8.70 TBD (4 ) 5.11 % (37 ) Forward starting loan level swaps - borrower (3) 8,000 8.70 5.11 % TBD (4 ) 37 Total $ 1,843,554 $ (1,078 ) December 31, 2017 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 7.88 TBD (1 ) 2.45 % $ (292 ) Interest rate swaps 175,000 4.57 1.35 % 2.41 % (1,736 ) Fair value hedges: Interest rate swaps 10,000 0.47 1.00 % 1.51 % (2 ) (28 ) Non-hedging derivatives: Forward loan sale commitments 137,670 0.00 (92 ) Derivative loan commitments 24,430 0.00 530 Interest rate swap 7,500 8.54 (615 ) Loan level swaps - dealer (3) 603,447 7.31 3.25 % 3.99 % (3,183 ) Loan level swaps - borrowers (3) 603,447 7.31 3.99 % 3.25 % 3,174 Forward starting loan level swaps - dealer (3) 8,000 9.70 TBD (4 ) 5.11 % 105 Forward starting loan level swaps - borrower (3) 8,000 9.70 5.11 % TBD (4 ) (105 ) Total $ 1,627,494 $ (2,242 ) (1) The receiver leg of the cash flow hedge 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 hedge is March 20, 2019 for the period ending December 31, 2018 and November 15, 2018 for the period ending December 31, 2017. (2) The paying leg is one month LIBOR plus a fixed spread ; above rate in effect as of the date indicated. (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. (4) The floating leg of the forward starting loan level hedge is indexed to the one month USD-LIBOR-BBA, as determined one London banking day prior to the tenth day of each calendar month, commencing with the effective trade date on September 10, 2020. 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 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 $755,000 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 approximately 60 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of December 31, 2018 , the Company had 11 outstanding interest rate swaps with a notional value of $445.0 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. For the years ended December 31, 2018 and 2017, the Company recognized a negligible net impact to interest expense. As of December 31, 2018 , the Company had no outstanding interest rate derivatives that were designated as a fair value hedge 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. 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, 2018 , the Company had 86 borrower-facing interest rate swaps with an aggregate notional amount of $640.8 million and 86 broker-facing interest rate swaps also with an aggregate notional value amount of $640.8 million related to this program. As of December 31, 2018 , the Company had nine risk participation agreements with four counterparties related to a loan level interest rate swap with eight of its commercial banking customers. Of these agreements, three 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. Six agreements were entered into in conjunction with credit enhancements provided to the borrower by the Company, whereby the Company is responsible for a percentage of the exposure to the counterparties. At December 31, 2018 , the notional amount of these risk participation agreements was $41.2 million , reflecting the counterparties’ participation of 31.9% . At December 31, 2018 , the notional amount of the remaining three risk participation agreements was $24.2 million , reflecting the counterparty participation level of 36.7% . 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. The fair value of the risk participation agreements in an asset and liability position was negligible at December 31, 2018, and is recorded in other assets and other liabilities, respectively, on the Company’s Consolidated Statements of Condition. Forward Starting Loan Level Swaps As of December 31, 2018 , the Company had one borrower-facing forward starting loan level swap with a notional amount of $8.0 million , and one broker derivative with an aggregate notional amount of $8.0 million related to this program. This swap is related to the permanent financing of a project that is currently in the construction phase. Mortgage Servicing Rights Interest Rate Swap As of December 31, 2018 , the Company had one receive-fixed interest rate derivative with a notional amount of $7.5 million and a maturity date in July 2026. The derivative was executed to protect against a portion of the devaluation of the Company’s mortgage servicing right asset that occurs in a falling rate environment. The instrument is marked to market through the income statement. Derivative Loan Commitments Additionally, 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 To Be Announced (“TBA”) as well as cash (“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 loans held for sale and the exercise of the derivative loan commitments. With TBA and mandatory cash contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor/counterparty at a specified price on or before a specified date. If the mortgage market improves (rates decline) and 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/counterparty to compensate the investor for the shortfall. Conversely if the mortgage market declines (rates increase) the investor/counterparty is obligated to pay a “pair-off” fee to the Company based on then-current market prices. The Company expects that these forward loan sale commitments, TBA and mandatory, will experience changes in fair value opposite to the change in fair value of derivative loan commitments. With best effort cash contracts, 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 best efforts cash contracts have no pair off risk regardless of market movement. 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 best efforts forward loan sale commitments will experience a net neutral shift in fair value with related 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, 2018 and 2017 : 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 hedges Other Assets $ 1,610 $ 36 Other Liabilities $ 1,509 $ 2,064 Interest rate swap - fair value hedges Other Assets — — Other Liabilities — 28 Total derivatives designated as hedging instruments $ 1,610 $ 36 $ 1,509 $ 2,092 Derivatives not designated as hedging instruments: Forward loan sale commitments Other Assets $ — $ 12 Other Liabilities $ 681 $ 104 Derivative loan commitments Other Assets 194 530 Other Liabilities — — Interest rate swap Other Assets — — Other Liabilities 686 615 Loan level swap - with customers Other Assets 4,805 7,117 Other Liabilities 6,879 3,943 Loan level swap - with counterparties Other Assets 6,877 3,941 Other Liabilities 4,809 7,124 Forward starting loan level swap Other Assets 37 105 Other Liabilities 37 105 Total derivatives not designated as hedging $ 11,913 $ 11,705 $ 13,092 $ 11,891 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, 2018, 2017 and 2016 : Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps $ 1,516 $ (313 ) $ (1,472 ) Derivatives Designated as Cash Flow Hedging Instruments Amount of Loss Reclassified from AOCI into Income (Effective Portion) For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps $ (613 ) $ (1,487 ) $ (2,362 ) 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 2018 2017 2016 (In thousands) Interest Rate Swaps Interest income $ 28 $ (29 ) $ (23 ) Amount of Gain (Loss) Recognized in Income on Hedged Items For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps Interest income $ 29 $ (30 ) $ 25 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, 2018, 2017 and 2016 : Amount of Gain (Loss) Recognized for the Years Ended December 31, 2018 2017 2016 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitments $ (336 ) $ 109 $ 198 Interest rate swap (71 ) 45 — Forward loan sale commitments (589 ) (245 ) 166 Loan level swaps 3 10 (772 ) $ (993 ) $ (81 ) $ (408 ) 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, 2018 and 2017, 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 $575,000 and $3.1 million , respectively. As of December 31, 2018 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has no posted collateral 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, 2018 , 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. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 13. 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 and government 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 and government mortgage loans held for sale was $76.6 million and $113.2 million at December 31, 2018 and 2017 , respectively. The aggregate fair value of these loans as of the same dates was $78.8 million and $114.1 million , respectively. There were no residential real estate mortgage loans held for sale 90 days or more past due at December 31, 2018 and 2017 . 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, 2018 2017 2016 (In thousands) Mortgage loans held for sale $ (487 ) $ 1,401 $ (192 ) 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, 2018 and 2017 and indicate 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, 2018 and 2017 . 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, 2018 Available for sale securities: Government-sponsored residential mortgage-backed securities $ 204,098 $ — $ 204,098 $ — Government-sponsored residential collateralized debt obligations 170,719 — 170,719 — Government-sponsored commercial mortgage-backed securities 27,678 — 27,678 — Government-sponsored commercial collateralized debt obligations 148,226 — 148,226 — Asset-backed securities 100,495 — — 100,495 Corporate debt securities 83,230 — 83,230 — Obligations of states and political subdivisions 238,901 — 238,901 — Total available for sale securities $ 973,347 $ — $ 872,852 $ 100,495 Mortgage loan derivative assets $ 194 $ — $ 194 $ — Mortgage loan derivative liabilities 681 — 681 — Loans held for sale 78,788 — 78,788 — Marketable equity securities 356 356 — — Mortgage servicing rights 14,739 — — 14,739 Interest rate swap assets 13,329 — 13,329 — Interest rate swap liabilities 13,920 — 13,920 — December 31, 2017 Available for sale securities: Government-sponsored residential mortgage-backed securities $ 235,479 $ — $ 235,479 $ — Government-sponsored residential collateralized debt obligations 133,112 — 133,112 — Government-sponsored commercial mortgage-backed securities 33,255 — 33,255 — Government-sponsored commercial collateralized debt obligations 147,242 — 147,242 — Asset-backed securities 167,139 — — 167,139 Corporate debt securities 89,136 — 89,136 — Obligations of states and political subdivisions 245,007 — 245,007 — Marketable equity securities 417 417 — — Total available for sale securities $ 1,050,787 $ 417 $ 883,231 $ 167,139 Mortgage loan derivative assets $ 542 $ — $ 542 $ — Mortgage loan derivative liabilities 104 — 104 — Loans held for sale 114,073 — 114,073 — Mortgage servicing rights 11,733 — — 11,733 Interest rate swap assets 11,199 — 11,199 — Interest rate swap liabilities 13,879 — 13,879 — 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, 2018 2017 (In thousands) Balance of available for sale securities, at beginning of period $ 167,139 $ 155,472 Net (sales) purchases, settlements (64,011 ) 14,030 Principal payments and net accretion (179 ) (3,108 ) Total realized (losses) gains on sales included in earnings (82 ) 191 Total unrealized (losses) gains included in other comprehensive income (2,372 ) 554 Balance at end of period $ 100,495 $ 167,139 Balance of mortgage servicing rights at beginning of period $ 11,733 $ 10,104 Issuances 3,757 3,420 Change in fair value recognized in income (751 ) (1,791 ) Balance at end of period $ 14,739 $ 11,733 The following valuation methodologies are used for assets that are recorded at fair value on a recurring basis. Available for Sale and Marketable Equity 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, asset-backed securities are classified in Level 3 of the valuation hierarchy. Loans Held for Sale: The fair value of residential and government 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 loan 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, 2018 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range Asset-backed securities $ 100,495 Discounted Cash Flow Discount Rates 4.4% - 7.7% (5.55%) Cumulative Default % 0.5% - 13.0% (7.37%) Loss Given Default 0.2% - 4.0% (2.30%) Mortgage servicing rights $ 14,739 Discounted Cash Flow Discount Rate 11.0% - 15.5% (12.79%) Cost to Service $75 - $135 ($88.03) Float Earnings Rate 1.50% (1.50%) Prepayment Rate (1) 9.91% (1) The prepayment rate is based off of a 12-month rolling average. 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. 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 MSRs 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, 2018 and 2017 . The following tables detail the assets carried at fair value on a non-recurring basis at December 31, 2018 and 2017 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, 2018 Impaired loans $ 2,847 $ — $ — $ 2,847 Other real estate owned 1,389 — — 1,389 Total $ 4,236 $ — $ — $ 4,236 December 31, 2017 Impaired loans $ 4,488 $ — $ — $ 4,488 Other real estate owned 2,154 — — 2,154 Total $ 6,642 $ — $ — $ 6,642 The following is a description of the valuation methodologies used for assets that are recorded at fair value on a non-recurring basis: 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. 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. (Losses) gains on assets recorded at fair value at year-end on a non-recurring basis are as follows: For the Years Ended December 31, 2018 2017 2016 (In thousands) Impaired loans $ (514 ) $ 121 $ (541 ) Other real estate owned (311 ) (255 ) (126 ) Total $ (825 ) $ (134 ) $ (667 ) As of December 31, 2018 and 2017 , 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, 2018 Financial assets: Cash and cash equivalents $ 97,964 $ 97,964 $ — $ — $ 97,964 Available for sale securities 973,347 — 872,852 100,495 973,347 Loans held for sale 78,788 — 78,788 — 78,788 Loans receivable-net 5,622,589 — — 5,533,626 5,533,626 FHLBB stock 41,407 — — 41,407 41,407 Accrued interest receivable 24,823 — — 24,823 24,823 Derivative assets 13,523 — 13,523 — 13,523 Mortgage servicing rights 14,739 — — 14,739 14,739 Marketable equity securities 356 356 — — 356 Financial liabilities: Deposits 5,670,599 — — 5,661,129 5,661,129 Mortgagors’ and investors’ escrow accounts 4,685 — — 4,685 4,685 FHLBB advances and other borrowings 899,626 — 900,146 — 900,146 Derivative liabilities 14,601 — 14,601 — 14,601 December 31, 2017 Financial assets: Cash and cash equivalents $ 88,668 $ 88,668 $ — $ — $ 88,668 Available for sale securities 1,050,787 417 883,231 167,139 1,050,787 Held to maturity securities 13,598 — 14,300 — 14,300 Loans held for sale 114,073 — 114,073 — 114,073 Loans receivable-net 5,307,678 — — 5,297,381 5,297,381 FHLBB stock 50,194 — — 50,194 50,194 Accrued interest receivable 22,332 — — 22,332 22,332 Derivative assets 11,741 — 11,741 — 11,741 Mortgage servicing rights 11,733 — — 11,733 11,733 Financial liabilities: Deposits 5,198,221 — — 5,191,159 5,191,159 Mortgagors’ and investors’ escrow accounts 7,545 — — 7,545 7,545 FHLBB advances and other borrowings 1,165,054 — 1,164,431 — 1,164,431 Derivative liabilities 13,983 — 13,983 — 13,983 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, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION PLANS | Note 14. SHARE-BASED COMPENSATION PLANS The Company maintains and operates several stock incentive award plans to attract, retain and reward performance of qualified employees and directors who contribute to the success of the Company. These plans include those assumed by the Company in 2014 as a result of merger activity. Active plans, as of January 1, 2018 are: • Rockville Financial, Inc. 2006 Stock Incentive Award Plan (the “2006 Plan”); • Rockville Financial, Inc. 2012 Stock Incentive Plan (the “2012 Plan”); • United Financial Bancorp, Inc. 2008 Equity Incentive Plan; and • 2015 Omnibus Stock Incentive Plan (the “2015 Plan”). The 2015 Plan became effective on October 29, 2015 upon approval by the Company’s shareholders. As of the effective date of the 2015 Plan, no other awards may be granted from the previously approved or assumed plans. 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 directors 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 share-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. As of December 31, 2018 , 2,036,618 shares remained available for future grants under the 2015 Plan. Total employee and director share-based compensation expense recognized for stock options and restricted stock was $2.5 million with a related tax benefit recorded of $546,000 for the year ended December 31, 2018 . 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 $242,000 , and the amount for officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $2.2 million . 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 $595,000 for the year ended December 31, 2017 . 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 $400,000 , and the amount for officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and employee benefit expense) was $2.3 million . Total employee and director share-based compensation expense recognized for stock options and restricted stock was $2.3 million , with a related tax benefit recorded of $797,000 for the year ended December 31, 2016 . 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 $425,000 , the amount for officer share-based compensation expense recognized (in the Consolidated Statements of Net Income as salaries and benefits expense) was $1.8 million . 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. Stock Options: The following table presents the activity related to the Company’s stock options outstanding, including options that have stock appreciation rights (“SARs”), under the Plans for the year ended December 31, 2018 : Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2017 1,694,995 $ 11.34 Granted — — Exercised (278,830 ) 9.80 2.0 Forfeited, expired, or canceled (29,453 ) 8.98 0.3 Outstanding at December 31, 2018 1,386,712 $ 11.70 3.9 4.2 Stock options vested and exercisable at December 31, 2018 1,377,988 $ 11.69 3.8 $ 4.1 As of December 31, 2018 , the unrecognized cost related to outstanding stock options was $8,000 and will be recognized over a weighted-average period of 0.47 years. 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. There were no stock options granted in 2018 or 2017. Options exercised may include awards that were originally granted as tandem SARs. Therefore, if the SAR component is exercised, it will not equate to the number of shares issued due to the conversion of the SAR option value to the actual share value at exercise date. There were 55,234 options with a SAR component included in total options exercised during the year ended December 31, 2018 . Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period and in certain cases obtaining a performance metric. During the restriction period, all shares are considered outstanding and dividends are paid on the restricted stock. During the year ended December 31, 2018 , the Company issued 199,830 shares of restricted stock from shares available under the Company’s 2015 Plan to certain employees. The following table presents the activity for unvested restricted stock for the year ended December 31, 2018 : Number of Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2017 425,000 $ 15.55 Granted 199,830 15.88 Vested (130,959 ) 15.85 Forfeited (19,363 ) 16.88 Unvested as of December 31, 2018 474,508 $ 15.55 The fair value of restricted shares that vested during the years ended December 31, 2018, 2017 and 2016 was $2.1 million , $2.8 million , and $1.5 million , respectively. The weighted-average grant date fair value of restricted stock granted during the years ended December 31, 2018, 2017 and 2016 was $15.88 , $18.15 and $15.61 , respectively. As of December 31, 2018 , there was $4.3 million of total unrecognized compensation cost related to unvested restricted stock which is expected to be recognized over a weighted-average period of 2.2 years. Of the remaining unvested restricted stock, 259,315 shares will vest in 2019, 114,703 shares will vest in 2020, and 100,490 shares will vest in 2021. Included in unvested shares are performance awards with a December 31, 2018 measurement date, totaling 69,688 shares. The final assessment and measurement of these performance awards are pending, with an expected completion date in the first quarter of 2019. It is anticipated that there will be 36,052 share forfeitures recorded in conjunction with the final assessment. 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 Company, 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 . 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 6.25% as of December 31, 2018 . As of December 31, 2018 , the outstanding balance for the loan was $5.9 million , with a remaining term of 22 years. Principal payments of $1.2 million have been made on the loan since inception. Dividends paid in 2018 totaling $252,000 on all unallocated ESOP shares were offset to the interest payable on the note owed by the Company. The total ESOP expense was $378,000 , $400,000 and $308,000 for the years ended December 31, 2018, 2017 and 2016 , respectively. At December 31, 2018 , there were 182,505 allocated and 501,890 unallocated ESOP shares and the unallocated shares had an aggregate fair value of $7.4 million . Effective January 1, 2014, the Company merged its ESOP with its Defined Contribution Plan, or 401(k) Plan. 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, 2018 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS | Note 15. 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, 2018, 2017 and 2016 : Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Change in Benefit Obligation: Benefit obligation at beginning of year $ 31,045 $ 28,475 $ 27,115 $ 1,102 $ 1,000 $ 929 $ 2,059 $ 2,041 $ 1,841 Service cost — — — 27 24 22 20 21 13 Interest cost 1,097 1,162 1,186 38 39 39 70 79 76 Plan participants’ contributions — — — — — — 27 28 27 Actuarial (gain) loss (2,351 ) 2,379 1,088 (79 ) 72 37 (280 ) (10 ) 180 Benefits paid and administration expenses (1,040 ) (971 ) (914 ) (41 ) (33 ) (27 ) (103 ) (100 ) (96 ) Benefit obligation at end of year $ 28,751 $ 31,045 $ 28,475 $ 1,047 $ 1,102 $ 1,000 $ 1,793 $ 2,059 $ 2,041 Change in Plan Assets: Fair value of plan assets at beginning of year $ 29,903 $ 26,425 $ 25,240 $ — $ — $ — $ — $ — $ — Actual (loss) return on plan assets (1,676 ) 3,824 1,571 — — — — — — Employer contributions 1,500 625 528 41 33 27 76 72 69 Plan participants’ contributions — — — — — — 27 28 27 Benefits paid and administration expenses (1,040 ) (971 ) (914 ) (41 ) (33 ) (27 ) (103 ) (100 ) (96 ) Fair value of plan assets at end of year $ 28,687 $ 29,903 $ 26,425 $ — $ — $ — $ — $ — $ — Funded Status: Underfunded status at end of year $ (64 ) $ (1,142 ) $ (2,050 ) $ (1,047 ) $ (1,102 ) $ (1,000 ) $ (1,793 ) $ (2,059 ) $ (2,041 ) Amounts Recognized in the Consolidated Statements of Condition Accrued expenses and other liabilities $ (64 ) $ (1,142 ) $ (2,050 ) $ (1,047 ) $ (1,102 ) $ (1,000 ) $ (1,793 ) $ (2,059 ) $ (2,041 ) The components of accumulated other comprehensive loss related to pensions and other post-retirement benefits and related tax effects at December 31, 2018, 2017 and 2016 are summarized below: Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Prior service cost $ — $ — $ — $ 64 $ 71 $ 78 $ — $ — $ — Net loss (gain) 7,941 7,285 7,696 101 187 117 (245 ) 35 45 Total unrecognized losses (gains) 7,941 7,285 7,696 165 258 195 (245 ) 35 45 Deferred tax (asset) liability (1,749 ) (2,625 ) (2,773 ) (36 ) (93 ) (70 ) 54 (12 ) (16 ) Net impact on accumulated other comprehensive loss $ 6,192 $ 4,660 $ 4,923 $ 129 $ 165 $ 125 $ (191 ) $ 23 $ 29 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, 2018, 2017 and 2016 : Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ — $ — $ — $ 27 $ 24 $ 22 $ 20 $ 21 $ 13 Interest cost 1,097 1,162 1,186 38 39 39 70 79 76 Expected return on plan assets (1,817 ) (1,603 ) (1,624 ) — — — — — — Amortization of net actuarial losses 486 569 495 7 2 — — — — Amortization of prior service cost — — — 7 7 7 — — — Net periodic (benefit) cost (234 ) 128 57 79 72 68 90 100 89 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) 1,142 158 1,140 (79 ) 72 37 (280 ) (10 ) 180 Amortization of net loss (486 ) (569 ) (495 ) (7 ) (2 ) — — — — Amortization of prior service cost — — — (7 ) (7 ) (7 ) — — — Total recognized in other comprehensive income (loss) 656 (411 ) 645 (93 ) 63 30 (280 ) (10 ) 180 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 422 $ (283 ) $ 702 $ (14 ) $ 135 $ 98 $ (190 ) $ 90 $ 269 Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during 2019 are $572,000 , $7,000 and $(13,000) 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 2018 2017 2018 2017 2018 2017 Discount rate 4.15 % 3.60 % 4.10 % 3.50 % 4.10 % 3.50 % Expected return on plan assets 5.25 % 6.50 % — % — % — % — % 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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.60 % 4.15 % 4.45 % 3.50 % 4.00 % 4.30 % 3.50 % 4.00 % 4.25 % Expected return on plan assets 6.50 % 6.50 % 7.00 % — % — % — % — % — % — % Rate of compensation increase — % — % — % — % — % — % 4.00 % 4.00 % 4.00 % The accumulated post-retirement benefit obligation for the other post-retirement benefits was $1.8 million and $2.1 million as of December 31, 2018 and 2017 , 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 Principal Discount Yield Curve 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 6.75% for Pre-65 & 6.00% for Post-65 at December 31, 2018 . 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 $ 181 $ (153 ) Effect on total service and interest 9 (8 ) Plan Assets The fair value of major categories of pension plan assets as of December 31, 2018 and 2017 are as follows: Total Fair Value Percent (In thousands) December 31, 2018 Fixed income funds $ 24,440 85 % Domestic equity funds 2,317 8 International equity funds 1,524 5 Hedge funds 292 1 Money market funds 114 1 Total $ 28,687 100 % December 31, 2017 Fixed income funds $ 16,264 54 % Domestic equity funds 6,234 21 International equity funds 4,187 14 Hedge funds 2,909 10 Money market funds 309 1 Total $ 29,903 100 % 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 2018 targeted allocation for fixed income, domestic equity securities, international equity securities, and hedge funds was 85% , 9% , 6% and 0% , 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 $1.5 million , $625,000 , and $528,000 in contributions to the Qualified Pension Plan in 2018 , 2017 , and 2016 , respectively. The Company does not expect to make any contributions to the Qualified Pension Plan in 2019. Estimated Future Benefit Payments The benefit payments expected to be paid are as follows: Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits (In thousands) Years Ending December 31, 2019 $ 1,220 $ 41 $ 100 2020 1,340 41 110 2021 1,360 41 120 2022 1,390 41 110 2023 1,440 41 110 Years 2024-2028 7,690 327 560 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, 2018 and 2017 was 118.7% and 114.3% , respectively, per the actuarial valuation reports. Market value of plan assets reflects contributions received through June 30, 2018. 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 $411,000 contribution, recorded as pension expense, was made in 2018, while $50,000 contributions, recorded as pension expense, were made in 2017 and 2016. 