Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Bankwell Financial Group, Inc. | |
Entity Central Index Key | 1,505,732 | |
Trading Symbol | bwfg | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,301,785 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS - (
CONSOLIDATED BALANCE SHEETS - (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 86,830 | $ 48,559 |
Held to maturity investment securities, at amortized cost | 11,282 | 11,454 |
Available for sale investment securities, at fair value | 45,023 | 65,009 |
Loans held for sale | 252 | 586 |
Loans receivable (net of allowance for loan losses of $13,720 at September 30, 2015 and $10,860 at December 31, 2014) | 1,108,439 | 915,981 |
Foreclosed real estate | 1,328 | 950 |
Accrued interest receivable | 3,831 | 3,323 |
Federal Home Loan Bank stock, at cost | 6,918 | 6,109 |
Premises and equipment, net | 11,505 | 11,910 |
Bank-owned life insurance | 23,578 | 23,028 |
Goodwill | 2,589 | 2,589 |
Other intangible assets | 694 | 848 |
Deferred income taxes, net | 8,604 | 7,156 |
Other assets | 2,472 | 2,029 |
Total assets | 1,313,345 | 1,099,531 |
Deposits | ||
Noninterest bearing deposits | 148,732 | 166,030 |
Interest bearing deposits | 876,957 | 669,409 |
Total deposits | 1,025,689 | 835,439 |
Advances from the Federal Home Loan Bank | 120,000 | 129,000 |
Subordinated debentures | 25,037 | |
Accrued expenses and other liabilities | 6,831 | 5,882 |
Total liabilities | $ 1,177,557 | $ 970,321 |
Commitments and Contingencies | ||
Shareholders' equity | ||
Preferred stock, senior noncumulative perpetual, Series C, no par; 10,980 shares issued at September 30, 2015 and December 31, 2014, respectively; liquidation value of $1,000 per share | $ 10,980 | $ 10,980 |
Common stock, no par value; 10,000,000 shares authorized, 7,252,429 and 7,185,482 shares issued at September 30, 2015 and December 31, 2014, respectively | 108,319 | 107,265 |
Retained earnings | 16,764 | 10,434 |
Accumulated other comprehensive (loss) income | (275) | 531 |
Total shareholders' equity | 135,788 | 129,210 |
Total liabilities and shareholders' equity | $ 1,313,345 | $ 1,099,531 |
CONSOLIDATED BALANCE SHEETS - 3
CONSOLIDATED BALANCE SHEETS - (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses (in dollars) | $ 13,720 | $ 10,860 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, share issued | 10,980 | 10,980 |
Preferred stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, share authorized | 10,000,000 | 10,000,000 |
Common stock, share issued | 7,252,429 | 7,185,482 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 12,662 | $ 8,054 | $ 35,315 | $ 23,040 |
Interest and dividends on securities | 491 | 569 | 1,469 | 1,417 |
Interest on cash and cash equivalents | 33 | 45 | 62 | 116 |
Total interest income | 13,186 | 8,668 | 36,846 | 24,573 |
Interest expense | ||||
Interest expense on deposits | 1,637 | 905 | 3,905 | 2,257 |
Interest on borrowings | 632 | 168 | 1,389 | 427 |
Total interest expense | 2,269 | 1,073 | 5,294 | 2,684 |
Net interest income | 10,917 | 7,595 | 31,552 | 21,889 |
Provision for loan losses | 1,489 | 566 | 2,876 | 847 |
Net interest income after provision for loan losses | 9,428 | 7,029 | 28,676 | 21,042 |
Noninterest income | ||||
Gains and fees from sales of loans | 447 | 366 | 885 | 1,008 |
Service charges and fees | 234 | 153 | 675 | 420 |
Bank owned life insurance | 182 | 135 | 549 | 305 |
Other | 348 | 103 | 535 | 475 |
Total noninterest income | 1,211 | 757 | 2,644 | 2,208 |
Noninterest expense | ||||
Salaries and employee benefits | 3,798 | 2,786 | 11,817 | 9,412 |
Occupancy and equipment | 1,370 | 1,066 | 4,029 | 3,162 |
Data processing | 416 | 314 | 1,157 | 949 |
Professional services | 339 | 394 | 1,033 | 1,035 |
Marketing | 288 | 135 | 707 | 463 |
FDIC insurance | 166 | 120 | 487 | 345 |
Director fees | 136 | 177 | 424 | 460 |
Foreclosed real estate | 81 | 9 | 73 | 21 |
Amortization of intangibles | 51 | 27 | 153 | 80 |
Merger and acquisition related expenses | 145 | 408 | ||
Other | 513 | 357 | 1,610 | 1,134 |
Total noninterest expense | 7,158 | 5,530 | 21,490 | 17,469 |
Income before income tax expense | 3,481 | 2,256 | 9,830 | 5,781 |
Income tax expense | 1,228 | 765 | 3,418 | 1,940 |
Net income | 2,253 | 1,491 | 6,412 | 3,841 |
Net income attributable to common shareholders | $ 2,226 | $ 1,464 | $ 6,330 | $ 3,759 |
Earnings Per Common Share: | ||||
Basic (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.88 | $ 0.72 |
Diluted (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.87 | $ 0.72 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 7,044,586 | 6,483,210 | 7,038,517 | 5,099,325 |
Diluted (in shares) | 7,059,117 | 6,501,984 | 7,057,450 | 5,124,261 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,253 | $ 1,491 | $ 6,412 | $ 3,841 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) on available for sale securities | $ 190 | $ (253) | $ (262) | $ 180 |
Reclassification adjustment for (gain) loss realized in net income | ||||
Net change in unrealized gain (loss) | $ 190 | $ (253) | $ (262) | $ 180 |
Income tax (expense) benefit | (74) | 99 | 102 | (70) |
Unrealized gains (losses) on securities, net of tax | 116 | (154) | (160) | 110 |
Unrealized (losses) gains on interest rate swaps: | ||||
Unrealized (losses) gains on interest rate swaps designated as cash flow hedge | (826) | 218 | (1,058) | 111 |
Income tax benefit (expense) | 322 | (85) | 412 | (43) |
Unrealized (losses) gains on interest rate swap, net of tax | (504) | 133 | (646) | 68 |
Total other comprehensive (loss) income | (388) | (21) | (806) | 178 |
Comprehensive income | $ 1,865 | $ 1,470 | $ 5,606 | $ 4,019 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2013 | $ 10,980 | $ 52,105 | $ 5,976 | $ 424 | $ 69,485 |
Balance (in shares) at Dec. 31, 2013 | 3,876,393 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,841 | 3,841 | |||
Other comprehensive income (loss), net of tax | 178 | 178 | |||
Preferred stock cash dividends | (82) | (82) | |||
Stock-based compensation expense | $ 164 | 164 | |||
Forfeitures of restricted stock (in shares) | (49,916) | ||||
Issuance of restricted stock (in shares) | 10,510 | ||||
Stock options exercised | $ 207 | 207 | |||
Stock options exercised (in shares) | 20,305 | ||||
Issuance of 2,702,703 shares, net of expenses | $ 44,704 | $ 44,704 | |||
Issuance of 2,702,703 shares, net of expenses (in shares) | 2,702,703 | 2,702,703 | |||
Balance at Sep. 30, 2014 | 10,980 | $ 97,180 | 9,735 | 602 | $ 118,497 |
Balance (in shares) at Sep. 30, 2014 | 6,559,995 | ||||
Balance at Dec. 31, 2014 | 10,980 | $ 107,265 | 10,434 | 531 | 129,210 |
Balance (in shares) at Dec. 31, 2014 | 7,185,482 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,412 | 6,412 | |||
Other comprehensive income (loss), net of tax | (806) | (806) | |||
Preferred stock cash dividends | (82) | (82) | |||
Stock-based compensation expense | $ 796 | 796 | |||
Forfeitures of restricted stock (in shares) | (2,623) | ||||
Issuance of restricted stock (in shares) | 51,800 | ||||
Stock options exercised | $ 258 | $ 258 | |||
Stock options exercised (in shares) | 17,770 | 17,770 | |||
Balance at Sep. 30, 2015 | $ 10,980 | $ 108,319 | $ 16,764 | $ (275) | $ 135,788 |
Balance (in shares) at Sep. 30, 2015 | 7,252,429 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - (UNAUDITED) (Parentheticals) | 9 Months Ended |
Sep. 30, 2014shares | |
Statement of Stockholders' Equity [Abstract] | |
Number of shares issued (in shares) | 2,702,703 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 6,412 | $ 3,841 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of premiums and discounts on investment securities | 89 | 82 |
Provision for loan losses | 2,876 | 847 |
Provision for deferred taxes | (1,074) | (213) |
Depreciation and amortization | 1,256 | 835 |
Increase in cash surrender value of bank-owned life insurance | (549) | (305) |
Loan principal sold | (13,082) | (22,465) |
Proceeds from sales of loans | 14,301 | 23,572 |
Net gain on sales of loans | (885) | (1,008) |
Equity-based compensation | 796 | 164 |
Net accretion of purchase accounting adjustments | (104) | (352) |
Loss on sale and write-downs of foreclosed real estate | 104 | |
Net change in: | ||
Deferred loan fees | 612 | 583 |
Accrued interest receivable | (508) | (311) |
Other assets | (1,054) | (3,524) |
Accrued expenses and other liabilities | 949 | 167 |
Net cash provided by operating activities | 10,139 | 1,913 |
Cash flows from investing activities | ||
Proceeds from principal repayments on available for sale securities | 1,612 | 3,307 |
Proceeds from principal repayments on held to maturity securities | 165 | 2,308 |
Net proceeds from sales and calls of available for sale securities | 18,030 | 1,620 |
Purchases of available for sale securities | (43,763) | |
Purchase of bank-owned life insurance | (12,500) | |
Net increase in loans | (196,984) | (109,323) |
Purchases of premises and equipment | (851) | (1,562) |
Purchase of Federal Home Loan Bank stock | (809) | |
Proceeds from sale of foreclosed real estate | 400 | |
Net cash used by investing activities | (178,437) | (159,913) |
Cash flows from financing activities | ||
Net change in time certificates of deposit | 119,805 | 38,569 |
Net change in other deposits | 70,551 | (4,845) |
Increase in subordinated debt | 25,037 | |
Net change in FHLB advances | (9,000) | 33,000 |
Proceeds from issuance of common stock | 44,704 | |
Proceeds from exercise of options | 258 | 207 |
Dividends paid on preferred stock | (82) | (82) |
Net cash provided by financing activities | 206,569 | 111,553 |
Net increase (decrease) in cash and cash equivalents | 38,271 | (46,447) |
Cash and cash equivalents: | ||
Beginning of year | 48,559 | 82,013 |
End of period | 86,830 | 35,566 |
Cash paid for: | ||
Interest | 4,825 | 2,742 |
Income taxes | 5,076 | $ 450 |
Noncash investing and financing activities | ||
Loans transferred to foreclosed real estate | $ 883 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. Nature of Operations and Summary of Significant Accounting Policies Bankwell Financial Group, Inc. (the “Company” or “Bankwell”) is a bank holding company headquartered in New Canaan, Connecticut. The Company offers a broad range of financial services through its banking subsidiary, Bankwell Bank (the “Bank”). The Bank was originally chartered as two separate banks, The Bank of New Canaan (“BNC”) and The Bank of Fairfield (“TBF”). In September 2013, BNC and TBF were merged and rebranded as “Bankwell Bank.” In November 2013, the Bank acquired The Wilton Bank (“Wilton”), which added one branch and approximately $25.1 million in loans and $64.2 million in deposits. In October 2014, the Bank acquired Quinnipiac Bank and Trust Company (“Quinnipiac”) which added two branches and approximately $97.8 million in loans and $100.6 million in deposits. The Bank is a Connecticut state chartered commercial bank, founded in 2002, whose deposits are insured under the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (“FDIC”). The Bank provides a full range of banking services to commercial and consumer customers, primarily concentrated in the Fairfield County and New Haven County regions of Connecticut, with branch locations in New Canaan, Stamford, Fairfield, Wilton, Norwalk, Hamden and North Haven, Connecticut. Principles of consolidation The consolidated interim financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities as of the date of the balance sheet and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the fair value of acquired assets, the allowance for loan losses, stock-based compensation and derivative instrument valuation. Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-1 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2015. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2014. Significant concentrations of credit risk Most of the Company's activities are with customers located within Fairfield and New Haven Counties and the surrounding region of Connecticut, and declines in property values in these areas could significantly impact the Company. The Company has significant concentrations in commercial real estate loans. Management does not believe they present any special risk. The Company does not have any significant concentrations in any one industry or customer. Reclassification Certain prior period amounts have been reclassified to conform to the 2015 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the results of operations or consolidated financial position. Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. ASU No. 2014-01 - Investments - Equity Method and Joint Ventures (Topic 323) - "Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ASU No. 2014-12, Compensation-Stock Compensation (Topic 718) - “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” ASU No. 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) - "Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-17, Business Combinations (Topic 805) – "Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20) – “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-20) – “Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-16 Business Combinations (Topic 805) – “Simplifying the Accounting for Measurement-Period Adjustments.” |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 2. Investment Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities at September 30, 2015 were as follows: ` September 30, 2015 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: U.S. Government and agency obligations Due in less than one year $ 499 $ 2 $ - $ 501 Due from one through five years 5,199 4 (4 ) 5,199 Due from five through ten years 1,729 18 (11 ) 1,736 Due after ten years 798 1 (13 ) 786 8,225 25 (28 ) 8,222 State agency and municipal obligations Due from one through five years 521 42 - 563 Due from five through ten years 9,501 321 (330 ) 9,492 Due after ten years 7,046 381 (21 ) 7,406 17,068 744 (351 ) 17,461 Corporate bonds Due in less than one year 2,999 1 - 3,000 Due from one through five years 8,210 256 - 8,466 Due from five through ten years 3,069 33 - 3,102 14,278 290 - 14,568 Government-sponsored mortgage backed securities Due from one through five years 77 - - 77 Due after ten years 4,581 120 (6 ) 4,695 4,658 120 (6 ) 4,772 Total available for sale securities $ 44,229 $ 1,179 $ (385 ) $ 45,023 Held to maturity securities: U.S. Government and agency obligations Due in less than one year $ 1,002 $ - $ - $ 1,002 State agency and municipal obligations Due after ten years 9,064 - - 9,064 Corporate bonds Due from five through ten years 1,000 - (5 ) 995 Government-sponsored mortgage backed securities Due after ten years 216 24 - 240 Total held to maturity securities $ 11,282 $ 24 $ (5 ) $ 11,301 The amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities at December 31, 2014 were as follows: December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: U.S. Government and agency obligations Due in less than one year $ 497 $ 9 $ - $ 506 Due from one through five years 3,998 - (69 ) 3,929 Due from five through ten years 17,055 27 (79 ) 17,003 Due after ten years 3,004 4 (28 ) 2,980 24,554 40 (176 ) 24,418 State agency and municipal obligations Due from five through ten years 9,297 295 (48 ) 9,544 Due after ten years 8,500 544 (4 ) 9,040 17,797 839 (52 ) 18,584 Corporate bonds Due in less than one year 5,764 44 (6 ) 5,802 Due from one through five years 4,150 268 - 4,418 Due from five through ten years 6,121 8 (24 ) 6,105 16,035 320 (30 ) 16,325 Government-sponsored mortgage backed securities Due from one through five years 99 1 - 100 Due after ten years 5,468 131 (17 ) 5,582 5,567 132 (17 ) 5,682 Total available for sale securities $ 63,953 $ 1,331 $ (275 ) $ 65,009 Held to maturity securities: U.S. Government and agency obligations Due in less than one year $ 1,010 $ - $ - $ 1,010 State agency and municipal obligations Due after ten years 9,179 - - 9,179 Corporate bonds Due from five through ten years 1,000 - (15 ) 985 Government-sponsored mortgage backed securities Due after ten years 265 31 - 296 Total held to maturity securities $ 11,454 $ 31 $ (15 ) $ 11,470 There were no sales of, or realized gains or losses on investment securities during the three and nine months ended September 30, 2015 and 2014. At September 30, 2015 and December 31, 2014, securities with approximate fair values of $6.0 million and $5.9 million were pledged as collateral for public deposits, respectively. The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position at September 30, 2015 and December 31, 2014: Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) September 30, 2015 U.S. Government and agency obligations $ 1,296 $ (3 ) $ 2,374 $ (25 ) $ 3,670 $ (28 ) State agency and municipal obligations 1,439 (350 ) - - 1,439 (350 ) Corporate bonds - - 995 (5 ) 995 (5 ) Government-sponsored mortgage backed securities 458 (4 ) 246 (3 ) 704 (7 ) Total investment securities $ 3,193 $ (357 ) $ 3,615 $ (33 ) $ 6,808 $ (390 ) December 31, 2014 U.S. Government and agency obligations $ 4,515 $ (56 ) $ 5,878 $ (120 ) $ 10,393 $ (176 ) State agency and municipal obligations 1,771 (52 ) - - 1,771 (52 ) Corporate bonds 6,783 (40 ) 995 (5 ) 7,778 (45 ) Government-sponsored mortgage backed securities 1,406 (17 ) - - 1,406 (17 ) Total investment securities $ 14,475 $ (165 ) $ 6,873 $ (125 ) $ 21,348 $ (290 ) There were 22 and 42 investment securities as of September 30, 2015 and December 31 2014, respectively, in which the fair value of the security was less than the amortized cost of the security. The U.S. Government and agency obligations owned are either direct obligations of the U.S. Government or are issued by one of the shareholder-owned corporations chartered by the U.S. Government and therefore the contractual cash flows are guaranteed and as a result the unrealized losses in this portfolio are not considered other than temporarily impaired. The Company continually monitors its municipal bond and corporate bond portfolios and at this time these portfolios have minimal default risk because corporate and municipal bonds are all rated above investment grade except for one municipal bond with a face value of $1.0 million that is rated two notches below investment grade. The Company has determined that all unrealized losses on all securities that are investment grade are not other than temporarily impaired. The Company has determined that the unrealized loss on the municipal bond that is below investment grade is not other than temporarily impaired because payments are backed by a senior lien position on cash receipts from sales tax revenue with a strong debt service coverage of over 5.0x. As such, there is no concern in terms of whether there will be enough sales tax revenue in the future to continue to receive all principal and interest payments. Government-sponsored mortgage backed securities are fully guaranteed by U.S. Government agencies and as a result the unrealized losses in this portfolio are not considered other than temporarily impaired. |
LOANS RECEIVABLE AND ALLOWANCE