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. The Company matches 100% of the first 3% and 50% of the next 2% of each eligible employee’s pre-tax contributions based on eligible compensation. Participants are fully vested in all contributions. For employees who have met the Plan’s age and service requirements, the Company may also make a discretionary contribution equal to a uniform percentage of eligible compensation per participant. The discretionary contribution may be made in stock or cash and may be directed to the Employee Stock Ownership portion of the plan. Effective January 1, 2014, the Company merged its Employee Stock Ownership Plan with its 401(k) Plan. In connection with the pension plan being frozen at December 31, 2012, the Company provides additional transitional benefits to the impacted employees through the 401(k) Plan beginning January 1, 2013 for a five year period. Effective January 1, 2018, these transitional benefits were no longer paid. The Company recorded expenses of $2.0 million , $1.9 million , and $1.7 million related to the plan for the years ended December 31, 2018, 2017 and 2016 , respectively. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | Note 16. REGULATORY MATTERS Minimum regulatory capital requirements The Company (on a consolidated basis) 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 and the Bank’s consolidated 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 qualitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Federal banking regulations require a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0% and a minimum leverage ratio of 4.0% 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 bonuses. The capital conservation buffer and certain deductions from and adjustments to regulatory capital and risk-weighted assets are being phased in over several years. The required minimum conservation buffer is 1.875% as of December 31, 2018, and increased to 2.5% on January 1, 2019. The required minimum conservation buffer as of December 31, 2017 was 1.25%. Management believes that the Company’s capital levels will remain characterized as “well-capitalized” throughout the phase-in periods. As of December 31, 2018 and 2017, the notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework from prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. As of December 31, 2018 and 2017 , the Company and the Bank have met all capital adequacy requirements to which they are subject. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2018 and 2017 are also presented in the following table: 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, 2018 Total capital to risk weighted assets $ 694,633 11.9 % $ 466,980 8.0 % $ 583,725 10.0 % Common equity tier 1 capital to risk weighted assets 640,773 10.9 264,539 4.5 382,112 6.5 Tier 1 capital to risk weighted assets 640,773 10.9 352,719 6.0 470,292 8.0 Tier 1 capital to total average assets 640,773 9.0 284,788 4.0 355,985 5.0 December 31, 2017 Total capital to risk weighted assets $ 642,179 11.6 % $ 442,882 8.0 % $ 553,603 10.0 % Common equity tier 1 capital to risk weighted assets 593,155 10.7 249,458 4.5 360,328 6.5 Tier 1 capital to risk weighted assets 593,155 10.7 332,610 6.0 443,480 8.0 Tier 1 capital to total average assets 593,155 8.7 272,715 4.0 340,894 5.0 United Financial Bancorp, Inc.: December 31, 2018 Total capital to risk weighted assets $ 739,322 12.6 % $ 469,411 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,462 10.4 264,142 4.5 N/A N/A Tier 1 capital to risk weighted assets 610,462 10.4 352,190 6.0 N/A N/A Tier 1 capital to total average assets 610,462 8.4 290,696 4.0 N/A N/A December 31, 2017 Total capital to risk weighted assets $ 701,794 12.6 % $ 445,583 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 577,770 10.4 249,997 4.5 N/A N/A Tier 1 capital to risk weighted assets 577,770 10.4 333,329 6.0 N/A N/A Tier 1 capital to total average assets 577,770 8.4 275,129 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 Company’s shareholders if such dividends would reduce regulatory capital 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, 2018 and 2017, $135.0 million and $108.3 million , respectively, 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. 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, 2018 2017 (In thousands) Total consolidated equity $ 712,518 $ 693,328 Adjustments: Additional Bank-only equity 36,322 20,081 Accumulated other comprehensive loss 30,414 11,840 Disallowed goodwill and other intangible assets (121,839 ) (117,847 ) Disallowed deferred tax assets (16,642 ) (11,398 ) Other — (2,849 ) Tier 1 capital 640,773 593,155 Allowance for loan losses and off-balance sheet credit losses 53,860 48,944 Unrealized gains on available-for-sale securities includible in total risk-based capital — 80 Total risk-based capital $ 694,633 $ 642,179 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | Note 17. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, 2018 2017 Benefit plans: Unrecognized net actuarial loss $ (7,861 ) $ (7,578 ) Tax effect 1,731 2,730 Net-of-tax amount (6,130 ) (4,848 ) Securities available for sale: Net unrealized loss (31,248 ) (8,896 ) Tax effect 6,885 3,201 Net-of-tax amount (24,363 ) (5,695 ) Interest rate swaps: Net unrealized gain (loss) 101 (2,028 ) Tax effect (22 ) 731 Net-of-tax amount 79 (1,297 ) $ (30,414 ) $ (11,840 ) On January 1, 2018, the Company adopted ASU No. 2018-02, Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which addressed the impact of the federal rate tax deduction on deferred taxes that were originally recorded through accumulated other comprehensive income. Through the adoption of this ASU, the Company reclassed the “dangling” difference due to the tax rate differential caused by the enactment of the Tax Cuts and Jobs Act on December 22, 2017. As a result, a one-time reclassification of $2.6 million was made from accumulated other comprehensive loss to retained earnings. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | Note 18. 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, 2018, 2017 and 2016 : Years Ended December 31, (In thousands, except share data) 2018 2017 2016 Net income $ 59,906 $ 54,618 $ 49,661 Adjusted weighted-average common shares outstanding 51,069,346 50,820,019 50,290,934 Less: average number of unvested ESOP award shares 514,134 536,948 559,785 Weighted-average basic shares outstanding 50,555,212 50,283,071 49,731,149 Dilutive effect of stock options 457,027 639,581 357,881 Weighted-average diluted shares 51,012,239 50,922,652 50,089,030 Net income per share: Basic $ 1.18 $ 1.09 $ 1.00 Diluted $ 1.17 $ 1.07 $ 0.99 There were no anti-dilutive options for the years ended December 31, 2018 and 2017. For the year ending December 31, 2016, the weighted-average number of anti-dilutive stock options excluded from the diluted net income per share calculation was 258,000 . Stock options were anti-dilutive because the strike price was greater than the average fair value of the Company’s common stock for the periods presented. |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | Note 19. 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, by year and in the aggregate, are as follows as of December 31, 2018 : (In thousands) 2019 $ 7,148 2020 7,704 2021 7,536 2022 7,070 2023 5,962 Thereafter 42,007 $ 77,427 Total rental expense charged to operations for all cancelable and non-cancelable operating leases was $6.9 million , $5.3 million and $4.6 million for the years ended December 31, 2018, 2017 and 2016 , respectively. 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 rents receivable under the non-cancelable leases are as follows as of December 31, 2018 : (In thousands) 2019 $ 1,362 2020 1,407 2021 1,276 2022 841 2023 144 Thereafter 297 $ 5,327 Rental income is recorded as a reduction to occupancy and equipment expense in the accompanying Consolidated Statements of Net Income and amounted to $1.1 million , $573,000 and $553,000 for the years ended December 31, 2018, 2017 and 2016 , 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, 2018 . 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, 2018 and 2017 : December 31, 2018 2017 (In thousands) Commitments to extend credit: Commitment to grant loans $ 140,875 $ 110,664 Undisbursed construction loans 122,838 136,149 Undisbursed home equity lines of credit 453,634 412,484 Undisbursed commercial lines of credit 515,193 412,547 Standby letters of credit 13,252 14,680 Unused credit card lines 21,331 16,084 Unused checking overdraft lines of credit 2,322 1,544 Total $ 1,269,445 $ 1,104,152 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 credits, new markets housing tax credits, and alternative energy tax credit partnerships. The net carrying balance of these investments totaled $51.5 million at December 31, 2018 and is included in other assets on the Consolidated Statement of Condition. At December 31, 2018 , the Company was contractually committed under these limited partnership agreements to make additional capital contributions of $4.0 million , which constitutes our maximum potential obligation to these partnerships. |
SELECTED QUARTERLY CONSOLIDATED
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) | Note 20. SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) The Company’s quarterly results of operations were as follows: 2018 2017 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 $ 72,223 $ 70,191 $ 67,130 $ 63,494 $ 61,727 $ 60,799 $ 58,562 $ 55,166 Interest expense 23,861 21,762 18,949 16,951 14,878 14,031 12,234 10,869 Net interest income 48,362 48,429 48,181 46,543 46,849 46,768 46,328 44,297 Provision for loan losses 2,618 2,007 2,350 1,939 2,250 2,566 2,292 2,288 Net interest income after provision for loan losses 45,744 46,422 45,831 44,604 44,599 44,202 44,036 42,009 Non-interest income 9,493 9,555 8,360 9,289 7,581 8,426 9,826 8,732 Other non-interest expense 43,718 38,943 38,370 36,736 37,237 35,262 35,329 34,922 Income before income taxes 11,519 17,034 15,821 17,157 14,943 17,366 18,533 15,819 Provision (benefit) for income taxes (646 ) 726 175 1,370 5,442 2,175 2,333 2,093 Net income $ 12,165 $ 16,308 $ 15,646 $ 15,787 $ 9,501 $ 15,191 $ 16,200 $ 13,726 Earnings per share: Basic $ 0.24 $ 0.32 $ 0.31 $ 0.31 $ 0.19 $ 0.30 $ 0.32 $ 0.27 Diluted $ 0.24 $ 0.32 $ 0.31 $ 0.31 $ 0.19 $ 0.30 $ 0.32 $ 0.27 Stock Price (per share): High $ 17.14 $ 18.20 $ 18.33 $ 18.30 $ 19.35 $ 18.50 $ 18.29 $ 18.66 Low $ 13.58 $ 16.86 $ 15.78 $ 15.47 $ 17.09 $ 16.27 $ 15.84 $ 15.75 The primary driver in the increase in other non-interest expense in the fourth quarter of 2018 was due to a change in the Company’s mortgage banking strategy, which resulted in a reduction of staff in the mortgage division. Consequently, the Company recorded a $2.2 million severance expense (pre-tax) in the quarter ending December 31, 2018. Additionally, in the fourth quarter of 2018, the Company recorded expenses related to lease impairment as a result of branch consolidation and expenses associated with the six acquired branches in October 2018. Furthermore, the Company took advantage of additional tax planning strategies afforded by the Tax Act, which contributed to the fourth quarter benefit recorded for income taxes. The fourth quarter of 2017 was significantly impacted by the Tax Act, resulting in a $2.8 million negative net income impact, of which, $1.6 million flowed directly through the provision for income taxes. The quarter was also impacted by accelerated lease expense recognized on a property that the Company no longer occupied, as well as the Company’s move to its new headquarters in Hartford, Connecticut, both causing an increase in other non-interest expense as compared to previous quarters. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | Note 21. PARENT COMPANY FINANCIAL INFORMATION The following represents the Company’s Condensed Statements of Condition as of December 31, 2018 and 2017 and Condensed Statements of Net Income and Cash Flows for the years ended December 31, 2018, 2017 and 2016 which should be read in conjunction with the Consolidated Financial Statements and related notes: Condensed Statements of Condition At December 31, 2018 2017 (In thousands) Assets: Cash and due from banks $ 15,001 $ 24,365 Investment in United Bank 748,840 713,409 Due from United Bank 14,954 13,101 Other assets 15,787 24,210 Total Assets $ 794,582 $ 775,085 Liabilities and Stockholders’ Equity: Subordinated debentures $ 80,201 $ 79,956 Accrued expenses and other liabilities 1,863 1,801 Stockholders’ equity 712,518 693,328 Total Liabilities and Stockholders’ Equity $ 794,582 $ 775,085 Condensed Statements of Net Income For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest and dividend income on investments $ 25 $ 25 $ 159 Interest expense on subordinated debentures (4,879 ) (4,794 ) (4,738 ) Net interest expense (4,854 ) (4,769 ) (4,579 ) Non-interest income 108 830 — General and administrative expense (5,046 ) (5,350 ) (4,982 ) Loss before tax benefit and equity in undistributed net loss of United Bank (9,792 ) (9,289 ) (9,561 ) Income tax benefit 2,452 3,987 3,338 Loss before equity in undistributed net income of United Bank (7,340 ) (5,302 ) (6,223 ) Equity in undistributed net income of United Bank 67,246 59,920 55,884 Net income $ 59,906 $ 54,618 $ 49,661 Condensed Statements of Cash Flows For the Years ended December 31, 2018 2017 2016 (In thousands) Cash flows from operating activities: Net income $ 59,906 $ 54,618 $ 49,661 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of purchase accounting marks, net 118 114 100 Amortization of subordinated debt issuance costs, net 127 126 127 Share-based compensation expense 2,481 2,699 2,252 ESOP expense 378 400 308 Undistributed income of United Bank (67,246 ) (59,920 ) (55,884 ) Deferred tax (benefit) provision (1,987 ) 7,166 4,237 Tax benefit of stock-based awards — — (486 ) Net change in: Due from United Bank (1,853 ) (1,696 ) (2,031 ) Other assets 10,418 3,941 6,879 Accrued expenses and other liabilities 62 118 (19 ) Net cash provided by operating activities 2,404 7,566 5,144 Cash flows from investing activities: Dividends from United Bank 16,000 24,000 — Net cash provided by investing activities 16,000 24,000 — Cash flows from financing activities: Common stock repurchased (5,157 ) (1,312 ) — Proceeds from the exercise of stock options 2,247 2,460 6,275 Cancellation of shares for tax withholding (601 ) (805 ) (327 ) Tax effects of share-based awards — — 486 Cash dividends paid on common stock (24,257 ) (24,111 ) (23,836 ) Net cash used in financing activities (27,768 ) (23,768 ) (17,402 ) Net increase (decrease) in cash and cash equivalents (9,364 ) 7,798 (12,258 ) Cash and cash equivalents — beginning of year 24,365 16,567 28,825 Cash and cash equivalents — end of year $ 15,001 $ 24,365 $ 16,567 Supplemental disclosures of cash flow information: Cash paid for income taxes, net $ 1,835 $ 4,574 $ 3,655 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 22. SUBSEQUENT EVENTS The Company invests, as a limited liability member, in Solar Eclipse Investment Fund X, LLC, Solar Eclipse Investment Fund XV, LLC, and Solar Eclipse Investment Fund XXIII, LLC, which are alternative energy funds generating investment tax credits for the Company. On February 4, 2019, D.C. Solar Solutions, Inc. and D.C. Solar Distributions, Inc., the debtor and lessee, respectively, of the funds, filed for Chapter 11 bankruptcy. As of December 31, 2018, the Company held approximately $19.0 million in recorded investment balance for these funds, and has $18.3 million in recognized associated tax credit benefits for the periods 2014 through 2018 that are potentially subject to reversal if it is determined that the basis of the leased assets do not support the tax credit. As of the filing date of the Annual Report on Form 10-K, there is $8.2 million of the $18.3 million of tax credit benefit subject to reversal if it is determined that the tax credits are accurate but the leased assets will no longer remain in service. The Company has not determined whether there is any impact to the investment in these funds or the tax credits generated from the funds as a result of the bankruptcy filing and is currently monitoring the investments for possible impairment, if any. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Financial Statement Presentation | The consolidated financial statements and the accompanying notes presented in this report include the accounts of the United Financial Bancorp, Inc., United 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 Wealth Management, Inc., United Bank Investment Sub, Inc., UB Properties, LLC, United Financial Realty HC, Inc. and UCB Securities, Inc. II. In addition, the Bank has a real estate investment trust subsidiary, United Financial Business Trust I, which is a wholly owned subsidiary of United Financial Realty HC, Inc. The Company is a bank holding company under the Bank Holding Company Act of 1956, as amended, headquartered in Hartford, Connecticut and incorporated under the laws of Connecticut in 2004. At December 31, 2018 , 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 58 banking offices, its commercial loan and mortgage loan production offices, 71 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 review of goodwill for impairment. Certain reclassifications have been made to prior periods’ consolidated financial statements to conform to the 2018 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. |
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, if any, are those which the Company 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 during any of the periods presented. 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 any of the periods presented. 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. Prior to January 1, 2018, marketable equity securities were classified as available for sale and a decline in the value of an equity security considered to have OTTI was recorded as a loss in non-interest income in the Consolidated Statements of Net Income. Effective January 1, 2018, all equity securities were recorded at fair value in other assets in the Consolidated Statements of Condition, with unrealized gains and losses recognized in non-interest income in the Consolidated Statements of Net Income. See Note 5, “Securities.” 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. 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. |
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 To Be Announced (“TBA”) as well as cash (“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. These forward loan sale commitments 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 Company, 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 the 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 Company reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. |
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. Gains or losses on sales of loans are included in non-interest income in the Consolidated Statements of Net 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 the Company originates and intends to hold in the portfolio are stated at current unpaid principal balances, net of deferred loan origination costs and fees, the allowance for loan losses, and charge-offs. Commitment fees for which the likelihood of exercise is remote are recognized over the loan commitment period on a straight-line basis. Acquired loans are recorded at fair value with no carryover of the related allowance for loan losses at the time of acquisition. The Company’s loan portfolio includes owner-occupied commercial real estate, investor non-owner occupied commercial real estate, commercial and residential construction, commercial business, residential real estate, home equity and other consumer loan segments. Residential real estate loans include one-to-four family owner-occupied first mortgages. 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 or the straight-line method over the expected life of the loan, where applicable. 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 date 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, the Company adjusts 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 12-quarter 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; experience and depth of lending weighted average risk rating; and national and local economic trends and conditions. The general component of the allowance for loan losses also includes a reserve based upon historical loss experience for loans which were acquired and have subsequently evidenced deterioration following initial acquisition. Our acquired loan portfolio is comprised of purchased loans that show no evidence of credit deterioration subsequent to acquisition and therefore these loans are not part of the covered portfolio. Acquired impaired loans are loans with evidence of deterioration upon acquisition and are not considered in the covered portfolio in establishing the allowance for loan loss. There were no changes in the Company’s methodology pertaining to the general component of the allowance for loan losses during 2018. 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 and home equity loans – The Company 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. Owner-occupied and investor non-owner occupied commercial real estate (“CRE”) – Loans in these segments 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. Other consumer – 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, the non-accretable discount is estimated based upon our expected cash flows for these loans. To the extent that the Company experiences a deterioration in borrower credit quality resulting in a decrease in the expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on the Company’s 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 business, 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. Updated property evaluations are obtained at the time of impairment and serve as the basis for the loss allocation if foreclosure is probable or the loan is collateral dependent. 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. 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. Loans which are placed on non-accrual status, or deemed troubled debt restructures, are considered impaired by the Company and subject to impairment testing for possible partial or full charge-off when loss can be reasonably determined. Generally, when all contractual payments on a loan are not expected to be collected, or the loan has failed to make contractual payments for a period of 90 days or more, a loan is placed on non-accrual status. In accordance with the Company's loan policy, losses on open and closed end consumer loans are recognized within a period of 120 days past due. For commercial loans, there is no threshold in terms of days past due for losses to be recognized as a result of the complexity in reasonably determining losses within a set time frame. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. 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 Public Securities Association (“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 on the Consolidated Statements of Condition, with changes in fair value recorded in income from mortgage banking activities in the Consolidated Statements of Net Income. |
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. At December 31, 2018 and 2017 , the Company had $1.4 million and $2.2 million , respectively, of other real estate owned included in other assets on the Consolidated Statements of Condition. 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 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 in excess of carrying value, are recorded in non-interest income in the Consolidated Statements of Net 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. Expected lease terms include lease option periods to the extent that the exercise of such options are reasonably assured. 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. |
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 in the fourth quarter, 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 | 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 of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of enactment. 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 | The Company evaluates investments including affordable housing tax credit partnerships, investment tax credit partnerships and other limited partnerships to determine whether consolidation is necessary. The Company applies the cost method and equity method of accounting to its investments in limited partnerships depending upon ownership interest and leverage. 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 Company’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 in non-interest income in the Consolidated Statements of Net Income. |
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 Income 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. The aggregate cost method is utilized for funding purposes. 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 provided additional benefits to these employees under the Company’s 401(k) Plan for five years beginning January 1, 2013. See Note 15, “Pension Plans and Other Post-Retirement Benefits”, for further information on these benefits. In addition to the qualified plans, 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 Company accounts for its defined benefit pension and supplemental retirement plans 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 these plans as an asset or liability on its Consolidated Statements of Condition 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 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 13, “Fair Value Measurement” in the Notes to Consolidated Financial Statements. |
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 awards are non-forfeitable, these unvested 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. |