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | 3. Loans Receivable and Allowance for Loan Losses Loans acquired in connection with the Wilton acquisition in November 2013 and the Quinnipiac acquisition in October 2014 are referred to as “acquired” loans as a result of the manner in which they are accounted for. All other loans are referred to as “originated” loans. Accordingly, selected credit quality disclosures that follow are presented separately for the originated loan portfolio and the acquired loan portfolio. The following table sets forth a summary of the loan portfolio at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 (In thousands) Originated Acquired Total Originated Acquired Total Real estate loans: Residential $ 168,830 $ 2,932 $ 171,762 $ 169,833 $ 5,198 $ 175,031 Commercial 632,410 51,673 684,083 458,506 62,675 521,181 Construction 83,986 1,007 84,993 62,258 971 63,229 Home equity 8,915 7,365 16,280 10,226 7,940 18,166 894,141 62,977 957,118 700,823 76,784 777,607 Commercial business 138,621 28,021 166,642 120,360 28,899 149,259 Consumer 30 1,909 1,939 243 2,653 2,896 Total loans 1,032,792 92,907 1,125,699 821,426 108,336 929,762 Allowance for loan losses (13,675 ) (45 ) (13,720 ) (10,860 ) - (10,860 ) Deferred loan origination fees, net (3,549 ) - (3,549 ) (2,937 ) - (2,937 ) Unamortized loan premiums 9 - 9 16 - 16 Loans receivable, net $ 1,015,577 $ 92,862 $ 1,108,439 $ 807,645 $ 108,336 $ 915,981 Lending activities are conducted principally in the Fairfield and New Haven county regions of Connecticut, and consist of residential and commercial real estate loans, commercial business loans and a variety of consumer loans. Loans may also be granted for the construction of residential homes and commercial properties. All residential and commercial mortgage loans are typically collateralized by first or second mortgages on real estate. Certain acquired loans were determined to have evidence of credit deterioration at the acquisition date. Such loans are accounted for in accordance with ASC 310-30. The following tables summarize activity in the accretable yields for the acquired loan portfolio that falls under the purview of ASC 310-30: (In thousands) Three Months Ended September 30, 2015 2014 Balance at beginning of period $ 1,134 $ 817 Acquisition - - Accretion (21 ) (81 ) Other (a) (145 ) - Balance at end of period $ 968 $ 736 a) Represents changes in cash flows expected to be collected due to loan sales or payoffs. (In thousands) Nine Months Ended September 30, 2015 2014 Balance at beginning of period $ 1,382 $ 1,418 Acquisition - - Accretion (137 ) (338 ) Other (a) (277 ) (344 ) Balance at end of period $ 968 $ 736 a) Represents changes in cash flows expected to be collected due to loan sales or payoffs. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral, depending on the borrowers' creditworthiness and the type of collateral. The market value of collateral is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower's ability to generate continuing cash flows. The Company’s policy for residential lending allows that, generally, the amount of the loan may not exceed 80% of the original appraised value of the property. In certain situations, the amount may be up to 90-95% LTV either with private mortgage insurance being required for that portion of the residential loan in excess of 80% of the appraised value of the property or where secondary financing is provided by a housing authority program second mortgage, a community’s low/moderate income housing program, a religious or civic organization. Private mortgage insurance is required for that portion of the residential first mortgage loan in excess of 80% of the appraised value of the property. Credit quality of loans and the allowance for loan losses Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Company develops and documents a systematic method for determining its allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company's loan portfolio is segregated into the following portfolio segments: Residential Real Estate: Commercial Real Estate: Construction Home Equity Commercial Business: Consumer: An unallocated component is maintained, when needed, 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 unallocated allowance is used to provide for an unidentified loss that may exist in emerging problem loans that cannot be fully quantified or may be affected by conditions not fully understood as of the balance sheet date. Allowance for loan losses The following tables set forth the activity in the Company’s allowance for loan losses for the three and nine months ended September 30, 2015 and 2014, by portfolio segment: Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2015 Originated Beginning balance $ 1,454 $ 6,832 $ 1,138 $ 169 $ 2,618 $ 9 $ - $ 12,220 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (40 ) 722 399 11 369 (7 ) - 1,454 Ending balance $ 1,414 $ 7,554 $ 1,537 $ 180 $ 2,987 $ 3 $ - $ 13,675 Acquired Beginning balance $ - $ - $ - $ - $ 10 $ - $ - $ 10 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions - 10 - - 20 5 - 35 Ending balance $ - $ 10 $ - $ - $ 30 $ 5 $ - $ 35 Total Beginning balance $ 1,454 $ 6,832 $ 1,138 $ 169 $ 2,628 $ 9 $ - $ 12,230 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (40 ) 732 399 11 389 (2 ) - 1,489 Ending balance $ 1,414 $ 7,564 $ 1,537 $ 180 $ 3,017 $ 8 $ - $ 13,720 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2014 Originated Beginning balance $ 1,392 $ 4,024 $ 776 $ 188 $ 2,291 $ 6 $ 307 $ 8,984 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions 19 637 115 3 100 - (307 ) 567 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Acquired Beginning balance $ - $ - $ - $ - $ 1 $ - $ - $ 1 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions - - - - (1 ) - - (1 ) Ending balance $ - $ - $ - $ - $ - $ - $ - $ - Total Beginning balance $ 1,392 $ 4,024 $ 776 $ 188 $ 2,292 $ 6 $ 307 $ 8,985 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions 19 637 115 3 99 - (307 ) 566 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Nine Months Ended September 30, 2015 Originated Beginning balance $ 1,431 $ 5,480 $ 1,102 $ 205 $ 2,638 $ 4 $ - $ 10,860 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (17 ) 2,074 435 (25 ) 349 (2 ) - 2,814 Ending balance $ 1,414 $ 7,554 $ 1,537 $ 180 $ 2,987 $ 3 $ - $ 13,675 Acquired Beginning balance $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs - - - - (15 ) (6 ) - (21 ) Recoveries - - - - - 4 - 4 Provisions - 10 - - 45 7 - 62 Ending balance $ - $ 10 $ - $ - $ 30 $ 5 $ - $ 45 Total Beginning balance $ 1,431 $ 5,480 $ 1,102 $ 205 $ 2,638 $ 4 $ - $ 10,860 Charge-offs - - - - (15 ) (6 ) - (21 ) Recoveries - - - - - 5 - 5 Provisions (17 ) 2,084 435 (25 ) 394 5 - 2,876 Ending balance $ 1,414 $ 7,564 $ 1,537 $ 180 $ 3,017 $ 8 $ - $ 13,720 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Nine Months Ended September 30, 2014 Originated Beginning balance $ 1,310 $ 3,616 $ 1,032 $ 190 $ 2,225 $ 9 $ - $ 8,382 Charge-offs - - - - - (1 ) - (1 ) Recoveries - - - - - 424 - 424 Provisions 101 1,045 (141 ) 1 166 (425 ) - 747 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Acquired Beginning balance $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs - - (100 ) - - - - (100 ) Recoveries - - - - - - - - Provisions - - 100 - - - - 100 Ending balance $ - $ - $ - $ - $ - $ - $ - $ - Total Beginning balance $ 1,310 $ 3,616 $ 1,032 $ 190 $ 2,225 $ 9 $ - $ 8,382 Charge-offs - - (100 ) - - (1 ) - (101 ) Recoveries - - - - - 424 - 424 Provisions 101 1,045 (41 ) 1 166 (425 ) - 847 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 With respect to the originated portfolio, the allocation to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments. The following tables are a summary, by portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio balances at September 30, 2015 and December 31, 2014: Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) September 30, 2015 Loans individually evaluated for impairment: Residential real estate $ 864 $ 2 $ - $ - $ 864 $ 2 Commercial real estate 4,743 22 633 10 5,376 32 Home equity 426 7 198 - 624 7 Commercial business 1,603 8 1,108 24 2,711 32 Consumer - - 5 5 5 5 Subtotal 7,636 39 1,944 39 9,580 78 Loans collectively evaluated for impairment: Residential real estate 167,966 1,412 2,932 - 170,898 1,412 Commercial real estate 627,667 7,532 51,040 - 678,707 7,532 Construction 83,986 1,537 1,007 - 84,993 1,537 Home equity 8,489 173 7,167 - 15,656 173 Commercial business 137,018 2,979 26,913 6 163,931 2,985 Consumer 30 3 1,904 - 1,934 3 Subtotal 1,025,156 13,636 90,963 6 1,116,119 13,642 Total $ 1,032,792 $ 13,675 $ 92,907 $ 45 $ 1,125,699 $ 13,720 Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) December 31, 2014 Loans individually evaluated for impairment: Residential real estate $ 864 $ - $ - $ - $ 864 $ - Commercial real estate 4,996 23 - - 4,996 23 Home equity 91 - - - 91 - Commercial business 1,701 10 629 - 2,330 10 Subtotal 7,652 33 629 - 8,281 33 Loans collectively evaluated for impairment: Residential real estate 168,969 1,431 5,198 - 174,167 1,431 Commercial real estate 453,510 5,457 62,675 - 516,185 5,457 Construction 62,258 1,102 971 - 63,229 1,102 Home equity 10,135 205 7,940 - 18,075 205 Commercial business 118,659 2,628 28,270 - 146,929 2,628 Consumer 243 4 2,653 - 2,896 4 Subtotal 813,774 10,827 107,707 - 921,481 10,827 Total $ 821,426 $ 10,860 $ 108,336 $ - $ 929,762 $ 10,860 Credit quality indicators The Company's policies provide for the classification of loans into the following categories: pass, special mention, substandard, doubtful and loss. Consistent with regulatory guidelines, loans that are considered to be of lesser quality are classified as substandard, doubtful, or loss assets. A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans classified as loss are those considered uncollectible and of such little value that their continuance as loans is not warranted. Loans that do not expose the Company to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are designated as special mention. Loans that are considered to be impaired are analyzed to determine whether a loss is possible and if so, a calculation is performed to determine the possible loss amount. If it is determined that the loss amount is $0, no reserve is held against the asset. If a loss is calculated, then a specific reserve for that asset is determined. The following tables are a summary of the loan portfolio quality indicators by portfolio segment at September 30, 2015 and December 31, 2014: Commercial Credit Quality Indicators At September 30, 2015 At December 31, 2014 Commercial Commercial Commercial Commercial Real Estate Construction Business Real Estate Construction Business (In thousands) Originated loans: Pass $ 627,140 $ 83,986 $ 137,018 $ 452,974 $ 62,258 $ 115,323 Special mention 2,050 - 1,026 2,096 - 5,037 Substandard 3,220 - 577 3,436 - - Doubtful - - - - - - Loss - - - - - - Total originated loans 632,410 83,986 138,621 458,506 62,258 120,360 Acquired loans: Pass 49,903 233 26,744 61,017 136 27,074 Special mention - - 550 - - 659 Substandard 1,770 774 727 1,658 835 1,166 Doubtful - - - - - - Loss - - - - - - Total acquired loans 51,673 1,007 28,021 62,675 971 28,899 Total $ 684,083 $ 84,993 $ 166,642 $ 521,181 $ 63,229 $ 149,259 Residential and Consumer Credit Quality Indicators At September 30, 2015 At December 31, 2014 Residential Home Residential Home Real Estate Equity Consumer Real Estate Equity Consumer (In thousands) Originated loans: Pass $ 167,966 $ 8,489 $ 30 $ 168,969 $ 10,135 $ 243 Special mention 864 83 - 864 91 - Substandard - 343 - - - - Doubtful - - - - - - Loss - - - - - - Total originated loans 168,830 8,915 30 169,833 10,226 243 Acquired loans: Pass 2,823 6,983 1,823 5,022 7,925 2,653 Special mention 109 - - - - - Substandard - 382 86 176 15 - Doubtful - - - - - - Loss - - - - - - Total acquired loans 2,932 7,365 1,909 5,198 7,940 2,653 Total $ 171,762 $ 16,280 $ 1,939 $ 175,031 $ 18,166 $ 2,896 Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company also contacts the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, subsequent delinquency notices are issued and the account will be monitored on a regular basis thereafter. By the 90th day of delinquency, the Company will send the borrower a final demand for payment and may recommend foreclosure. A summary report of all loans 30 days or more past due is provided to the board of directors of the Company each month. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. The following tables set forth certain information with respect to our loan portfolio delinquencies by portfolio segment and amount as of September 30, 2015 and December 31, 2014: As of September 30, 2015 Carrying Amount > Greater 90 Days 31-60 Days 61-90 Days Than 90 Total Past and Past Due Past Due Days Due Current Accruing (In thousands) Originated Loans Real estate loans: Residential real estate $ 833 $ 969 $ - $ 1,802 $ 167,028 $ - Commercial real estate 313 1,565 970 2,848 629,562 - Construction 1,750 - - 1,750 82,236 - Home equity - - 198 198 8,717 - Commercial business 105 - 225 330 138,291 - Consumer - - - - 30 - Total originated loans 3,001 2,534 1,393 6,928 1,025,864 - Acquired Loans Real estate loans: Residential real estate - - 109 109 2,823 - Commercial real estate 307 - 1,124 1,431 50,242 224 Construction 135 - 774 909 98 774 Home equity 294 - 183 477 6,888 - Commercial business 1,371 - 241 1,612 26,409 84 Consumer 2 - - 2 1,907 - Total acquired loans 2,109 - 2,431 4,540 88,367 1,082 Total loans $ 5,110 $ 2,534 $ 3,824 $ 11,468 $ 1,114,231 $ 1,082 As of December 31, 2014 Carrying Amount > Greater 90 Days 31-60 Days 61-90 Days Than 90 Total Past and Past Due Past Due Days Due Current Accruing (In thousands) Originated Loans Real estate loans: Residential real estate $ - $ - $ - $ - $ 169,833 $ - Commercial real estate - - 3,436 3,436 455,070 216 Construction - - - - 62,258 - Home equity - - - - 10,226 - Commercial business - - - - 120,360 - Consumer - - - - 243 - Total originated loans - - 3,436 3,436 817,990 216 Acquired Loans Real estate loans: Residential real estate 339 - 294 633 4,565 176 Commercial real estate 685 677 836 2,198 60,477 466 Construction - - 835 835 136 835 Home equity - 40 - 40 7,900 - Commercial business 178 386 305 869 28,030 305 Consumer 3 - - 3 2,650 - Total acquired loans 1,205 1,103 2,270 4,578 103,758 1,782 Total loans $ 1,205 $ 1,103 $ 5,706 $ 8,014 $ 921,748 $ 1,998 Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of September 30, 2015 and December 31, 2014: September 30, December 31, 2015 2014 (In thousands) Commercial real estate 1,603 3,220 Home equity 396 - Commercial business 368 142 Total $ 2,367 $ 3,362 The amount of income that was contractually due but not recognized on originated nonaccrual loans totaled $38 thousand and $18 thousand, respectively for the three months ended September 30, 2015, and 2014. The amount of income that was contractually due but not recognized on originated nonaccrual loans totaled $110 thousand and $51 thousand, respectively for the nine months ended September 30, 2015, and 2014. There was no actual interest income recognized on these loans for the three months ended September 30, 2015, and 2014. There was $3 thousand and $4 thousand actual interest income recognized on these loans for the nine months ended September 30, 2015, and 2014. At September 30, 2015 and December 31, 2014, there were $169 thousand and no commitments to lend additional funds to any borrower on nonaccrual status, respectively. The preceding table excludes acquired loans that are accounted for as purchased credit impaired loans totaling $1.1 million and $1.9 million, respectively at September 30, 2015 and December 31, 2014. Such loans otherwise meet the Company's definition of a nonperforming loan but are excluded because the loans are included in loan pools that are considered performing. The discounts arising from recording these loans at fair value were due, in part, to credit quality. The acquired loans are accounted for on either a pool or individual basis and the accretable yield is being recognized as interest income over the life of the loans based on expected cash flows. Impaired loans An impaired loan generally is one for which it is probable, based on current information, the Company will not collect all the amounts due under the contractual terms of the loan. Loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it provides a specific valuation allowance for that portion of the asset that is deemed uncollectible. The following table summarizes impaired loans by portfolio segment as of September 30, 2015 and December 31, 2014: Carrying Amount Unpaid Principal Balance Associated Allowance September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ - $ 864 $ - $ 864 $ - $ - Commercial real estate 4,299 4,543 4,299 4,544 - - Home equity 83 91 83 91 - - Commercial business 1,115 1,145 1,133 1,153 - - Total impaired loans without a valuation allowance 5,497 6,643 1,216 6,652 - - Impaired loans with a valuation allowance: Residential real estate 864 - 864 - 2 - Commercial real estate 444 453 444 453 22 23 Home Equity 343 - 345 - 7 - Commercial business 488 556 488 556 8 10 Total impaired loans with a valuation allowance 2,139 1,009 2,141 1,009 39 33 Total originated impaired loans $ 7,636 $ 7,652 $ 3,357 $ 7,661 $ 39 $ 33 Acquired Impaired loans without a valuation allowance: Commercial real estate $ 483 $ - $ 534 $ - $ - $ - Commercial business 424 629 424 629 - - Home equity 198 - 200 - - - Total impaired loans without a valuation allowance 1,105 629 1,158 629 - - Impaired loans with a valuation allowance: Commercial Real Estate 150 - 150 - 10 - Commercial business 684 - 692 - 24 - Consumer 5 - 5 - 5 - Total impaired loans with a valuation allowance 839 - 847 - 39 - Total acquired impaired loans $ 1,944 $ 629 $ 2,005 $ 629 $ 39 $ - The following table summarizes the average recorded investment balance of impaired loans and interest income recognized on impaired loans by portfolio segment as of September 30, 2015 and December 31, 2014: Average Recorded Investment Interest Income Recognized September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ - $ 864 $ - $ 28 Commercial real estate 4,312 4,034 98 223 Home equity 87 95 2 3 Commercial business 1,132 1,226 32 52 Total impaired loans without a valuation allowance 5,531 6,219 132 306 Impaired loans with a valuation allowance: Residential real estate 864 - 21 - Commercial real estate 448 457 21 29 Home Equity 344 - 6 - Commercial business 521 596 21 32 Total impaired loans with a valuation allowance 2,177 1,053 69 61 Total originated impaired loans $ 7,708 $ 7,272 $ 201 $ 367 Acquired Impaired loans without a valuation allowance: Commercial real estate $ 453 $ - $ - $ - Commercial business 440 607 15 28 Home equity 199 - 2 - Total impaired loans without a valuation allowance 1,092 607 17 28 Impaired loans with a valuation allowance: Commercial real estate 152 - 3 - Commercial business 711 - 11 - Consumer 6 - - - Total impaired loans with a valuation allowance 869 - 14 - Total acquired impaired loans $ 1,961 $ 607 $ 31 $ 28 Troubled debt restructurings (TDRs) Modifications to a loan are considered to be a troubled debt restructuring when one or both of the following conditions is met: 1) the borrower is experiencing financial difficulties and/or 2) the modification constitutes a concession that is not in line with market rates and/or terms. Modified terms are dependent upon the financial position and needs of the individual borrower. Trouble debt restructurings are classified as impaired loans. If a performing loan is restructured into a TDR it remains in performing status. If a nonperforming loan is restructured into a TDR, it continues to be carried in nonaccrual status. Nonaccrual classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of six months. Troubled debt restructured loans are reported as such for at least one year from the date of restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring agreement specifies a market rate of interest equal to that which would be provided to a borrower with similar credit at the time of restructuring and the loan is not deemed to be impaired based on the modified terms. The recorded investment in TDRs was $7.4 million at September 30, 2015 and $3.6 million at December 31, 2014. The following tables present loans whose terms were modified as TDRs during the periods presented: Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Three Months Ended September 30, Commercial real estate - - $ - $ - $ - $ - Commercial business - 1 - 241 - 241 Total - 1 $ - $ 241 $ - $ 241 Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Nine Months Ended September 30, Commercial real estate 3 2 $ 4,044 $ 1,324 $ 4,044 $ 1,324 Commercial business 1 4 44 796 44 796 Total 4 6 $ 4,088 $ 2,120 $ 4,088 $ 2,120 All TDRs at September 30, 2015 and December 31, 2014 were performing in compliance with their modified terms. The following table provides information on how loans were modified as a TDR during the three and nine months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Maturity/amortization concession $ - $ 241 $ 825 $ 962 Payment concession - - - 1,158 Maturity and payment concession - - 3,263 - Total $ - $ 241 $ 4,088 $ 2,120 There were no loans modified in a troubled debt restructuring, for which there was a payment default during the three and nine months ended September 30, 2015 and 2014, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | 4. Shareholders' Equity Common stock On May 15, 2014, the Company priced 2,702,703 common shares in its initial public offering (“IPO”) at $18.00 per share, and on May 15, 2014, Bankwell common shares began trading on the Nasdaq Stock Market. The Company issued a total of 2,702,703 common shares in its IPO, which closed on May 20, 2014. The net proceeds from the IPO were approximately $44.7 million, after deducting the underwriting discount of approximately $2.5 million and approximately $1.3 million of expenses. Between 2007 and 2013, four private placements for the sale of common stock were completed for the purpose of capitalizing the Company and allowing for continued growth. The private placement offerings were in addition to the initial and secondary offerings completed in 2002 and 2007, respectively. A total of 3,429,623 shares were issued and net proceeds of $47.8 million were received in connection with these offerings. Preferred stock In 2011, the Company elected to participate in the U.S. Treasury's Small Business Lending Fund Program (“SBLF”). The SBLF is a $30 billion fund established under the Small Business Jobs Act of 2010 to encourage lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. The SBLF is intended to expand the ability to lend to small businesses, in order to help stimulate the economy and promote job growth. The transaction resulted in net capital proceeds to the Company of $5.9 million, of which at least 90% was invested in the Bank of New Canaan and the Bank of Fairfield as Tier 1 Capital. The Series C Preferred stock pays noncumulative dividends. The dividend rate on the Series C Preferred Stock for the initial ten quarterly dividend periods, commencing with the period ended September 30, 2011 and ending with the period ended December 31, 2013, was determined each quarter based on the increase in the Banks' Qualified Small Business Lending over a baseline amount. The Company has paid dividends at a rate of 1.0% since issuance. For the eleventh quarterly dividend payment through four and one-half years after its issuance, the dividend rate on the Series C Preferred Stock will be fixed at the rate in effect at the end of the ninth quarterly dividend period, which is 1.0%. In the second quarter of 2016, four and one-half years from its issuance, the dividend rate will be fixed at 9.0% per annum. The Series C Preferred Stock has no maturity date and ranks senior to the Company's common stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company. The Series C Preferred Stock is non-voting, other than voting rights on matters that could adversely affect the Series C Preferred Stock, and is redeemable at any time by the Company, subject to the approval of its federal banking regulator. The redemption price is the aggregate liquidation preference of the SBLF Preferred Stock plus accrued but unpaid dividends and pro rata portion of any lending incentive fee. All redemptions must be in an amount at least equal to 25% of the number of originally issued shares of SBLF Preferred Stock, or 100% of the then-outstanding shares if less than 25% of the number of shares originally issued. In connection with the IPO, the U.S. Treasury exercised its piggyback registration rights under the SBLF and the Series C Preferred Stock held by the U.S. Treasury was registered under the Securities Act of 1933, as amended. Warrants The initial and secondary offerings completed in 2002 and 2007 each call for the issuance of Units. Each Unit issued pursuant to these two offerings represented one share of common stock and one non-transferable Warrant. The Warrants were exercisable at any time from and including October 1, 2009 and prior to or on November 30, 2009, unless extended or accelerated by the board of directors in their discretion. The board of directors has extended the exercise period to October 5, 2015 through December 5, 2015. Each Warrant allows a holder to purchase .3221 shares of common stock at an exercise price of $14.00 per share. None of the Warrants have been exercised as of September 30, 2015. Assuming that all of the Warrants issued are exercised in full during the exercise period, the Company would receive $4.3 million in gross capital and issue 304,640 shares of common stock. As a result of the acquisition of Quinnipiac on October 1, 2014 the Company issued 68,600 warrants to former Quinnipiac warrant holders in accordance with the merger agreement. Each warrant was automatically converted into a warrant to purchase 0.56 shares of the Company’s common stock for an exercise price of $17.56. None of the warrants have been exercised as of September 30, 2015. The warrants expire on March 6, 2018. Dividends The Company's shareholders are entitled to dividends when and if declared by the board of directors, out of funds legally available. The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. The payment of dividends is subject to additional restrictions in connection with the SBLF preferred stock. For the nine months ended September 30, 2015 and 2014, the Company paid cash dividends on preferred stock of $82 thousand. On October 29, 2015 the Company’s Board of Directors declared a $0.05 per share cash dividend, payable December 21, 2015 to shareholders of record on December 11, 2015. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2015 | |
Comprehensive Income [Abstract] | |
COMPREHENSIVE INCOME | 5. Comprehensive Income Comprehensive income represents the sum of net income and items of other comprehensive income or loss, including net unrealized gains or losses on securities available for sale and net unrealized gains or losses on derivatives accounted for as cash flow hedges. The Company’s total comprehensive income or loss for the three and nine months ended September 30, 2015 and 2014 is reported in the Consolidated Statements of Comprehensive Income. The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax for the three and nine months ended September 30, 2015 and 2014: Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at June 30, 2015 $ 368 $ (255 ) $ 113 Other comprehensive income (loss) before reclassifications 116 (504 ) (388 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive income (loss) 116 (504 ) (388 ) Balance at September 30, 2015 $ 484 $ (759 ) $ (275 ) Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at June 30, 2014 $ 689 $ (66 ) $ 623 Other comprehensive (loss) income before reclassifications (154 ) 133 (21 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive (loss) income (154 ) 133 (21 ) Balance at September 30, 2014 $ 535 $ 67 $ 602 Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at December 31, 2014 $ 644 $ (113 ) $ 531 Other comprehensive income (loss) before reclassifications (160 ) (646 ) (806 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive (loss) (160 ) (646 ) (806 ) Balance at September 30, 2015 $ 484 $ (759 ) $ (275 ) Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at December 31, 2013 $ 424 $ - $ 424 Other comprehensive income before reclassifications 111 67 178 Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive income 111 67 178 Balance at September 30, 2014 $ 535 $ 67 $ 602 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 6. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock options) were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends, are considered to participate with common stock in undistributed earnings for purposes of computing EPS. The Company's unvested restricted stock awards are participating securities, and therefore, are included in the computation of both basic and diluted earnings per common share. EPS is calculated using the two-class method, under which calculations (1) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (2) exclude from the denominator the dilutive impact of the participating securities. The following is a reconciliation of earnings available to common shareholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share data) (In thousands, except per share data) Net income $ 2,253 $ 1,491 $ 6,412 $ 3,841 Preferred stock dividends (27 ) (27 ) (82 ) (82 ) Dividends and undistributed earnings allocated to participating securities (63 ) (23 ) (170 ) (82 ) Net income for earnings per share calculation $ 2,163 $ 1,441 $ 6,160 $ 3,677 Weighted average shares outstanding, basic 7,045 6,483 7,039 5,099 Effect of dilutive equity-based awards 14 19 18 25 Weighted average shares outstanding, diluted 7,059 6,502 7,057 5,124 Net earnings per common share: Basic earnings per common share $ 0.31 $ 0.22 $ 0.88 $ 0.72 Diluted earnings per common share 0.31 0.22 0.87 0.72 |
REGULATORY MATTERS
REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | 7. Regulatory Matters The Federal Reserve, the FDIC and the other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations. As of January 1, 2015, the Company and the Bank became subject to new capital rules set forth by the Federal Reserve, the FDIC and the other federal and state bank regulatory agencies. The new capital rules revise the banking agencies’ leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the Basel III Capital Rules). The Basel III Capital Rules establish a new minimum common equity Tier 1 capital requirement of 4.5% of risk-weighted assets; set the minimum leverage ratio at 4% of total assets; increased the minimum Tier 1 capital to risk-weighted assets requirement from 4% to 6%; and retained the minimum total capital to risk-weighted assets requirement at 8.0%. A “well-capitalized” institution must generally maintain capital ratios 200 basis points higher than the minimum guidelines. The Basel III Capital Rules also change the risk weights assigned to certain assets. The Basel III Capital Rules assigned a higher risk weight (150%) to loans that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The Basel III Capital Rules also alter the risk weighting for other assets, including marketable equity securities that are risk weighted generally at 300%. The Basel III Capital Rules require certain components of accumulated other comprehensive income (loss) to be included for purposes of calculating regulatory capital requirements unless a one-time opt-out is exercised. The Bank did exercise its opt-out option and will exclude the unrealized gain (loss) on investment securities component of accumulated other comprehensive income (loss) from regulatory capital. The Basel III Capital Rules limit a banking organization’s capital distributions and certain discretionary bonus payments to executive officers if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The “capital conservation buffer” is being phased in from January 1, 2016 to January 1, 2019, when the full capital conservation buffer will be effective. 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 consolidated financial statements. Management believes, as of September 30, 2015, the Bank and Company meet all capital adequacy requirements to which they are subject. There are no conditions or events since then that management believes have changed this conclusion. The capital amounts and ratios for the Bank and the Company at September 30, 2015 were as follows: To be Well Capitalized Under For Capital Prompt Corrective Actual Capital Adequacy Purposes Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank September 30, 2015 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 126,831 10.75 % $ 52,004 4.50 % $ 75,116 6.50 % Total Capital to Risk-Weighted Assets 137,959 11.94 % 92,451 8.00 % 115,564 10.00 % Tier I Capital to Risk-Weighted Assets 124,239 10.75 % 69,338 6.00 % 92,541 8.00 % Tier I Capital to Average Assets 124,239 9.84 % 50,508 4.00 % 63,136 5.00 % Bankwell Financial Group, Inc. September 30, 2015 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 122,219 10.51 % $ 52,308 4.50 % N/A N/A Total Capital to Risk-Weighted Assets 171,956 14.79 % 92,993 8.00 % N/A N/A Tier I Capital to Risk-Weighted Assets 133,199 11.46 % 69,744 6.00 % N/A N/A Tier I Capital to Average Assets 133,199 10.29 % 51,760 4.00 % N/A N/A As of December 31, 2014, the Bank and Company were subject to different regulatory capital requirements administered by federal and state banking agencies. Quantitative measures established by regulation to ensure capital adequacy required the Bank and Company to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets and of Tier I capital to average assets, as defined by regulation. The capital amounts and ratios for the Bank and Company at December 31, 2014, were as follows: To be Well Capitalized Under For Capital Prompt Corrective Actual Capital Adequacy Purposes Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2014 Total Capital to Risk-Weighted Assets $ 125,339 13.55 % $ 74,003 8.00 % $ 92,503 10.00 % Tier I Capital to Risk-Weighted Assets 115,359 12.47 % 37,001 4.00 % 55,502 6.00 % Tier I Capital to Average Assets 115,359 11.12 % 41,485 4.00 % 51,856 5.00 % Bankwell Financial Group, Inc. December 31, 2014 Total Capital to Risk-Weighted Assets $ 135,223 14.59 % $ 74,136 8.00 % N/A N/A Tier I Capital to Risk-Weighted Assets 125,243 13.51 % 37,068 4.00 % N/A N/A Tier I Capital to Average Assets 125,243 11.78 % 42,516 4.00 % N/A N/A Restrictions on dividends The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
STOCK-BASED COMPENSATION | 8. Stock-Based Compensation Equity award plans The Company has five equity award plans, which are collectively referred to as the “Plan.” The current plan under which any future issuances of equity awards will be made is the 2012 BNC Financial Group, Inc. Stock Plan, or the “2012 Plan,” amended on June 26, 2013. All equity awards made under the 2012 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of share options or restricted stock. At September 30, 2015, there were 465,582 shares reserved for future issuance under the 2012 Plan. Share Options: There were no options granted during the nine months ended September 30, 2015. A summary of the status of outstanding share options as of and for the nine months ended September 30, 2015 is presented below: Nine Months Ended September 30, 2015 Weighted Number Average of Exercise Shares Price Options outstanding at beginning of period 204,793 $ 17.42 Exercised (17,770 ) 14.50 Forfeited (300 ) 15.00 Expired (11,495 ) 16.79 Options outstanding at end of period 175,228 17.76 Options exercisable at end of period 170,728 17.84 Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of share options exercised during the nine months ended September 30, 2015 was $89 thousand. Restricted Stock: The following table presents the activity for restricted stock for the nine months ended September 30, 2015: Nine Months Ended September 30, 2015 Weighted Number Average of Grant Date Shares Fair Value Unvested at beginning of period 165,862 $ 18.08 Granted 51,800 18.73 Vested (8,307 ) 15.75 Forfeited (2,623 ) 17.73 Unvested at end of period 206,732 18.34 The Company's restricted stock expense for the nine months ended September 30, 2015 and 2014 was $796 thousand and $141 thousand, respectively. Market Conditions Restricted Stock ASC 718 – Stock Compensation |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 9. Derivative Instruments Information about derivative instruments at September 30, 2015 and December 31, 2014 is as follows: September 30, 2015: Fair Value (Dollars in thousands) Notional Original Asset Amount Maturity Received Paid (Liability) Cash flow hedge: Interest rate swap on FHLB advance $ 25,000 4.7 years 0.33 % 1.62 % $ (476 ) Interest rate swap on FHLB advance $ 25,000 5.0 years 0.33 % 1.83 % (625 ) Interest rate swap on FHLB advance $ 25,000 5.0 years 0.33 % 1.48 % (143 ) $ (1,244 ) December 31, 2014: Fair Value (Dollars in thousands) Notional Original Asset Amount Maturity Received Paid (Liability) Cash flow hedge: Interest rate swap on FHLB advance $ 25,000 4.7 years 0.26 % 1.62 % $ (73 ) Interest rate swap on forward-starting FHLB advance $ 25,000 5.0 years 0.26 % 1.83 % (113 ) $ (186 ) The effective portion of unrealized changes in the fair value of derivatives accounted for as cash flow hedges is reported in other comprehensive income and subsequently reclassified to earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The Bank assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The ineffective portion of changes in the fair value of the derivatives is recognized directly in earnings. The Bank's cash flow hedge positions are all forward starting interest rate swap transactions. The Bank entered into the following forward starting interest rate swap transactions: Effective Date of (Dollars in thousands) Notional Hedged Duration of Amount Borrowing Borrowing Counterparty Type of borrowing: FHLB 90-day advance $ 25,000 April 1, 2014 4.7 years Bank of Montreal FHLB 90-day advance $ 25,000 January 2, 2015 5.0 years Bank of Montreal FHLB 90-day advance $ 25,000 August 26, 2015 5.0 years Bank of Montreal This hedge strategy converts the LIBOR based rate of interest on certain FHLB advances to fixed interest rates, thereby protecting the Bank from floating interest rate variability. Changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Interest rate swap on FHLB advance: Unrealized (loss) gain recognized in accumulated other comprehensive income $ (826 ) $ 218 $ (1,058 ) $ 111 Income tax benefit (expense) on items recognized in accumulated other comprehensive income 322 (85 ) 412 (43 ) Other comprehensive (loss) income $ (504 ) $ 133 $ (646 ) $ 68 Interest expense recognized on hedged FHLB advance $ 213 $ 88 $ 578 $ 176 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 10. Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Management uses its best judgment in estimating the fair value of the Company's financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at either September 30, 2015 or December 31, 2014. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at September 30, 2015 and December 31, 2014 were as follows: September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 86,830 $ 86,830 $ 86,830 $ - $ - Available for sale securities 45,023 45,023 - 45,023 - Held to maturity securities 11,282 11,301 - 11,301 - Loans held for sale 252 252 - 252 - Loans receivable, net 1,108,439 1,114,785 - - 1,114,785 Accrued interest receivable 3,831 3,831 - - 3,831 FHLB stock 6,918 6,918 - - 6,918 Financial Liabilities: Demand deposits $ 148,732 $ 148,732 $ - $ - $ 148,732 NOW and money market 346,850 346,850 - - 346,850 Savings 101,749 101,749 - - 101,749 Time deposits 428,358 430,602 - - 430,602 Advances from the FHLB 120,000 120,154 - - 120,154 Subordinated debentures 25,037 25,037 - - 25,037 Derivative liability 1,244 1,244 - 1,244 - December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 48,559 $ 48,559 $ 48,559 $ - $ - Available for sale securities 65,009 65,009 - 65,009 - Held to maturity securities 11,454 11,470 - 11,470 - Loans held for sale 586 586 - 586 - Loans receivable, net 915,981 920,031 - - 920,031 Accrued interest receivable 3,323 3,323 - - 3,323 FHLB stock 6,109 6,109 - - 6,109 Financial Liabilities: Demand deposits $ 166,030 $ 166,030 $ - $ - $ 166,030 NOW and money market 276,501 276,501 - - 276,501 Savings 84,457 84,457 - - 84,457 Time deposits 308,451 310,165 - - 310,165 Advances from the FHLB 129,000 128,961 - - 128,961 Derivative liability 186 186 - 186 - The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Cash and due from banks and accrued interest receivable: Investment securities: FHLB stock: Loans held for sale: Loans receivable Derivative asset (liability): Deposits: Borrowings and Subordinated Debentures: |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 11. Fair Value Measurements The Company is required to account for certain assets and liabilities at fair value on a recurring or non-recurring basis. As discussed in Note 1, the Company determines fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar as s Level 3 — Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time they are susceptible to material near-term changes. Financial instruments measured at fair value on a recurring basis Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2015: Available-for-sale investment securities: U.S. Government and agency obligations $ - $ 8,222 $ - State agency and municipal obligations - 17,461 - Corporate bonds - 14,568 - Mortgage backed securities - 4,772 - Derivative liability - (1,244 ) - December 31, 2014: Available-for-sale investment securities: U.S. Government and agency obligations $ - $ 24,418 $ - State agency and municipal obligations - 18,584 - Corporate bonds - 16,325 - Mortgage backed securities - 5,682 - Derivative liability - (186 ) - Available for sale investment securities Derivative liabilities: Financial instruments measured at fair value on a nonrecurring basis Certain assets are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the-lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table details the financial instruments carried at fair value on a nonrecurring basis at September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2015: Impaired loans $ - $ - $ 9,580 Foreclosed real estate - - 1,328 December 31, 2014: Impaired loans $ - $ - $ 8,281 Foreclosed real estate - - 950 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2015 and December 31, 2014: Valuation Unobservable (Dollars in thousands) Fair Value Methodology Input Range September 30, 2015: Impaired loans $ 9,580 Appraisals Discount for dated appraisals 8.00% - 10.00% Discounted cash flows Discount rate 3.25% - 7.00% Foreclosed real estate $ 1,328 Appraisals Discount for dated appraisals 10.00% - 66.00% December 31, 2014: Impaired loans $ 8,281 Appraisals Discount for dated appraisals - Discounted cash flows Discount rate 3.25% to 8.25% Foreclosed real estate $ 950 Appraisals Discount for dated appraisals 7.34% to 66.6% Impaired loans: Foreclosed real estate: |
MERGERS AND ACQUISITIONS
MERGERS AND ACQUISITIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