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 compensation - ESOP is 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 | 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 | 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 | 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 | Accounting Standards Issued but Not Yet Adopted The following list identifies ASUs applicable to the Company that have been issued but are not yet effective: Disclosure In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The amendments in this Update remove the disclosure requirements that are no longer considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this Update are effective for fiscal years ending after December 15, 2020. Early adoption is permitted and amendments should be applied on a retrospective basis to all periods presented. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU updates disclosure requirements of ASC 820 in order to improve the effectiveness of the disclosures. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments affecting changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are to be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. This ASU will affect the Company’s disclosures only and will not have a financial statement impact. Compensation In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting as a part of its simplification initiative. Under this guidance, the inclusion of share-based payments for nonemployees as payment for goods or services will be added under the scope of Topic 718. Recognition for costs of issuance of share-based payments to nonemployees is expected to be similar to how companies recognize these same costs for employees. This ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This ASU is not expected to have a significant impact to the Company’s Consolidated Financial Statements. Receivables In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. Under the new guidance, the premium on bonds purchased at a premium will be amortized to the bond’s call date rather than the date of maturity to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. The Company adopted ASU No. 2017-08 effective January 1, 2019, which reduced premiums on callable debt securities by approximately $10.2 million (pre-tax), with the offset being recorded as a cumulative-effect adjustment directly to retained earnings. Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the Board’s guidance on the impairment of financial instruments. The ASU adds to US GAAP an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of US GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. For public business entities that are US Securities and Exchange Commission filers, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. The impact on adoption is a one-time adjustment to retained earnings. The Company is evaluating the provisions of ASU No. 2016-13 and will closely monitor developments and additional guidance to determine the potential impact on the Company’s Consolidated Financial Statements which is expected to increase loan loss reserves, the amount of which is uncertain at this time. The Company has implemented a committee led by the Bank’s Chief Credit Officer, which includes the Chief Financial Officer, to assist in identifying, implementing and evaluating the impact of the required changes to loan loss estimation models and processes. The Company has evaluated portfolio segments and methodologies and is currently evaluating expected loss modeling as well as controls and procedures. Leases In February 2016, the FASB issued 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 guidance will be effective for public business entities for annual periods beginning after December 15, 2018 and interim periods therein. In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements (Topic 842), which revised the transition approach which no longer requires leases to be recognized at the beginning of the earliest period presented using a modified retrospective approach. Instead, adopters can take can take the prospective approach upon transition which allows entities to not recast comparative periods upon transition. There are also a number of optional practical expedients that entities may elect to apply. On December 10, 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, which further provides narrow-scope improvements to accounting for lessors. Specifically, this ASU addressed sales taxes and other similar taxes collected from lessees, certain lessor costs paid directly by lessees and recognition of variable payments for contracts with lease and nonlease components. These updates should help lessors with their implementation and ongoing application of the leases standard without compromising information provided to users of financial statements. Upon adoption of this ASU on January 1, 2019, the Company recorded an increase in assets of $45.0 million and an increase in liabilities of $45.0 million on the Consolidated Statements of Condition as a result of recognizing the right-of-use assets and lease liabilities. |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 $ 115,281 $ 5,902 Amortization expense — (1,411 ) Balance at December 31, 2017 $ 115,281 $ 4,491 Amortization expense — (1,350 ) Acquisitions 1,488 2,886 Balance at December 31, 2018 $ 116,769 $ 6,027 Estimated amortization expense for the years ending December 31, 2019 $ 1,538 2020 1,293 2021 1,048 2022 803 2023 558 2024 and thereafter 787 Total remaining $ 6,027 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 (In thousands) Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 208,916 $ — $ (4,818 ) $ 204,098 Government-sponsored residential collateralized debt obligations 172,468 270 (2,019 ) 170,719 Government-sponsored commercial mortgage-backed securities 28,694 — (1,016 ) 27,678 Government-sponsored commercial collateralized debt obligations 155,091 — (6,865 ) 148,226 Asset-backed securities 102,371 15 (1,891 ) 100,495 Corporate debt securities 86,462 48 (3,280 ) 83,230 Obligations of states and political subdivisions 250,593 425 (12,117 ) 238,901 Total available for sale debt securities $ 1,004,595 $ 758 $ (32,006 ) $ 973,347 December 31, 2017 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 235,646 $ 779 $ (946 ) $ 235,479 Government-sponsored residential collateralized debt obligations 134,652 16 (1,556 ) 133,112 Government-sponsored commercial mortgage-backed securities 33,449 7 (201 ) 33,255 Government-sponsored commercial collateralized debt obligations 151,035 — (3,793 ) 147,242 Asset-backed securities 166,559 1,253 (673 ) 167,139 Corporate debt securities 88,571 1,104 (539 ) 89,136 Obligations of states and political subdivisions 249,531 1,436 (5,960 ) 245,007 Total debt securities 1,059,443 4,595 (13,668 ) 1,050,370 Marketable equity securities, by sector: Industrial 109 100 — 209 Oil and gas 131 77 — 208 Total marketable equity securities 240 177 — 417 Total available for sale securities $ 1,059,683 $ 4,772 $ (13,668 ) $ 1,050,787 Held to maturity: Debt securities: Government-sponsored residential mortgage-backed securities $ 1,318 $ 111 $ — $ 1,429 Obligations of states and political subdivisions 12,280 679 (88 ) 12,871 Total held to maturity securities $ 13,598 $ 790 $ (88 ) $ 14,300 |
Amortized Cost and Fair Value of Debt Securities | The amortized cost and fair value of debt securities at December 31, 2018 , 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, collateralized debt obligations, and asset-backed securities require periodic principal paydowns, they are not included in the maturity categories in the following maturity summary: Available for Sale Amortized Cost Fair Value (In thousands) Maturity: Within 1 year $ — $ — After 1 year through 5 years 13,803 13,620 After 5 years through 10 years 88,828 84,815 After 10 years 234,424 223,696 337,055 322,131 Government-sponsored residential mortgage-backed securities 208,916 204,098 Government-sponsored residential collateralized debt obligations 172,468 170,719 Government-sponsored commercial mortgage-backed securities 28,694 27,678 Government-sponsored commercial collateralized debt obligations 155,091 148,226 Asset-backed securities 102,371 100,495 Total debt securities $ 1,004,595 $ 973,347 |
Available for Sale Securities | For the years ended December 31, 2018, 2017 and 2016 , 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, 2018 2017 2016 (In thousands) Proceeds from the sale of available for sale securities $ 59,761 $ 315,339 $ 268,162 Gross realized gains on the sale of available for sale securities 453 3,774 2,880 Gross realized losses on the sale of available for sale securities 308 2,992 919 |
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, 2018 and 2017 : 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, 2018 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities $ 97,634 $ (1,590 ) $ 106,464 $ (3,228 ) $ 204,098 $ (4,818 ) Government-sponsored residential collateralized debt obligations 5,093 (54 ) 107,291 (1,965 ) 112,384 (2,019 ) Government-sponsored commercial mortgage-backed securities — — 27,678 (1,016 ) 27,678 (1,016 ) Government-sponsored commercial collateralized debt obligations 15,787 (176 ) 132,439 (6,689 ) 148,226 (6,865 ) Asset-backed securities 62,444 (1,272 ) 23,426 (619 ) 85,870 (1,891 ) Corporate debt securities 43,937 (1,394 ) 33,245 (1,886 ) 77,182 (3,280 ) Obligations of states and political subdivisions 89,312 (2,204 ) 137,590 (9,913 ) 226,902 (12,117 ) Total available for sale securities $ 314,207 $ (6,690 ) $ 568,133 $ (25,316 ) $ 882,340 $ (32,006 ) December 31, 2017 Available for sale: Debt securities: Government-sponsored residential mortgage-backed securities 41,961 (203 ) 83,545 (743 ) 125,506 (946 ) Government-sponsored residential collateralized debt obligations 82,758 (740 ) 43,359 (816 ) 126,117 (1,556 ) Government-sponsored commercial mortgage-backed securities 21,196 (74 ) 10,895 (127 ) 32,091 (201 ) Government-sponsored commercial collateralized debt obligations 27,965 (291 ) 119,277 (3,502 ) 147,242 (3,793 ) Asset-backed securities 64,259 (602 ) 4,756 (71 ) 69,015 (673 ) Corporate debt securities 25,403 (257 ) 10,764 (282 ) 36,167 (539 ) Obligations of states and political subdivisions 26,341 (312 ) 116,624 (5,648 ) 142,965 (5,960 ) Total available for sale securities $ 289,883 $ (2,479 ) $ 389,220 $ (11,189 ) $ 679,103 $ (13,668 ) Held to maturity: Debt securities: Obligations of states and political subdivisions $ 2,130 $ (24 ) $ 1,032 $ (64 ) $ 3,162 $ (88 ) Total held to maturity securities $ 2,130 $ (24 ) $ 1,032 $ (64 ) $ 3,162 $ (88 ) |
LOANS RECEIVABLE AND ALLOWANC_2
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Company's Loan Portfolio | A summary of the Company’s loan portfolio at December 31, 2018 and 2017 is as follows: December 31, 2018 2017 Amount Percent Amount Percent (In thousands) Commercial real estate loans Owner occupied commercial real estate $ 443,398 7.8 % $ 445,820 8.3 % Investor non-owner occupied commercial real estate 1,911,070 33.8 1,854,459 34.7 Commercial construction 87,493 1.5 78,083 1.5 Total commercial real estate loans 2,441,961 43.1 2,378,362 44.5 Commercial business loans 886,770 15.7 840,312 15.7 Consumer loans Residential real estate 1,313,373 23.2 1,204,401 22.6 Home equity 583,454 10.3 583,180 10.9 Residential construction 20,632 0.4 40,947 0.8 Other consumer 410,249 7.3 292,781 5.5 Total consumer loans 2,327,708 41.2 2,121,309 39.8 Total loans 5,656,439 100.0 % 5,339,983 100.0 % Net deferred loan costs and premiums 17,786 14,794 Allowance for loan losses (51,636 ) (47,099 ) Loans - net $ 5,622,589 $ 5,307,678 |
Summary of Changes in Purchased Accounting Adjustments, Accretable and Nonaccretable Yields of Acquired Loans | |
Summary of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 are as follows: Owner-occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) December 31, 2018 Balance, beginning of year $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Provision for loan losses 618 1,103 73 1,445 732 407 4,301 235 8,914 Loans charged off — (81 ) (21 ) (1,653 ) (547 ) (628 ) (2,967 ) — (5,897 ) Recoveries of loans previously charged off 87 73 — 561 92 183 524 — 1,520 Balance, end of year $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 December 31, 2017 Balance, beginning of year $ 3,765 $ 14,869 $ 1,913 $ 8,730 $ 7,854 $ 2,858 $ 1,353 $ 1,456 $ 42,798 Provision for loan losses 60 1,623 195 2,988 428 1,085 2,728 289 9,396 Loans charged off (103 ) (735 ) (507 ) (1,984 ) (736 ) (779 ) (1,840 ) — (6,684 ) Recoveries of loans previously charged off 32 159 — 874 148 94 282 — 1,589 Balance, end of year $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 December 31, 2016 Balance, beginning of year $ 2,174 $ 12,859 $ 1,895 $ 5,827 $ 7,801 $ 2,391 $ 146 $ 794 $ 33,887 Provision for loan losses 1,704 2,806 15 3,364 1,022 1,096 2,768 662 13,437 Loans charged off (169 ) (1,207 ) — (1,018 ) (1,043 ) (742 ) (1,710 ) — (5,889 ) Recoveries of loans previously charged off 56 411 3 557 74 113 149 — 1,363 Balance, end of year $ 3,765 $ 14,869 $ 1,913 $ 8,730 $ 7,854 $ 2,858 $ 1,353 $ 1,456 $ 42,798 |
Summary of Allowance for Loan Losses and Impaired Loans | Further information pertaining to the allowance for loan losses and impaired loans at December 31, 2018 and 2017 follows: Owner-occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer Unallocated Total (In thousands) December 31, 2018 Allowance related to loans individually evaluated and deemed impaired $ — $ — $ 92 $ 114 $ 120 $ 1 $ 243 $ — $ 570 Allowance related to loans collectively evaluated and not deemed impaired 4,459 17,011 1,561 10,847 7,851 3,219 4,138 1,980 51,066 Total allowance for loan losses $ 4,459 $ 17,011 $ 1,653 $ 10,961 $ 7,971 $ 3,220 $ 4,381 $ 1,980 $ 51,636 Loans deemed impaired $ 3,034 $ 6,895 $ 1,047 $ 5,219 $ 20,114 $ 8,257 $ 1,318 $ — $ 45,884 Loans not deemed impaired 440,364 1,903,998 107,078 881,551 1,291,255 575,197 407,851 — 5,607,294 Loans acquired with deteriorated credit quality — 177 — — 2,004 — 1,080 — 3,261 Total loans $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 $ — $ 5,656,439 December 31, 2017 Allowance related to loans individually evaluated and deemed impaired $ 60 $ — $ — $ 400 $ 60 $ — $ — $ — $ 520 Allowance related to loans collectively evaluated and not deemed impaired 3,694 15,916 1,601 10,208 7,634 3,258 2,523 1,745 46,579 Total allowance for loan losses $ 3,754 $ 15,916 $ 1,601 $ 10,608 $ 7,694 $ 3,258 $ 2,523 $ 1,745 $ 47,099 Loans deemed impaired $ 2,300 $ 8,414 $ 2,273 $ 5,681 $ 18,301 $ 8,547 $ 395 $ — $ 45,911 Loans not deemed impaired 443,520 1,845,815 116,757 834,631 1,186,100 574,633 290,898 — 5,292,354 Loans acquired with deteriorated credit quality — 230 — — — — 1,488 — 1,718 Total loans $ 445,820 $ 1,854,459 $ 119,030 $ 840,312 $ 1,204,401 $ 583,180 $ 292,781 $ — $ 5,339,983 |
Summary of Past Due and Non-Accrual Loans | The following is a summary of past due and non-accrual loans at December 31, 2018 and 2017 : 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, 2018 Owner-occupied CRE $ 1,745 $ 7 $ 352 $ 2,104 $ — $ 2,503 Investor CRE 1,306 91 546 1,943 — 1,131 Construction 331 — 913 1,244 — 913 Commercial business loans 5,455 1,582 2,803 9,840 1,387 2,481 Residential real estate 11,214 5,216 9,448 25,878 2,004 16,214 Home equity 1,498 779 4,349 6,626 — 6,192 Other consumer 1,123 359 1,393 2,875 154 1,243 Total $ 22,672 $ 8,034 $ 19,804 $ 50,510 $ 3,545 $ 30,677 December 31, 2017 Owner-occupied CRE $ 1,195 $ 455 $ 1,297 $ 2,947 $ — $ 1,735 Investor CRE 849 92 1,212 2,153 206 1,821 Construction — — 1,398 1,398 — 1,398 Commercial business loans 1,069 3,465 1,219 5,753 650 4,987 Residential real estate 3,187 2,297 5,633 11,117 — 14,860 Home equity 1,319 498 3,281 5,098 — 6,466 Other consumer 947 241 491 1,679 97 395 Total $ 8,566 $ 7,048 $ 14,531 $ 30,145 $ 953 $ 31,662 |
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, 2018 and 2017 : December 31, 2018 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) Impaired loans without a valuation allowance: Owner-occupied CRE $ 3,034 $ 3,422 $ 2,183 $ 2,891 Investor CRE 6,895 7,153 8,414 8,577 Construction 333 1,339 2,273 2,658 Commercial business loans 5,105 7,325 2,446 3,317 Residential real estate 18,244 20,153 16,645 17,929 Home equity 8,132 9,483 8,547 9,583 Other consumer 725 725 395 398 Total 42,468 49,600 40,903 45,353 Impaired loans with a valuation allowance: Construction $ 714 $ 965 $ 92 $ — $ — $ — Commercial business loans 114 122 114 3,235 3,767 400 Residential real estate 1,870 2,069 120 1,656 1,711 60 Owner-occupied CRE — — — 117 117 60 Home equity 125 130 1 — — — Other consumer 593 593 243 — — — Total 3,416 3,879 570 5,008 5,595 520 Total impaired loans $ 45,884 $ 53,479 $ 570 $ 45,911 $ 50,948 $ 520 |
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, 2018, 2017 and 2016 : 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: Owner-occupied CRE $ 2,573 $ 134 $ 2,840 $ 97 $ 3,924 $ 150 Investor CRE 8,147 318 9,736 370 11,363 447 Construction 1,481 21 2,429 87 4,087 124 Commercial business loans 4,588 337 7,562 258 12,167 282 Residential real estate 18,940 752 17,519 789 16,485 715 Home equity 8,176 229 7,788 281 5,856 202 Other consumer 704 1 1,197 — 819 1 Total $ 44,609 $ 1,792 $ 49,071 $ 1,882 $ 54,701 $ 1,921 |
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 $ 15,208 $ 14,249 Non-accrual status 6,971 8,475 Total recorded investment in TDRs $ 22,179 $ 22,724 Accruing TDRs performing under modified terms more than one year $ 12,609 $ 7,783 Specific reserves for TDRs included in the balance of allowance for loan losses $ 213 $ 520 Additional funds committed to borrowers in TDR status $ 7 $ 29 |
Troubled Debt Restructurings | Loans restructured as TDRs during 2018 , 2017 , and 2016 are set forth in the following table: For the Year Ended December 31, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Construction 1 $ 965 $ 965 Commercial business loans 1 2,455 2,455 Residential real estate 11 3,965 3,975 Home equity 12 768 752 Total TDRs 25 $ 8,153 $ 8,147 For the Year Ended December 31, 2017 (Dollars in thousands) Number of Pre-Modification Post-Modification Investor CRE 1 $ 5,038 $ 5,038 Commercial business loans 5 482 482 Residential real estate 9 1,598 1,627 Home equity 21 2,476 2,483 Total TDRs 36 $ 9,594 $ 9,630 For the Year Ended December 31, 2016 (Dollars in thousands) Number of Pre-Modification Post-Modification Owner-occupied CRE 5 $ 654 $ 666 Construction 2 67 67 Commercial business loans 8 3,033 5,006 Residential real estate 13 1,320 1,329 Home equity 18 1,572 1,574 Other consumer 1 132 132 Total TDRs 47 6,778 8,774 The following table provides information on how loans were modified as TDRs during the periods indicated: For the Year Ended December 31, 2018 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Construction $ 965 $ — $ — $ — $ — Commercial business loans 2,455 — — — — Residential real estate 11 — 583 3,371 — Home equity 97 — 671 — — Total $ 3,528 $ — $ 1,254 $ 3,371 $ — For the Year Ended December 31, 2017 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Investor CRE $ — $ — $ — $ — $ 5,038 Commercial business loans 211 — — — 271 Residential real estate 266 — 234 929 169 Home equity 938 — 824 714 — Total $ 1,415 $ — $ 1,058 $ 1,643 $ 5,478 For the Year Ended December 31, 2016 Extended Adjusted Adjusted Rate and Maturity Payment Deferral Other (In thousands) Owner-occupied CRE $ 510 $ — $ 86 $ — $ 58 Construction 23 — 44 — — Commercial business loans 2,350 — 243 348 92 Residential real estate 87 — 672 561 — Home equity — 261 707 604 — Other consumer — — 132 — — Total $ 2,970 $ 261 $ 1,884 $ 1,513 $ 150 TDRs that subsequently defaulted within twelve months of restructuring during the years ended December 31, 2018, 2017 and 2016 follows: For the Year Ended For the Year Ended For the Year Ended Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment (Dollars in thousands) Residential real estate 1 $ 98 3 $ 170 3 $ 456 Home equity 2 26 — — 1 151 Construction 1 715 — — — — Commercial business — — — — 2 495 Total troubled debt restructuring 4 $ 839 3 $ 170 6 1,102 |
Company's Loans by Risk Rating | The following table presents the Company’s loans by risk rating at December 31, 2018 and 2017 : Owner-Occupied CRE Investor CRE Construction Commercial Residential Real Estate Home Equity Other Consumer (In thousands) December 31, 2018 Loans rated 1 — 5 $ 410,403 $ 1,884,767 $ 104,848 $ 844,541 $ 1,294,623 $ 576,509 $ 407,935 Loans rated 6 17,134 6,544 1,994 28,385 2,429 740 — Loans rated 7 15,861 19,759 1,283 13,844 16,321 6,205 2,314 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 443,398 $ 1,911,070 $ 108,125 $ 886,770 $ 1,313,373 $ 583,454 $ 410,249 December 31, 2017 Loans rated 1 — 5 $ 423,720 $ 1,829,762 $ 117,583 $ 811,604 $ 1,186,753 $ 576,592 $ 292,386 Loans rated 6 4,854 10,965 49 15,816 1,948 89 — Loans rated 7 17,246 13,732 1,398 12,892 15,700 6,499 395 Loans rated 8 — — — — — — — Loans rated 9 — — — — — — — $ 445,820 $ 1,854,459 $ 119,030 $ 840,312 $ 1,204,401 $ 583,180 $ 292,781 |
Schedule of Changes in Loans Outstanding to Related Parties | Changes in loans outstanding to such related parties for the years ended December 31, 2018 and 2017 are as follows: 2018 2017 (In thousands) Balance, beginning of year $ 1,896 $ 2,285 Loans related to parties who terminated service during the year (235 ) (776 ) Payoffs (832 ) — Additional loans and advances 763 600 Repayments (35 ) (213 ) Balance, end of year $ 1,557 $ 1,896 |
Summary of Mortgage Servicing Rights Capitalized and Amortized | The following table summarizes MSRs capitalized along with related fair value adjustments for the years ended December 31, 2018, 2017 and 2016 : Years Ended December 31, 2018 2017 2016 (In thousands) Mortgage servicing rights: Balance at beginning of year $ 11,733 $ 10,104 $ 7,074 Change in fair value recognized in income (751 ) (1,791 ) 567 Issuances/additions 3,757 3,420 2,463 Balance at end of year $ 14,739 $ 11,733 $ 10,104 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31, 2018 and 2017 are summarized as follows: At December 31, Estimated Useful Life 2018 2017 (In thousands) Land and improvements $ 1,031 $ 964 up to 15 years Buildings 35,217 36,756 10 - 39.5 years Furniture and equipment 40,903 36,867 3 - 10 years Leasehold improvements 32,021 25,175 5 - 10 years Assets under capitalized leases 4,902 4,902 5 - 10 years 114,074 104,664 Accumulated depreciation and amortization (45,417 ) (37,156 ) Premises and equipment, net $ 68,657 $ 67,508 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The components of other assets at December 31, 2018 and 2017 are summarized below: At December 31, 2018 2017 (In thousands) Current income tax receivable $ 3,436 $ 5,705 Partnership investments 51,504 38,160 Mortgage servicing rights 14,739 11,733 Derivative assets 13,523 11,741 Other real estate owned 1,389 2,154 Receivable on surrendered BOLI policies — 26,713 Prepaid expenses 6,802 4,521 Other 8,975 4,866 Total other assets $ 100,368 $ 105,593 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Deposits | Deposits at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 (In thousands) Demand and NOW $ 1,653,574 $ 1,573,404 Regular savings 498,026 504,115 Money markets 1,736,459 1,325,754 Time deposits 1,782,540 1,794,948 Total deposits $ 5,670,599 $ 5,198,221 |
Summary of Contractual Maturities of Time Deposits | Contractual maturities of time deposits as of December 31, 2018 are summarized below: December 31, 2018 (In thousands) 2019 $ 1,034,233 2020 497,587 2021 227,372 2022 15,864 2023 7,484 $ 1,782,540 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are summarized below: December 31, 2018 December 31, 2017 Amount Weighted- Average Rate Amount Weighted- Average Rate (Dollars in thousands) 2018 $ — — % $ 929,274 1.56 % 2019 785,000 2.55 75,000 1.76 2020 8,000 2.33 8,000 2.33 2021 — — — — 2022 — — — — 2023 2,557 2.51 — — Thereafter 1,531 2.58 33,680 1.14 $ 797,088 2.54 % $ 1,045,954 1.57 % |
Schedule of Repurchase Agreements | The following table presents the Company’s outstanding borrowings, and related collateral, under repurchase agreements as of December 31, 2018 and 2017 : Remaining Contractual Maturity of the Agreements Overnight Up to 1 Year 1 - 3 Years Greater than 3 Years Total (Dollars in thousands) December 31, 2018 Repurchase Agreements U.S. Treasury and agency securities $ 8,361 $ 10,000 $ — $ — $ 18,361 December 31, 2017 Repurchase Agreements U.S. Treasury and agency securities $ 14,591 $ 10,000 $ 10,000 $ — $ 34,591 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of the income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows: 2018 2017 2016 (In thousands) Current tax provision (benefit): Federal $ 1,617 $ (1,289 ) $ 6,262 State 2,472 994 2,202 Total current 4,089 (295 ) 8,464 Deferred tax provision (benefit): Federal (2,683 ) 9,518 (3,698 ) State 219 1,421 (654 ) Effect of tax rate change due to tax reform — 1,399 — Total deferred (2,464 ) 12,338 (4,352 ) Total income tax expense $ 1,625 $ 12,043 $ 4,112 |
Summary of Provision for Income Taxes | For the years ended December 31, 2018, 2017 and 2016 , the provision for income taxes differs from the amount computed by applying the statutory Federal income tax rates of 21% for 2018 and 35% for 2017 and 2016 to pre-tax income for the following reasons: Years Ended December 31, 2018 2017 2016 (In thousands) Provision for income tax at statutory rate $ 12,922 $ 23,332 $ 18,820 Increase (decrease) resulting from: State income taxes, net of federal benefit 2,334 1,298 1,006 Increase in cash surrender value of bank-owned life insurance (1,322 ) (1,912 ) (1,188 ) Dividend received deduction (14 ) (179 ) (544 ) Tax exempt interest net of disallowed interest expense (3,138 ) (4,778 ) (3,726 ) Employee Stock Ownership Plan 32 60 28 Nondeductible acquisition costs 45 — — Investment tax credits (7,486 ) (9,581 ) (10,541 ) Effect of tax rate change due to tax reform — 1,399 — Adjustment to prior year provisional amount for tax rate change (1,709 ) — — Gain on surrender of BOLI — 2,377 — Other, net (39 ) 27 257 Total provision for income taxes $ 1,625 $ 12,043 $ 4,112 Effective income tax rate 2.6 % 18.1 % 7.6 % |
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, 2018 and 2017 are presented below: December 31, 2018 2017 (In thousands) Deferred tax assets: Loans $ 14,206 $ 12,939 Investment security losses 302 54 Net unrealized losses on securities available for sale 7,444 2,160 Net unrealized losses on interest rate swaps — 511 Pension, deferred compensation and post-retirement liabilities 1,553 2,228 Stock incentive award plan 1,225 1,251 Accrued expenses 3,219 — Tax attributes - tax credits and net operating losses 25,261 23,489 Other 3,813 1,827 Gross deferred tax assets 57,023 44,459 Valuation allowance (637 ) (565 ) Gross deferred tax assets, net of valuation allowance 56,386 43,894 Deferred tax liabilities: Other purchase accounting adjustments (1,278 ) (1,583 ) Partnerships (17,972 ) (12,251 ) Deferred loan origination costs (4,404 ) (4,070 ) Accrued expenses — (334 ) Net unrealized gains on interest rate swaps (26 ) — Gross deferred tax liabilities (23,680 ) (18,238 ) Net deferred tax asset $ 32,706 $ 25,656 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 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, 2018 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 5.22 TBD (1 ) 2.67 % $ (356 ) Interest rate swaps 395,000 4.02 2.59 % 2.51 % 457 Non-hedging derivatives: Forward loan sale commitments 85,043 0.00 (681 ) Derivative loan commitments 8,491 0.00 194 Interest rate swap 7,500 7.54 (686 ) Loan level swaps - dealer (3) 640,760 6.88 4.20 % 4.10 % 2,068 Loan level swaps - borrowers (3) 640,760 6.88 4.10 % 4.20 % (2,074 ) Forward starting loan level swaps - dealer (3) 8,000 8.70 TBD (4 ) 5.11 % (37 ) Forward starting loan level swaps - borrower (3) 8,000 8.70 5.11 % TBD (4 ) 37 Total $ 1,843,554 $ (1,078 ) December 31, 2017 Cash flow hedges: Forward starting interest rate swaps on future borrowings $ 50,000 7.88 TBD (1 ) 2.45 % $ (292 ) Interest rate swaps 175,000 4.57 1.35 % 2.41 % (1,736 ) Fair value hedges: Interest rate swaps 10,000 0.47 1.00 % 1.51 % (2 ) (28 ) Non-hedging derivatives: Forward loan sale commitments 137,670 0.00 (92 ) Derivative loan commitments 24,430 0.00 530 Interest rate swap 7,500 8.54 (615 ) Loan level swaps - dealer (3) 603,447 7.31 3.25 % 3.99 % (3,183 ) Loan level swaps - borrowers (3) 603,447 7.31 3.99 % 3.25 % 3,174 Forward starting loan level swaps - dealer (3) 8,000 9.70 TBD (4 ) 5.11 % 105 Forward starting loan level swaps - borrower (3) 8,000 9.70 5.11 % TBD (4 ) (105 ) Total $ 1,627,494 $ (2,242 ) (1) The receiver leg of the cash flow hedge 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 hedge is March 20, 2019 for the period ending December 31, 2018 and November 15, 2018 for the period ending December 31, 2017. (2) The paying leg is one month LIBOR plus a fixed spread ; above rate in effect as of the date indicated. (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. (4) The floating leg of the forward starting loan level hedge is indexed to the one month USD-LIBOR-BBA, as determined one London banking day prior to the tenth day of each calendar month, commencing with the effective trade date on September 10, 2020. |
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, 2018 and 2017 : 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 hedges Other Assets $ 1,610 $ 36 Other Liabilities $ 1,509 $ 2,064 Interest rate swap - fair value hedges Other Assets — — Other Liabilities — 28 Total derivatives designated as hedging instruments $ 1,610 $ 36 $ 1,509 $ 2,092 Derivatives not designated as hedging instruments: Forward loan sale commitments Other Assets $ — $ 12 Other Liabilities $ 681 $ 104 Derivative loan commitments Other Assets 194 530 Other Liabilities — — Interest rate swap Other Assets — — Other Liabilities 686 615 Loan level swap - with customers Other Assets 4,805 7,117 Other Liabilities 6,879 3,943 Loan level swap - with counterparties Other Assets 6,877 3,941 Other Liabilities 4,809 7,124 Forward starting loan level swap Other Assets 37 105 Other Liabilities 37 105 Total derivatives not designated as hedging $ 11,913 $ 11,705 $ 13,092 $ 11,891 |
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, 2018, 2017 and 2016 : Derivatives Designated as Cash Flow Hedging Instruments Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps $ 1,516 $ (313 ) $ (1,472 ) Derivatives Designated as Cash Flow Hedging Instruments Amount of Loss Reclassified from AOCI into Income (Effective Portion) For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps $ (613 ) $ (1,487 ) $ (2,362 ) 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 2018 2017 2016 (In thousands) Interest Rate Swaps Interest income $ 28 $ (29 ) $ (23 ) Amount of Gain (Loss) Recognized in Income on Hedged Items For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest Rate Swaps Interest income $ 29 $ (30 ) $ 25 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, 2018, 2017 and 2016 : Amount of Gain (Loss) Recognized for the Years Ended December 31, 2018 2017 2016 (In thousands) Derivatives not designated as hedging instruments: Derivative loan commitments $ (336 ) $ 109 $ 198 Interest rate swap (71 ) 45 — Forward loan sale commitments (589 ) (245 ) 166 Loan level swaps 3 10 (772 ) $ (993 ) $ (81 ) $ (408 ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 (In thousands) Mortgage loans held for sale $ (487 ) $ 1,401 $ (192 ) |
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, 2018 and 2017 and indicate 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, 2018 and 2017 . 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, 2018 Available for sale securities: Government-sponsored residential mortgage-backed securities $ 204,098 $ — $ 204,098 $ — Government-sponsored residential collateralized debt obligations 170,719 — 170,719 — Government-sponsored commercial mortgage-backed securities 27,678 — 27,678 — Government-sponsored commercial collateralized debt obligations 148,226 — 148,226 — Asset-backed securities 100,495 — — 100,495 Corporate debt securities 83,230 — 83,230 — Obligations of states and political subdivisions 238,901 — 238,901 — Total available for sale securities $ 973,347 $ — $ 872,852 $ 100,495 Mortgage loan derivative assets $ 194 $ — $ 194 $ — Mortgage loan derivative liabilities 681 — 681 — Loans held for sale 78,788 — 78,788 — Marketable equity securities 356 356 — — Mortgage servicing rights 14,739 — — 14,739 Interest rate swap assets 13,329 — 13,329 — Interest rate swap liabilities 13,920 — 13,920 — December 31, 2017 Available for sale securities: Government-sponsored residential mortgage-backed securities $ 235,479 $ — $ 235,479 $ — Government-sponsored residential collateralized debt obligations 133,112 — 133,112 — Government-sponsored commercial mortgage-backed securities 33,255 — 33,255 — Government-sponsored commercial collateralized debt obligations 147,242 — 147,242 — Asset-backed securities 167,139 — — 167,139 Corporate debt securities 89,136 — 89,136 — Obligations of states and political subdivisions 245,007 — 245,007 — Marketable equity securities 417 417 — — Total available for sale securities $ 1,050,787 $ 417 $ 883,231 $ 167,139 Mortgage loan derivative assets $ 542 $ — $ 542 $ — Mortgage loan derivative liabilities 104 — 104 — Loans held for sale 114,073 — 114,073 — Mortgage servicing rights 11,733 — — 11,733 Interest rate swap assets 11,199 — 11,199 — Interest rate swap liabilities 13,879 — 13,879 — |
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, 2018 2017 (In thousands) Balance of available for sale securities, at beginning of period $ 167,139 $ 155,472 Net (sales) purchases, settlements (64,011 ) 14,030 Principal payments and net accretion (179 ) (3,108 ) Total realized (losses) gains on sales included in earnings (82 ) 191 Total unrealized (losses) gains included in other comprehensive income (2,372 ) 554 Balance at end of period $ 100,495 $ 167,139 Balance of mortgage servicing rights at beginning of period $ 11,733 $ 10,104 Issuances 3,757 3,420 Change in fair value recognized in income (751 ) (1,791 ) Balance at end of period $ 14,739 $ 11,733 |
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, 2018 : (Dollars in thousands) Fair Value Valuation Technique Unobservable Inputs Range Asset-backed securities $ 100,495 Discounted Cash Flow Discount Rates 4.4% - 7.7% (5.55%) Cumulative Default % 0.5% - 13.0% (7.37%) Loss Given Default 0.2% - 4.0% (2.30%) Mortgage servicing rights $ 14,739 Discounted Cash Flow Discount Rate 11.0% - 15.5% (12.79%) Cost to Service $75 - $135 ($88.03) Float Earnings Rate 1.50% (1.50%) Prepayment Rate (1) 9.91% (1) The prepayment rate is based off of a 12-month rolling average. |
Summary of Assets Recorded at Fair Value on Non-Recurring Basis | The following tables detail the assets carried at fair value on a non-recurring basis at December 31, 2018 and 2017 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, 2018 Impaired loans $ 2,847 $ — $ — $ 2,847 Other real estate owned 1,389 — — 1,389 Total $ 4,236 $ — $ — $ 4,236 December 31, 2017 Impaired loans $ 4,488 $ — $ — $ 4,488 Other real estate owned 2,154 — — 2,154 Total $ 6,642 $ — $ — $ 6,642 |
Summary of Losses on Assets Recorded at Fair Value on Non-Recurring Basis | (Losses) gains on assets recorded at fair value at year-end on a non-recurring basis are as follows: For the Years Ended December 31, 2018 2017 2016 (In thousands) Impaired loans $ (514 ) $ 121 $ (541 ) Other real estate owned (311 ) (255 ) (126 ) Total $ (825 ) $ (134 ) $ (667 ) |
Summary of Carrying Value and Estimated Fair Values of Financial Instruments | As of December 31, 2018 and 2017 , 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, 2018 Financial assets: Cash and cash equivalents $ 97,964 $ 97,964 $ — $ — $ 97,964 Available for sale securities 973,347 — 872,852 100,495 973,347 Loans held for sale 78,788 — 78,788 — 78,788 Loans receivable-net 5,622,589 — — 5,533,626 5,533,626 FHLBB stock 41,407 — — 41,407 41,407 Accrued interest receivable 24,823 — — 24,823 24,823 Derivative assets 13,523 — 13,523 — 13,523 Mortgage servicing rights 14,739 — — 14,739 14,739 Marketable equity securities 356 356 — — 356 Financial liabilities: Deposits 5,670,599 — — 5,661,129 5,661,129 Mortgagors’ and investors’ escrow accounts 4,685 — — 4,685 4,685 FHLBB advances and other borrowings 899,626 — 900,146 — 900,146 Derivative liabilities 14,601 — 14,601 — 14,601 December 31, 2017 Financial assets: Cash and cash equivalents $ 88,668 $ 88,668 $ — $ — $ 88,668 Available for sale securities 1,050,787 417 883,231 167,139 1,050,787 Held to maturity securities 13,598 — 14,300 — 14,300 Loans held for sale 114,073 — 114,073 — 114,073 Loans receivable-net 5,307,678 — — 5,297,381 5,297,381 FHLBB stock 50,194 — — 50,194 50,194 Accrued interest receivable 22,332 — — 22,332 22,332 Derivative assets 11,741 — 11,741 — 11,741 Mortgage servicing rights 11,733 — — 11,733 11,733 Financial liabilities: Deposits 5,198,221 — — 5,191,159 5,191,159 Mortgagors’ and investors’ escrow accounts 7,545 — — 7,545 7,545 FHLBB advances and other borrowings 1,165,054 — 1,164,431 — 1,164,431 Derivative liabilities 13,983 — 13,983 — 13,983 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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”), under the Plans for the year ended December 31, 2018 : Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2017 1,694,995 $ 11.34 Granted — — Exercised (278,830 ) 9.80 2.0 Forfeited, expired, or canceled (29,453 ) 8.98 0.3 Outstanding at December 31, 2018 1,386,712 $ 11.70 3.9 4.2 Stock options vested and exercisable at December 31, 2018 1,377,988 $ 11.69 3.8 $ 4.1 |
Activity for Restricted Stock | The following table presents the activity for unvested restricted stock for the year ended December 31, 2018 : Number of Shares Weighted-Average Grant-Date Fair Value Unvested as of December 31, 2017 425,000 $ 15.55 Granted 199,830 15.88 Vested (130,959 ) 15.85 Forfeited (19,363 ) 16.88 Unvested as of December 31, 2018 474,508 $ 15.55 |
PENSION PLANS AND OTHER POST-_2
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [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, 2018, 2017 and 2016 : Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Change in Benefit Obligation: Benefit obligation at beginning of year $ 31,045 $ 28,475 $ 27,115 $ 1,102 $ 1,000 $ 929 $ 2,059 $ 2,041 $ 1,841 Service cost — — — 27 24 22 20 21 13 Interest cost 1,097 1,162 1,186 38 39 39 70 79 76 Plan participants’ contributions — — — — — — 27 28 27 Actuarial (gain) loss (2,351 ) 2,379 1,088 (79 ) 72 37 (280 ) (10 ) 180 Benefits paid and administration expenses (1,040 ) (971 ) (914 ) (41 ) (33 ) (27 ) (103 ) (100 ) (96 ) Benefit obligation at end of year $ 28,751 $ 31,045 $ 28,475 $ 1,047 $ 1,102 $ 1,000 $ 1,793 $ 2,059 $ 2,041 Change in Plan Assets: Fair value of plan assets at beginning of year $ 29,903 $ 26,425 $ 25,240 $ — $ — $ — $ — $ — $ — Actual (loss) return on plan assets (1,676 ) 3,824 1,571 — — — — — — Employer contributions 1,500 625 528 41 33 27 76 72 69 Plan participants’ contributions — — — — — — 27 28 27 Benefits paid and administration expenses (1,040 ) (971 ) (914 ) (41 ) (33 ) (27 ) (103 ) (100 ) (96 ) Fair value of plan assets at end of year $ 28,687 $ 29,903 $ 26,425 $ — $ — $ — $ — $ — $ — Funded Status: Underfunded status at end of year $ (64 ) $ (1,142 ) $ (2,050 ) $ (1,047 ) $ (1,102 ) $ (1,000 ) $ (1,793 ) $ (2,059 ) $ (2,041 ) Amounts Recognized in the Consolidated Statements of Condition Accrued expenses and other liabilities $ (64 ) $ (1,142 ) $ (2,050 ) $ (1,047 ) $ (1,102 ) $ (1,000 ) $ (1,793 ) $ (2,059 ) $ (2,041 ) |
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, 2018, 2017 and 2016 are summarized below: Qualified Pension Plan December 31, Supplemental Executive Retirement Plans December 31, Other Post- Retirement Benefits December 31, 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: Prior service cost $ — $ — $ — $ 64 $ 71 $ 78 $ — $ — $ — Net loss (gain) 7,941 7,285 7,696 101 187 117 (245 ) 35 45 Total unrecognized losses (gains) 7,941 7,285 7,696 165 258 195 (245 ) 35 45 Deferred tax (asset) liability (1,749 ) (2,625 ) (2,773 ) (36 ) (93 ) (70 ) 54 (12 ) (16 ) Net impact on accumulated other comprehensive loss $ 6,192 $ 4,660 $ 4,923 $ 129 $ 165 $ 125 $ (191 ) $ 23 $ 29 |
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, 2018, 2017 and 2016 : Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits 2018 2017 2016 2018 2017 2016 2018 2017 2016 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ — $ — $ — $ 27 $ 24 $ 22 $ 20 $ 21 $ 13 Interest cost 1,097 1,162 1,186 38 39 39 70 79 76 Expected return on plan assets (1,817 ) (1,603 ) (1,624 ) — — — — — — Amortization of net actuarial losses 486 569 495 7 2 — — — — Amortization of prior service cost — — — 7 7 7 — — — Net periodic (benefit) cost (234 ) 128 57 79 72 68 90 100 89 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) 1,142 158 1,140 (79 ) 72 37 (280 ) (10 ) 180 Amortization of net loss (486 ) (569 ) (495 ) (7 ) (2 ) — — — — Amortization of prior service cost — — — (7 ) (7 ) (7 ) — — — Total recognized in other comprehensive income (loss) 656 (411 ) 645 (93 ) 63 30 (280 ) (10 ) 180 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 422 $ (283 ) $ 702 $ (14 ) $ 135 $ 98 $ (190 ) $ 90 $ 269 |
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 2018 2017 2018 2017 2018 2017 Discount rate 4.15 % 3.60 % 4.10 % 3.50 % 4.10 % 3.50 % Expected return on plan assets 5.25 % 6.50 % — % — % — % — % |
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 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.60 % 4.15 % 4.45 % 3.50 % 4.00 % 4.30 % 3.50 % 4.00 % 4.25 % Expected return on plan assets 6.50 % 6.50 % 7.00 % — % — % — % — % — % — % Rate of compensation increase — % — % — % — % — % — % 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 $ 181 $ (153 ) Effect on total service and interest 9 (8 ) |
Summary of Pension Plan Assets | The fair value of major categories of pension plan assets as of December 31, 2018 and 2017 are as follows: Total Fair Value Percent (In thousands) December 31, 2018 Fixed income funds $ 24,440 85 % Domestic equity funds 2,317 8 International equity funds 1,524 5 Hedge funds 292 1 Money market funds 114 1 Total $ 28,687 100 % December 31, 2017 Fixed income funds $ 16,264 54 % Domestic equity funds 6,234 21 International equity funds 4,187 14 Hedge funds 2,909 10 Money market funds 309 1 Total $ 29,903 100 % |
Summary of Estimated Future Benefit Payments | The benefit payments expected to be paid are as follows: Qualified Pension Plan Supplemental Executive Retirement Plans Other Post- Retirement Benefits (In thousands) Years Ending December 31, 2019 $ 1,220 $ 41 $ 100 2020 1,340 41 110 2021 1,360 41 120 2022 1,390 41 110 2023 1,440 41 110 Years 2024-2028 7,690 327 560 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Amounts and Ratios | 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, 2018 Total capital to risk weighted assets $ 694,633 11.9 % $ 466,980 8.0 % $ 583,725 10.0 % Common equity tier 1 capital to risk weighted assets 640,773 10.9 264,539 4.5 382,112 6.5 Tier 1 capital to risk weighted assets 640,773 10.9 352,719 6.0 470,292 8.0 Tier 1 capital to total average assets 640,773 9.0 284,788 4.0 355,985 5.0 December 31, 2017 Total capital to risk weighted assets $ 642,179 11.6 % $ 442,882 8.0 % $ 553,603 10.0 % Common equity tier 1 capital to risk weighted assets 593,155 10.7 249,458 4.5 360,328 6.5 Tier 1 capital to risk weighted assets 593,155 10.7 332,610 6.0 443,480 8.0 Tier 1 capital to total average assets 593,155 8.7 272,715 4.0 340,894 5.0 United Financial Bancorp, Inc.: December 31, 2018 Total capital to risk weighted assets $ 739,322 12.6 % $ 469,411 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 610,462 10.4 264,142 4.5 N/A N/A Tier 1 capital to risk weighted assets 610,462 10.4 352,190 6.0 N/A N/A Tier 1 capital to total average assets 610,462 8.4 290,696 4.0 N/A N/A December 31, 2017 Total capital to risk weighted assets $ 701,794 12.6 % $ 445,583 8.0 % N/A N/A Common equity tier 1 capital to risk weighted assets 577,770 10.4 249,997 4.5 N/A N/A Tier 1 capital to risk weighted assets 577,770 10.4 333,329 6.0 N/A N/A Tier 1 capital to total average assets 577,770 8.4 275,129 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, 2018 2017 (In thousands) Total consolidated equity $ 712,518 $ 693,328 Adjustments: Additional Bank-only equity 36,322 20,081 Accumulated other comprehensive loss 30,414 11,840 Disallowed goodwill and other intangible assets (121,839 ) (117,847 ) Disallowed deferred tax assets (16,642 ) (11,398 ) Other — (2,849 ) Tier 1 capital 640,773 593,155 Allowance for loan losses and off-balance sheet credit losses 53,860 48,944 Unrealized gains on available-for-sale securities includible in total risk-based capital — 80 Total risk-based capital $ 694,633 $ 642,179 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Taxes | The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: December 31, 2018 2017 Benefit plans: Unrecognized net actuarial loss $ (7,861 ) $ (7,578 ) Tax effect 1,731 2,730 Net-of-tax amount (6,130 ) (4,848 ) Securities available for sale: Net unrealized loss (31,248 ) (8,896 ) Tax effect 6,885 3,201 Net-of-tax amount (24,363 ) (5,695 ) Interest rate swaps: Net unrealized gain (loss) 101 (2,028 ) Tax effect (22 ) 731 Net-of-tax amount 79 (1,297 ) $ (30,414 ) $ (11,840 ) |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, 2017 and 2016 : Years Ended December 31, (In thousands, except share data) 2018 2017 2016 Net income $ 59,906 $ 54,618 $ 49,661 Adjusted weighted-average common shares outstanding 51,069,346 50,820,019 50,290,934 Less: average number of unvested ESOP award shares 514,134 536,948 559,785 Weighted-average basic shares outstanding 50,555,212 50,283,071 49,731,149 Dilutive effect of stock options 457,027 639,581 357,881 Weighted-average diluted shares 51,012,239 50,922,652 50,089,030 Net income per share: Basic $ 1.18 $ 1.09 $ 1.00 Diluted $ 1.17 $ 1.07 $ 0.99 |
OTHER COMMITMENTS AND CONTING_2
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Terms of Leases | Future minimum rental commitments under the terms of these leases, by year and in the aggregate, are as follows as of December 31, 2018 : (In thousands) 2019 $ 7,148 2020 7,704 2021 7,536 2022 7,070 2023 5,962 Thereafter 42,007 $ 77,427 |
Future Minimum Rental Receivable Under Non-Cancelable Leases | Future minimum rents receivable under the non-cancelable leases are as follows as of December 31, 2018 : (In thousands) 2019 $ 1,362 2020 1,407 2021 1,276 2022 841 2023 144 Thereafter 297 $ 5,327 |
Financial Instruments Contract Amounts Represent Credit Risk | Off-balance sheet financial instruments whose contract amounts represent credit risk are as follows at December 31, 2018 and 2017 : December 31, 2018 2017 (In thousands) Commitments to extend credit: Commitment to grant loans $ 140,875 $ 110,664 Undisbursed construction loans 122,838 136,149 Undisbursed home equity lines of credit 453,634 412,484 Undisbursed commercial lines of credit 515,193 412,547 Standby letters of credit 13,252 14,680 Unused credit card lines 21,331 16,084 Unused checking overdraft lines of credit 2,322 1,544 Total $ 1,269,445 $ 1,104,152 |
SELECTED QUARTERLY CONSOLIDAT_2
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information of Company | The Company’s quarterly results of operations were as follows: 2018 2017 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 $ 72,223 $ 70,191 $ 67,130 $ 63,494 $ 61,727 $ 60,799 $ 58,562 $ 55,166 Interest expense 23,861 21,762 18,949 16,951 14,878 14,031 12,234 10,869 Net interest income 48,362 48,429 48,181 46,543 46,849 46,768 46,328 44,297 Provision for loan losses 2,618 2,007 2,350 1,939 2,250 2,566 2,292 2,288 Net interest income after provision for loan losses 45,744 46,422 45,831 44,604 44,599 44,202 44,036 42,009 Non-interest income 9,493 9,555 8,360 9,289 7,581 8,426 9,826 8,732 Other non-interest expense 43,718 38,943 38,370 36,736 37,237 35,262 35,329 34,922 Income before income taxes 11,519 17,034 15,821 17,157 14,943 17,366 18,533 15,819 Provision (benefit) for income taxes (646 ) 726 175 1,370 5,442 2,175 2,333 2,093 Net income $ 12,165 $ 16,308 $ 15,646 $ 15,787 $ 9,501 $ 15,191 $ 16,200 $ 13,726 Earnings per share: Basic $ 0.24 $ 0.32 $ 0.31 $ 0.31 $ 0.19 $ 0.30 $ 0.32 $ 0.27 Diluted $ 0.24 $ 0.32 $ 0.31 $ 0.31 $ 0.19 $ 0.30 $ 0.32 $ 0.27 Stock Price (per share): High $ 17.14 $ 18.20 $ 18.33 $ 18.30 $ 19.35 $ 18.50 $ 18.29 $ 18.66 Low $ 13.58 $ 16.86 $ 15.78 $ 15.47 $ 17.09 $ 16.27 $ 15.84 $ 15.75 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Condition | Condensed Statements of Condition At December 31, 2018 2017 (In thousands) Assets: Cash and due from banks $ 15,001 $ 24,365 Investment in United Bank 748,840 713,409 Due from United Bank 14,954 13,101 Other assets 15,787 24,210 Total Assets $ 794,582 $ 775,085 Liabilities and Stockholders’ Equity: Subordinated debentures $ 80,201 $ 79,956 Accrued expenses and other liabilities 1,863 1,801 Stockholders’ equity 712,518 693,328 Total Liabilities and Stockholders’ Equity $ 794,582 $ 775,085 |
Condensed Statements of Net Income | Condensed Statements of Net Income For the Years Ended December 31, 2018 2017 2016 (In thousands) Interest and dividend income on investments $ 25 $ 25 $ 159 Interest expense on subordinated debentures (4,879 ) (4,794 ) (4,738 ) Net interest expense (4,854 ) (4,769 ) (4,579 ) Non-interest income 108 830 — General and administrative expense (5,046 ) (5,350 ) (4,982 ) Loss before tax benefit and equity in undistributed net loss of United Bank (9,792 ) (9,289 ) (9,561 ) Income tax benefit 2,452 3,987 3,338 Loss before equity in undistributed net income of United Bank (7,340 ) (5,302 ) (6,223 ) Equity in undistributed net income of United Bank 67,246 59,920 55,884 Net income $ 59,906 $ 54,618 $ 49,661 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Years ended December 31, 2018 2017 2016 (In thousands) Cash flows from operating activities: Net income $ 59,906 $ 54,618 $ 49,661 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of purchase accounting marks, net 118 114 100 Amortization of subordinated debt issuance costs, net 127 126 127 Share-based compensation expense 2,481 2,699 2,252 ESOP expense 378 400 308 Undistributed income of United Bank (67,246 ) (59,920 ) (55,884 ) Deferred tax (benefit) provision (1,987 ) 7,166 4,237 Tax benefit of stock-based awards — — (486 ) Net change in: Due from United Bank (1,853 ) (1,696 ) (2,031 ) Other assets 10,418 3,941 6,879 Accrued expenses and other liabilities 62 118 (19 ) Net cash provided by operating activities 2,404 7,566 5,144 Cash flows from investing activities: Dividends from United Bank 16,000 24,000 — Net cash provided by investing activities 16,000 24,000 — Cash flows from financing activities: Common stock repurchased (5,157 ) (1,312 ) — Proceeds from the exercise of stock options 2,247 2,460 6,275 Cancellation of shares for tax withholding (601 ) (805 ) (327 ) Tax effects of share-based awards — — 486 Cash dividends paid on common stock (24,257 ) (24,111 ) (23,836 ) Net cash used in financing activities (27,768 ) (23,768 ) (17,402 ) Net increase (decrease) in cash and cash equivalents (9,364 ) 7,798 (12,258 ) Cash and cash equivalents — beginning of year 24,365 16,567 28,825 Cash and cash equivalents — end of year $ 15,001 $ 24,365 $ 16,567 Supplemental disclosures of cash flow information: Cash paid for income taxes, net $ 1,835 $ 4,574 $ 3,655 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)yearatmoffice | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Other real estate owned | $ 1,389,000 | $ 2,154,000 | |
Number of banking offices | office | 58 | ||
Number of ATMs | atm | 71 | ||
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 | ||
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 | $ 568,000 | $ 688,000 | $ 497,000 |
Eligible age required for the benefits | year | 62 | ||
Minimum years of service for the benefits | 5 years | ||
Consumer loans | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Recognition period of losses on open and closed end consumer loans | 120 days | ||
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 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Subsequent Event $ in Millions | Jan. 01, 2019USD ($) |
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use lease asset | $ 45 |
Lease liability | 45 |
Retained Earnings | Accounting Standards Update 2017-08, Receivables-Nonrefundable Fees and Other Costs | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact on retained earnings | $ (10.2) |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLES - Schedule of Goodwill and Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | |||
Beginning balance | $ 115,281 | $ 115,281 | |
Acquisitions | 1,488 | ||
Ending balance | 116,769 | 115,281 | $ 115,281 |
Core Deposit Intangible | |||
Beginning balance | 4,491 | 5,902 | |
Amortization expense | (1,350) | (1,411) | (1,604) |
Acquisitions | 2,886 | ||
Ending balance | $ 6,027 | $ 4,491 | $ 5,902 |
GOODWILL AND CORE DEPOSIT INT_4
GOODWILL AND CORE DEPOSIT INTANGIBLES - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Estimated amortization expense for the years ending December 31, | |||
2,018 | $ 1,538 | ||
2,019 | 1,293 | ||
2,020 | 1,048 | ||
2,021 | 803 | ||
2,022 | 558 | ||
2024 and thereafter | 787 | ||
Total remaining | $ 6,027 | $ 4,491 | $ 5,902 |
GOODWILL AND CORE DEPOSIT INT_5
GOODWILL AND CORE DEPOSIT INTANGIBLES - Additional Information (Details) $ in Thousands | Oct. 05, 2018USD ($)branch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible amortization | $ 1,350 | $ 1,411 | $ 1,604 | |
Legacy United | Core deposit intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposits, estimated useful life | 10 years | |||
Core deposit intangible amortization | $ 1,400 | $ 1,400 | $ 1,600 | |
Six branches acquired | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of branches acquired | branch | 6 | |||
Branch deposits assumed | $ 109,400 | |||
Fixed assets acquired | 2,300 | |||
Purchase price | $ 6,900 |
RESTRICTIONS ON CASH AND DUE _2
RESTRICTIONS ON CASH AND DUE FROM BANKS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Cash and liquid assets | $ 36.2 | $ 36.3 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale and Held to Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | $ 1,004,595 | $ 1,059,443 |
Gross Unrealized Gains | 758 | 4,595 |
Gross Unrealized Losses | (32,006) | (13,668) |
Fair Value | 973,347 | 1,050,370 |
Available-for-sale, Securities | ||
Amortized Cost | 1,059,683 | |
Gross Unrealized Gains | 4,772 | |
Gross Unrealized Losses | (13,668) | |
Fair Value | 1,050,787 | |
Held to maturity: | ||
Amortized Cost | 13,598 | |
Gross Unrealized Gains | 790 | |
Gross Unrealized Losses | (88) | |
Fair Value | 14,300 | |
Government-sponsored residential mortgage-backed securities | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 208,916 | 235,646 |
Gross Unrealized Gains | 0 | 779 |
Gross Unrealized Losses | (4,818) | (946) |
Fair Value | 204,098 | 235,479 |
Held to maturity: | ||
Amortized Cost | 1,318 | |
Gross Unrealized Gains | 111 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,429 | |
Government-sponsored residential collateralized debt obligations | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 172,468 | 134,652 |
Gross Unrealized Gains | 270 | 16 |
Gross Unrealized Losses | (2,019) | (1,556) |
Fair Value | 170,719 | 133,112 |
Government-sponsored commercial mortgage-backed securities | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 28,694 | 33,449 |
Gross Unrealized Gains | 0 | 7 |
Gross Unrealized Losses | (1,016) | (201) |
Fair Value | 27,678 | 33,255 |
Government-sponsored commercial collateralized debt obligations | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 155,091 | 151,035 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6,865) | (3,793) |
Fair Value | 148,226 | 147,242 |
Asset-backed securities | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 102,371 | 166,559 |
Gross Unrealized Gains | 15 | 1,253 |
Gross Unrealized Losses | (1,891) | (673) |
Fair Value | 100,495 | 167,139 |
Corporate debt securities | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 86,462 | 88,571 |
Gross Unrealized Gains | 48 | 1,104 |
Gross Unrealized Losses | (3,280) | (539) |
Fair Value | 83,230 | 89,136 |
Obligations of states and political subdivisions | ||
Available-for-sale Securities, Debt Securities | ||
Amortized Cost | 250,593 | 249,531 |
Gross Unrealized Gains | 425 | 1,436 |
Gross Unrealized Losses | (12,117) | (5,960) |
Fair Value | $ 238,901 | 245,007 |
Held to maturity: | ||
Amortized Cost | 12,280 | |
Gross Unrealized Gains | 679 | |
Gross Unrealized Losses | (88) | |
Fair Value | 12,871 | |
Marketable equity securities | ||
Available-for-sale, Marketable Equity Securities | ||
Amortized Cost | 240 | |
Gross Unrealized Gains | 177 | |