MERGERS AND ACQUISITIONS | 12. Mergers and Acquisitions On October 1, 2014, the Company acquired all of the outstanding common shares of Quinnipiac Bank & Trust Company (“Quinnipiac”). Quinnipiac had two banking offices primarily serving south-central Connecticut and has merged with and into Bankwell Bank. Quinnipiac shareholders received 510,122 shares of the Company common stock and $3.6 million in cash. As of September 30, 2014, Quinnipiac had assets with a carrying value of approximately $117.8 million, including loans outstanding with a carrying value of approximately $97.1 million, as well as deposits with a carrying value of approximately $100.4 million and a book value of $10.1 million. The results of Quinnipiac’s operations are included in the Company’s Consolidated Statement of Income from the date of acquisition. The assets and liabilities in the Quinnipiac acquisition were recorded at their fair value based on management's best estimate using information available at the date of acquisition. Consideration paid and fair values of Quinnipiac's assets acquired and liabilities assumed are summarized in the following tables: Consideration paid: (In thousands) Amount Cash consideration paid to Quinnipiac shareholders $ 3,648 Equity consideration paid to Quinnipiac shareholders 9,676 Total Consideration paid 13,324 Recognized amounts of identifiable assets acquired (In thousands) As Acquired Fair Value Adjustments As Recorded Cash $ 6,195 $ - $ 6,195 Available for sale investments securities 8,533 (29 )a 8,504 Loans 97,103 748 b 97,851 Premises and equipment 4,046 - 4,046 Other real estate owned 129 129 Core deposit intangibles - 530 c 530 Deferred tax assets, net 1,070 (388 )d 682 Other assets 756 - 756 Deposits (100,391 ) (252 )e (100,643 ) FHLB advances (7,000 ) (7,000 ) Other liabilities (315 ) - (315 ) Total identifiable net assets $ 10,126 $ 609 10,735 Goodwill $ 2,589 Explanation of fair value adjustments: (a) The adjustment represents the mark to market adjustment on available for sale investment securities. (b) The adjustment represents the adjustment of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. (c) Represents the economic value of the acquired core deposit base (total deposits less jumbo time deposits). The core deposit intangible will be amortized over an estimated life of 8.8 years based on the double declining balance method of amortization. (d) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles and other purchase accounting adjustments. (e) The adjustment represents the fair value of time deposits, which were valued at a premium of 0.57% as they bore somewhat higher rates than the prevailing market. Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired from Quinnipiac were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, to estimate the fair value, the Company analyzed the value of the underlying collateral of the loans, assuming the fair values of the loans were derived from the eventual sale of the collateral. Those values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of Quinnipiac's allowance for credit losses associated with the loans that were acquired as the loans were initially recorded at fair value. Information about the acquired loan portfolio subject to purchased credit impaired accounting guidance (ASC 310-30) as of October 1, 2014 was as follows: (In thousands) October 1, 2014 Contractually required principal and interest at acquisition $ 1,729 Contractual cash flows not expected to be collected (nonaccretable discount) (6 ) Expected cash flows at acquisition 1,723 Interest component of expected cash flows (accretable discount) (478 ) Fair value of acquired loans $ 1,245 |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 9 Months Ended |
Sep. 30, 2015 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBENTURES | 13. Subordinated Debentures On August 19, 2015 the Company completed a private placement of $25.5 million in aggregate principal amount of fixed rated subordinated notes (the “Notes”) to certain institutional investors. The Notes are non-callable for five years, have a stated maturity of August 15, 2025, and bear interest at a quarterly pay fixed rate of 5.75% per year to the maturity date or the early redemption date. The Notes have been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. The Company will use the net proceeds from the sales of the Notes for general corporate purposes, including a plan to redeem the $11.0 million outstanding of its Senior Noncumulative Perpetual Preferred Stock issued in 2011 to the U.S. Treasury under the Small Business Lending Fund Program by December 31, 2015. The Notes were assigned an investment grade rating of BBB by Kroll Bond Rating Agency. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. Subsequent Events Management has evaluated subsequent events for potential recognition or disclosure in the consolidated financial statements through November 9, 2015, the date upon which the Company’s consolidated financial statements were available to be issued. On October 8, 2015, the Bank established a new wholly-owned subsidiary, Bankwell Loan Servicing Group, Inc. (a Passive Investment Company “PIC”). The PIC was organized in accordance with Connecticut statutes to hold and manage certain loans that are collateralized by real estate. Income earned by the PIC is exempt from Connecticut income tax and any dividends paid by the PIC to the Bank are not taxable income for Connecticut income tax purposes. The impact of forming the PIC will be reflected during the fourth quarter and will result in an immaterial charge to the statement of income reflecting the net impact of writing off state deferred tax assets that will no longer be realized and substantially reducing the state income tax provision. |
NATURE OF OPERATIONS AND SUMM23
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated interim financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities as of the date of the balance sheet and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the fair value of acquired assets, the allowance for loan losses, stock-based compensation and derivative instrument valuation. |
Basis of consolidated financial statement presentation | Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-1 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2015. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2014. |
Significant concentrations of credit risk | Significant concentrations of credit risk Most of the Company's activities are with customers located within Fairfield and New Haven Counties and the surrounding region of Connecticut, and declines in property values in these areas could significantly impact the Company. The Company has significant concentrations in commercial real estate loans. Management does not believe they present any special risk. The Company does not have any significant concentrations in any one industry or customer. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the 2015 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the results of operations or consolidated financial position. |
Recent accounting pronouncements | Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. ASU No. 2014-01 - Investments - Equity Method and Joint Ventures (Topic 323) - "Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ASU No. 2014-12, Compensation-Stock Compensation (Topic 718) - “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” ASU No. 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40) - "Classification of Certain Government-Guaranteed Residential Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2014-17, Business Combinations (Topic 805) – "Pushdown Accounting (a consensus of the FASB Emerging Issues Task Force)." ASU No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20) – “Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ASU No. 2015-03, Interest – Imputation of Interest (Subtopic 835-20) – “Simplifying the Presentation of Debt Issuance Costs.” ASU No. 2015-16 Business Combinations (Topic 805) – “Simplifying the Accounting for Measurement-Period Adjustments.” |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities | September 30, 2015 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: U.S. Government and agency obligations Due in less than one year $ 499 $ 2 $ - $ 501 Due from one through five years 5,199 4 (4 ) 5,199 Due from five through ten years 1,729 18 (11 ) 1,736 Due after ten years 798 1 (13 ) 786 8,225 25 (28 ) 8,222 State agency and municipal obligations Due from one through five years 521 42 - 563 Due from five through ten years 9,501 321 (330 ) 9,492 Due after ten years 7,046 381 (21 ) 7,406 17,068 744 (351 ) 17,461 Corporate bonds Due in less than one year 2,999 1 - 3,000 Due from one through five years 8,210 256 - 8,466 Due from five through ten years 3,069 33 - 3,102 14,278 290 - 14,568 Government-sponsored mortgage backed securities Due from one through five years 77 - - 77 Due after ten years 4,581 120 (6 ) 4,695 4,658 120 (6 ) 4,772 Total available for sale securities $ 44,229 $ 1,179 $ (385 ) $ 45,023 Held to maturity securities: U.S. Government and agency obligations Due in less than one year $ 1,002 $ - $ - $ 1,002 State agency and municipal obligations Due after ten years 9,064 - - 9,064 Corporate bonds Due from five through ten years 1,000 - (5 ) 995 Government-sponsored mortgage backed securities Due after ten years 216 24 - 240 Total held to maturity securities $ 11,282 $ 24 $ (5 ) $ 11,301 December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses Value (In thousands) Available for sale securities: U.S. Government and agency obligations Due in less than one year $ 497 $ 9 $ - $ 506 Due from one through five years 3,998 - (69 ) 3,929 Due from five through ten years 17,055 27 (79 ) 17,003 Due after ten years 3,004 4 (28 ) 2,980 24,554 40 (176 ) 24,418 State agency and municipal obligations Due from five through ten years 9,297 295 (48 ) 9,544 Due after ten years 8,500 544 (4 ) 9,040 17,797 839 (52 ) 18,584 Corporate bonds Due in less than one year 5,764 44 (6 ) 5,802 Due from one through five years 4,150 268 - 4,418 Due from five through ten years 6,121 8 (24 ) 6,105 16,035 320 (30 ) 16,325 Government-sponsored mortgage backed securities Due from one through five years 99 1 - 100 Due after ten years 5,468 131 (17 ) 5,582 5,567 132 (17 ) 5,682 Total available for sale securities $ 63,953 $ 1,331 $ (275 ) $ 65,009 Held to maturity securities: U.S. Government and agency obligations Due in less than one year $ 1,010 $ - $ - $ 1,010 State agency and municipal obligations Due after ten years 9,179 - - 9,179 Corporate bonds Due from five through ten years 1,000 - (15 ) 985 Government-sponsored mortgage backed securities Due after ten years 265 31 - 296 Total held to maturity securities $ 11,454 $ 31 $ (15 ) $ 11,470 |
Schedule of fair value and related unrealized losses of temporarily impaired investment securities, aggregated by investment category | Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (In thousands) September 30, 2015 U.S. Government and agency obligations $ 1,296 $ (3 ) $ 2,374 $ (25 ) $ 3,670 $ (28 ) State agency and municipal obligations 1,439 (350 ) - - 1,439 (350 ) Corporate bonds - - 995 (5 ) 995 (5 ) Government-sponsored mortgage backed securities 458 (4 ) 246 (3 ) 704 (7 ) Total investment securities $ 3,193 $ (357 ) $ 3,615 $ (33 ) $ 6,808 $ (390 ) December 31, 2014 U.S. Government and agency obligations $ 4,515 $ (56 ) $ 5,878 $ (120 ) $ 10,393 $ (176 ) State agency and municipal obligations 1,771 (52 ) - - 1,771 (52 ) Corporate bonds 6,783 (40 ) 995 (5 ) 7,778 (45 ) Government-sponsored mortgage backed securities 1,406 (17 ) - - 1,406 (17 ) Total investment securities $ 14,475 $ (165 ) $ 6,873 $ (125 ) $ 21,348 $ (290 ) |
LOANS RECEIVABLE AND ALLOWANC25
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of summary of the loan portfolio | September 30, 2015 December 31, 2014 (In thousands) Originated Acquired Total Originated Acquired Total Real estate loans: Residential $ 168,830 $ 2,932 $ 171,762 $ 169,833 $ 5,198 $ 175,031 Commercial 632,410 51,673 684,083 458,506 62,675 521,181 Construction 83,986 1,007 84,993 62,258 971 63,229 Home equity 8,915 7,365 16,280 10,226 7,940 18,166 894,141 62,977 957,118 700,823 76,784 777,607 Commercial business 138,621 28,021 166,642 120,360 28,899 149,259 Consumer 30 1,909 1,939 243 2,653 2,896 Total loans 1,032,792 92,907 1,125,699 821,426 108,336 929,762 Allowance for loan losses (13,675 ) (45 ) (13,720 ) (10,860 ) - (10,860 ) Deferred loan origination fees, net (3,549 ) - (3,549 ) (2,937 ) - (2,937 ) Unamortized loan premiums 9 - 9 16 - 16 Loans receivable, net $ 1,015,577 $ 92,862 $ 1,108,439 $ 807,645 $ 108,336 $ 915,981 |
Schedule of activity in the accretable yields for the acquired loan portfolio | (In thousands) Three Months Ended September 30, 2015 2014 Balance at beginning of period $ 1,134 $ 817 Acquisition - - Accretion (21 ) (81 ) Other (a) (145 ) - Balance at end of period $ 968 $ 736 a) Represents changes in cash flows expected to be collected due to loan sales or payoffs. (In thousands) Nine Months Ended September 30, 2015 2014 Balance at beginning of period $ 1,382 $ 1,418 Acquisition - - Accretion (137 ) (338 ) Other (a) (277 ) (344 ) Balance at end of period $ 968 $ 736 a) Represents changes in cash flows expected to be collected due to loan sales or payoffs. |
Schedule of allowance for loan losses | Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2015 Originated Beginning balance $ 1,454 $ 6,832 $ 1,138 $ 169 $ 2,618 $ 9 $ - $ 12,220 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (40 ) 722 399 11 369 (7 ) - 1,454 Ending balance $ 1,414 $ 7,554 $ 1,537 $ 180 $ 2,987 $ 3 $ - $ 13,675 Acquired Beginning balance $ - $ - $ - $ - $ 10 $ - $ - $ 10 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions - 10 - - 20 5 - 35 Ending balance $ - $ 10 $ - $ - $ 30 $ 5 $ - $ 35 Total Beginning balance $ 1,454 $ 6,832 $ 1,138 $ 169 $ 2,628 $ 9 $ - $ 12,230 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (40 ) 732 399 11 389 (2 ) - 1,489 Ending balance $ 1,414 $ 7,564 $ 1,537 $ 180 $ 3,017 $ 8 $ - $ 13,720 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Three Months Ended September 30, 2014 Originated Beginning balance $ 1,392 $ 4,024 $ 776 $ 188 $ 2,291 $ 6 $ 307 $ 8,984 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions 19 637 115 3 100 - (307 ) 567 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Acquired Beginning balance $ - $ - $ - $ - $ 1 $ - $ - $ 1 Charge-offs - - - - - - - - Recoveries - - - - - - - - Provisions - - - - (1 ) - - (1 ) Ending balance $ - $ - $ - $ - $ - $ - $ - $ - Total Beginning balance $ 1,392 $ 4,024 $ 776 $ 188 $ 2,292 $ 6 $ 307 $ 8,985 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions 19 637 115 3 99 - (307 ) 566 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Nine Months Ended September 30, 2015 Originated Beginning balance $ 1,431 $ 5,480 $ 1,102 $ 205 $ 2,638 $ 4 $ - $ 10,860 Charge-offs - - - - - - - - Recoveries - - - - - 1 - 1 Provisions (17 ) 2,074 435 (25 ) 349 (2 ) - 2,814 Ending balance $ 1,414 $ 7,554 $ 1,537 $ 180 $ 2,987 $ 3 $ - $ 13,675 Acquired Beginning balance $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs - - - - (15 ) (6 ) - (21 ) Recoveries - - - - - 4 - 4 Provisions - 10 - - 45 7 - 62 Ending balance $ - $ 10 $ - $ - $ 30 $ 5 $ - $ 45 Total Beginning balance $ 1,431 $ 5,480 $ 1,102 $ 205 $ 2,638 $ 4 $ - $ 10,860 Charge-offs - - - - (15 ) (6 ) - (21 ) Recoveries - - - - - 5 - 5 Provisions (17 ) 2,084 435 (25 ) 394 5 - 2,876 Ending balance $ 1,414 $ 7,564 $ 1,537 $ 180 $ 3,017 $ 8 $ - $ 13,720 Residential Commercial Home Commercial Real Estate Real Estate Construction Equity Business Consumer Unallocated Total (In thousands) Nine Months Ended September 30, 2014 Originated Beginning balance $ 1,310 $ 3,616 $ 1,032 $ 190 $ 2,225 $ 9 $ - $ 8,382 Charge-offs - - - - - (1 ) - (1 ) Recoveries - - - - - 424 - 424 Provisions 101 1,045 (141 ) 1 166 (425 ) - 747 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 Acquired Beginning balance $ - $ - $ - $ - $ - $ - $ - $ - Charge-offs - - (100 ) - - - - (100 ) Recoveries - - - - - - - - Provisions - - 100 - - - - 100 Ending balance $ - $ - $ - $ - $ - $ - $ - $ - Total Beginning balance $ 1,310 $ 3,616 $ 1,032 $ 190 $ 2,225 $ 9 $ - $ 8,382 Charge-offs - - (100 ) - - (1 ) - (101 ) Recoveries - - - - - 424 - 424 Provisions 101 1,045 (41 ) 1 166 (425 ) - 847 Ending balance $ 1,411 $ 4,661 $ 891 $ 191 $ 2,391 $ 7 $ - $ 9,552 |
Schedule of portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio | Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) September 30, 2015 Loans individually evaluated for impairment: Residential real estate $ 864 $ 2 $ - $ - $ 864 $ 2 Commercial real estate 4,743 22 633 10 5,376 32 Home equity 426 7 198 - 624 7 Commercial business 1,603 8 1,108 24 2,711 32 Consumer - - 5 5 5 5 Subtotal 7,636 39 1,944 39 9,580 78 Loans collectively evaluated for impairment: Residential real estate 167,966 1,412 2,932 - 170,898 1,412 Commercial real estate 627,667 7,532 51,040 - 678,707 7,532 Construction 83,986 1,537 1,007 - 84,993 1,537 Home equity 8,489 173 7,167 - 15,656 173 Commercial business 137,018 2,979 26,913 6 163,931 2,985 Consumer 30 3 1,904 - 1,934 3 Subtotal 1,025,156 13,636 90,963 6 1,116,119 13,642 Total $ 1,032,792 $ 13,675 $ 92,907 $ 45 $ 1,125,699 $ 13,720 Originated Loans Acquired Loans Total Portfolio Allowance Portfolio Allowance Portfolio Allowance (In thousands) December 31, 2014 Loans individually evaluated for impairment: Residential real estate $ 864 $ - $ - $ - $ 864 $ - Commercial real estate 4,996 23 - - 4,996 23 Home equity 91 - - - 91 - Commercial business 1,701 10 629 - 2,330 10 Subtotal 7,652 33 629 - 8,281 33 Loans collectively evaluated for impairment: Residential real estate 168,969 1,431 5,198 - 174,167 1,431 Commercial real estate 453,510 5,457 62,675 - 516,185 5,457 Construction 62,258 1,102 971 - 63,229 1,102 Home equity 10,135 205 7,940 - 18,075 205 Commercial business 118,659 2,628 28,270 - 146,929 2,628 Consumer 243 4 2,653 - 2,896 4 Subtotal 813,774 10,827 107,707 - 921,481 10,827 Total $ 821,426 $ 10,860 $ 108,336 $ - $ 929,762 $ 10,860 |
Schedule of loan portfolio quality indicators by portfolio segment | Commercial Credit Quality Indicators At September 30, 2015 At December 31, 2014 Commercial Commercial Commercial Commercial Real Estate Construction Business Real Estate Construction Business (In thousands) Originated loans: Pass $ 627,140 $ 83,986 $ 137,018 $ 452,974 $ 62,258 $ 115,323 Special mention 2,050 - 1,026 2,096 - 5,037 Substandard 3,220 - 577 3,436 - - Doubtful - - - - - - Loss - - - - - - Total originated loans 632,410 83,986 138,621 458,506 62,258 120,360 Acquired loans: Pass 49,903 233 26,744 61,017 136 27,074 Special mention - - 550 - - 659 Substandard 1,770 774 727 1,658 835 1,166 Doubtful - - - - - - Loss - - - - - - Total acquired loans 51,673 1,007 28,021 62,675 971 28,899 Total $ 684,083 $ 84,993 $ 166,642 $ 521,181 $ 63,229 $ 149,259 Residential and Consumer Credit Quality Indicators At September 30, 2015 At December 31, 2014 Residential Home Residential Home Real Estate Equity Consumer Real Estate Equity Consumer (In thousands) Originated loans: Pass $ 167,966 $ 8,489 $ 30 $ 168,969 $ 10,135 $ 243 Special mention 864 83 - 864 91 - Substandard - 343 - - - - Doubtful - - - - - - Loss - - - - - - Total originated loans 168,830 8,915 30 169,833 10,226 243 Acquired loans: Pass 2,823 6,983 1,823 5,022 7,925 2,653 Special mention 109 - - - - - Substandard - 382 86 176 15 - Doubtful - - - - - - Loss - - - - - - Total acquired loans 2,932 7,365 1,909 5,198 7,940 2,653 Total $ 171,762 $ 16,280 $ 1,939 $ 175,031 $ 18,166 $ 2,896 |
Schedule of information with respect to our loan portfolio delinquencies by portfolio segment and amount | As of September 30, 2015 Carrying Amount > Greater 90 Days 31-60 Days 61-90 Days Than 90 Total Past and Past Due Past Due Days Due Current Accruing (In thousands) Originated Loans Real estate loans: Residential real estate $ 833 $ 969 $ - $ 1,802 $ 167,028 $ - Commercial real estate 313 1,565 970 2,848 629,562 - Construction 1,750 - - 1,750 82,236 - Home equity - - 198 198 8,717 - Commercial business 105 - 225 330 138,291 - Consumer - - - - 30 - Total originated loans 3,001 2,534 1,393 6,928 1,025,864 - Acquired Loans Real estate loans: Residential real estate - - 109 109 2,823 - Commercial real estate 307 - 1,124 1,431 50,242 224 Construction 135 - 774 909 98 774 Home equity 294 - 183 477 6,888 - Commercial business 1,371 - 241 1,612 26,409 84 Consumer 2 - - 2 1,907 - Total acquired loans 2,109 - 2,431 4,540 88,367 1,082 Total loans $ 5,110 $ 2,534 $ 3,824 $ 11,468 $ 1,114,231 $ 1,082 As of December 31, 2014 Carrying Amount > Greater 90 Days 31-60 Days 61-90 Days Than 90 Total Past and Past Due Past Due Days Due Current Accruing (In thousands) Originated Loans Real estate loans: Residential real estate $ - $ - $ - $ - $ 169,833 $ - Commercial real estate - - 3,436 3,436 455,070 216 Construction - - - - 62,258 - Home equity - - - - 10,226 - Commercial business - - - - 120,360 - Consumer - - - - 243 - Total originated loans - - 3,436 3,436 817,990 216 Acquired Loans Real estate loans: Residential real estate 339 - 294 633 4,565 176 Commercial real estate 685 677 836 2,198 60,477 466 Construction - - 835 835 136 835 Home equity - 40 - 40 7,900 - Commercial business 178 386 305 869 28,030 305 Consumer 3 - - 3 2,650 - Total acquired loans 1,205 1,103 2,270 4,578 103,758 1,782 Total loans $ 1,205 $ 1,103 $ 5,706 $ 8,014 $ 921,748 $ 1,998 |