Gross Unrealized Losses | 0 | |
Fair Value | 417 | |
Marketable equity securities | Industrial | ||
Available-for-sale, Marketable Equity Securities | ||
Amortized Cost | 109 | |
Gross Unrealized Gains | 100 | |
Gross Unrealized Losses | 0 | |
Fair Value | 209 | |
Marketable equity securities | Oil and gas | ||
Available-for-sale, Marketable Equity Securities | ||
Amortized Cost | 131 | |
Gross Unrealized Gains | 77 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 208 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($) | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 206,761,000 | $ 168,345,000 | ||
Net unrealized loss on marketable equity securities | 62,000 | 0 | $ 0 | |
Fair value, marketable equity securities | 356,000 | |||
Gross unrealized gains, marketable equity securities | 116,000 | |||
Debt securities, available for sale | (31,200,000) | |||
Net unrealized gain (loss) on securities available for sale | (8,900,000) | |||
Net unrealized gain (loss) on securities available for sale, income taxes (benefit) | (6,900,000) | (3,200,000) | ||
Accumulated other comprehensive income (loss) | $ (24,400,000) | $ (5,700,000) | ||
Encumbered securities | security | 87 | |||
Fair value pledged for derivative collateral | $ 438,800,000 | |||
Estimated fair value of obligations of states and political subdivisions | 238,900,000 | |||
General obligation bonds | 103,300,000 | |||
Obligations of political subdivisions | $ 57,100,000 | |||
Available-for-sale securities with unrealized losses, less than twelve months | security | 95 | |||
Unrealized losses equaling cost basis for less than twelve months (percent) | 2.00% | |||
Securities with unrealized losses for twelve months or more | security | 155 | |||
Unrealized losses equaling cost basis for twelve months or more (percent) | 4.30% | |||
Number of issues had unrealized losses for less than twelve months | security | 75 | |||
Number of issues had unrealized losses for twelve months or more | security | 100 | |||
Individual unrealized loss that represent an other than temporary impairment | $ 0 | |||
Accounting Standards Update 2016-01 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 177,000 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Debt Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Within 1 year | $ 0 | |
After 1 year through 5 years | 13,803 | |
After 5 years through 10 years | 88,828 | |
After 10 years | 234,424 | |
Single maturity date | 337,055 | |
Amortized Cost | 1,004,595 | $ 1,059,443 |
Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 13,620 | |
After 5 years through 10 years | 84,815 | |
After 10 years | 223,696 | |
Single maturity date | 322,131 | |
Fair Value | 973,347 | 1,050,370 |
Government-sponsored residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 208,916 | |
Amortized Cost | 208,916 | 235,646 |
Fair Value | ||
Without single maturity date | 204,098 | |
Fair Value | 204,098 | 235,479 |
Government-sponsored residential collateralized debt obligations | ||
Amortized Cost | ||
Without single maturity date | 172,468 | |
Amortized Cost | 172,468 | 134,652 |
Fair Value | ||
Without single maturity date | 170,719 | |
Fair Value | 170,719 | 133,112 |
Government-sponsored commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 28,694 | |
Amortized Cost | 28,694 | 33,449 |
Fair Value | ||
Without single maturity date | 27,678 | |
Fair Value | 27,678 | 33,255 |
Government-sponsored commercial collateralized debt obligations | ||
Amortized Cost | ||
Without single maturity date | 155,091 | |
Amortized Cost | 155,091 | 151,035 |
Fair Value | ||
Without single maturity date | 148,226 | |
Fair Value | 148,226 | 147,242 |
Asset-backed securities | ||
Amortized Cost | ||
Without single maturity date | 102,371 | |
Amortized Cost | 102,371 | 166,559 |
Fair Value | ||
Without single maturity date | 100,495 | |
Fair Value | $ 100,495 | $ 167,139 |
SECURITIES - Available for Sa_2
SECURITIES - Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from the sale of available for sale securities | $ 59,761 | ||
Proceeds from sales of available for sale securities | $ 315,339 | $ 268,162 | |
Debt Securities, Available-for-sale, Realized Gain | 453 | ||
Gross realized gains on the sale of available for sale securities | 3,774 | 2,880 | |
Debt Securities, Available-for-sale, Realized Loss | $ 308 | ||
Gross realized losses on the sale of available for sale securities | $ 2,992 | $ 919 |
SECURITIES - Summary of Gross U
SECURITIES - Summary of Gross Unrealized Losses and Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 months | $ 314,207 | |
12 Months or More | 568,133 | |
Total | 882,340 | |
Less than 12 months | $ 289,883 | |
12 Months or More | 389,220 | |
Total | 679,103 | |
Unrealized Loss | ||
Less than 12 months | (6,690) | |
12 Months or More | (25,316) | |
Total | (32,006) | |
Less than 12 months | (2,479) | |
12 Months or More | (11,189) | |
Total | (13,668) | |
Fair Value | ||
Less than 12 months | 2,130 | |
12 Months or More | 1,032 | |
Total | 3,162 | |
Unrealized Loss | ||
Less than 12 months | (24) | |
12 Months or More | (64) | |
Total | (88) | |
Government-sponsored residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 97,634 | |
12 Months or More | 106,464 | |
Total | 204,098 | |
Less than 12 months | 41,961 | |
12 Months or More | 83,545 | |
Total | 125,506 | |
Unrealized Loss | ||
Less than 12 months | (1,590) | |
12 Months or More | (3,228) | |
Total | (4,818) | |
Less than 12 months | (203) | |
12 Months or More | (743) | |
Total | (946) | |
Government-sponsored residential collateralized debt obligations | ||
Fair Value | ||
Less than 12 months | 5,093 | |
12 Months or More | 107,291 | |
Total | 112,384 | |
Less than 12 months | 82,758 | |
12 Months or More | 43,359 | |
Total | 126,117 | |
Unrealized Loss | ||
Less than 12 months | (54) | |
12 Months or More | (1,965) | |
Total | (2,019) | |
Less than 12 months | (740) | |
12 Months or More | (816) | |
Total | (1,556) | |
Government-sponsored commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 0 | |
12 Months or More | 27,678 | |
Total | 27,678 | |
Less than 12 months | 21,196 | |
12 Months or More | 10,895 | |
Total | 32,091 | |
Unrealized Loss | ||
Less than 12 months | 0 | |
12 Months or More | (1,016) | |
Total | (1,016) | |
Less than 12 months | (74) | |
12 Months or More | (127) | |
Total | (201) | |
Government-sponsored commercial collateralized debt obligations | ||
Fair Value | ||
Less than 12 months | 15,787 | |
12 Months or More | 132,439 | |
Total | 148,226 | |
Less than 12 months | 27,965 | |
12 Months or More | 119,277 | |
Total | 147,242 | |
Unrealized Loss | ||
Less than 12 months | (176) | |
12 Months or More | (6,689) | |
Total | (6,865) | |
Less than 12 months | (291) | |
12 Months or More | (3,502) | |
Total | (3,793) | |
Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 62,444 | |
12 Months or More | 23,426 | |
Total | 85,870 | |
Less than 12 months | 64,259 | |
12 Months or More | 4,756 | |
Total | 69,015 | |
Unrealized Loss | ||
Less than 12 months | (1,272) | |
12 Months or More | (619) | |
Total | (1,891) | |
Less than 12 months | (602) | |
12 Months or More | (71) | |
Total | (673) | |
Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 43,937 | |
12 Months or More | 33,245 | |
Total | 77,182 | |
Less than 12 months | 25,403 | |
12 Months or More | 10,764 | |
Total | 36,167 | |
Unrealized Loss | ||
Less than 12 months | (1,394) | |
12 Months or More | (1,886) | |
Total | (3,280) | |
Less than 12 months | (257) | |
12 Months or More | (282) | |
Total | (539) | |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than 12 months | 89,312 | |
12 Months or More | 137,590 | |
Total | 226,902 | |
Less than 12 months | 26,341 | |
12 Months or More | 116,624 | |
Total | 142,965 | |
Unrealized Loss | ||
Less than 12 months | (2,204) | |
12 Months or More | (9,913) | |
Total | $ (12,117) | |
Less than 12 months | (312) | |
12 Months or More | (5,648) | |
Total | (5,960) | |
Fair Value | ||
Less than 12 months | 2,130 | |
12 Months or More | 1,032 | |
Total | 3,162 | |
Unrealized Loss | ||
Less than 12 months | (24) | |
12 Months or More | (64) | |
Total | $ (88) |
LOANS RECEIVABLE AND ALLOWANC_3
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Company's Loan Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 5,656,439 | $ 5,339,983 | ||
Net deferred loan costs and premiums | 17,786 | 14,794 | ||
Allowance for loan losses | (51,636) | (47,099) | $ (42,798) | $ (33,887) |
Loans - net | $ 5,622,589 | $ 5,307,678 | ||
Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 100.00% | 100.00% | ||
Commercial real estate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,441,961 | $ 2,378,362 | ||
Commercial real estate loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 43.10% | 44.50% | ||
Commercial real estate loans | Owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 443,398 | $ 445,820 | ||
Allowance for loan losses | $ (4,459) | $ (3,754) | (3,765) | (2,174) |
Commercial real estate loans | Owner occupied | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 7.80% | 8.30% | ||
Commercial real estate loans | Investor non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,911,070 | $ 1,854,459 | ||
Allowance for loan losses | $ (17,011) | $ (15,916) | (14,869) | (12,859) |
Commercial real estate loans | Investor non-owner occupied | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 33.80% | 34.70% | ||
Commercial real estate loans | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 87,493 | $ 78,083 | ||
Commercial real estate loans | Construction | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 1.50% | 1.50% | ||
Commercial business loans | Commercial business loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 886,770 | $ 840,312 | ||
Allowance for loan losses | $ (10,961) | $ (10,608) | (8,730) | (5,827) |
Commercial business loans | Commercial business loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 15.70% | 15.70% | ||
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,327,708 | $ 2,121,309 | ||
Consumer loans | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 41.20% | 39.80% | ||
Consumer loans | Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,313,373 | $ 1,204,401 | ||
Allowance for loan losses | $ (7,971) | $ (7,694) | (7,854) | (7,801) |
Consumer loans | Residential real estate | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 23.20% | 22.60% | ||
Consumer loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 583,454 | $ 583,180 | ||
Allowance for loan losses | $ (3,220) | $ (3,258) | (2,858) | (2,391) |
Consumer loans | Home equity | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 10.30% | 10.90% | ||
Consumer loans | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 20,632 | $ 40,947 | ||
Consumer loans | Residential construction | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 0.40% | 0.80% | ||
Consumer loans | Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 410,249 | $ 292,781 | ||
Allowance for loan losses | $ (4,381) | $ (2,523) | $ (1,353) | $ (146) |
Consumer loans | Other consumer | Loans Receivable Concentration Risk | Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percent of total loans | 7.30% | 5.50% |
LOANS RECEIVABLE AND ALLOWANC_4
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)contractloangrade | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Eligible loan collateral to support available borrowing capacity at the FHLBB | $ 1,440,000,000 | ||
Eligible loan collateral to support available borrowing capacity at the FRB | 169,000,000 | ||
Total loans | 5,656,439,000 | $ 5,339,983,000 | |
Loans not deemed impaired | 5,607,294,000 | 5,292,354,000 | |
Loans determined to be impaired | $ 45,884,000 | 45,911,000 | |
Number of loan portfolios purchased | loan | 2 | ||
Significant purchases, net | $ 546,400,000 | 470,400,000 | |
Net recorded carrying amount of loans | 5,622,589,000 | 5,307,678,000 | |
Financing receivables 90 days past due and still accruing | 3,545,000 | $ 953,000 | |
Additional funds advanced in connection with impaired loans | $ 0 | ||
Number of loans with extended maturities | contract | 4 | 3 | 6 |
Number of grade | grade | 9 | ||
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 | $ 1,470,000,000 | $ 1,250,000,000 | $ 1,050,000,000 |
Servicing fee income | $ 2,900,000 | $ 2,300,000 | $ 1,700,000 |
Average prepayment speed | 150 | 180 | |
Minimum | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Internal rates of return used for determination of fair value | 11.80% | 9.70% | |
Maximum | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Internal rates of return used for determination of fair value | 13.80% | 11.70% | |
Troubled Debt Restructurings | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment in TDRs | $ 22,179,000 | $ 22,724,000 | |
Legacy United | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 497,900,000 | 671,000,000 | |
Fair value of loans not deemed impaired | 2,200,000 | 2,100,000 | |
Net recorded carrying amount of loans | 3,300,000 | ||
Loans outstanding | 3,500,000 | ||
Purchased credit-impaired | Legacy United | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Net recorded carrying amount of loans | $ 177,000 | $ 230,000 |
LOANS RECEIVABLE AND ALLOWANC_5
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | $ 47,099 | $ 42,798 | $ 47,099 | $ 42,798 | $ 33,887 | ||||||
Provision for loan losses | $ 2,618 | $ 2,007 | $ 2,350 | 1,939 | $ 2,250 | $ 2,566 | $ 2,292 | 2,288 | 8,914 | 9,396 | 13,437 |
Loans charged off | (5,897) | (6,684) | (5,889) | ||||||||
Recoveries of loans previously charged off | 1,520 | 1,589 | 1,363 | ||||||||
Balance, end of year | 51,636 | 47,099 | 51,636 | 47,099 | 42,798 | ||||||
Commercial real estate loans | Owner occupied | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 3,754 | 3,765 | 3,754 | 3,765 | 2,174 | ||||||
Provision for loan losses | 618 | 60 | 1,704 | ||||||||
Loans charged off | 0 | (103) | (169) | ||||||||
Recoveries of loans previously charged off | 87 | 32 | 56 | ||||||||
Balance, end of year | 4,459 | 3,754 | 4,459 | 3,754 | 3,765 | ||||||
Commercial real estate loans | Investor non-owner occupied | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 15,916 | 14,869 | 15,916 | 14,869 | 12,859 | ||||||
Provision for loan losses | 1,103 | 1,623 | 2,806 | ||||||||
Loans charged off | (81) | (735) | (1,207) | ||||||||
Recoveries of loans previously charged off | 73 | 159 | 411 | ||||||||
Balance, end of year | 17,011 | 15,916 | 17,011 | 15,916 | 14,869 | ||||||
Commercial real estate loans and consumer | Construction | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 1,601 | 1,913 | 1,601 | 1,913 | 1,895 | ||||||
Provision for loan losses | 73 | 195 | 15 | ||||||||
Loans charged off | (21) | (507) | 0 | ||||||||
Recoveries of loans previously charged off | 0 | 0 | 3 | ||||||||
Balance, end of year | 1,653 | 1,601 | 1,653 | 1,601 | 1,913 | ||||||
Commercial business loans | Commercial business loans | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 10,608 | 8,730 | 10,608 | 8,730 | 5,827 | ||||||
Provision for loan losses | 1,445 | 2,988 | 3,364 | ||||||||
Loans charged off | (1,653) | (1,984) | (1,018) | ||||||||
Recoveries of loans previously charged off | 561 | 874 | 557 | ||||||||
Balance, end of year | 10,961 | 10,608 | 10,961 | 10,608 | 8,730 | ||||||
Consumer loans | Residential real estate | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 7,694 | 7,854 | 7,694 | 7,854 | 7,801 | ||||||
Provision for loan losses | 732 | 428 | 1,022 | ||||||||
Loans charged off | (547) | (736) | (1,043) | ||||||||
Recoveries of loans previously charged off | 92 | 148 | 74 | ||||||||
Balance, end of year | 7,971 | 7,694 | 7,971 | 7,694 | 7,854 | ||||||
Consumer loans | Home equity | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 3,258 | 2,858 | 3,258 | 2,858 | 2,391 | ||||||
Provision for loan losses | 407 | 1,085 | 1,096 | ||||||||
Loans charged off | (628) | (779) | (742) | ||||||||
Recoveries of loans previously charged off | 183 | 94 | 113 | ||||||||
Balance, end of year | 3,220 | 3,258 | 3,220 | 3,258 | 2,858 | ||||||
Consumer loans | Other consumer | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | 2,523 | 1,353 | 2,523 | 1,353 | 146 | ||||||
Provision for loan losses | 4,301 | 2,728 | 2,768 | ||||||||
Loans charged off | (2,967) | (1,840) | (1,710) | ||||||||
Recoveries of loans previously charged off | 524 | 282 | 149 | ||||||||
Balance, end of year | 4,381 | 2,523 | 4,381 | 2,523 | 1,353 | ||||||
Unallocated | |||||||||||
Changes in Allowance for Loan Losses | |||||||||||
Balance, beginning of year | $ 1,745 | $ 1,456 | 1,745 | 1,456 | 794 | ||||||
Provision for loan losses | 235 | 289 | 662 | ||||||||
Loans charged off | 0 | 0 | 0 | ||||||||
Recoveries of loans previously charged off | 0 | 0 | 0 | ||||||||
Balance, end of year | $ 1,980 | $ 1,745 | $ 1,980 | $ 1,745 | $ 1,456 |
LOANS RECEIVABLE AND ALLOWANC_6
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for Loan Losses and Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | $ 570 | $ 520 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 51,066 | 46,579 | ||
Total allowance for loan losses | 51,636 | 47,099 | $ 42,798 | $ 33,887 |
Loans deemed impaired | 45,884 | 45,911 | ||
Loans not deemed impaired | 5,607,294 | 5,292,354 | ||
Total loans | 5,656,439 | 5,339,983 | ||
Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 3,261 | 1,718 | ||
Commercial real estate loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 2,441,961 | 2,378,362 | ||
Commercial real estate loans | Owner occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 0 | 60 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 4,459 | 3,694 | ||
Total allowance for loan losses | 4,459 | 3,754 | 3,765 | 2,174 |
Loans deemed impaired | 3,034 | 2,300 | ||
Loans not deemed impaired | 440,364 | 443,520 | ||
Total loans | 443,398 | 445,820 | ||
Commercial real estate loans | Owner occupied | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Commercial real estate loans | Investor non-owner occupied | ||||
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 | 17,011 | 15,916 | ||
Total allowance for loan losses | 17,011 | 15,916 | 14,869 | 12,859 |
Loans deemed impaired | 6,895 | 8,414 | ||
Loans not deemed impaired | 1,903,998 | 1,845,815 | ||
Total loans | 1,911,070 | 1,854,459 | ||
Commercial real estate loans | Investor non-owner occupied | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 177 | 230 | ||
Commercial real estate loans and consumer | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 92 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 1,561 | 1,601 | ||
Total allowance for loan losses | 1,653 | 1,601 | 1,913 | 1,895 |
Loans deemed impaired | 1,047 | 2,273 | ||
Loans not deemed impaired | 107,078 | 116,757 | ||
Total loans | 108,125 | 119,030 | ||
Commercial real estate loans and consumer | Construction | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Commercial business loans | Commercial business loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 114 | 400 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 10,847 | 10,208 | ||
Total allowance for loan losses | 10,961 | 10,608 | 8,730 | 5,827 |
Loans deemed impaired | 5,219 | 5,681 | ||
Loans not deemed impaired | 881,551 | 834,631 | ||
Total loans | 886,770 | 840,312 | ||
Commercial business loans | Commercial business loans | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Consumer loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 2,327,708 | 2,121,309 | ||
Consumer loans | Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 120 | 60 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 7,851 | 7,634 | ||
Total allowance for loan losses | 7,971 | 7,694 | 7,854 | 7,801 |
Loans deemed impaired | 20,114 | 18,301 | ||
Loans not deemed impaired | 1,291,255 | 1,186,100 | ||
Total loans | 1,313,373 | 1,204,401 | ||
Consumer loans | Residential real estate | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 2,004 | 0 | ||
Consumer loans | Home equity | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 1 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 3,219 | 3,258 | ||
Total allowance for loan losses | 3,220 | 3,258 | 2,858 | 2,391 |
Loans deemed impaired | 8,257 | 8,547 | ||
Loans not deemed impaired | 575,197 | 574,633 | ||
Total loans | 583,454 | 583,180 | ||
Consumer loans | Home equity | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Consumer loans | Other consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance related to loans individually evaluated and deemed impaired | 243 | 0 | ||
Allowance related to loans collectively evaluated and not deemed impaired | 4,138 | 2,523 | ||
Total allowance for loan losses | 4,381 | 2,523 | 1,353 | 146 |
Loans deemed impaired | 1,318 | 395 | ||
Loans not deemed impaired | 407,851 | 290,898 | ||
Total loans | 410,249 | 292,781 | ||
Consumer loans | Other consumer | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | 1,080 | 1,488 | ||
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 | 1,980 | 1,745 | ||
Total allowance for loan losses | 1,980 | 1,745 | $ 1,456 | $ 794 |
Loans deemed impaired | 0 | 0 | ||
Loans not deemed impaired | 0 | 0 | ||
Total loans | 0 | 0 | ||
Unallocated | Receivables acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWANC_7
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Owner-occupied CRE | ||
Total Past Due | $ 50,510 | $ 30,145 |
Past Due 90 Days or More and Still Accruing | 3,545 | 953 |
Loans on Non-accrual | 30,677 | 31,662 |
30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 22,672 | 8,566 |
60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 8,034 | 7,048 |
Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 19,804 | 14,531 |
Commercial real estate loans | Owner occupied | ||
Owner-occupied CRE | ||
Total Past Due | 2,104 | 2,947 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 2,503 | 1,735 |
Commercial real estate loans | Owner occupied | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 1,745 | 1,195 |
Commercial real estate loans | Owner occupied | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 7 | 455 |
Commercial real estate loans | Owner occupied | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 352 | 1,297 |
Commercial real estate loans | Investor non-owner occupied | ||
Owner-occupied CRE | ||
Total Past Due | 1,943 | 2,153 |
Past Due 90 Days or More and Still Accruing | 0 | 206 |
Loans on Non-accrual | 1,131 | 1,821 |
Commercial real estate loans | Investor non-owner occupied | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 1,306 | 849 |
Commercial real estate loans | Investor non-owner occupied | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 91 | 92 |
Commercial real estate loans | Investor non-owner occupied | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 546 | 1,212 |
Commercial real estate loans and consumer | Construction | ||
Owner-occupied CRE | ||
Total Past Due | 1,244 | 1,398 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 913 | 1,398 |
Commercial real estate loans and consumer | Construction | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 331 | 0 |
Commercial real estate loans and consumer | Construction | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 0 | 0 |
Commercial real estate loans and consumer | Construction | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 913 | 1,398 |
Commercial business loans | Commercial business loans | ||
Owner-occupied CRE | ||
Total Past Due | 9,840 | 5,753 |
Past Due 90 Days or More and Still Accruing | 1,387 | 650 |
Loans on Non-accrual | 2,481 | 4,987 |
Commercial business loans | Commercial business loans | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 5,455 | 1,069 |
Commercial business loans | Commercial business loans | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 1,582 | 3,465 |
Commercial business loans | Commercial business loans | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 2,803 | 1,219 |
Consumer loans | Residential real estate | ||
Owner-occupied CRE | ||
Total Past Due | 25,878 | 11,117 |
Past Due 90 Days or More and Still Accruing | 2,004 | 0 |
Loans on Non-accrual | 16,214 | 14,860 |
Consumer loans | Residential real estate | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 11,214 | 3,187 |
Consumer loans | Residential real estate | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 5,216 | 2,297 |
Consumer loans | Residential real estate | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 9,448 | 5,633 |
Consumer loans | Home equity | ||
Owner-occupied CRE | ||
Total Past Due | 6,626 | 5,098 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Loans on Non-accrual | 6,192 | 6,466 |
Consumer loans | Home equity | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 1,498 | 1,319 |
Consumer loans | Home equity | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 779 | 498 |
Consumer loans | Home equity | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | 4,349 | 3,281 |
Consumer loans | Other consumer | ||
Owner-occupied CRE | ||
Total Past Due | 2,875 | 1,679 |
Past Due 90 Days or More and Still Accruing | 154 | 97 |
Loans on Non-accrual | 1,243 | 395 |
Consumer loans | Other consumer | 30-59 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 1,123 | 947 |
Consumer loans | Other consumer | 60-89 Days Past Due | ||
Owner-occupied CRE | ||
Total Past Due | 359 | 241 |
Consumer loans | Other consumer | Past Due 90 Days or More | ||
Owner-occupied CRE | ||
Total Past Due | $ 1,393 | $ 491 |
LOANS RECEIVABLE AND ALLOWANC_8
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Impaired Loans with and without Valuation Allowance (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | $ 42,468 | $ 40,903 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 49,600 | 45,353 |
Recorded Investment, Impaired loans with a valuation allowance | 3,416 | 5,008 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 3,879 | 5,595 |
Recorded Investment, Total impaired loans | 45,884 | 45,911 |
Unpaid Principal Balance, Total impaired loans | 53,479 | 50,948 |
Allowance related to loans individually evaluated and deemed impaired | 570 | 520 |
Commercial real estate loans | Owner occupied | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 3,034 | 2,183 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 3,422 | 2,891 |
Recorded Investment, Impaired loans with a valuation allowance | 0 | 117 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 0 | 117 |
Recorded Investment, Total impaired loans | 3,034 | 2,300 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 60 |
Commercial real estate loans | Investor non-owner occupied | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 6,895 | 8,414 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 7,153 | 8,577 |
Recorded Investment, Total impaired loans | 6,895 | 8,414 |
Allowance related to loans individually evaluated and deemed impaired | 0 | 0 |
Commercial real estate loans and consumer | Construction | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 333 | 2,273 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 1,339 | 2,658 |
Recorded Investment, Impaired loans with a valuation allowance | 714 | 0 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 965 | 0 |
Recorded Investment, Total impaired loans | 1,047 | 2,273 |
Allowance related to loans individually evaluated and deemed impaired | 92 | 0 |
Commercial business loans | Commercial business loans | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 5,105 | 2,446 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 7,325 | 3,317 |
Recorded Investment, Impaired loans with a valuation allowance | 114 | 3,235 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 122 | 3,767 |
Recorded Investment, Total impaired loans | 5,219 | 5,681 |
Allowance related to loans individually evaluated and deemed impaired | 114 | 400 |
Consumer loans | Residential real estate | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 18,244 | 16,645 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 20,153 | 17,929 |
Recorded Investment, Impaired loans with a valuation allowance | 1,870 | 1,656 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 2,069 | 1,711 |
Recorded Investment, Total impaired loans | 20,114 | 18,301 |
Allowance related to loans individually evaluated and deemed impaired | 120 | 60 |
Consumer loans | Home equity | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 8,132 | 8,547 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 9,483 | 9,583 |
Recorded Investment, Impaired loans with a valuation allowance | 125 | 0 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 130 | 0 |
Recorded Investment, Total impaired loans | 8,257 | 8,547 |
Allowance related to loans individually evaluated and deemed impaired | 1 | 0 |
Consumer loans | Other consumer | ||
Owner-occupied CRE | ||
Recorded Investment, Impaired loans without a valuation allowance | 725 | 395 |
Unpaid Principal Balance, Impaired loans without a valuation allowance | 725 | 398 |
Recorded Investment, Impaired loans with a valuation allowance | 593 | 0 |
Unpaid Principal Balance, Impaired loans with a valuation allowance | 593 | 0 |
Recorded Investment, Total impaired loans | 1,318 | 395 |
Allowance related to loans individually evaluated and deemed impaired | $ 243 | $ 0 |
LOANS RECEIVABLE AND ALLOWANC_9
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | $ 44,609 | $ 49,071 | $ 54,701 |
Interest Income Recognized without a valuation allowance | 1,792 | 1,882 | 1,921 |
Commercial real estate loans | Owner occupied | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 2,573 | 2,840 | 3,924 |
Interest Income Recognized without a valuation allowance | 134 | 97 | 150 |
Commercial real estate loans | Investor non-owner occupied | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 8,147 | 9,736 | 11,363 |
Interest Income Recognized without a valuation allowance | 318 | 370 | 447 |
Commercial real estate loans and consumer | Construction | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 1,481 | 2,429 | 4,087 |
Interest Income Recognized without a valuation allowance | 21 | 87 | 124 |
Commercial business loans | Commercial business loans | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 4,588 | 7,562 | 12,167 |
Interest Income Recognized without a valuation allowance | 337 | 258 | 282 |
Consumer loans | Residential real estate | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 18,940 | 17,519 | 16,485 |
Interest Income Recognized without a valuation allowance | 752 | 789 | 715 |
Consumer loans | Home equity | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 8,176 | 7,788 | 5,856 |
Interest Income Recognized without a valuation allowance | 229 | 281 | 202 |
Consumer loans | Other consumer | |||
Owner-occupied CRE | |||
Average Recorded Investment without a valuation allowance | 704 | 1,197 | 819 |
Interest Income Recognized without a valuation allowance | $ 1 | $ 0 | $ 1 |
LOANS RECEIVABLE AND ALLOWAN_10
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Non-accrual status | $ 30,677 | $ 31,662 |
Troubled Debt Restructurings | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Accrual status | 15,208 | 14,249 |
Non-accrual status | 6,971 | 8,475 |
Total recorded investment in TDRs | 22,179 | 22,724 |
Accruing TDRs performing under modified terms more than one year | 12,609 | 7,783 |
Specific reserves for TDRs included in the balance of allowance for loan losses | 213 | 520 |
Additional funds committed to borrowers in TDR status | $ 7 | $ 29 |
LOANS RECEIVABLE AND ALLOWAN_11
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 25 | 36 | 47 |
Pre-Modification Outstanding Recorded Investment | $ 8,153 | $ 9,594 | $ 6,778 |
Post-Modification Outstanding Recorded Investment | $ 8,147 | $ 9,630 | $ 8,774 |
Commercial real estate loans | Investor non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 5 | |
Pre-Modification Outstanding Recorded Investment | $ 5,038 | $ 654 | |
Post-Modification Outstanding Recorded Investment | $ 5,038 | $ 666 | |
Commercial real estate loans and consumer | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 965 | $ 67 | |
Post-Modification Outstanding Recorded Investment | $ 965 | $ 67 | |
Commercial business loans | Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 5 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 2,455 | $ 482 | $ 3,033 |
Post-Modification Outstanding Recorded Investment | $ 2,455 | $ 482 | $ 5,006 |
Consumer loans | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 11 | 9 | 13 |
Pre-Modification Outstanding Recorded Investment | $ 3,965 | $ 1,598 | $ 1,320 |
Post-Modification Outstanding Recorded Investment | $ 3,975 | $ 1,627 | $ 1,329 |
Consumer loans | Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 12 | 21 | 18 |
Pre-Modification Outstanding Recorded Investment | $ 768 | $ 2,476 | $ 1,572 |
Post-Modification Outstanding Recorded Investment | $ 752 | $ 2,483 | $ 1,574 |
Consumer loans | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 132 | ||
Post-Modification Outstanding Recorded Investment | $ 132 |
LOANS RECEIVABLE AND ALLOWAN_12
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of How Loans Were Modified as TDRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | $ 8,147 | $ 9,630 | $ 8,774 |
Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 3,528 | 1,415 | 2,970 |
Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 261 |
Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 1,254 | 1,058 | 1,884 |
Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 3,371 | 1,643 | 1,513 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 5,478 | 150 |
Commercial real estate loans | Owner occupied | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 510 | ||
Commercial real estate loans | Owner occupied | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Owner occupied | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 86 | ||
Commercial real estate loans | Owner occupied | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Owner occupied | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 58 | ||
Commercial real estate loans | Investor non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 5,038 | 666 | |
Commercial real estate loans | Investor non-owner occupied | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Investor non-owner occupied | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Investor non-owner occupied | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Investor non-owner occupied | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial real estate loans | Investor non-owner occupied | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 5,038 | ||
Commercial real estate loans and consumer | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 965 | 67 | |
Commercial real estate loans and consumer | Construction | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 965 | 23 | |
Commercial real estate loans and consumer | Construction | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial real estate loans and consumer | Construction | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 44 | |
Commercial real estate loans and consumer | Construction | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial real estate loans and consumer | Construction | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial business loans | Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,455 | 482 | 5,006 |
Commercial business loans | Commercial business loans | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,455 | 211 | 2,350 |
Commercial business loans | Commercial business loans | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Commercial business loans | Commercial business loans | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 243 |
Commercial business loans | Commercial business loans | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 348 |
Commercial business loans | Commercial business loans | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 271 | 92 |
Consumer loans | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 3,975 | 1,627 | 1,329 |
Consumer loans | Residential real estate | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 11 | 266 | 87 |
Consumer loans | Residential real estate | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Consumer loans | Residential real estate | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 583 | 234 | 672 |
Consumer loans | Residential real estate | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 3,371 | 929 | 561 |
Consumer loans | Residential real estate | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 169 | 0 |
Consumer loans | Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 752 | 2,483 | 1,574 |
Consumer loans | Home equity | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 97 | 938 | 0 |
Consumer loans | Home equity | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 261 |
Consumer loans | Home equity | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 671 | 824 | 707 |
Consumer loans | Home equity | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 714 | 604 |
Consumer loans | Home equity | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | 0 |
Consumer loans | Other consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 132 | ||
Consumer loans | Other consumer | Extended Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Consumer loans | Other consumer | Adjusted Interest Rates | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Consumer loans | Other consumer | Adjusted Rate and Maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 132 | ||
Consumer loans | Other consumer | Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Consumer loans | Other consumer | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | $ 0 |
LOANS RECEIVABLE AND ALLOWAN_13
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Loans Modified as TDRs within Previous 12 Months and Payment Default (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 4 | 3 | 6 |
Recorded Investment | $ | $ 839 | $ 170 | $ 1,102 |
Consumer loans | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 3 | 3 |
Recorded Investment | $ | $ 98 | $ 170 | $ 456 |
Consumer loans | Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 2 | 0 | 1 |
Recorded Investment | $ | $ 26 | $ 0 | $ 151 |
Commercial business loans | Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 2 |
Recorded Investment | $ | $ 0 | $ 0 | $ 495 |
Commercial real estate loans and consumer | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Recorded Investment | $ | $ 715 | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWAN_14
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | $ 5,656,439 | $ 5,339,983 |
Commercial real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 2,441,961 | 2,378,362 |
Commercial real estate loans | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 443,398 | 445,820 |
Commercial real estate loans | Owner occupied | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 410,403 | 423,720 |
Commercial real estate loans | Owner occupied | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 17,134 | 4,854 |
Commercial real estate loans | Owner occupied | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 15,861 | 17,246 |
Commercial real estate loans | Owner occupied | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial real estate loans | Owner occupied | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial real estate loans | Investor non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,911,070 | 1,854,459 |
Commercial real estate loans | Investor non-owner occupied | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,884,767 | 1,829,762 |
Commercial real estate loans | Investor non-owner occupied | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 6,544 | 10,965 |
Commercial real estate loans | Investor non-owner occupied | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 19,759 | 13,732 |
Commercial real estate loans | Investor non-owner occupied | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial real estate loans | Investor non-owner occupied | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial real estate loans and consumer | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 108,125 | 119,030 |
Commercial real estate loans and consumer | Construction | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 104,848 | 117,583 |
Commercial real estate loans and consumer | Construction | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,994 | 49 |
Commercial real estate loans and consumer | Construction | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,283 | 1,398 |
Commercial real estate loans and consumer | Construction | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial real estate loans and consumer | Construction | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial business loans | Commercial business loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 886,770 | 840,312 |
Commercial business loans | Commercial business loans | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 844,541 | 811,604 |
Commercial business loans | Commercial business loans | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 28,385 | 15,816 |
Commercial business loans | Commercial business loans | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 13,844 | 12,892 |
Commercial business loans | Commercial business loans | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Commercial business loans | Commercial business loans | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 2,327,708 | 2,121,309 |
Consumer loans | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,313,373 | 1,204,401 |
Consumer loans | Residential real estate | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 1,294,623 | 1,186,753 |
Consumer loans | Residential real estate | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 2,429 | 1,948 |
Consumer loans | Residential real estate | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 16,321 | 15,700 |
Consumer loans | Residential real estate | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Residential real estate | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 583,454 | 583,180 |
Consumer loans | Home equity | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 576,509 | 576,592 |
Consumer loans | Home equity | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 740 | 89 |
Consumer loans | Home equity | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 6,205 | 6,499 |
Consumer loans | Home equity | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Home equity | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 410,249 | 292,781 |
Consumer loans | Other consumer | Loans rated 1 — 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 407,935 | 292,386 |
Consumer loans | Other consumer | Loans rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Other consumer | Loans rated 7 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 2,314 | 395 |
Consumer loans | Other consumer | Loans rated 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | 0 | 0 |
Consumer loans | Other consumer | Loans rated 9 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total real estate loans | $ 0 | $ 0 |
LOANS RECEIVABLE AND ALLOWAN_15
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Changes in Loans Outstanding to Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Loans Outstanding, Related Parties | ||
Balance, beginning of year | $ 1,896 | $ 2,285 |
Loans related to parties who terminated service during the year | (235) | (776) |
Payoffs | (832) | 0 |
Additional loans and advances | 763 | 600 |
Repayments | (35) | (213) |
Balance, end of year | $ 1,557 | $ 1,896 |
LOANS RECEIVABLE AND ALLOWAN_16
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Mortgage Servicing Rights Capitalized and Amortized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage servicing rights: | |||
Balance at beginning of year | $ 11,733 | $ 10,104 | $ 7,074 |
Change in fair value recognized in income | (751) | (1,791) | 567 |
Issuances/additions | 3,757 | 3,420 | 2,463 |
Balance at end of year | $ 14,739 | $ 11,733 | $ 10,104 |
PREMISES AND EQUIPMENT - Premis
PREMISES AND EQUIPMENT - Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 114,074 | $ 104,664 |
Accumulated depreciation and amortization | (45,417) | (37,156) |
Premises and equipment, net | $ 68,657 | 67,508 |
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 | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 1,031 | 964 |
Land and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 15 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 35,217 | 36,756 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 39 years 6 months | |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 40,903 | 36,867 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 3 years | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 32,021 | 25,175 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years | |
Assets under capitalized leases | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,902 | $ 4,902 |
Assets under capitalized leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 5 years | |
Assets under capitalized leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, estimated useful life | 10 years |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 8,370 | $ 5,919 | $ 5,516 |
OTHER ASSETS - Additional Infor
OTHER ASSETS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Current income tax receivable | $ 3,436 | $ 5,705 | ||
Partnership investments | 51,504 | 38,160 | ||
Mortgage servicing rights | 14,739 | 11,733 | $ 10,104 | $ 7,074 |
Derivative assets | 13,523 | 11,741 | ||
Other real estate owned | 1,389 | 2,154 | ||
Receivable on surrendered BOLI policies | 0 | 26,713 | ||
Prepaid expenses | 6,802 | 4,521 | ||
Other | 8,975 | 4,866 | ||
Total other assets | $ 100,368 | $ 105,593 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Demand and NOW | $ 1,653,574 | $ 1,573,404 |
Regular savings | 498,026 | 504,115 |
Money markets | 1,736,459 | 1,325,754 |
Time deposits | 1,782,540 | 1,794,948 |
Total deposits | $ 5,670,599 | $ 5,198,221 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Time deposits in denominations of $250,000 or more | $ 570.9 | $ 529.1 |
Brokered time deposits | 179.6 | 259.1 |
Brokered money market deposits | $ 432.5 | $ 389.1 |
DEPOSITS - Summary of Contractu
DEPOSITS - Summary of Contractual Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2,019 | $ 1,034,233 | |
2,020 | 497,587 | |
2,021 | 227,372 | |
2,022 | 15,864 | |
2,023 | 7,484 | |
Contractual maturities of time deposits, Total | $ 1,782,540 | $ 1,794,948 |
BORROWINGS - Contractual Maturi
BORROWINGS - Contractual Maturities and Weighted-Average Rates of Outstanding Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 0 | $ 929,274 |
2,019 | 785,000 | 75,000 |
2,020 | 8,000 | 8,000 |
2,021 | 0 | 0 |
2,022 | 0 | 0 |
2,023 | 2,557 | 0 |
Thereafter | 1,531 | 33,680 |
Total federal home loan bank advances | $ 797,088 | $ 1,045,954 |
Weighted-Average rate in 2018 | 0.00% | 1.56% |
Weighted-Average rate in 2019 | 2.55% | 1.76% |
Weighted-Average rate in 2020 | 2.33% | 2.33% |
Weighted-Average rate in 2021 | 0.00% | 0.00% |
Weighted-Average rate in 2022 | 0.00% | 0.00% |
Weighted-Average rate in 2023 | 2.51% | 0.00% |
Weighted-Average rate Thereafter | 2.58% | 1.14% |
Weighted Average | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
FHLBB, advances, branch of FHLB bank, interest rate | 2.54% | 1.57% |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)loanadvancecounterparty | Dec. 31, 2017USD ($)loan | Sep. 23, 2014USD ($) | May 01, 2014USD ($) | Apr. 30, 2014USD ($)leased_bank_branch | |
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Advances from FHLBB | $ 800,000,000 | $ 1,050,000,000 | |||
Fair value adjustment on FHLBB advances acquired in the Merger | 183,000 | 504,000 | |||
Estimated eligible collateral value | 2,370,000,000 | 2,280,000,000 | |||
Unused line of credit | 10,000,000 | 10,000,000 | |||
Additional borrowings | $ 532,600,000 | ||||
Percent of aggregate principal amount | 0.35% | ||||
Borrowings from the FHLBB (percent) | 4.50% | ||||
Federal Home Loan Bank Stock | $ 41,407,000 | 50,194,000 | |||
Other borrowings | 102,355,000 | 118,596,000 | |||
Number of leased bank branches | leased_bank_branch | 3 | ||||
Capital lease obligations | 3,800,000 | ||||
Subordinated Debt | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Junior subordinated debt, face amount | $ 7,700,000 | ||||
Fair value acquisition discount | $ 1,800,000 | 1,900,000 | $ 2,300,000 | ||
Basis spread on variable rate | 1.85% | ||||
Percentage of other borrowings at cost | 2.81% | ||||
Wholesale Reverse Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings | $ 10,000,000 | $ 20,000,000 | |||
Number of individual borrowings, wholesale reverse purchase agreements | loan | 1 | 2 | |||
Wholesale reverse repurchase agreements, remaining term | 1 year | 3 years | |||
Weighted average cost (percent) | 2.44% | 2.59% | |||
Investment securities pledged as collateral | $ 12,500,000 | $ 23,000,000 | |||
Retail Repurchase Agreements | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Other borrowings | 8,400,000 | 14,600,000 | |||
Investment securities pledged as collateral | 25,400,000 | 28,800,000 | |||
Subordinated Notes Due October 2024 | Subordinated Debt | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Subordinated notes, face amount | $ 75,000,000 | ||||
Subordinated notes, stated interest rate | 5.75% | ||||
Subordinated notes, carrying value | $ 74,300,000 | $ 74,100,000 | |||
Brokered Sweep Deposit | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Percentage of other borrowings at cost | 2.44% | 1.32% | |||
Other borrowings | $ 432,500,000 | $ 389,100,000 | |||
Number of counterparties to unused federal funds lines of credit | counterparty | 4 | ||||
Unused federal funds lines of credit | $ 140,000,000 | ||||
Federal Home Loan Bank, Advances, Callable Option | |||||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||||
Number of advances | advance | 0 |
BORROWINGS - Outstanding Borrow
BORROWINGS - Outstanding Borrowings Under Repurchase Agreement (Details) - US Treasury and Government - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Borrowings under repurchase agreements | $ 18,361 | $ 34,591 |
Overnight | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Borrowings under repurchase agreements | 8,361 | 14,591 |
Up to 1 Year | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Borrowings under repurchase agreements | 10,000 | 10,000 |
1 - 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Borrowings under repurchase agreements | 0 | 10,000 |
Greater than 3 Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Borrowings under repurchase agreements | $ 0 | $ 0 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax provision (benefit): | |||||||||||
Federal | $ 1,617 | $ (1,289) | $ 6,262 | ||||||||
State | 2,472 | 994 | 2,202 | ||||||||
Total current | 4,089 | (295) | 8,464 | ||||||||
Deferred tax provision (benefit): | |||||||||||
Federal | (2,683) | 9,518 | (3,698) | ||||||||
State | 219 | 1,421 | (654) | ||||||||
Effect of tax rate change due to tax reform | 0 | 1,399 | 0 | ||||||||
State | (2,464) | 12,338 | (4,352) | ||||||||
Total income tax expense | $ (646) | $ 726 | $ 175 | $ 1,370 | $ 5,442 | $ 2,175 | $ 2,333 | $ 2,093 | $ 1,625 | $ 12,043 | $ 4,112 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Provision for income tax at statutory rate | $ 12,922 | $ 23,332 | $ 18,820 | ||||||||
Increase (decrease) resulting from: | |||||||||||
State income taxes, net of federal benefit | 2,334 | 1,298 | 1,006 | ||||||||
Increase in cash surrender value of bank-owned life insurance | (1,322) | (1,912) | (1,188) | ||||||||
Dividend received deduction | (14) | (179) | (544) | ||||||||
Tax exempt interest net of disallowed interest expense | (3,138) | (4,778) | (3,726) | ||||||||
Employee Stock Ownership Plan | 32 | 60 | 28 | ||||||||
Nondeductible acquisition costs | 45 | 0 | 0 | ||||||||
Investment tax credits | (7,486) | (9,581) | (10,541) | ||||||||
Effect of (adjustment to) tax rate change due to tax reform | (1,709) | 1,399 | 0 | ||||||||
Gain on surrender of BOLI | 0 | 2,377 | 0 | ||||||||
Other, net | (39) | 27 | 257 | ||||||||
Total income tax expense | $ (646) | $ 726 | $ 175 | $ 1,370 | $ 5,442 | $ 2,175 | $ 2,333 | $ 2,093 | $ 1,625 | $ 12,043 | $ 4,112 |
Effective income tax rate | 2.60% | 18.10% | 7.60% |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Loans | $ 14,206 | $ 12,939 |
Investment security losses | 302 | 54 |
Net unrealized losses on securities available for sale | 7,444 | 2,160 |
Net unrealized losses on interest rate swaps | 0 | 511 |
Pension, deferred compensation and post-retirement liabilities | 1,553 | 2,228 |
Stock incentive award plan | 1,225 | 1,251 |
Accrued expenses | 3,219 | 0 |
Tax attributes - tax credits and net operating losses | 25,261 | 23,489 |
Other | 3,813 | 1,827 |
Gross deferred tax assets | 57,023 | 44,459 |
Valuation allowance | (637) | (565) |
Gross deferred tax assets, net of valuation allowance | 56,386 | 43,894 |
Deferred tax liabilities: | ||
Other purchase accounting adjustments | (1,278) | (1,583) |
Partnerships | (17,972) | (12,251) |
Deferred loan origination costs | (4,404) | (4,070) |
Accrued expenses | 0 | (334) |
Net unrealized gains on interest rate swaps | (26) | 0 |
Gross deferred tax liabilities | (23,680) | (18,238) |
Net deferred tax asset | $ 32,706 | $ 25,656 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% | |
Federal net operating loss | $ 900,000 | $ 900,000 | ||
Valuation allowance | 637,000 | 637,000 | $ 565,000 | |
Tax credit carryforward | 8,400,000 | 8,400,000 | ||
Contingency reserve for loan losses | 3,800,000 | 3,800,000 | ||
Unrecognized deferred income taxes | 827,000 | 827,000 | ||
Uncertain tax positions | 568,000 | 568,000 | 688,000 | $ 497,000 |
Accrued interest and penalties | 0 | 0 | 0 | $ 0 |
Provisional tax expense, Tax Act | 1,600,000 | 1,700,000 | ||
Investment Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 11,600,000 | |||
Connecticut | ||||
Operating Loss Carryforwards [Line Items] | ||||
State net operating loss | $ 197,200,000 | $ 197,200,000 | $ 201,600,000 |
DERIVATIVES AND HEDGING ACTIV_3
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, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,843,554 | $ 1,627,494 |
Estimated Fair Value Net | (1,078) | (2,242) |
Designated as Hedging Instrument | Cash flow hedges | Forward starting interest rate swaps on future borrowings | ||
Derivative [Line Items] | ||
Notional Amount | $ 50,000 | $ 50,000 |
Weighted-Average Maturity (in years) | 5 years 2 months 20 days | 7 years 10 months 17 days |
Weighted-Average Interest Rate Swaps, Paid | 2.67% | 2.45% |
Estimated Fair Value Net | $ (356) | $ (292) |
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 395,000 | $ 175,000 |
Weighted-Average Maturity (in years) | 4 years 8 days | 4 years 6 months 26 days |
Weighted- Average Interest Rate Swaps, Rate Received | 2.59% | 1.35% |