Schedule of nonaccrual loans by portfolio segment | September 30, December 31, 2015 2014 (In thousands) Commercial real estate 1,603 3,220 Home equity 396 - Commercial business 368 142 Total $ 2,367 $ 3,362 |
Schedule of summarizes impaired loans | Carrying Amount Unpaid Principal Balance Associated Allowance September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ - $ 864 $ - $ 864 $ - $ - Commercial real estate 4,299 4,543 4,299 4,544 - - Home equity 83 91 83 91 - - Commercial business 1,115 1,145 1,133 1,153 - - Total impaired loans without a valuation allowance 5,497 6,643 1,216 6,652 - - Impaired loans with a valuation allowance: Residential real estate 864 - 864 - 2 - Commercial real estate 444 453 444 453 22 23 Home Equity 343 - 345 - 7 - Commercial business 488 556 488 556 8 10 Total impaired loans with a valuation allowance 2,139 1,009 2,141 1,009 39 33 Total originated impaired loans $ 7,636 $ 7,652 $ 3,357 $ 7,661 $ 39 $ 33 Acquired Impaired loans without a valuation allowance: Commercial real estate $ 483 $ - $ 534 $ - $ - $ - Commercial business 424 629 424 629 - - Home equity 198 - 200 - - - Total impaired loans without a valuation allowance 1,105 629 1,158 629 - - Impaired loans with a valuation allowance: Commercial Real Estate 150 - 150 - 10 - Commercial business 684 - 692 - 24 - Consumer 5 - 5 - 5 - Total impaired loans with a valuation allowance 839 - 847 - 39 - Total acquired impaired loans $ 1,944 $ 629 $ 2,005 $ 629 $ 39 $ - Average Recorded Investment Interest Income Recognized September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Originated Impaired loans without a valuation allowance: Residential real estate $ - $ 864 $ - $ 28 Commercial real estate 4,312 4,034 98 223 Home equity 87 95 2 3 Commercial business 1,132 1,226 32 52 Total impaired loans without a valuation allowance 5,531 6,219 132 306 Impaired loans with a valuation allowance: Residential real estate 864 - 21 - Commercial real estate 448 457 21 29 Home Equity 344 - 6 - Commercial business 521 596 21 32 Total impaired loans with a valuation allowance 2,177 1,053 69 61 Total originated impaired loans $ 7,708 $ 7,272 $ 201 $ 367 Acquired Impaired loans without a valuation allowance: Commercial real estate $ 453 $ - $ - $ - Commercial business 440 607 15 28 Home equity 199 - 2 - Total impaired loans without a valuation allowance 1,092 607 17 28 Impaired loans with a valuation allowance: Commercial real estate 152 - 3 - Commercial business 711 - 11 - Consumer 6 - - - Total impaired loans with a valuation allowance 869 - 14 - Total acquired impaired loans $ 1,961 $ 607 $ 31 $ 28 |
Schedule of loans whose terms were modified as TDRs during the periods | Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Three Months Ended September 30, Commercial real estate - - $ - $ - $ - $ - Commercial business - 1 - 241 - 241 Total - 1 $ - $ 241 $ - $ 241 Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2015 2014 2015 2014 2015 2014 Nine Months Ended September 30, Commercial real estate 3 2 $ 4,044 $ 1,324 $ 4,044 $ 1,324 Commercial business 1 4 44 796 44 796 Total 4 6 $ 4,088 $ 2,120 $ 4,088 $ 2,120 |
Schedule of information on how loans were modified as a TDR | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Maturity/amortization concession $ - $ 241 $ 825 $ 962 Payment concession - - - 1,158 Maturity and payment concession - - 3,263 - Total $ - $ 241 $ 4,088 $ 2,120 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Comprehensive Income [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at June 30, 2015 $ 368 $ (255 ) $ 113 Other comprehensive income (loss) before reclassifications 116 (504 ) (388 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive income (loss) 116 (504 ) (388 ) Balance at September 30, 2015 $ 484 $ (759 ) $ (275 ) Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at June 30, 2014 $ 689 $ (66 ) $ 623 Other comprehensive (loss) income before reclassifications (154 ) 133 (21 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive (loss) income (154 ) 133 (21 ) Balance at September 30, 2014 $ 535 $ 67 $ 602 Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at December 31, 2014 $ 644 $ (113 ) $ 531 Other comprehensive income (loss) before reclassifications (160 ) (646 ) (806 ) Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive (loss) (160 ) (646 ) (806 ) Balance at September 30, 2015 $ 484 $ (759 ) $ (275 ) Net Unrealized Gain Net Unrealized Gain (Loss) on Available (Loss) on Interest for Sale Securities Rate Swap Total (In thousands) Balance at December 31, 2013 $ 424 $ - $ 424 Other comprehensive income before reclassifications 111 67 178 Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive income 111 67 178 Balance at September 30, 2014 $ 535 $ 67 $ 602 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share data) (In thousands, except per share data) Net income $ 2,253 $ 1,491 $ 6,412 $ 3,841 Preferred stock dividends (27 ) (27 ) (82 ) (82 ) Dividends and undistributed earnings allocated to participating securities (63 ) (23 ) (170 ) (82 ) Net income for earnings per share calculation $ 2,163 $ 1,441 $ 6,160 $ 3,677 Weighted average shares outstanding, basic 7,045 6,483 7,039 5,099 Effect of dilutive equity-based awards 14 19 18 25 Weighted average shares outstanding, diluted 7,059 6,502 7,057 5,124 Net earnings per common share: Basic earnings per common share $ 0.31 $ 0.22 $ 0.88 $ 0.72 Diluted earnings per common share 0.31 0.22 0.87 0.72 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of capital amounts and ratios | To be Well Capitalized Under For Capital Prompt Corrective Actual Capital Adequacy Purposes Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank September 30, 2015 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 126,831 10.75 % $ 52,004 4.50 % $ 75,116 6.50 % Total Capital to Risk-Weighted Assets 137,959 11.94 % 92,451 8.00 % 115,564 10.00 % Tier I Capital to Risk-Weighted Assets 124,239 10.75 % 69,338 6.00 % 92,541 8.00 % Tier I Capital to Average Assets 124,239 9.84 % 50,508 4.00 % 63,136 5.00 % Bankwell Financial Group, Inc. September 30, 2015 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 122,219 10.51 % $ 52,308 4.50 % N/A N/A Total Capital to Risk-Weighted Assets 171,956 14.79 % 92,993 8.00 % N/A N/A Tier I Capital to Risk-Weighted Assets 133,199 11.46 % 69,744 6.00 % N/A N/A Tier I Capital to Average Assets 133,199 10.29 % 51,760 4.00 % N/A N/A To be Well Capitalized Under For Capital Prompt Corrective Actual Capital Adequacy Purposes Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2014 Total Capital to Risk-Weighted Assets $ 125,339 13.55 % $ 74,003 8.00 % $ 92,503 10.00 % Tier I Capital to Risk-Weighted Assets 115,359 12.47 % 37,001 4.00 % 55,502 6.00 % Tier I Capital to Average Assets 115,359 11.12 % 41,485 4.00 % 51,856 5.00 % Bankwell Financial Group, Inc. December 31, 2014 Total Capital to Risk-Weighted Assets $ 135,223 14.59 % $ 74,136 8.00 % N/A N/A Tier I Capital to Risk-Weighted Assets 125,243 13.51 % 37,068 4.00 % N/A N/A Tier I Capital to Average Assets 125,243 11.78 % 42,516 4.00 % N/A N/A |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of status of outstanding stock options | Nine Months Ended September 30, 2015 Weighted Number Average of Exercise Shares Price Options outstanding at beginning of period 204,793 $ 17.42 Exercised (17,770 ) 14.50 Forfeited (300 ) 15.00 Expired (11,495 ) 16.79 Options outstanding at end of period 175,228 17.76 Options exercisable at end of period 170,728 17.84 |
Schedule of activity for restricted stock | Nine Months Ended September 30, 2015 Weighted Number Average of Grant Date Shares Fair Value Unvested at beginning of period 165,862 $ 18.08 Granted 51,800 18.73 Vested (8,307 ) 15.75 Forfeited (2,623 ) 17.73 Unvested at end of period 206,732 18.34 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | September 30, 2015: Fair Value (Dollars in thousands) Notional Original Asset Amount Maturity Received Paid (Liability) Cash flow hedge: Interest rate swap on FHLB advance $ 25,000 4.7 years 0.33 % 1.62 % $ (476 ) Interest rate swap on FHLB advance $ 25,000 5.0 years 0.33 % 1.83 % (625 ) Interest rate swap on FHLB advance $ 25,000 5.0 years 0.33 % 1.48 % (143 ) $ (1,244 ) December 31, 2014: Fair Value (Dollars in thousands) Notional Original Asset Amount Maturity Received Paid (Liability) Cash flow hedge: Interest rate swap on FHLB advance $ 25,000 4.7 years 0.26 % 1.62 % $ (73 ) Interest rate swap on forward-starting FHLB advance $ 25,000 5.0 years 0.26 % 1.83 % (113 ) $ (186 ) |
Schedule of interest rate swap transactions | Effective Date of (Dollars in thousands) Notional Hedged Duration of Amount Borrowing Borrowing Counterparty Type of borrowing: FHLB 90-day advance $ 25,000 April 1, 2014 4.7 years Bank of Montreal FHLB 90-day advance $ 25,000 January 2, 2015 5.0 years Bank of Montreal FHLB 90-day advance $ 25,000 August 26, 2015 5.0 years Bank of Montreal |
Schedule of changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2015 2014 2015 2014 Interest rate swap on FHLB advance: Unrealized (loss) gain recognized in accumulated other comprehensive income $ (826 ) $ 218 $ (1,058 ) $ 111 Income tax benefit (expense) on items recognized in accumulated other comprehensive income 322 (85 ) 412 (43 ) Other comprehensive (loss) income $ (504 ) $ 133 $ (646 ) $ 68 Interest expense recognized on hedged FHLB advance $ 213 $ 88 $ 578 $ 176 |
FAIR VALUE OF FINANCIAL INSTR31
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and fair values of the Company s financial instruments | September 30, 2015 Carrying Fair Value Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 86,830 $ 86,830 $ 86,830 $ - $ - Available for sale securities 45,023 45,023 - 45,023 - Held to maturity securities 11,282 11,301 - 11,301 - Loans held for sale 252 252 - 252 - Loans receivable, net 1,108,439 1,114,785 - - 1,114,785 Accrued interest receivable 3,831 3,831 - - 3,831 FHLB stock 6,918 6,918 - - 6,918 Financial Liabilities: Demand deposits $ 148,732 $ 148,732 $ - $ - $ 148,732 NOW and money market 346,850 346,850 - - 346,850 Savings 101,749 101,749 - - 101,749 Time deposits 428,358 430,602 - - 430,602 Advances from the FHLB 120,000 120,154 - - 120,154 Subordinated debentures 25,037 25,037 - - 25,037 Derivative liability 1,244 1,244 - 1,244 - December 31, 2014 Carrying Fair Value Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 48,559 $ 48,559 $ 48,559 $ - $ - Available for sale securities 65,009 65,009 - 65,009 - Held to maturity securities 11,454 11,470 - 11,470 - Loans held for sale 586 586 - 586 - Loans receivable, net 915,981 920,031 - - 920,031 Accrued interest receivable 3,323 3,323 - - 3,323 FHLB stock 6,109 6,109 - - 6,109 Financial Liabilities: Demand deposits $ 166,030 $ 166,030 $ - $ - $ 166,030 NOW and money market 276,501 276,501 - - 276,501 Savings 84,457 84,457 - - 84,457 Time deposits 308,451 310,165 - - 310,165 Advances from the FHLB 129,000 128,961 - - 128,961 Derivative liability 186 186 - 186 - |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2015: Available-for-sale investment securities: U.S. Government and agency obligations $ - $ 8,222 $ - State agency and municipal obligations - 17,461 - Corporate bonds - 14,568 - Mortgage backed securities - 4,772 - Derivative liability - (1,244 ) - December 31, 2014: Available-for-sale investment securities: U.S. Government and agency obligations $ - $ 24,418 $ - State agency and municipal obligations - 18,584 - Corporate bonds - 16,325 - Mortgage backed securities - 5,682 - Derivative liability - (186 ) - |
Schedule of financial instruments carried at fair value on a nonrecurring basis | Fair Value (In thousands) Level 1 Level 2 Level 3 September 30, 2015: Impaired loans $ - $ - $ 9,580 Foreclosed real estate - - 1,328 December 31, 2014: Impaired loans $ - $ - $ 8,281 Foreclosed real estate - - 950 |
Schedule of quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis | Valuation Unobservable (Dollars in thousands) Fair Value Methodology Input Range September 30, 2015: Impaired loans $ 9,580 Appraisals Discount for dated appraisals 8.00% - 10.00% Discounted cash flows Discount rate 3.25% - 7.00% Foreclosed real estate $ 1,328 Appraisals Discount for dated appraisals 10.00% - 66.00% December 31, 2014: Impaired loans $ 8,281 Appraisals Discount for dated appraisals - Discounted cash flows Discount rate 3.25% to 8.25% Foreclosed real estate $ 950 Appraisals Discount for dated appraisals 7.34% to 66.6% |
MERGERS AND ACQUISITIONS (Table
MERGERS AND ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of recognized amounts of identifiable assets acquired and (liabilities) assumed | Consideration paid: (In thousands) Amount Cash consideration paid to Quinnipiac shareholders $ 3,648 Equity consideration paid to Quinnipiac shareholders 9,676 Total Consideration paid 13,324 Recognized amounts of identifiable assets acquired (In thousands) As Acquired Fair Value Adjustments As Recorded Cash $ 6,195 $ - $ 6,195 Available for sale investments securities 8,533 (29 )a 8,504 Loans 97,103 748 b 97,851 Premises and equipment 4,046 - 4,046 Other real estate owned 129 129 Core deposit intangibles - 530 c 530 Deferred tax assets, net 1,070 (388 )d 682 Other assets 756 - 756 Deposits (100,391 ) (252 )e (100,643 ) FHLB advances (7,000 ) (7,000 ) Other liabilities (315 ) - (315 ) Total identifiable net assets $ 10,126 $ 609 10,735 Goodwill $ 2,589 Explanation of fair value adjustments: (a) The adjustment represents the mark to market adjustment on available for sale investment securities. (b) The adjustment represents the adjustment of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. (c) Represents the economic value of the acquired core deposit base (total deposits less jumbo time deposits). The core deposit intangible will be amortized over an estimated life of 8.8 years based on the double declining balance method of amortization. (d) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles and other purchase accounting adjustments. (e) The adjustment represents the fair value of time deposits, which were valued at a premium of 0.57% as they bore somewhat higher rates than the prevailing market. |
Schedule of acquired loan portfolio subject to purchased credit impaired accounting guidance | (In thousands) October 1, 2014 Contractually required principal and interest at acquisition $ 1,729 Contractual cash flows not expected to be collected (nonaccretable discount) (6 ) Expected cash flows at acquisition 1,723 Interest component of expected cash flows (accretable discount) (478 ) Fair value of acquired loans $ 1,245 |
NATURE OF OPERATIONS AND SUMM34
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) $ in Thousands | Oct. 01, 2014USD ($)Branch | Nov. 05, 2013USD ($)Branch |
Wilton Bank ("Wilton") | ||
Business Acquisition [Line Items] | ||
Number of branch acquired | Branch | 1 | |
Amount of loans acquired | $ 25,100 | |
Amount of deposits acquired | $ 64,200 | |
Quinnipiac | ||
Business Acquisition [Line Items] | ||
Number of branch acquired | Branch | 2 | |
Amount of loans acquired | $ 97,851 | |
Amount of deposits acquired | $ 100,643 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available for sale securities: | ||
Amortized Cost | $ 44,229 | $ 63,953 |
Gross Unrealized Gains | 1,179 | 1,331 |
Gross Unrealized Losses | (385) | (275) |
Fair Value | 45,023 | 65,009 |
Held to maturity securities: | ||
Amortized Cost | 11,282 | 11,454 |
Gross Unrealized Gains | 24 | 31 |
Gross Unrealized Losses | (5) | (15) |
Fair value | 11,301 | 11,470 |
U.S. Government and agency obligations | ||
Available for sale securities: | ||
Due in less than one year, Amortized Cost | 499 | 497 |
Due in less than one year, Gross Unrealized Gains | $ 2 | $ 9 |
Due in less than one year, Gross Unrealized Losses | ||
Due in less than one year, Fair Value | $ 501 | $ 506 |
Due from one through five years, Amortized Cost | 5,199 | $ 3,998 |
Due from one through five years, Gross Unrealized Gains | 4 | |
Due from one through five years, Gross Unrealized Losses | (4) | $ (69) |
Due from one through five years, Fair Value | 5,199 | 3,929 |
Due from five through ten years, Amortized Cost | 1,729 | 17,055 |
Due from five through ten years, Gross Unrealized Gains | 18 | 27 |
Due from five through ten years, Gross Unrealized Losses | (11) | (79) |
Due from five through ten years, Fair Value | 1,736 | 17,003 |
Due after ten years, Amortized Cost | 798 | 3,004 |
Due after ten years, Gross Unrealized Gains | 1 | 4 |
Due after ten years, Gross Unrealized Losses | (13) | (28) |
Due after ten years, Fair Value | 786 | 2,980 |
Amortized Cost | 8,225 | 24,554 |
Gross Unrealized Gains | 25 | 40 |
Gross Unrealized Losses | (28) | (176) |
Fair Value | 8,222 | 24,418 |
Held to maturity securities: | ||
Due in less than one year, Amortized Cost | $ 1,002 | $ 1,010 |
Due in less than one year, Gross Unrealized Gains | ||
Due in less than one year, Gross Unrealized Losses | ||
Due in less than one year, Fair Value | $ 1,002 | $ 1,010 |
State agency and municipal obligations | ||
Available for sale securities: | ||
Due from one through five years, Amortized Cost | 521 | |
Due from one through five years, Gross Unrealized Gains | $ 42 | |
Due from one through five years, Gross Unrealized Losses | ||
Due from one through five years, Fair Value | $ 563 | |
Due from five through ten years, Amortized Cost | 9,501 | 9,297 |
Due from five through ten years, Gross Unrealized Gains | 321 | 295 |
Due from five through ten years, Gross Unrealized Losses | (330) | (48) |
Due from five through ten years, Fair Value | 9,492 | 9,544 |
Due after ten years, Amortized Cost | 7,046 | 8,500 |
Due after ten years, Gross Unrealized Gains | 381 | 544 |
Due after ten years, Gross Unrealized Losses | (21) | (4) |
Due after ten years, Fair Value | 7,406 | 9,040 |
Amortized Cost | 17,068 | 17,797 |
Gross Unrealized Gains | 744 | 839 |
Gross Unrealized Losses | (351) | (52) |
Fair Value | 17,461 | 18,584 |
Held to maturity securities: | ||
Due after ten years, Amortized Cost | $ 9,064 | $ 9,179 |
Due after ten years, Gross Unrealized Gains | ||
Due after ten years, Gross Unrealized Losses | ||
Due after ten years, Fair Value | $ 9,064 | $ 9,179 |
Corporate bonds | ||
Available for sale securities: | ||
Due in less than one year, Amortized Cost | 2,999 | 5,764 |
Due in less than one year, Gross Unrealized Gains | $ 1 | 44 |
Due in less than one year, Gross Unrealized Losses | (6) | |
Due in less than one year, Fair Value | $ 3,000 | 5,802 |
Due from one through five years, Amortized Cost | 8,210 | 4,150 |
Due from one through five years, Gross Unrealized Gains | $ 256 | $ 268 |
Due from one through five years, Gross Unrealized Losses | ||
Due from one through five years, Fair Value | $ 8,466 | $ 4,418 |
Due from five through ten years, Amortized Cost | 3,069 | 6,121 |
Due from five through ten years, Gross Unrealized Gains | $ 33 | 8 |
Due from five through ten years, Gross Unrealized Losses | (24) | |
Due from five through ten years, Fair Value | $ 3,102 | 6,105 |
Amortized Cost | 14,278 | 16,035 |
Gross Unrealized Gains | $ 290 | 320 |
Gross Unrealized Losses | (30) | |
Fair Value | $ 14,568 | 16,325 |
Held to maturity securities: | ||
Due from five through ten years, Amortized Cost | $ 1,000 | $ 1,000 |
Due from five through ten years, Gross Unrealized Gains | ||
Due from five through ten years, Gross Unrealized Losses | $ (5) | $ (15) |
Due from five through ten years, Fair Value | 995 | 985 |
Government-sponsored mortgage backed securities | ||
Available for sale securities: | ||
Due from one through five years, Amortized Cost | $ 77 | 99 |
Due from one through five years, Gross Unrealized Gains | $ 1 | |
Due from one through five years, Gross Unrealized Losses | ||
Due from one through five years, Fair Value | $ 77 | $ 100 |
Due after ten years, Amortized Cost | 4,581 | 5,468 |
Due after ten years, Gross Unrealized Gains | 120 | 131 |
Due after ten years, Gross Unrealized Losses | (6) | (17) |
Due after ten years, Fair Value | 4,695 | 5,582 |
Amortized Cost | 4,658 | 5,567 |
Gross Unrealized Gains | 120 | 132 |
Gross Unrealized Losses | (6) | (17) |
Fair Value | 4,772 | 5,682 |
Held to maturity securities: | ||
Due after ten years, Amortized Cost | 216 | 265 |
Due after ten years, Gross Unrealized Gains | $ 24 | $ 31 |
Due after ten years, Gross Unrealized Losses | ||
Due after ten years, Fair Value | $ 240 | $ 296 |
INVESTMENT SECURITIES - Informa
INVESTMENT SECURITIES - Information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Less than 12 months - Fair Value | $ 3,193 | $ 14,475 |