Weighted-Average Interest Rate Swaps, Paid | 2.51% | 2.41% |
Estimated Fair Value Net | $ 457 | $ (1,736) |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000 | |
Weighted-Average Maturity (in years) | 5 months 19 days | |
Weighted- Average Interest Rate Swaps, Rate Received | 1.00% | |
Weighted-Average Interest Rate Swaps, Paid | 1.51% | |
Estimated Fair Value Net | $ (28) | |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,500 | $ 7,500 |
Weighted-Average Maturity (in years) | 7 years 6 months 14 days | 8 years 6 months 15 days |
Estimated Fair Value Net | $ (686) | $ (615) |
Not Designated as Hedging Instrument | Forward loan sale commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 85,043 | $ 137,670 |
Weighted-Average Maturity (in years) | 0 years | 0 years |
Estimated Fair Value Net | $ (681) | $ (92) |
Not Designated as Hedging Instrument | Derivative loan commitments | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,491 | $ 24,430 |
Weighted-Average Maturity (in years) | 0 years | 0 years |
Estimated Fair Value Net | $ 194 | $ 530 |
Not Designated as Hedging Instrument | Loan level swaps - dealer | ||
Derivative [Line Items] | ||
Notional Amount | $ 640,760 | $ 603,447 |
Weighted-Average Maturity (in years) | 6 years 10 months 16 days | 7 years 3 months 22 days |
Weighted- Average Interest Rate Swaps, Rate Received | 4.20% | 3.25% |
Weighted-Average Interest Rate Swaps, Paid | 4.10% | 3.99% |
Estimated Fair Value Net | $ 2,068 | $ (3,183) |
Not Designated as Hedging Instrument | Loan level swaps - borrowers | ||
Derivative [Line Items] | ||
Notional Amount | $ 640,760 | $ 603,447 |
Weighted-Average Maturity (in years) | 6 years 10 months 16 days | 7 years 3 months 22 days |
Weighted- Average Interest Rate Swaps, Rate Received | 4.10% | 3.99% |
Weighted-Average Interest Rate Swaps, Paid | 4.20% | 3.25% |
Estimated Fair Value Net | $ (2,074) | $ 3,174 |
Not Designated as Hedging Instrument | Forward starting loan level swaps - dealer | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,000 | $ 8,000 |
Weighted-Average Maturity (in years) | 8 years 8 months 11 days | 9 years 8 months 12 days |
Weighted-Average Interest Rate Swaps, Paid | 5.11% | 5.11% |
Estimated Fair Value Net | $ (37) | $ 105 |
Not Designated as Hedging Instrument | Forward starting loan level swaps - borrower | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,000 | $ 8,000 |
Weighted-Average Maturity (in years) | 8 years 8 months 11 days | 9 years 8 months 12 days |
Weighted- Average Interest Rate Swaps, Rate Received | 5.11% | 5.11% |
Estimated Fair Value Net | $ 37 | $ (105) |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)borrowercounterpartyderivative | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||
Derivative notional amount | $ 1,843,554 | $ 1,627,494 |
Fair value of net derivative, asset position | 575 | 3,100 |
Minimum | ||
Derivative [Line Items] | ||
Amount of collateral | $ 0 | |
Interest Rate Contract | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 7,500 | |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 7,500 | 7,500 |
Borrower | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 86 | |
Derivative notional amount | $ 640,800 | |
Brokerage Activities | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 86 | |
Derivative notional amount | $ 640,800 | |
Interest rate swap - risk participation agreement | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 9 | |
Number of counterparties | counterparty | 4 | |
Number of customers | borrower | 8 | |
Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By Counterparty | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 3 | |
Derivative notional amount | $ 24,200 | |
Counterparty participation level, percent | 36.70% | |
Interest Rate Swap, Risk Participation Agreement, Credit Enhancements Provided By The Bank | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 6 | |
Derivative notional amount | $ 41,200 | |
Counterparty participation level, percent | 31.90% | |
Forward starting loan level swaps - borrower | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 8,000 | 8,000 |
Forward starting loan level swaps - dealer | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 1 | |
Derivative notional amount | $ 8,000 | 8,000 |
Cash flow hedges | Interest Rate Contract | ||
Derivative [Line Items] | ||
Estimated gain (loss) to be reclassified to interest expense | $ (755) | |
Forecasted transactions period | 60 months | |
Cash flow hedges | Interest Rate Contract | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 11 | |
Derivative notional amount | $ 445,000 | |
Cash flow hedges | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative notional amount | 395,000 | 175,000 |
Fair value hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Increase (Decrease) in Interest Payable, Net | $ 0 | 0 |
Fair value hedges | Interest rate swaps | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivative instruments | derivative | 0 | |
Derivative notional amount | $ 10,000 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Tabular Disclosure of Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 1,610 | $ 36 |
Derivative Liabilities | 1,509 | 2,092 |
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,610 | 36 |
Designated as Hedging Instrument | Cash flow hedges | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,509 | 2,064 |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Designated as Hedging Instrument | Fair value hedges | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 28 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 11,913 | 11,705 |
Derivative Liabilities | 13,092 | 11,891 |
Not Designated as Hedging Instrument | Forward loan sale commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 12 |
Not Designated as Hedging Instrument | Forward loan sale commitments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 681 | 104 |
Not Designated as Hedging Instrument | Derivative loan commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 194 | 530 |
Not Designated as Hedging Instrument | Derivative loan commitments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate swaps | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Not Designated as Hedging Instrument | Interest rate swaps | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 686 | 615 |
Not Designated as Hedging Instrument | Interest rate swaps | With Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4,805 | 7,117 |
Not Designated as Hedging Instrument | Interest rate swaps | With Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 6,879 | 3,943 |
Not Designated as Hedging Instrument | Interest rate swaps | With Counterparties | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6,877 | 3,941 |
Not Designated as Hedging Instrument | Interest rate swaps | With Counterparties | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4,809 | 7,124 |
Not Designated as Hedging Instrument | Forward starting loan level swap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 37 | 105 |
Not Designated as Hedging Instrument | Forward starting loan level swap | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 37 | $ 105 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Effect of Derivative Financial Instruments on Income Statement (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains (losses) | $ 1,516 | $ (313) | $ (1,472) | |
Amount of Loss Reclassified from AOCI into Income (Effective Portion) | [1] | (613) | (1,487) | (2,362) |
Designated as Hedging Instrument | Loan level swaps | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains (losses) | 1,516 | (313) | (1,472) | |
Amount of Loss Reclassified from AOCI into Income (Effective Portion) | (613) | (1,487) | (2,362) | |
Designated as Hedging Instrument | Loan level swaps | Fair value hedges | Interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | 28 | (29) | (23) | |
Amount of Gain (Loss) Recognized in Income on Hedged Items | 29 | (30) | 25 | |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (993) | (81) | (408) | |
Not Designated as Hedging Instrument | Derivative loan commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (336) | 109 | 198 | |
Not Designated as Hedging Instrument | Interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (71) | 45 | 0 | |
Not Designated as Hedging Instrument | Forward loan sale commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | (589) | (245) | 166 | |
Not Designated as Hedging Instrument | Loan level swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 3 | $ 10 | $ (772) | |
[1] | Amounts are included in interest expense on borrowed funds in the Consolidated Statements of Net Income. Income tax benefit associated with the reclassification adjustment for the years ended December 31, 2018, 2017 and 2016 was $135, $536 and $851, respectively. |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential real estate mortgage loans held for sale | $ 76,600,000 | $ 113,200,000 |
Loans held for sale, fair value | 78,800,000 | 114,100,000 |
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 |
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% | |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on a non-recurring basis | $ 0 | $ 0 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Gain From Sales of Loans | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Mortgage loans held for sale | $ (487) | $ 1,401 | $ (192) |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Assets Recorded at Fair Value on Recurring Basis (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 1,050,787,000 | |
Fair Value | $ 973,347,000 | 1,050,370,000 |
Mortgage loan derivative assets | 13,523,000 | 11,741,000 |
Marketable equity securities | 356,000 | |
Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 204,098,000 | 235,479,000 |
Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 27,678,000 | 33,255,000 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 973,347,000 | 1,050,787,000 |
Mortgage loan derivative assets | 194,000 | 542,000 |
Mortgage loan derivative liabilities | 681,000 | 104,000 |
Loans held for sale | 78,788,000 | 114,073,000 |
Marketable equity securities | 356,000 | |
Recurring | Government-sponsored residential collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 170,719,000 | 133,112,000 |
Recurring | Government-sponsored commercial collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 148,226,000 | 147,242,000 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 100,495,000 | 167,139,000 |
Recurring | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,230,000 | 89,136,000 |
Recurring | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 238,901,000 | 245,007,000 |
Recurring | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 204,098,000 | 235,479,000 |
Recurring | Government-sponsored commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 27,678,000 | 33,255,000 |
Recurring | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 417,000 | |
Recurring | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Recurring | Loan level swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 13,329,000 | 11,199,000 |
Interest rate swap liabilities | 13,920,000 | 13,879,000 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 417,000 |
Mortgage loan derivative assets | 0 | 0 |
Mortgage loan derivative liabilities | 0 | 0 |
Loans held for sale | 0 | 0 |
Marketable equity securities | 356,000 | |
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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 417,000 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Loan level swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | 0 |
Interest rate swap liabilities | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 872,852,000 | 883,231,000 |
Mortgage loan derivative assets | 194,000 | 542,000 |
Mortgage loan derivative liabilities | 681,000 | 104,000 |
Loans held for sale | 78,788,000 | 114,073,000 |
Marketable equity securities | 0 | |
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] | ||
Fair Value | 170,719,000 | 133,112,000 |
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] | ||
Fair Value | 148,226,000 | 147,242,000 |
Recurring | Other Observable Inputs (Level 2) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,230,000 | 89,136,000 |
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] | ||
Fair Value | 238,901,000 | 245,007,000 |
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] | ||
Fair Value | 204,098,000 | 235,479,000 |
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] | ||
Fair Value | 27,678,000 | 33,255,000 |
Recurring | Other Observable Inputs (Level 2) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Other Observable Inputs (Level 2) | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 0 | 0 |
Recurring | Other Observable Inputs (Level 2) | Loan level swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 13,329,000 | 11,199,000 |
Interest rate swap liabilities | 13,920,000 | 13,879,000 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 100,495,000 | 167,139,000 |
Mortgage loan derivative assets | 0 | 0 |
Mortgage loan derivative liabilities | 0 | 0 |
Loans held for sale | 0 | 0 |
Marketable equity securities | 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] | ||
Fair Value | 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] | ||
Fair Value | 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 | 100,495,000 | |
Fair Value | 100,495,000 | 167,139,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
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] | ||
Fair Value | 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] | ||
Fair Value | 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] | ||
Fair Value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Recurring | Significant Unobservable Inputs (Level 3) | Loan level swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | 0 |
Interest rate swap liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Balance at beginning of period | $ 11,733 | $ 10,104 |
Total realized losses on sales included in income / Change in fair value recognized in income | (751) | (1,791) |
Issuances | 3,757 | 3,420 |
Balance at end of period | 14,739 | 11,733 |
Available for Sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Balance at beginning of period | 167,139 | 155,472 |
Net (sales) purchases, settlements | (64,011) | 14,030 |
Principal payments and net accretion | (179) | (3,108) |
Total realized losses on sales included in income / Change in fair value recognized in income | (82) | 191 |
Total unrealized (losses) gains included in other comprehensive income | (2,372) | 554 |
Balance at end of period | $ 100,495 | $ 167,139 |
FAIR VALUE MEASUREMENT - Addi_2
FAIR VALUE MEASUREMENT - Additional Quantitative Information (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities | $ 1,050,787,000 | |
Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities | $ 100,495,000 | |
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage loans | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights | 14,739,000 | |
Recurring | Mortgage servicing rights | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Recurring | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights | $ 14,739,000 | $ 11,733,000 |
Measurement Input, Discount Rate | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.044 | |
Measurement Input, Discount Rate | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.077 | |
Measurement Input, Discount Rate | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.0555 | |
Measurement Input, Discount Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.110 | |
Measurement Input, Discount Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.155 | |
Measurement Input, Discount Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.1279 | |
Measurement Input, Cumulative Default % | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.005 | |
Measurement Input, Cumulative Default % | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.130 | |
Measurement Input, Cumulative Default % | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.7370 | |
Measurement Input, Loss Given Default | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.002 | |
Measurement Input, Loss Given Default | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.040 | |
Measurement Input, Loss Given Default | Asset-backed securities | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset-backed securities, measurement input | 0.0230 | |
Measurement Input, Cost to Service | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 75 | |
Measurement Input, Cost to Service | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 135 | |
Measurement Input, Cost to Service | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 88.03 | |
Measurement Input, Float Earnings Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.0150 | |
Measurement Input, Float Earnings Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.0150 | |
Measurement Input, Prepayment Rate | Mortgage servicing rights | Significant Unobservable Inputs (Level 3) | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 0.0991 |
FAIR VALUE MEASUREMENT - Summar
FAIR VALUE MEASUREMENT - Summary of Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 2,847 | $ 4,488 |
Other real estate owned | 1,389 | 2,154 |
Total | 4,236 | 6,642 |
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 | 2,847 | 4,488 |
Other real estate owned | 1,389 | 2,154 |
Total | $ 4,236 | $ 6,642 |
FAIR VALUE MEASUREMENT - Summ_2
FAIR VALUE MEASUREMENT - Summary of Losses on Assets Recorded at Fair Value on Non-Recurring Basis (Detail) - Nonrecurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ (514) | $ 121 | $ (541) |
Other real estate owned | (311) | (255) | (126) |
Total | $ (825) | $ (134) | $ (667) |
FAIR VALUE MEASUREMENT - Summ_3
FAIR VALUE MEASUREMENT - Summary of Carrying Value and Estimated Fair Values of Financial Instruments (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Available for sale securities | $ 1,050,787,000 | |
Held to maturity securities | 14,300,000 | |
Loans held for sale | $ 78,800,000 | 114,100,000 |
Marketable equity securities | 356,000 | |
Financial liabilities: | ||
FHLBB advances and other borrowings | 797,271,000 | 1,046,458,000 |
Carrying Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 97,964,000 | 88,668,000 |
Available for sale securities | 973,347,000 | 1,050,787,000 |
Held to maturity securities | 13,598,000 | |
Loans held for sale | 78,788,000 | 114,073,000 |
Loans receivable-net | 5,622,589,000 | 5,307,678,000 |
FHLBB stock | 41,407,000 | 50,194,000 |
Accrued interest receivable | 24,823,000 | 22,332,000 |
Derivative assets | 13,523,000 | 11,741,000 |
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Marketable equity securities | 356,000 | |
Financial liabilities: | ||
Deposits | 5,670,599,000 | 5,198,221,000 |
Mortgagors’ and investors’ escrow accounts | 4,685,000 | 7,545,000 |
FHLBB advances and other borrowings | 899,626,000 | 1,165,054,000 |
Derivative liabilities | 14,601,000 | 13,983,000 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 97,964,000 | 88,668,000 |
Available for sale securities | 973,347,000 | 1,050,787,000 |
Held to maturity securities | 14,300,000 | |
Loans held for sale | 78,788,000 | 114,073,000 |
Loans receivable-net | 5,533,626,000 | 5,297,381,000 |
FHLBB stock | 41,407,000 | 50,194,000 |
Accrued interest receivable | 24,823,000 | 22,332,000 |
Derivative assets | 13,523,000 | 11,741,000 |
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Marketable equity securities | 356,000 | |
Financial liabilities: | ||
Deposits | 5,661,129,000 | 5,191,159,000 |
Mortgagors’ and investors’ escrow accounts | 4,685,000 | 7,545,000 |
FHLBB advances and other borrowings | 900,146,000 | 1,164,431,000 |
Derivative liabilities | 14,601,000 | 13,983,000 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 97,964,000 | 88,668,000 |
Available for sale securities | 0 | 417,000 |
Held to maturity securities | 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 |
Marketable equity securities | 356,000 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
FHLBB advances and other borrowings | 0 | 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 | 872,852,000 | 883,231,000 |
Held to maturity securities | 14,300,000 | |
Loans held for sale | 78,788,000 | 114,073,000 |
Loans receivable-net | 0 | 0 |
FHLBB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 13,523,000 | 11,741,000 |
Mortgage servicing rights | 0 | 0 |
Marketable equity securities | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Mortgagors’ and investors’ escrow accounts | 0 | 0 |
FHLBB advances and other borrowings | 900,146,000 | 1,164,431,000 |
Derivative liabilities | 14,601,000 | 13,983,000 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 100,495,000 | 167,139,000 |
Held to maturity securities | 0 | |
Loans held for sale | 0 | 0 |
Loans receivable-net | 5,533,626,000 | 5,297,381,000 |
FHLBB stock | 41,407,000 | 50,194,000 |
Accrued interest receivable | 24,823,000 | 22,332,000 |
Derivative assets | 0 | 0 |
Mortgage servicing rights | 14,739,000 | 11,733,000 |
Marketable equity securities | 0 | |
Financial liabilities: | ||
Deposits | 5,661,129,000 | 5,191,159,000 |
Mortgagors’ and investors’ escrow accounts | 4,685,000 | 7,545,000 |
FHLBB advances and other borrowings | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Plans Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 29, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,481 | $ 2,699 | $ 2,252 | |
Employee and Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,500 | 2,700 | ||
Tax benefit recorded | 546 | 595 | ||
Employee and Director | Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,300 | |||
Tax benefit recorded | 797 | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 242 | 400 | 425 | |
Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,200 | $ 2,300 | $ 1,800 | |
2015 Omnibus Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under the plan (in shares) | shares | 4,050,000 | |||
Fungible ratio | 2.35 | |||
Shares available for future grants (in shares) | shares | 2,036,618 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Activity Related to Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Stock Options (shares) | ||
Outstanding at December 31, 2017 (in shares) | 1,694,995 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (278,830) | |
Forfeited, expired or canceled (in shares) | (29,453) | |
Outstanding at December 31, 2018 (in shares) | 1,386,712 | 1,694,995 |
Stock options vested and exercisable at December 31, 2018 (in shares) | 1,377,988 | |
Stock Options, Weighted- Average Exercise Price (usd per share) | ||
Outstanding at December 31, 2017 (usd per share) | $ 11.34 | |
Granted (usd per share) | 0 | |
Exercised (usd per share) | 9.80 | |
Forfeited or expired (usd per share) | 8.98 | |
Outstanding at December 31, 2018 (usd per share) | 11.70 | $ 11.34 |
Stock options vested and exercisable at December 31, 2018 (usd per share) | $ 11.69 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Contractual Term, Outstanding at December 31, 2018 | 3 years 11 months | |
Weighted Average Remaining Contractual Term, Stock options vested and exercisable at December 31, 2018 | 3 years 10 months | |
Aggregate Intrinsic Value, Exercised | $ 2 | |
Aggregate Intrinsic Value, Forfeited, expired, or canceled | 0.3 | |
Aggregate Intrinsic Value, Outstanding at December 31, 2018 | 4.2 | |
Aggregate Intrinsic Value, Stock options vested and exercisable at December 31, 2018 | $ 4.1 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Stock Options - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock granted expiration period | 10 years | |
Stock awards, granted (in shares) | 0 | 0 |
SAR options exercised (in shares) | 278,830 | |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost not yet recognized | $ 8 | |
Cost not yet recognized, period for recognition | 5 months 20 days | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
SAR options exercised (in shares) | 55,234 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Restricted Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock issued (in shares) | 199,830 | |||
Aggregate fair value of vested options | $ 2,100 | $ 2,800 | $ 1,500 | |
Granted, weighted average grant date fair value (usd per share) | $ 15.88 | $ 18.15 | $ 15.61 | |
Compensation cost not yet recognized | $ 4,300 | |||
Cost not yet recognized, period for recognition | 2 years 2 months | |||
Unvested restricted stock expected year two (in shares) | 259,315 | |||
Unvested restricted stock expected year three (in shares) | 114,703 | |||
Unvested restricted stock expected year four (in shares) | 100,490 | |||
Unvested shares (in shares) | 474,508 | 425,000 | ||
Share forfeitures (in shares) | 19,363 | |||
Restricted Stock | 2015 Omnibus Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock issued (in shares) | 199,830 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested shares (in shares) | 69,688 | |||
Forecast | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share forfeitures (in shares) | 36,052 |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Activity for Restricted Stock (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares, Restricted Stock Activity (shares) | |||
Beginning balance (in shares) | 425,000 | ||
Granted (in shares) | 199,830 | ||
Vested (in shares) | (130,959) | ||
Forfeited (in shares) | (19,363) | ||
Ending balance (in shares) | 474,508 | 425,000 | |
Restricted Stock Options, Weighted Average Grant Date Fair Value (usd per share) | |||
Beginning balance (usd per share) | $ 15.55 | ||
Granted (usd per share) | 15.88 | $ 18.15 | $ 15.61 |
Vested (usd per share) | 15.85 | ||
Forfeited (usd per share) | 16.88 | ||
Ending balance (usd per share) | $ 15.55 | $ 15.55 |
SHARE-BASED COMPENSATION PLAN_7
SHARE-BASED COMPENSATION PLANS - Employee Stock Ownership Plan - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | Dec. 31, 2006 | Dec. 31, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
ESOP expense | $ 378,000 | $ 400,000 | $ 308,000 | ||||
Allocated ESOP shares (in shares) | 182,505 | ||||||
Unallocated ESOP shares (in shares) | 501,890 | ||||||
Aggregate fair value of unallocated shares | $ 7,400,000 | ||||||
Employee Stock Ownership Plan 2005 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in initial public offering (in shares) | 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 | ||||||
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 | ||||||
Additional shares purchased by the ESOP in the open market (in shares) | 59,300 | 203,072 | |||||
Employee Stock Ownership Plan 2005 | Prime Rate | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Interest rate for the ESOP loan | 1.00% | ||||||
Employee Stock Ownership Plan 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued in initial public offering (in shares) | 684,395 | ||||||
Purchase of common stock (in shares) | 276,017 | ||||||
Remaining shares (in shares) | 408,378 | ||||||
Employee stock ownership plan effective rate | 6.25% | ||||||
Employee stock ownership plan loan outstanding balance | $ 5,900,000 | ||||||
Initial public offering cost (usd per share) | $ 10 | ||||||
Average cost, per share (usd 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 | 22 years | ||||||
Principal payments | $ 1,200,000 | ||||||
Dividends paid to ESOP | $ 252,000 | ||||||