Less than 12 months - Unrealized Loss | (357) | (165) |
12 Months or More - Fair Value | 3,615 | 6,873 |
12 Months or More - Unrealized Loss | (33) | (125) |
Fair value - Total | 6,808 | 21,348 |
Unrealized Loss - Total | (390) | (290) |
U.S. Government and agency obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Less than 12 months - Fair Value | 1,296 | 4,515 |
Less than 12 months - Unrealized Loss | (3) | (56) |
12 Months or More - Fair Value | 2,374 | 5,878 |
12 Months or More - Unrealized Loss | (25) | (120) |
Fair value - Total | 3,670 | 10,393 |
Unrealized Loss - Total | (28) | (176) |
State agency and municipal obligations | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Less than 12 months - Fair Value | 1,439 | 1,771 |
Less than 12 months - Unrealized Loss | $ (350) | $ (52) |
12 Months or More - Fair Value | ||
12 Months or More - Unrealized Loss | ||
Fair value - Total | $ 1,439 | $ 1,771 |
Unrealized Loss - Total | $ (350) | (52) |
Corporate bonds | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Less than 12 months - Fair Value | 6,783 | |
Less than 12 months - Unrealized Loss | (40) | |
12 Months or More - Fair Value | $ 995 | 995 |
12 Months or More - Unrealized Loss | (5) | (5) |
Fair value - Total | 995 | 7,778 |
Unrealized Loss - Total | (5) | (45) |
Government-sponsored mortgage backed securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Less than 12 months - Fair Value | 458 | 1,406 |
Less than 12 months - Unrealized Loss | (4) | $ (17) |
12 Months or More - Fair Value | 246 | |
12 Months or More - Unrealized Loss | (3) | |
Fair value - Total | 704 | $ 1,406 |
Unrealized Loss - Total | $ (7) | $ (17) |
INVESTMENT SECURITIES (Detail T
INVESTMENT SECURITIES (Detail Textuals) $ in Millions | Sep. 30, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Number of Investment Securities in which the fair value of the security was less than the amortized cost | Security | 22 | 42 |
Municipal bond investment rated two notches below investment grade | $ 1 | |
Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged as collateral | $ 6 | $ 5.9 |
LOANS RECEIVABLE AND ALLOWANC38
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of loan portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | $ (13,720) | $ (10,860) | ||||
Loans receivable, net | 1,108,439 | 915,981 | ||||
Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,125,699 | 929,762 | ||||
Allowance for loan losses | (13,720) | $ (12,230) | (10,860) | $ (9,552) | $ (8,985) | $ (8,382) |
Deferred loan origination fees, net | (3,549) | (2,937) | ||||
Unamortized loan premiums | 9 | 16 | ||||
Loans receivable, net | 1,108,439 | 915,981 | ||||
Loans receivable | Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 171,762 | 175,031 | ||||
Allowance for loan losses | (1,414) | (1,454) | (1,431) | (1,411) | (1,392) | (1,310) |
Loans receivable | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 684,083 | 521,181 | ||||
Allowance for loan losses | (7,564) | (6,832) | (5,480) | (4,661) | (4,024) | (3,616) |
Loans receivable | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 84,993 | 63,229 | ||||
Allowance for loan losses | (1,537) | (1,138) | (1,102) | (891) | (776) | (1,032) |
Loans receivable | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 16,280 | 18,166 | ||||
Allowance for loan losses | (180) | (169) | (205) | (191) | (188) | (190) |
Loans receivable | Real estate loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 957,118 | 777,607 | ||||
Loans receivable | Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 166,642 | 149,259 | ||||
Allowance for loan losses | (3,017) | (2,628) | (2,638) | (2,391) | (2,292) | (2,225) |
Loans receivable | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,939 | 2,896 | ||||
Allowance for loan losses | (8) | (9) | (4) | (7) | (6) | (9) |
Loans receivable | Originated | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,032,792 | 821,426 | ||||
Allowance for loan losses | (13,675) | (12,220) | (10,860) | (9,552) | (8,984) | (8,382) |
Deferred loan origination fees, net | (3,549) | (2,937) | ||||
Unamortized loan premiums | 9 | 16 | ||||
Loans receivable, net | 1,015,577 | 807,645 | ||||
Loans receivable | Originated | Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 168,830 | 169,833 | ||||
Allowance for loan losses | (1,414) | (1,454) | (1,431) | (1,411) | (1,392) | (1,310) |
Loans receivable | Originated | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 632,410 | 458,506 | ||||
Allowance for loan losses | (7,554) | (6,832) | (5,480) | (4,661) | (4,024) | (3,616) |
Loans receivable | Originated | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 83,986 | 62,258 | ||||
Allowance for loan losses | (1,537) | (1,138) | (1,102) | (891) | (776) | (1,032) |
Loans receivable | Originated | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 8,915 | 10,226 | ||||
Allowance for loan losses | (180) | (169) | (205) | (191) | (188) | (190) |
Loans receivable | Originated | Real estate loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 894,141 | 700,823 | ||||
Loans receivable | Originated | Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 138,621 | 120,360 | ||||
Allowance for loan losses | (2,987) | (2,618) | (2,638) | (2,391) | (2,291) | (2,225) |
Loans receivable | Originated | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 30 | 243 | ||||
Allowance for loan losses | (3) | (9) | (4) | $ (7) | (6) | $ (9) |
Loans receivable | Acquired | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 92,907 | $ 108,336 | ||||
Allowance for loan losses | $ (45) | $ (10) | $ (1) | |||
Deferred loan origination fees, net | ||||||
Unamortized loan premiums | ||||||
Loans receivable, net | $ 92,862 | $ 108,336 | ||||
Loans receivable | Acquired | Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 2,932 | $ 5,198 | ||||
Allowance for loan losses | ||||||
Loans receivable | Acquired | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 51,673 | $ 62,675 | ||||
Allowance for loan losses | (10) | |||||
Loans receivable | Acquired | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 1,007 | $ 971 | ||||
Allowance for loan losses | ||||||
Loans receivable | Acquired | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 7,365 | $ 7,940 | ||||
Allowance for loan losses | ||||||
Loans receivable | Acquired | Real estate loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 62,977 | $ 76,784 | ||||
Loans receivable | Acquired | Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 28,021 | $ 28,899 | ||||
Allowance for loan losses | (30) | $ (10) | $ (1) | |||
Loans receivable | Acquired | Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,909 | $ 2,653 | ||||
Allowance for loan losses | $ (5) |
LOANS RECEIVABLE AND ALLOWANC39
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of activity in accretable yields for acquired loan portfolio (Details 1) - Loans receivable - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||||
Balance at beginning of period | $ 1,134 | $ 817 | $ 1,382 | $ 1,418 | |
Acquisition | |||||
Accretion | $ (21) | $ (81) | $ (137) | $ (338) | |
Other | [1] | (145) | (277) | (344) | |
Balance at end of period | $ 968 | $ 736 | $ 968 | $ 736 | |
[1] | Represents changes in cash flows expected to be collected due to loan sales or payoffs. |
LOANS RECEIVABLE AND ALLOWANC40
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of allowance for loan losses by portfolio segment (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 10,860 | |||
Provisions | 2,876 | $ 847 | ||
Ending balance | $ 13,720 | 13,720 | ||
Loans receivable | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 12,230 | $ 8,985 | 10,860 | 8,382 |
Charge-offs | (21) | (101) | ||
Recoveries | $ 1 | $ 1 | 5 | 424 |
Provisions | 1,489 | 566 | 2,876 | 847 |
Ending balance | 13,720 | 9,552 | 13,720 | 9,552 |
Loans receivable | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 1,454 | $ 1,392 | $ 1,431 | $ 1,310 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ (40) | $ 19 | $ (17) | $ 101 |
Ending balance | 1,414 | 1,411 | 1,414 | 1,411 |
Loans receivable | Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 6,832 | $ 4,024 | $ 5,480 | $ 3,616 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 732 | $ 637 | $ 2,084 | $ 1,045 |
Ending balance | 7,564 | 4,661 | 7,564 | 4,661 |
Loans receivable | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 1,138 | $ 776 | $ 1,102 | 1,032 |
Charge-offs | $ (100) | |||
Recoveries | ||||
Provisions | $ 399 | $ 115 | $ 435 | $ (41) |
Ending balance | 1,537 | 891 | 1,537 | 891 |
Loans receivable | Home Equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 169 | $ 188 | $ 205 | $ 190 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 11 | $ 3 | $ (25) | $ 1 |
Ending balance | 180 | 191 | 180 | 191 |
Loans receivable | Commercial Business | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 2,628 | $ 2,292 | 2,638 | $ 2,225 |
Charge-offs | $ (15) | |||
Recoveries | ||||
Provisions | $ 389 | $ 99 | $ 394 | $ 166 |
Ending balance | 3,017 | 2,391 | 3,017 | 2,391 |
Loans receivable | Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 9 | $ 6 | 4 | 9 |
Charge-offs | (6) | (1) | ||
Recoveries | $ 1 | $ 1 | 5 | 424 |
Provisions | (2) | 5 | (425) | |
Ending balance | $ 8 | $ 7 | $ 8 | $ 7 |
Loans receivable | Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 307 | |||
Charge-offs | ||||
Recoveries | ||||
Provisions | $ (307) | |||
Ending balance | ||||
Loans receivable | Originated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 12,220 | $ 8,984 | $ 10,860 | $ 8,382 |
Charge-offs | (1) | |||
Recoveries | $ 1 | $ 1 | $ 1 | 424 |
Provisions | 1,454 | 567 | 2,814 | 747 |
Ending balance | 13,675 | 9,552 | 13,675 | 9,552 |
Loans receivable | Originated | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 1,454 | $ 1,392 | $ 1,431 | $ 1,310 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ (40) | $ 19 | $ (17) | $ 101 |
Ending balance | 1,414 | 1,411 | 1,414 | 1,411 |
Loans receivable | Originated | Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 6,832 | $ 4,024 | $ 5,480 | $ 3,616 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 722 | $ 637 | $ 2,074 | $ 1,045 |
Ending balance | 7,554 | 4,661 | 7,554 | 4,661 |
Loans receivable | Originated | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 1,138 | $ 776 | $ 1,102 | $ 1,032 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 399 | $ 115 | $ 435 | $ (141) |
Ending balance | 1,537 | 891 | 1,537 | 891 |
Loans receivable | Originated | Home Equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 169 | $ 188 | $ 205 | $ 190 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 11 | $ 3 | $ (25) | $ 1 |
Ending balance | 180 | 191 | 180 | 191 |
Loans receivable | Originated | Commercial Business | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 2,618 | $ 2,291 | $ 2,638 | $ 2,225 |
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 369 | $ 100 | $ 349 | $ 166 |
Ending balance | 2,987 | 2,391 | 2,987 | 2,391 |
Loans receivable | Originated | Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 9 | $ 6 | $ 4 | 9 |
Charge-offs | (1) | |||
Recoveries | $ 1 | $ 1 | $ 1 | 424 |
Provisions | (7) | (2) | (425) | |
Ending balance | $ 3 | $ 7 | $ 3 | $ 7 |
Loans receivable | Originated | Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 307 | |||
Charge-offs | ||||
Recoveries | ||||
Provisions | $ (307) | |||
Ending balance | ||||
Loans receivable | Acquired | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 10 | $ 1 | ||
Charge-offs | $ (21) | $ (100) | ||
Recoveries | 4 | |||
Provisions | $ 35 | $ (1) | 62 | $ 100 |
Ending balance | $ 45 | $ 45 | ||
Loans receivable | Acquired | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | ||||
Recoveries | ||||
Provisions | ||||
Ending balance | ||||
Loans receivable | Acquired | Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | ||||
Recoveries | ||||
Provisions | $ 10 | $ 10 | ||
Ending balance | $ 10 | $ 10 | ||
Loans receivable | Acquired | Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | $ (100) | |||
Recoveries | ||||
Provisions | $ 100 | |||
Ending balance | ||||
Loans receivable | Acquired | Home Equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | ||||
Recoveries | ||||
Provisions | ||||
Ending balance | ||||
Loans receivable | Acquired | Commercial Business | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 10 | $ 1 | ||
Charge-offs | $ (15) | |||
Recoveries | ||||
Provisions | $ 20 | $ (1) | $ 45 | |
Ending balance | $ 30 | $ 30 | ||
Loans receivable | Acquired | Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | $ (6) | |||
Recoveries | 4 | |||
Provisions | $ 5 | 7 | ||
Ending balance | $ 5 | $ 5 | ||
Loans receivable | Acquired | Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | ||||
Charge-offs | ||||
Recoveries | ||||
Provisions | ||||
Ending balance |
LOANS RECEIVABLE AND ALLOWANC41
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary, by portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Loans collectively evaluated for impairment: | ||||||
Allowance, Total | $ 13,720 | $ 10,860 | ||||
Loans receivable | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 9,580 | 8,281 | ||||
Loans individually evaluated for impairment, Allowance | 78 | 33 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 1,116,119 | 921,481 | ||||
Loans collectively evaluated for impairment, Allowance | 13,642 | 10,827 | ||||
Portfolio, Total | 1,125,699 | 929,762 | ||||
Allowance, Total | 13,720 | $ 12,230 | 10,860 | $ 9,552 | $ 8,985 | $ 8,382 |
Loans receivable | Residential Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 864 | $ 864 | ||||
Loans individually evaluated for impairment, Allowance | 2 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 170,898 | $ 174,167 | ||||
Loans collectively evaluated for impairment, Allowance | 1,412 | 1,431 | ||||
Portfolio, Total | 171,762 | 175,031 | ||||
Allowance, Total | 1,414 | 1,454 | 1,431 | 1,411 | 1,392 | 1,310 |
Loans receivable | Commercial Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 5,376 | 4,996 | ||||
Loans individually evaluated for impairment, Allowance | 32 | 23 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 678,707 | 516,185 | ||||
Loans collectively evaluated for impairment, Allowance | 7,532 | 5,457 | ||||
Portfolio, Total | 684,083 | 521,181 | ||||
Allowance, Total | 7,564 | 6,832 | 5,480 | 4,661 | 4,024 | 3,616 |
Loans receivable | Construction | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 84,993 | 63,229 | ||||
Loans collectively evaluated for impairment, Allowance | 1,537 | 1,102 | ||||
Portfolio, Total | 84,993 | 63,229 | ||||
Allowance, Total | 1,537 | 1,138 | 1,102 | 891 | 776 | 1,032 |
Loans receivable | Home equity | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 624 | $ 91 | ||||
Loans individually evaluated for impairment, Allowance | 7 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 15,656 | $ 18,075 | ||||
Loans collectively evaluated for impairment, Allowance | 173 | 205 | ||||
Portfolio, Total | 16,280 | 18,166 | ||||
Allowance, Total | 180 | 169 | 205 | 191 | 188 | 190 |
Loans receivable | Commercial business | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 2,711 | 2,330 | ||||
Loans individually evaluated for impairment, Allowance | 32 | 10 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 163,931 | 146,929 | ||||
Loans collectively evaluated for impairment, Allowance | 2,985 | 2,628 | ||||
Portfolio, Total | 166,642 | 149,259 | ||||
Allowance, Total | 3,017 | 2,628 | 2,638 | 2,391 | 2,292 | 2,225 |
Loans receivable | Consumer | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 5 | |||||
Loans individually evaluated for impairment, Allowance | 5 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 1,934 | 2,896 | ||||
Loans collectively evaluated for impairment, Allowance | 3 | 4 | ||||
Portfolio, Total | 1,939 | 2,896 | ||||
Allowance, Total | 8 | 9 | 4 | 7 | 6 | 9 |
Loans receivable | Originated Loans | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 7,636 | 7,652 | ||||
Loans individually evaluated for impairment, Allowance | 39 | 33 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 1,025,156 | 813,774 | ||||
Loans collectively evaluated for impairment, Allowance | 13,636 | 10,827 | ||||
Portfolio, Total | 1,032,792 | 821,426 | ||||
Allowance, Total | 13,675 | 12,220 | 10,860 | 9,552 | 8,984 | 8,382 |
Loans receivable | Originated Loans | Residential Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 864 | $ 864 | ||||
Loans individually evaluated for impairment, Allowance | 2 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 167,966 | $ 168,969 | ||||
Loans collectively evaluated for impairment, Allowance | 1,412 | 1,431 | ||||
Portfolio, Total | 168,830 | 169,833 | ||||
Allowance, Total | 1,414 | 1,454 | 1,431 | 1,411 | 1,392 | 1,310 |
Loans receivable | Originated Loans | Commercial Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 4,743 | 4,996 | ||||
Loans individually evaluated for impairment, Allowance | 22 | 23 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 627,667 | 453,510 | ||||
Loans collectively evaluated for impairment, Allowance | 7,532 | 5,457 | ||||
Portfolio, Total | 632,410 | 458,506 | ||||
Allowance, Total | 7,554 | 6,832 | 5,480 | 4,661 | 4,024 | 3,616 |
Loans receivable | Originated Loans | Construction | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 83,986 | 62,258 | ||||
Loans collectively evaluated for impairment, Allowance | 1,537 | 1,102 | ||||
Portfolio, Total | 83,986 | 62,258 | ||||
Allowance, Total | 1,537 | 1,138 | 1,102 | 891 | 776 | 1,032 |
Loans receivable | Originated Loans | Home equity | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 426 | $ 91 | ||||
Loans individually evaluated for impairment, Allowance | 7 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 8,489 | $ 10,135 | ||||
Loans collectively evaluated for impairment, Allowance | 173 | 205 | ||||
Portfolio, Total | 8,915 | 10,226 | ||||
Allowance, Total | 180 | 169 | 205 | 191 | 188 | 190 |
Loans receivable | Originated Loans | Commercial business | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 1,603 | 1,701 | ||||
Loans individually evaluated for impairment, Allowance | 8 | 10 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 137,018 | 118,659 | ||||
Loans collectively evaluated for impairment, Allowance | 2,979 | 2,628 | ||||
Portfolio, Total | 138,621 | 120,360 | ||||
Allowance, Total | $ 2,987 | 2,618 | 2,638 | 2,391 | 2,291 | 2,225 |
Loans receivable | Originated Loans | Consumer | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | ||||||
Loans individually evaluated for impairment, Allowance | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 30 | 243 | ||||
Loans collectively evaluated for impairment, Allowance | 3 | 4 | ||||
Portfolio, Total | 30 | 243 | ||||
Allowance, Total | 3 | 9 | 4 | $ 7 | 6 | $ 9 |
Loans receivable | Acquired Loans | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 1,944 | $ 629 | ||||
Loans individually evaluated for impairment, Allowance | 39 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 90,963 | $ 107,707 | ||||
Loans collectively evaluated for impairment, Allowance | 6 | |||||
Portfolio, Total | 92,907 | $ 108,336 | ||||
Allowance, Total | $ 45 | $ 10 | $ 1 | |||
Loans receivable | Acquired Loans | Residential Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | ||||||
Loans individually evaluated for impairment, Allowance | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 2,932 | $ 5,198 | ||||
Loans collectively evaluated for impairment, Allowance | ||||||
Portfolio, Total | $ 2,932 | $ 5,198 | ||||
Allowance, Total | ||||||
Loans receivable | Acquired Loans | Commercial Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | $ 633 | |||||
Loans individually evaluated for impairment, Allowance | 10 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 51,040 | $ 62,675 | ||||
Loans collectively evaluated for impairment, Allowance | ||||||
Portfolio, Total | $ 51,673 | $ 62,675 | ||||
Allowance, Total | 10 | |||||
Loans receivable | Acquired Loans | Construction | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 1,007 | $ 971 | ||||
Loans collectively evaluated for impairment, Allowance | ||||||
Portfolio, Total | $ 1,007 | $ 971 | ||||
Allowance, Total | ||||||
Loans receivable | Acquired Loans | Home equity | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | $ 198 | |||||
Loans individually evaluated for impairment, Allowance | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 7,167 | $ 7,940 | ||||
Loans collectively evaluated for impairment, Allowance | ||||||
Portfolio, Total | $ 7,365 | $ 7,940 | ||||
Allowance, Total | ||||||
Loans receivable | Acquired Loans | Commercial business | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | $ 1,108 | $ 629 | ||||