Employee Stock Ownership Plan 2011 | Prime Rate | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Interest rate for the ESOP loan | 1.00% |
PENSION PLANS AND OTHER POST-_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Qualified Pension Plan | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 31,045 | $ 28,475 | $ 27,115 |
Service cost | 0 | 0 | 0 |
Interest cost | 1,097 | 1,162 | 1,186 |
Plan participants’ contributions | 0 | 0 | 0 |
Actuarial (gain) loss | (2,351) | 2,379 | 1,088 |
Benefits paid and administration expenses | (1,040) | (971) | (914) |
Benefit obligation at end of year | 28,751 | 31,045 | 28,475 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 29,903 | 26,425 | 25,240 |
Actual (loss) return on plan assets | (1,676) | 3,824 | 1,571 |
Employer contributions | 1,500 | 625 | 528 |
Plan participants’ contributions | 0 | 0 | 0 |
Benefits paid and administration expenses | (1,040) | (971) | (914) |
Fair value of plan assets at end of year | 28,687 | 29,903 | 26,425 |
Funded Status: | |||
Underfunded status at end of year | (64) | (1,142) | (2,050) |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | (64) | (1,142) | (2,050) |
Supplemental Executive Retirement Plans | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 1,102 | 1,000 | 929 |
Service cost | 27 | 24 | 22 |
Interest cost | 38 | 39 | 39 |
Plan participants’ contributions | 0 | 0 | 0 |
Actuarial (gain) loss | (79) | 72 | 37 |
Benefits paid and administration expenses | (41) | (33) | (27) |
Benefit obligation at end of year | 1,047 | 1,102 | 1,000 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Actual (loss) return on plan assets | 0 | 0 | 0 |
Employer contributions | 41 | 33 | 27 |
Plan participants’ contributions | 0 | 0 | 0 |
Benefits paid and administration expenses | (41) | (33) | (27) |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded Status: | |||
Underfunded status at end of year | (1,047) | (1,102) | (1,000) |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | (1,047) | (1,102) | (1,000) |
Other Post - Retirement Benefits | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | 2,059 | 2,041 | 1,841 |
Service cost | 20 | 21 | 13 |
Interest cost | 70 | 79 | 76 |
Plan participants’ contributions | 27 | 28 | 27 |
Actuarial (gain) loss | (280) | (10) | 180 |
Benefits paid and administration expenses | (103) | (100) | (96) |
Benefit obligation at end of year | 1,793 | 2,059 | 2,041 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Actual (loss) return on plan assets | 0 | 0 | 0 |
Employer contributions | 76 | 72 | 69 |
Plan participants’ contributions | 27 | 28 | 27 |
Benefits paid and administration expenses | (103) | (100) | (96) |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded Status: | |||
Underfunded status at end of year | (1,793) | (2,059) | (2,041) |
Amounts Recognized in the Consolidated Statements of Condition | |||
Accrued expenses and other liabilities | $ (1,793) | $ (2,059) | $ (2,041) |
PENSION PLANS AND OTHER POST-_4
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Qualified Pension Plan | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | $ 0 | $ 0 | $ 0 |
Net loss (gain) | 7,941 | 7,285 | 7,696 |
Total unrecognized losses (gains) | 7,941 | 7,285 | 7,696 |
Deferred tax (asset) liability | (1,749) | (2,625) | (2,773) |
Net impact on accumulated other comprehensive loss | 6,192 | 4,660 | 4,923 |
Supplemental Executive Retirement Plans | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | 64 | 71 | 78 |
Net loss (gain) | 101 | 187 | 117 |
Total unrecognized losses (gains) | 165 | 258 | 195 |
Deferred tax (asset) liability | (36) | (93) | (70) |
Net impact on accumulated other comprehensive loss | 129 | 165 | 125 |
Other Post - Retirement Benefits | |||
Amounts Recognized in Accumulated Other Comprehensive Loss Consist of: | |||
Prior service cost | 0 | 0 | 0 |
Net loss (gain) | (245) | 35 | 45 |
Total unrecognized losses (gains) | (245) | 35 | 45 |
Deferred tax (asset) liability | 54 | (12) | (16) |
Net impact on accumulated other comprehensive loss | $ (191) | $ 23 | $ 29 |
PENSION PLANS AND OTHER POST-_5
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Qualified Pension Plan | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1,097 | 1,162 | 1,186 |
Expected return on plan assets | (1,817) | (1,603) | (1,624) |
Amortization of net actuarial losses | 486 | 569 | 495 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic (benefit) cost | (234) | 128 | 57 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | 1,142 | 158 | 1,140 |
Amortization of net loss | (486) | (569) | (495) |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | 656 | (411) | 645 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 422 | (283) | 702 |
Supplemental Executive Retirement Plans | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | 27 | 24 | 22 |
Interest cost | 38 | 39 | 39 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial losses | 7 | 2 | 0 |
Amortization of prior service cost | 7 | 7 | 7 |
Net periodic (benefit) cost | 79 | 72 | 68 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | (79) | 72 | 37 |
Amortization of net loss | (7) | (2) | 0 |
Amortization of prior service cost | (7) | (7) | (7) |
Total recognized in other comprehensive income (loss) | (93) | 63 | 30 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (14) | 135 | 98 |
Other Post - Retirement Benefits | |||
Components of Net Periodic Benefit Cost: | |||
Service cost | 20 | 21 | 13 |
Interest cost | 70 | 79 | 76 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial losses | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic (benefit) cost | 90 | 100 | 89 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | |||
Net loss (gain) | (280) | (10) | 180 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | (280) | (10) | 180 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (190) | $ 90 | $ 269 |
PENSION PLANS AND OTHER POST-_6
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 01, 2016 | Jul. 01, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Annual rate of increase in cost of covered benefits, pre-65 | 6.75% | ||||
Annual rate of increase in cost of covered benefits, post-65 | 6.00% | ||||
Company contribution, percentage (not more than) | 100.00% | ||||
Pentegra DB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contribution, percentage (not more than) | 5.00% | ||||
Funded percentage | 118.70% | 114.30% | |||
Company contribution | $ 411 | $ 50 | $ 50 | ||
Qualified Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2018 | 572 | ||||
Company contribution | $ 1,500 | 625 | 528 | ||
Qualified Pension Plan | Marketable equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 85.00% | ||||
Qualified Pension Plan | Total debt securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 9.00% | ||||
Qualified Pension Plan | Real Estate | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 6.00% | ||||
Qualified Pension Plan | Hedge funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of targeted allocation | 0.00% | ||||
Supplemental Executive Retirement Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2018 | $ 7 | ||||
Company contribution | 41 | 33 | 27 | ||
Other Post - Retirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
AOCL expected to be recognized as components of net periodic benefit cost during 2018 | (13) | ||||
Accumulated post-retirement benefit obligation | 1,800 | 2,100 | |||
Company contribution | $ 76 | $ 72 | $ 69 |
PENSION PLANS AND OTHER POST-_7
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Weighted-Average Assumptions Used to Determine Pension Benefit Obligations (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Qualified Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.15% | 3.60% |
Expected return on plan assets | 5.25% | 6.50% |
Supplemental Executive Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.10% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% |
Other Post - Retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.10% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% |
PENSION PLANS AND OTHER POST-_8
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.60% | 4.15% | 4.45% |
Expected return on plan assets | 6.50% | 6.50% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Supplemental Executive Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.50% | 4.00% | 4.30% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Other Post - Retirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.50% | 4.00% | 4.25% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
PENSION PLANS AND OTHER POST-_9
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Change in Assumed Healthcare Cost Trend Rate (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on post-retirement benefit obligation increase | $ 181 |
Effect on total service and interest increase | 9 |
Effect on post-retirement benefit obligation decrease | (153) |
Effect on total service and interest decrease | $ (8) |
PENSION PLANS AND OTHER POST_10
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Pension Plan Assets (Detail) - Qualified Pension Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 28,687 | $ 29,903 | $ 26,425 | $ 25,240 |
Percent of plan assets | 100.00% | 100.00% | ||
Fixed income funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 24,440 | $ 16,264 | ||
Percent of plan assets | 85.00% | 54.00% | ||
Domestic equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 2,317 | $ 6,234 | ||
Percent of plan assets | 8.00% | 21.00% | ||
International equity funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 1,524 | $ 4,187 | ||
Percent of plan assets | 5.00% | 14.00% | ||
Hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 292 | $ 2,909 | ||
Percent of plan assets | 1.00% | 10.00% | ||
Money market funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Fair Value | $ 114 | $ 309 | ||
Percent of plan assets | 1.00% | 1.00% |
PENSION PLANS AND OTHER POST_11
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Summary of Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Qualified Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 1,220 |
2,020 | 1,340 |
2,021 | 1,360 |
2,022 | 1,390 |
2,023 | 1,440 |
Years 2024-2028 | 7,690 |
Supplemental Executive Retirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 41 |
2,020 | 41 |
2,021 | 41 |
2,022 | 41 |
2,023 | 41 |
Years 2024-2028 | 327 |
Other Post - Retirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 100 |
2,020 | 110 |
2,021 | 120 |
2,022 | 110 |
2,023 | 110 |
Years 2024-2028 | $ 560 |
PENSION PLANS AND OTHER POST_12
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - 401 (k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
401 (k) plan, employe matching contribution, percent of match | 100.00% | ||
401 (k) plan, employer matching contribution, percent of employee's compensation | 3.00% | ||
401 (k) plan, employer matching contribution, percent of match, second threshold | 50.00% | ||
401 (k) plan, employer matching contribution, percent of employee's compensation, second threshold | 2.00% | ||
Defined benefit plan, eligibility period | 5 years | ||
Company's contribution to 401 (k) plan | $ 2 | $ 1.9 | $ 1.7 |
REGULATORY MATTERS - Regulatory
REGULATORY MATTERS - Regulatory Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total capital to risk weighted assets | ||
Actual, Amount | $ 694,633 | $ 642,179 |
Tier 1 capital to risk weighted assets | ||
Actual, Amount | 640,773 | 593,155 |
United Bank | ||
Total capital to risk weighted assets | ||
Actual, Amount | $ 694,633 | $ 642,179 |
Actual, Ratio | 11.90% | 11.60% |
Minimum For Capital Adequacy Purposes, Amount | $ 466,980 | $ 442,882 |
Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 583,725 | $ 553,603 |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Common equity tier 1 capital to risk weighted assets | ||
Actual, Amount | $ 640,773 | $ 593,155 |
Actual, Ratio | 10.90% | 10.70% |
Minimum for Capital Adequacy Purposes, Amount | $ 264,539 | $ 249,458 |
Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 382,112 | $ 360,328 |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 capital to risk weighted assets | ||
Actual, Amount | $ 640,773 | $ 593,155 |
Actual, Ratio | 10.90% | 10.70% |
Minimum For Capital Adequacy Purposes, Amount | $ 352,719 | $ 332,610 |
Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 470,292 | $ 443,480 |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 capital to total average assets | ||
Actual, Amount | $ 640,773 | $ 593,155 |
Actual, Ratio | 9.00% | 8.70% |
Minimum For Capital Adequacy Purposes, Amount | $ 284,788 | $ 272,715 |
Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 355,985 | $ 340,894 |
Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
United Financial Bancorp, Inc | ||
Total capital to risk weighted assets | ||
Actual, Amount | $ 739,322 | $ 701,794 |
Actual, Ratio | 12.60% | 12.60% |
Minimum For Capital Adequacy Purposes, Amount | $ 469,411 | $ 445,583 |
Minimum For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital to risk weighted assets | ||
Actual, Amount | $ 610,462 | $ 577,770 |
Actual, Ratio | 10.40% | 10.40% |
Minimum for Capital Adequacy Purposes, Amount | $ 264,142 | $ 249,997 |
Minimum for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier 1 capital to risk weighted assets | ||
Actual, Amount | $ 610,462 | $ 577,770 |
Actual, Ratio | 10.40% | 10.40% |
Minimum For Capital Adequacy Purposes, Amount | $ 352,190 | $ 333,329 |
Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital to total average assets | ||
Actual, Amount | $ 610,462 | $ 577,770 |
Actual, Ratio | 8.40% | 8.40% |
Minimum For Capital Adequacy Purposes, Amount | $ 290,696 | $ 275,129 |
Minimum For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
REGULATORY MATTERS - Additional
REGULATORY MATTERS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Amount available for the payment of dividends | $ 135 | $ 108.3 |
REGULATORY MATTERS - Reconcilia
REGULATORY MATTERS - Reconciliation of Company's Total Consolidated Equity to Capital Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||||
Total consolidated equity | $ 712,518 | $ 693,328 | $ 655,866 | $ 625,521 |
Adjustments: | ||||
Additional Bank-only equity | 36,322 | 20,081 | ||
Accumulated other comprehensive loss | 30,414 | 11,840 | ||
Disallowed goodwill and other intangible assets | (121,839) | (117,847) | ||
Disallowed deferred tax assets | (16,642) | (11,398) | ||
Other | 0 | (2,849) | ||
Tier 1 capital | 640,773 | 593,155 | ||
Allowance for loan losses and off-balance sheet credit losses | 53,860 | 48,944 | ||
Unrealized gains on available-for-sale securities includible in total risk-based capital | 0 | 80 | ||
Total risk-based capital | $ 694,633 | $ 642,179 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss, Included in Stockholders' Equity (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | $ 712,518 | $ 693,328 | $ 655,866 | $ 625,521 | |
Retained Earnings | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | 206,761 | 168,345 | 137,838 | 112,013 | |
Adoption of ASU No. 2018-02 (see Note 17) | $ 2,600 | 2,590 | |||
Benefit plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gain (loss) | (7,861) | (7,578) | |||
Tax effect | 1,731 | 2,730 | |||
Total stockholders’ equity | (6,130) | (4,848) | |||
Securities available for sale | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gain (loss) | (31,248) | (8,896) | |||
Tax effect | 6,885 | 3,201 | |||
Total stockholders’ equity | (24,363) | (5,695) | |||
Interest rate swaps | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Unrealized gain (loss) | 101 | (2,028) | |||
Tax effect | (22) | 731 | |||
Total stockholders’ equity | 79 | (1,297) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Total stockholders’ equity | (30,414) | $ (11,840) | $ (15,353) | $ (10,879) | |
Adoption of ASU No. 2018-02 (see Note 17) | $ (2,600) | $ (2,590) |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 12,165 | $ 16,308 | $ 15,646 | $ 15,787 | $ 9,501 | $ 15,191 | $ 16,200 | $ 13,726 | $ 59,906 | $ 54,618 | $ 49,661 |
Adjusted weighted-average common shares outstanding (in shares) | 51,069,346 | 50,820,019 | 50,290,934 | ||||||||
Less: average number of unvested ESOP award shares (in shares) | 514,134 | 536,948 | 559,785 | ||||||||
Weighted-average basic shares outstanding (in shares) | 50,555,212 | 50,283,071 | 49,731,149 | ||||||||
Dilutive effect of stock options (in shares) | 457,027 | 639,581 | 357,881 | ||||||||
Weighted-average diluted shares (in shares) | 51,012,239 | 50,922,652 | 50,089,030 | ||||||||
Net income per share: | |||||||||||
Basic (usd per share) | $ 0.24 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.19 | $ 0.30 | $ 0.32 | $ 0.27 | $ 1.18 | $ 1.09 | $ 1 |
Diluted (usd per share) | $ 0.24 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.19 | $ 0.30 | $ 0.32 | $ 0.27 | $ 1.17 | $ 1.07 | $ 0.99 |
NET INCOME PER SHARE - Addition
NET INCOME PER SHARE - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options excluded from earnings per share calculation (in shares) | 0 | 258 |
OTHER COMMITMENTS AND CONTING_3
OTHER COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Commitments Under Terms of Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 7,148 |
2,020 | 7,704 |
2,021 | 7,536 |
2,022 | 7,070 |
2,023 | 5,962 |
Thereafter | 42,007 |
Future minimum rental commitments under the terms of leases | $ 77,427 |
OTHER COMMITMENTS AND CONTING_4
OTHER COMMITMENTS AND CONTINGENCIES - Leases Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rental expense charged to operations for all cancelable and non-cancelable operating leases | $ 6,900 | $ 5,300 | $ 4,600 |
Rental income | $ 1,073 | $ 573 | $ 553 |
OTHER COMMITMENTS AND CONTING_5
OTHER COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Receivable Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,019 | $ 1,362 |
2,020 | 1,407 |
2,021 | 1,276 |
2,022 | 841 |
2,023 | 144 |
Thereafter | 297 |
Future minimum rental receivable under the non-cancelable leases | $ 5,327 |
OTHER COMMITMENTS AND CONTING_6
OTHER COMMITMENTS AND CONTINGENCIES - Financial Instruments Contract Amounts Represent Credit Risk (Detail) - Commitments to extend credit - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 1,269,445 | $ 1,104,152 |
Commitment to grant loans | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 140,875 | 110,664 |
Undisbursed construction loans | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 122,838 | 136,149 |
Undisbursed home equity lines of credit | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 453,634 | 412,484 |
Undisbursed commercial lines of credit | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 515,193 | 412,547 |
Standby letters of credit | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 13,252 | 14,680 |
Unused credit card lines | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 21,331 | 16,084 |
Unused checking overdraft lines of credit | ||
Commitments to extend credit: | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 2,322 | $ 1,544 |
OTHER COMMITMENTS AND CONTING_7
OTHER COMMITMENTS AND CONTINGENCIES - Other Commitments Additional Information (Details) - Tax credit partnerships $ in Millions | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
Net carrying balance of investments | $ 51.5 |
Capital contribution commitments | $ 4 |
SELECTED QUARTERLY CONSOLIDAT_3
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 72,223 | $ 70,191 | $ 67,130 | $ 63,494 | $ 61,727 | $ 60,799 | $ 58,562 | $ 55,166 | $ 273,038 | $ 236,254 | $ 212,152 |
Interest expense on subordinated debentures | 23,861 | 21,762 | 18,949 | 16,951 | 14,878 | 14,031 | 12,234 | 10,869 | 81,523 | 52,012 | 41,053 |
Net interest income | 48,362 | 48,429 | 48,181 | 46,543 | 46,849 | 46,768 | 46,328 | 44,297 | 191,515 | 184,242 | 171,099 |
Provision for loan losses | 2,618 | 2,007 | 2,350 | 1,939 | 2,250 | 2,566 | 2,292 | 2,288 | 8,914 | 9,396 | 13,437 |
Net interest income after provision for loan losses | 45,744 | 46,422 | 45,831 | 44,604 | 44,599 | 44,202 | 44,036 | 42,009 | 182,601 | 174,846 | 157,662 |
Non-interest income | 9,493 | 9,555 | 8,360 | 9,289 | 7,581 | 8,426 | 9,826 | 8,732 | 36,697 | 34,565 | 30,839 |
Other non-interest expense | 43,718 | 38,943 | 38,370 | 36,736 | 37,237 | 35,262 | 35,329 | 34,922 | 157,767 | 142,750 | 134,728 |
Income before income taxes | 11,519 | 17,034 | 15,821 | 17,157 | 14,943 | 17,366 | 18,533 | 15,819 | 61,531 | 66,661 | 53,773 |
Provision (benefit) for income taxes | (646) | 726 | 175 | 1,370 | 5,442 | 2,175 | 2,333 | 2,093 | 1,625 | 12,043 | 4,112 |
Net income | $ 12,165 | $ 16,308 | $ 15,646 | $ 15,787 | $ 9,501 | $ 15,191 | $ 16,200 | $ 13,726 | $ 59,906 | $ 54,618 | $ 49,661 |
Earnings per share: | |||||||||||
Basic (usd per share) | $ 0.24 | $ 0.32 | $ 0.31 | $ 0.31 | $ 0.19 | $ 0.30 | $ 0.32 | $ 0.27 | $ 1.18 | $ 1.09 | $ 1 |
Diluted (usd per share) | 0.24 | 0.32 | 0.31 | 0.31 | 0.19 | 0.30 | 0.32 | 0.27 | $ 1.17 | $ 1.07 | $ 0.99 |
Stock Price (per share): | |||||||||||
High (usd per share) | 17.14 | 18.20 | 18.33 | 18.30 | 19.35 | 18.50 | 18.29 | 18.66 | |||
Low (usd per share) | $ 13.58 | $ 16.86 | $ 15.78 | $ 15.47 | $ 17.09 | $ 16.27 | $ 15.84 | $ 15.75 |
SELECTED QUARTERLY CONSOLIDAT_4
SELECTED QUARTERLY CONSOLIDATED INFORMATION (UNAUDITED) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Severance expense (pre-tax) | $ 2.2 | |
Impact to net income, Tax Act | (2.8) | |
Provisional tax expense, Tax Act | $ 1.6 | $ 1.7 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and due from banks | $ 36,434 | $ 56,661 | ||
Other assets | 100,368 | 105,593 | ||
Total Assets | 7,356,874 | 7,114,159 | ||
Liabilities and Stockholders’ Equity: | ||||
Accrued expenses and other liabilities | 69,446 | 50,011 | ||
Stockholders’ equity | 712,518 | 693,328 | $ 655,866 | $ 625,521 |
Total Liabilities and Stockholders’ Equity | 7,356,874 | 7,114,159 | ||
Parent Company | ||||
Assets: | ||||
Cash and due from banks | 15,001 | 24,365 | ||
Investment in United Bank | 748,840 | 713,409 | ||
Due from United Bank | 14,954 | 13,101 | ||
Other assets | 15,787 | 24,210 | ||
Total Assets | 794,582 | 775,085 | ||
Liabilities and Stockholders’ Equity: | ||||
Subordinated debentures | 80,201 | 79,956 | ||
Accrued expenses and other liabilities | 1,863 | 1,801 | ||
Stockholders’ equity | 712,518 | 693,328 | ||
Total Liabilities and Stockholders’ Equity | $ 794,582 | $ 775,085 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Net Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | |||||||||||
Net interest income | $ 48,362 | $ 48,429 | $ 48,181 | $ 46,543 | $ 46,849 | $ 46,768 | $ 46,328 | $ 44,297 | $ 191,515 | $ 184,242 | $ 171,099 |
Non-interest income | 9,493 | 9,555 | 8,360 | 9,289 | 7,581 | 8,426 | 9,826 | 8,732 | 36,697 | 34,565 | 30,839 |
Income before income taxes | 11,519 | 17,034 | 15,821 | 17,157 | 14,943 | 17,366 | 18,533 | 15,819 | 61,531 | 66,661 | 53,773 |
Income tax benefit | 646 | (726) | (175) | (1,370) | (5,442) | (2,175) | (2,333) | (2,093) | (1,625) | (12,043) | (4,112) |
Net income | $ 12,165 | $ 16,308 | $ 15,646 | $ 15,787 | $ 9,501 | $ 15,191 | $ 16,200 | $ 13,726 | 59,906 | 54,618 | 49,661 |
Parent Company | |||||||||||
Interest and dividend income: | |||||||||||
Interest and dividend income on investments | 25 | 25 | 159 | ||||||||
Interest expense on subordinated debentures | (4,879) | (4,794) | (4,738) | ||||||||
Net interest income | (4,854) | (4,769) | (4,579) | ||||||||
Non-interest income | 108 | 830 | 0 | ||||||||
General and administrative expense | (5,046) | (5,350) | (4,982) | ||||||||
Income before income taxes | (9,792) | (9,289) | (9,561) | ||||||||
Income tax benefit | 2,452 | 3,987 | 3,338 | ||||||||
Loss before equity in undistributed net income of United Bank | (7,340) | (5,302) | (6,223) | ||||||||
Equity in undistributed net income of United Bank | 67,246 | 59,920 | 55,884 | ||||||||
Net income | $ 59,906 | $ 54,618 | $ 49,661 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 12,165 | $ 16,308 | $ 15,646 | $ 15,787 | $ 9,501 | $ 15,191 | $ 16,200 | $ 13,726 | $ 59,906 | $ 54,618 | $ 49,661 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of subordinated debt issuance costs, net | 126 | 126 | 126 | ||||||||
Share-based compensation expense | 2,481 | 2,699 | 2,252 | ||||||||
ESOP expense | 378 | 400 | 308 | ||||||||
Tax benefit of stock-based awards | 0 | 0 | (486) | ||||||||
Net change in: | |||||||||||
Other assets | (18,857) | (14,527) | (4,327) | ||||||||
Net cash provided by (used in) operating activities | 108,190 | 13,145 | (313) | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash used in investing activities | (275,524) | (470,082) | (332,492) | ||||||||
Cash flows from financing activities: | |||||||||||
Cancellation of shares for tax withholding | (601) | (805) | (327) | ||||||||
Tax effects of share-based awards | 0 | 0 | 486 | ||||||||
Cash dividends paid on common stock | (24,257) | (24,111) | (23,836) | ||||||||
Net cash provided by financing activities | 176,630 | 454,661 | 328,573 | ||||||||
Net increase (decrease) in cash and cash equivalents | 9,296 | (2,276) | (4,232) | ||||||||
Cash and cash equivalents - beginning of year | 88,668 | 90,944 | 88,668 | 90,944 | 95,176 | ||||||
Cash and cash equivalents - end of year | 97,964 | 88,668 | 97,964 | 88,668 | 90,944 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 59,906 | 54,618 | 49,661 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of purchase accounting marks, net | 118 | 114 | 100 | ||||||||
Amortization of subordinated debt issuance costs, net | 127 | 126 | 127 | ||||||||
Share-based compensation expense | 2,481 | 2,699 | 2,252 | ||||||||
ESOP expense | 378 | 400 | 308 | ||||||||
Undistributed income of United Bank | (67,246) | (59,920) | (55,884) | ||||||||
Deferred tax (benefit) provision | (1,987) | 7,166 | 4,237 | ||||||||
Tax benefit of stock-based awards | 0 | 0 | (486) | ||||||||
Net change in: | |||||||||||
Due from United Bank | (1,853) | (1,696) | (2,031) | ||||||||
Other assets | 10,418 | 3,941 | 6,879 | ||||||||
Accrued expenses and other liabilities | 62 | 118 | (19) | ||||||||
Net cash provided by (used in) operating activities | 2,404 | 7,566 | 5,144 | ||||||||
Cash flows from investing activities: | |||||||||||
Dividends from United Bank | 16,000 | 24,000 | 0 | ||||||||
Net cash used in investing activities | 16,000 | 24,000 | 0 | ||||||||
Cash flows from financing activities: | |||||||||||
Common stock repurchased | (5,157) | (1,312) | 0 | ||||||||
Proceeds from the exercise of stock options | 2,247 | 2,460 | 6,275 | ||||||||
Cancellation of shares for tax withholding | (601) | (805) | (327) | ||||||||
Tax effects of share-based awards | 0 | 0 | 486 | ||||||||
Cash dividends paid on common stock | (24,257) | (24,111) | (23,836) | ||||||||
Net cash provided by financing activities | (27,768) | (23,768) | (17,402) | ||||||||
Net increase (decrease) in cash and cash equivalents | (9,364) | 7,798 | (12,258) | ||||||||
Cash and cash equivalents - beginning of year | $ 24,365 | $ 16,567 | 24,365 | 16,567 | 28,825 | ||||||
Cash and cash equivalents - end of year | $ 15,001 | $ 24,365 | 15,001 | 24,365 | 16,567 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for income taxes, net | $ 1,835 | $ 4,574 | $ 3,655 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||
Partnership investments | $ 51,504 | $ 38,160 | |
Solar Eclipse Investment Fund | |||
Subsequent Event [Line Items] | |||
Partnership investments | 19,000 | ||
Tax credit benefits recognized | $ 18,300 | ||
Subsequent Event | Solar Eclipse Investment Fund | |||
Subsequent Event [Line Items] | |||
Tax credit benefits recognized | $ 8,200 |