Loans individually evaluated for impairment, Allowance | 24 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 26,913 | $ 28,270 | ||||
Loans collectively evaluated for impairment, Allowance | 6 | |||||
Portfolio, Total | 28,021 | $ 28,899 | ||||
Allowance, Total | 30 | $ 10 | $ 1 | |||
Loans receivable | Acquired Loans | Consumer | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 5 | |||||
Loans individually evaluated for impairment, Allowance | 5 | |||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | $ 1,904 | $ 2,653 | ||||
Loans collectively evaluated for impairment, Allowance | ||||||
Portfolio, Total | $ 1,909 | $ 2,653 | ||||
Allowance, Total | $ 5 |
LOANS RECEIVABLE AND ALLOWANC42
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of the loan portfolio quality indicators by portfolio segment (Details 4) - Loans receivable - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,125,699 | $ 929,762 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 684,083 | 521,181 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 84,993 | 63,229 |
Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 166,642 | 149,259 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 171,762 | 175,031 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,280 | 18,166 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,939 | 2,896 |
Originated Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,032,792 | 821,426 |
Originated Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 632,410 | 458,506 |
Originated Loans | Commercial Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 627,140 | 452,974 |
Originated Loans | Commercial Real Estate | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,050 | 2,096 |
Originated Loans | Commercial Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 3,220 | $ 3,436 |
Originated Loans | Commercial Real Estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Commercial Real Estate | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 83,986 | $ 62,258 |
Originated Loans | Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 83,986 | $ 62,258 |
Originated Loans | Construction | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Construction | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 138,621 | $ 120,360 |
Originated Loans | Commercial business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 137,018 | 115,323 |
Originated Loans | Commercial business | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,026 | $ 5,037 |
Originated Loans | Commercial business | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 577 | |
Originated Loans | Commercial business | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Commercial business | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 168,830 | $ 169,833 |
Originated Loans | Residential Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 167,966 | 168,969 |
Originated Loans | Residential Real Estate | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 864 | $ 864 |
Originated Loans | Residential Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Residential Real Estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Residential Real Estate | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 8,915 | $ 10,226 |
Originated Loans | Home equity | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 8,489 | 10,135 |
Originated Loans | Home equity | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 83 | $ 91 |
Originated Loans | Home equity | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 343 | |
Originated Loans | Home equity | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Home equity | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 30 | $ 243 |
Originated Loans | Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 30 | $ 243 |
Originated Loans | Consumer | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Consumer | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Originated Loans | Consumer | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 92,907 | $ 108,336 |
Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 51,673 | 62,675 |
Acquired Loans | Commercial Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 49,903 | $ 61,017 |
Acquired Loans | Commercial Real Estate | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Commercial Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,770 | $ 1,658 |
Acquired Loans | Commercial Real Estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Commercial Real Estate | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,007 | $ 971 |
Acquired Loans | Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 233 | $ 136 |
Acquired Loans | Construction | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 774 | $ 835 |
Acquired Loans | Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Construction | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 28,021 | $ 28,899 |
Acquired Loans | Commercial business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 26,744 | 27,074 |
Acquired Loans | Commercial business | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 550 | 659 |
Acquired Loans | Commercial business | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 727 | $ 1,166 |
Acquired Loans | Commercial business | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Commercial business | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,932 | $ 5,198 |
Acquired Loans | Residential Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,823 | $ 5,022 |
Acquired Loans | Residential Real Estate | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 109 | |
Acquired Loans | Residential Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 176 | |
Acquired Loans | Residential Real Estate | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Residential Real Estate | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,365 | $ 7,940 |
Acquired Loans | Home equity | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 6,983 | $ 7,925 |
Acquired Loans | Home equity | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Home equity | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 382 | $ 15 |
Acquired Loans | Home equity | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Home equity | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,909 | $ 2,653 |
Acquired Loans | Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,823 | $ 2,653 |
Acquired Loans | Consumer | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 86 | |
Acquired Loans | Consumer | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Acquired Loans | Consumer | Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans |
LOANS RECEIVABLE AND ALLOWANC43
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of loan portfolio delinquencies by portfolio segment and amount (Details 5) - Loans receivable - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 11,468 | $ 8,014 |
Current | 1,114,231 | 921,748 |
Carrying Amount > 90 Days and Accruing | 1,082 | 1,998 |
31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,110 | 1,205 |
61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,534 | 1,103 |
Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,824 | 5,706 |
Originated Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,928 | 3,436 |
Current | $ 1,025,864 | 817,990 |
Carrying Amount > 90 Days and Accruing | $ 216 | |
Originated Loans | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 3,001 | |
Originated Loans | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,534 | |
Originated Loans | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,393 | $ 3,436 |
Originated Loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,802 | |
Current | $ 167,028 | $ 169,833 |
Carrying Amount > 90 Days and Accruing | ||
Originated Loans | Residential Real Estate | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 833 | |
Originated Loans | Residential Real Estate | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 969 | |
Originated Loans | Residential Real Estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 2,848 | $ 3,436 |
Current | $ 629,562 | 455,070 |
Carrying Amount > 90 Days and Accruing | $ 216 | |
Originated Loans | Commercial Real Estate | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 313 | |
Originated Loans | Commercial Real Estate | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,565 | |
Originated Loans | Commercial Real Estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 970 | $ 3,436 |
Originated Loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,750 | |
Current | $ 82,236 | $ 62,258 |
Carrying Amount > 90 Days and Accruing | ||
Originated Loans | Construction | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 1,750 | |
Originated Loans | Construction | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Construction | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 198 | |
Current | $ 8,717 | $ 10,226 |
Carrying Amount > 90 Days and Accruing | ||
Originated Loans | Home equity | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Home equity | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Home equity | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 198 | |
Originated Loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 330 | |
Current | $ 138,291 | $ 120,360 |
Carrying Amount > 90 Days and Accruing | ||
Originated Loans | Commercial business | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 105 | |
Originated Loans | Commercial business | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Commercial business | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 225 | |
Originated Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Current | $ 30 | $ 243 |
Carrying Amount > 90 Days and Accruing | ||
Originated Loans | Consumer | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Consumer | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Originated Loans | Consumer | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 4,540 | $ 4,578 |
Current | 88,367 | 103,758 |
Carrying Amount > 90 Days and Accruing | 1,082 | 1,782 |
Acquired Loans | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 2,109 | 1,205 |
Acquired Loans | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,103 | |
Acquired Loans | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 2,431 | 2,270 |
Acquired Loans | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 109 | 633 |
Current | $ 2,823 | 4,565 |
Carrying Amount > 90 Days and Accruing | 176 | |
Acquired Loans | Residential Real Estate | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 339 | |
Acquired Loans | Residential Real Estate | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Acquired Loans | Residential Real Estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 109 | $ 294 |
Acquired Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,431 | 2,198 |
Current | 50,242 | 60,477 |
Carrying Amount > 90 Days and Accruing | 224 | 466 |
Acquired Loans | Commercial Real Estate | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 307 | 685 |
Acquired Loans | Commercial Real Estate | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 677 | |
Acquired Loans | Commercial Real Estate | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 1,124 | 836 |
Acquired Loans | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 909 | 835 |
Current | 98 | 136 |
Carrying Amount > 90 Days and Accruing | 774 | $ 835 |
Acquired Loans | Construction | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 135 | |
Acquired Loans | Construction | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Acquired Loans | Construction | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 774 | $ 835 |
Acquired Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 477 | 40 |
Current | $ 6,888 | $ 7,900 |
Carrying Amount > 90 Days and Accruing | ||
Acquired Loans | Home equity | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 294 | |
Acquired Loans | Home equity | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 40 | |
Acquired Loans | Home equity | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 183 | |
Acquired Loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,612 | $ 869 |
Current | 26,409 | 28,030 |
Carrying Amount > 90 Days and Accruing | 84 | 305 |
Acquired Loans | Commercial business | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 1,371 | 178 |
Acquired Loans | Commercial business | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 386 | |
Acquired Loans | Commercial business | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 241 | 305 |
Acquired Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2 | 3 |
Current | $ 1,907 | $ 2,650 |
Carrying Amount > 90 Days and Accruing | ||
Acquired Loans | Consumer | 31-60 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 2 | $ 3 |
Acquired Loans | Consumer | 61-90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | ||
Acquired Loans | Consumer | Greater Than 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due |
LOANS RECEIVABLE AND ALLOWANC44
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of nonaccrual loans by portfolio segment (Details 6) - Loans receivable - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | $ 2,367 | $ 3,362 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 1,603 | $ 3,220 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 396 | |
Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | $ 368 | $ 142 |
LOANS RECEIVABLE AND ALLOWANC45
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of impaired loans (Details 7) - Loans receivable - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Originated | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | $ 5,497 | $ 6,643 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,216 | 6,652 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 2,139 | 1,009 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,141 | 1,009 |
Impaired loans with a valuation allowance, Associated Allowance | 39 | 33 |
Total impaired loans | ||
Total impaired loans, Carrying Amount | 7,636 | 7,652 |
Total impaired loans, Unpaid Principal Balance | 3,357 | 7,661 |
Total impaired loans, Associated Allowance | $ 39 | 33 |
Originated | Residential Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 864 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | $ 864 | |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | $ 864 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 864 | |
Impaired loans with a valuation allowance, Associated Allowance | 2 | |
Originated | Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 4,299 | $ 4,543 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 4,299 | 4,544 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 444 | 453 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 444 | 453 |
Impaired loans with a valuation allowance, Associated Allowance | 22 | 23 |
Originated | Home equity | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 83 | 91 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 83 | 91 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 343 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 345 | |
Impaired loans with a valuation allowance, Associated Allowance | 7 | |
Originated | Commercial business | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 1,115 | 1,145 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,133 | 1,153 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 488 | 556 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 488 | 556 |
Impaired loans with a valuation allowance, Associated Allowance | 8 | 10 |
Acquired | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 1,105 | 629 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,158 | $ 629 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 839 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 847 | |
Impaired loans with a valuation allowance, Associated Allowance | 39 | |
Total impaired loans | ||
Total impaired loans, Carrying Amount | 1,944 | $ 629 |
Total impaired loans, Unpaid Principal Balance | 2,005 | $ 629 |
Total impaired loans, Associated Allowance | 39 | |
Acquired | Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 483 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 534 | |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 150 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 150 | |
Impaired loans with a valuation allowance, Associated Allowance | 10 | |
Acquired | Home equity | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 198 | |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 200 | |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 5 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 5 | |
Impaired loans with a valuation allowance, Associated Allowance | 5 | |
Acquired | Commercial business | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | 424 | $ 629 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 424 | $ 629 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Carrying Amount | 684 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 692 | |
Impaired loans with a valuation allowance, Associated Allowance | $ 24 | |
Acquired | Consumer | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Carrying Amount | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance |
LOANS RECEIVABLE AND ALLOWANC46
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of average recorded investment balance of impaired loans and interest income recognized on impaired loans by portfolio segment (Details 8) - Loans receivable - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Originated | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | $ 5,531 | $ 6,219 |
Impaired loans without a valuation allowance, Interest Income Recognized | 132 | 306 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 2,177 | 1,053 |
Impaired loans with a valuation allowance, Interest Income Recognized | 69 | 61 |
Total impaired loans | ||
Total impaired loans, Average Recorded Investment | 7,708 | 7,272 |
Total impaired loans, Interest Income Recognized | $ 201 | 367 |
Originated | Residential Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 864 | |
Impaired loans without a valuation allowance, Interest Income Recognized | $ 28 | |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | $ 864 | |
Impaired loans with a valuation allowance, Interest Income Recognized | 21 | |
Originated | Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 4,312 | $ 4,034 |
Impaired loans without a valuation allowance, Interest Income Recognized | 98 | 223 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 448 | 457 |
Impaired loans with a valuation allowance, Interest Income Recognized | 21 | 29 |
Originated | Home equity | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 87 | 95 |
Impaired loans without a valuation allowance, Interest Income Recognized | 2 | 3 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 344 | |
Impaired loans with a valuation allowance, Interest Income Recognized | 6 | |
Originated | Commercial business | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 1,132 | 1,226 |
Impaired loans without a valuation allowance, Interest Income Recognized | 32 | 52 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 521 | 596 |
Impaired loans with a valuation allowance, Interest Income Recognized | 21 | 32 |
Acquired | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 1,092 | 607 |
Impaired loans without a valuation allowance, Interest Income Recognized | 17 | $ 28 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 869 | |
Impaired loans with a valuation allowance, Interest Income Recognized | 14 | |
Total impaired loans | ||
Total impaired loans, Average Recorded Investment | 1,961 | $ 607 |
Total impaired loans, Interest Income Recognized | 31 | $ 28 |
Acquired | Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | $ 453 | |
Impaired loans without a valuation allowance, Interest Income Recognized | ||
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | $ 152 | |
Impaired loans with a valuation allowance, Interest Income Recognized | 3 | |
Acquired | Home equity | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 199 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 2 | |
Acquired | Commercial business | ||
Impaired loans without a valuation allowance: | ||
Impaired loans without a valuation allowance, Average Recorded Investment | 440 | $ 607 |
Impaired loans without a valuation allowance, Interest Income Recognized | 15 | $ 28 |
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 711 | |
Impaired loans with a valuation allowance, Interest Income Recognized | 11 | |
Acquired | Consumer | ||
Impaired loans with a valuation allowance: | ||
Impaired loans with a valuation allowance, Average Recorded Investment | $ 6 | |
Impaired loans with a valuation allowance, Interest Income Recognized |
LOANS RECEIVABLE AND ALLOWANC47
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of loans whose terms were modified as TDRs (Details 9) - Loans receivable $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 1 | 4 | 6 | |
Outstanding Recorded Investment Pre-Modification | $ 241 | $ 4,088 | $ 2,120 | |
Outstanding Recorded Investment Post-Modification | $ 241 | $ 4,088 | $ 2,120 | |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 3 | 2 | ||
Outstanding Recorded Investment Pre-Modification | $ 4,044 | $ 1,324 | ||
Outstanding Recorded Investment Post-Modification | $ 4,044 | $ 1,324 | ||
Commercial business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 1 | 1 | 4 | |
Outstanding Recorded Investment Pre-Modification | $ 241 | $ 44 | $ 796 | |
Outstanding Recorded Investment Post-Modification | $ 241 | $ 44 | $ 796 |
LOANS RECEIVABLE AND ALLOWANC48
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of loans were modified as TDR (Details 10) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maturity/amortization concession | $ 241 | $ 825 | $ 962 | |
Payment concession | $ 1,158 | |||
Maturity and payment concession | $ 3,263 | |||
Total | $ 241 | $ 4,088 | $ 2,120 |
LOANS RECEIVABLE AND ALLOWANC49
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Detail Textuals) - Loans receivable - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of market value of the collateral | 80.00% | ||||
Maximum percent of the loan in comparison with original appraised value of the property | 80.00% | ||||
Private mortgage percentage of appraised value property | 80.00% | ||||
Possible loss amount determined as a result of an impairment analysis | $ 0 | ||||
Income contractually due but not recognized on originated nonaccrual loans | $ 38 | $ 18 | 110 | $ 51 | |
Actual interest income recognized | 3 | $ 4 | |||
Commitment to lend additional funds to any borrower on nonaccrual status | 169 | ||||
Purchased credit impaired loans | 1,100 | 1,100 | $ 1,900 | ||
Recorded investment in TDR | $ 7,400 | $ 7,400 | $ 3,600 | ||
Residential loan | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private mortgage percentage of appraised value property | 80.00% | ||||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private mortgage percentage of appraised value property | 80.00% | ||||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private mortgage percentage of appraised value property | 90.00% | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private mortgage percentage of appraised value property | 95.00% |
SHAREHOLDERS' EQUITY (Detail Te
SHAREHOLDERS' EQUITY (Detail Textuals) $ / shares in Units, $ in Thousands | May. 20, 2014USD ($)shares | May. 15, 2014$ / sharesshares | Sep. 30, 2014USD ($)shares | Dec. 31, 2011USD ($) | Sep. 30, 2015 | Dec. 31, 2013USD ($)Private_Placementshares |
Stockholders Equity Note [Line Items] | ||||||
Issuance of shares | shares | 2,702,703 | |||||
Proceeds from offering | $ 44,704 | |||||
Small business lending fund limit | $ 30,000,000 | |||||
Tier 1 capital to be provided to qualified community banks with asset less than limit from SBLF | 10,000,000 | |||||
Net capital proceeds from issuance and repurchase of preferred stock | $ 5,900 | |||||
Percentage of proceeds invested as Tier 1 Capital | 90.00% | |||||
Initial Public Offering ("IPO") | ||||||
Stockholders Equity Note [Line Items] | ||||||
Number of common shares authorized to issue in initial public offering | shares | 2,702,703 | |||||
Price per share of shares issued (in dollars per share) | $ / shares | $ 18 | |||||
Issuance of shares | shares | 2,702,703 | |||||
Net proceeds from the IPO | $ 44,700 | |||||
Underwriting discount | 2,500 | |||||
Amount of expenses incurred in public offering | $ 1,300 | |||||
Private Placement Offerings | ||||||
Stockholders Equity Note [Line Items] | ||||||
Issuance of shares | shares | 3,429,623 | |||||
Number of private placements | Private_Placement | 4 | |||||
Proceeds from offering | $ 47,800 | |||||
Senior Non Cumulative Perpetual Preferred Stock Series C | ||||||
Stockholders Equity Note [Line Items] | ||||||
Preferred stock dividend rate percentage | 1.00% | |||||
Preferred stock dividend rate percentage after four and one half years | 9.00% | |||||
Preferred stock redemption, terms | All redemptions must be in an amount at least equal to 25% of the number of originally issued shares of SBLF Preferred Stock, or 100% of the then-outstanding shares if less than 25% of the number of shares originally issued. |
SHAREHOLDERS' EQUITY (Detail 51
SHAREHOLDERS' EQUITY (Detail textuals 1) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 29, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Oct. 01, 2014 | |
Stockholders Equity Note [Line Items] | ||||
Number of non-transferable warrant included in each unit issued | 1 | |||
Number of common stock shares purchased under each warrant | 0.3221 | 0.56 | ||
Exercise price of warrant | $ 14 | $ 17.56 | ||
Amount received for issuance of common stock for warrants exercised | $ 4,300 | |||
Number of common stock shares issued on exercise of warrants | 304,640 | 68,600 | ||
Declared and paid cash dividends on preferred stock | $ 82 | $ 82 | ||
Number of common stock share included in each unit issued | 1 | |||
Subsequent Event | ||||
Stockholders Equity Note [Line Items] | ||||
Cash dividend declared amount per share | $ 0.05 | |||
Dividends payable date declared | Oct. 29, 2015 | |||
Dividends payable date to be paid | Dec. 21, 2015 | |||
Dividends payable date of record | Dec. 11, 2015 |
COMPREHENSIVE INCOME - Summary
COMPREHENSIVE INCOME - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ||||
Balance | $ 113 | $ 623 | $ 531 | $ 424 |
Other comprehensive income (loss) before reclassifications | $ (388) | $ (21) | $ (806) | $ 178 |
Amounts reclassified from accumulated other comprehensive income | ||||
Net other comprehensive income (loss) | $ (388) | $ (21) | $ (806) | $ 178 |
Balance | (275) | 602 | (275) | 602 |
Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income Loss [Roll Forward] | ||||
Balance | 368 | 689 | 644 | 424 |
Other comprehensive income (loss) before reclassifications | $ 116 | $ (154) | $ (160) | $ 111 |
Amounts reclassified from accumulated other comprehensive income | ||||
Net other comprehensive income (loss) | $ 116 | $ (154) | $ (160) | $ 111 |
Balance | 484 | 535 | 484 | $ 535 |
Net Unrealized Gain (Loss) on Interest Rate Swap | ||||
Accumulated Other Comprehensive Income Loss [Roll Forward] | ||||
Balance | (255) | (66) | (113) | |
Other comprehensive income (loss) before reclassifications | $ (504) | $ 133 | $ (646) | $ 67 |
Amounts reclassified from accumulated other comprehensive income | ||||
Net other comprehensive income (loss) | $ (504) | $ 133 | $ (646) | $ 67 |
Balance | $ (759) | $ 67 | $ (759) | $ 67 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,253 | $ 1,491 | $ 6,412 | $ 3,841 |
Preferred stock dividends | (27) | (27) | (82) | (82) |
Dividends and undistributed earnings allocated to participating securities | (63) | (23) | (170) | (82) |
Net income for earnings per share calculation | $ 2,163 | $ 1,441 | $ 6,160 | $ 3,677 |
Weighted average shares outstanding, basic | 7,044,586 | 6,483,210 | 7,038,517 | 5,099,325 |
Effect of dilutive equity-based awards | 14,000 | 19,000 | 18,000 | 25,000 |
Weighted average shares outstanding, diluted | 7,059,117 | 6,501,984 | 7,057,450 | 5,124,261 |
Net earnings per common share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.88 | $ 0.72 |
Diluted earnings per common share (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.87 | $ 0.72 |
REGULATORY MATTERS - Capital am
REGULATORY MATTERS - Capital amounts and ratios for Bank (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Bankwell Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 126,831 | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 10.75% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 52,004 | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 4.50% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 75,116 | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | ||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 137,959 | $ 125,339 | |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 11.94% | 13.55% | |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 92,451 | $ 74,003 | |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 115,564 | $ 92,503 | |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 124,239 | $ 115,359 | |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 10.75% | 11.44% | 12.47% |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 69,338 | $ 37,001 | |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% | |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 92,541 | $ 55,502 | |
Tier I Capital to Risk-Weighted AssetsTo be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% | |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 124,239 | $ 115,359 | |
Tier I Capital to Average Assets, Actual Capital, Ratio | 9.84% | 11.12% | |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Amount | $ 50,508 | $ 41,485 | |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 63,136 | $ 51,856 | |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% | |
Bankwell Financial Group Inc. | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 122,219 | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Ratio | 10.51% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 52,308 | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 4.50% | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | |||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | |||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 171,956 | $ 135,223 | |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 14.79% | 14.59% | |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 92,993 | $ 74,136 | |
Total Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | |||
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | |||
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 133,199 | $ 125,243 | |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 11.46% | 12.24% | 13.51% |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Amount | $ 69,744 | $ 37,068 | |
Tier I Capital to Risk-Weighted Assets, For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% | |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | |||
Tier I Capital to Risk-Weighted AssetsTo be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | |||
Tier I Capital to Average Assets, Actual Capital, Amount | $ 133,199 | $ 125,243 | |
Tier I Capital to Average Assets, Actual Capital, Ratio | 10.29% | 11.78% | |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Amount | $ 51,760 | $ 42,516 | |
Tier I Capital to Average Assets, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | |||
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio |
REGULATORY MATTERS (Detail Text
REGULATORY MATTERS (Detail Textuals) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Percentage of capital ratios maintain | 2.00% | |
Percentage of higher risk weight | 150.00% | |
Risk weight of marketable equity securities | 300.00% | |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier I capital to Risk-weighted Assets | 4.50% | |
Leverage ratio | 4.00% | |
Tier 1 capital to risk-weighted assets requirement | 6.00% | 4.00% |
Total capital to risk-weighted assets requirement | 8.00% | |
Common Equity Tier I capital conservation buffer | 2.50% |
STOCK-BASED COMPENSATION - Outs
STOCK-BASED COMPENSATION - Outstanding share options (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of period | shares | 204,793 |
Exercised | shares | (17,770) |
Forfeited | shares | (300) |
Expired | shares | (11,495) |
Options outstanding at end of period | shares | 175,228 |
Options exercisable at end of period | shares | 170,728 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period | $ 17.42 |
Exercised | 14.5 |
Forfeited | 15 |
Expired | 16.79 |
Options outstanding at end of period | 17.76 |
Options exercisable at end of period | $ 17.84 |
STOCK-BASED COMPENSATION - Acti
STOCK-BASED COMPENSATION - Activity for restricted stock (Details 1) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period | shares | 165,862 |
Granted | shares | 51,800 |
Vested | shares | (8,307) |
Forfeited | shares | (2,623) |
Unvested at end of period | shares | 206,732 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period | $ 18.08 |
Granted | 18.73 |
Vested | 15.75 |
Forfeited | 17.73 |
Unvested at end of period | $ 18.34 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | Dec. 09, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares vested | 8,307 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expenses | $ 11 | $ 24 | |
Total intrinsic value of share options exercised | 89 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expenses | $ 796 | $ 141 | |
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment award, vesting period | 1 year | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based payment award, vesting period | 5 years | ||
BNC Financial Group Inc Stock Option Plan 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock reserved for issuance | 465,582 | ||
BNC Financial Group Inc Stock Option Plan 2012 | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expenses | $ 128 | ||
Share based payment award, vesting period | 5 years | ||
Grant date fair value for shares granted | $ 18.99 | ||
BNC Financial Group Inc Stock Option Plan 2012 | Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares vested | 49,400 | ||
BNC Financial Group Inc Stock Option Plan 2012 | Restricted Stock | Stock price $25.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price | $ 25 | ||
Grant date fair value for shares granted | 11.63 | ||
BNC Financial Group Inc Stock Option Plan 2012 | Restricted Stock | Stock price $27.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price | 27 | ||
Grant date fair value for shares granted | 10.30 | ||
BNC Financial Group Inc Stock Option Plan 2012 | Restricted Stock | Stock price $29.00 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share price | 29 | ||
Grant date fair value for shares granted | $ 9.10 |
DERIVATIVE INSTRUMENTS - Inform
DERIVATIVE INSTRUMENTS - Information about derivative instruments (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Fair Value Asset (Liability) | $ (1,244) | $ (186) |
Interest rate swap on FHLB advance | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | $ 25,000 |
Maturity | 4 years 8 months 12 days | 4 years 8 months 12 days |
Received | 0.33% | 0.26% |
Paid | 1.62% | 1.62% |
Fair Value Asset (Liability) | $ (476) | $ (73) |
Interest rate swap on FHLB advance | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Maturity | 5 years | |
Received | 0.33% | |
Paid | 1.83% | |
Fair Value Asset (Liability) | $ (625) | |
Interest rate swap on FHLB advance | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Maturity | 5 years | |
Received | 0.33% | |
Paid | 1.48% | |
Fair Value Asset (Liability) | $ (143) | |
Interest rate swap on forward-starting FHLB advance | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Maturity | 5 years | |
Received | 0.26% | |
Paid | 1.83% | |
Fair Value Asset (Liability) | $ (113) |
DERIVATIVE INSTRUMENTS - Forwar
DERIVATIVE INSTRUMENTS - Forward starting interest rate swap transactions (Details 1) - Interest rate swap - Cash Flow Hedging - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | $ 25,000 |
Duration of Borrowing | 4 years 8 months 12 days | 4 years 8 months 12 days |
FHLB 90-day advance | April 1, 2014 | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Effective Date of Hedged Borrowing | Apr. 1, 2014 | |
Duration of Borrowing | 4 years 8 months 12 days | |
Counterparty | Bank of Montreal | |
FHLB 90-day advance | January 2, 2015 | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Effective Date of Hedged Borrowing | Jan. 2, 2015 | |
Duration of Borrowing | 5 years | |
Counterparty | Bank of Montreal | |
FHLB 90-day advance | August 26, 2015 | ||
Derivative [Line Items] | ||
Notional Amount | $ 25,000 | |
Effective Date of Hedged Borrowing | Aug. 26, 2015 | |
Duration of Borrowing | 5 years | |
Counterparty | Bank of Montreal |
DERIVATIVE INSTRUMENTS - Change
DERIVATIVE INSTRUMENTS - Changes in consolidated statements of comprehensive income related to interest rate derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest rate swap on FHLB advance: | ||||
Unrealized (loss) gain recognized in accumulated other comprehensive income | $ (826) | $ 218 | $ (1,058) | $ 111 |
Income tax benefit (expense) on items recognized in accumulated other comprehensive income | 322 | (85) | 412 | (43) |
Other comprehensive (loss) income | (504) | 133 | (646) | 68 |
Interest expense recognized on hedged FHLB advance | $ 213 | $ 88 | $ 578 | $ 176 |
FAIR VALUE OF FINANCIAL INSTR62
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair values of financial instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Available for sale securities | $ 45,023 | $ 65,009 |
Held to maturity securities | 11,301 | 11,470 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 86,830 | 48,559 |
Available for sale securities | 45,023 | 65,009 |
Held to maturity securities | 11,282 | 11,454 |
Loans held for sale | 252 | 586 |
Loans receivable, net | 1,108,439 | 915,981 |
Accrued interest receivable | 3,831 | 3,323 |
FHLB stock | 6,918 | 6,109 |
Financial Liabilities: | ||
Demand deposits | 148,732 | 166,030 |
NOW and money market | 346,850 | 276,501 |
Savings | 101,749 | 84,457 |
Time deposits | 428,358 | 308,451 |
Advances from the FHLB | 120,000 | 129,000 |
Subordinated debentures | 25,037 | |
Derivative liability | 1,244 | 186 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 86,830 | 48,559 |
Available for sale securities | 45,023 | 65,009 |
Held to maturity securities | 11,301 | 11,470 |
Loans held for sale | 252 | 586 |
Loans receivable, net | 1,114,785 | 920,031 |
Accrued interest receivable | 3,831 | 3,323 |
FHLB stock | 6,918 | 6,109 |
Financial Liabilities: | ||
Demand deposits | 148,732 | 166,030 |
NOW and money market | 346,850 | 276,501 |
Savings | 101,749 | 84,457 |
Time deposits | 430,602 | 310,165 |
Advances from the FHLB | 120,154 | 128,961 |
Subordinated debentures | 25,037 | |
Derivative liability | 1,244 | 186 |
Level 1 | ||
Financial Assets: | ||
Cash and due from banks | $ 86,830 | $ 48,559 |
Available for sale securities | ||
Held to maturity securities | ||
Loans held for sale | ||
Loans receivable, net | ||
Accrued interest receivable | ||
FHLB stock | ||
Financial Liabilities: | ||
Demand deposits | ||
NOW and money market | ||
Savings | ||
Time deposits | ||
Advances from the FHLB | ||
Subordinated debentures | ||
Derivative liability | ||
Level 2 | ||
Financial Assets: | ||
Cash and due from banks | ||
Available for sale securities | $ 45,023 | $ 65,009 |
Held to maturity securities | 11,301 | 11,470 |
Loans held for sale | $ 252 | $ 586 |
Loans receivable, net | ||
Accrued interest receivable | ||
FHLB stock | ||
Financial Liabilities: | ||
Demand deposits | ||
NOW and money market | ||
Savings | ||
Time deposits | ||
Advances from the FHLB | ||
Subordinated debentures | ||
Derivative liability | $ 1,244 | $ 186 |
Level 3 | ||
Financial Assets: | ||
Cash and due from banks | ||
Available for sale securities | ||
Held to maturity securities | ||
Loans held for sale | ||
Loans receivable, net | $ 1,114,785 | $ 920,031 |
Accrued interest receivable | 3,831 | 3,323 |
FHLB stock | 6,918 | 6,109 |
Financial Liabilities: | ||
Demand deposits | 148,732 | 166,030 |
NOW and money market | 346,850 | 276,501 |
Savings | 101,749 | 84,457 |
Time deposits | 430,602 | 310,165 |
Advances from the FHLB | 120,154 | $ 128,961 |
Subordinated debentures | $ 25,037 | |
Derivative liability |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial instruments carried at fair value on recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale investment securities: | ||
Available for sale securities | $ 45,023 | $ 65,009 |
Fair Value Measurements Recurring | Level 1 | ||
Available-for-sale investment securities: | ||
Derivative liability | ||
Fair Value Measurements Recurring | Level 1 | U.S. Government and agency obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 1 | State agency and municipal obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 1 | Corporate bonds | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 1 | Mortgage backed securities | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 2 | ||
Available-for-sale investment securities: | ||
Derivative liability | $ (1,244) | $ (186) |
Fair Value Measurements Recurring | Level 2 | U.S. Government and agency obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | 8,222 | 24,418 |
Fair Value Measurements Recurring | Level 2 | State agency and municipal obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | 17,461 | 18,584 |
Fair Value Measurements Recurring | Level 2 | Corporate bonds | ||
Available-for-sale investment securities: | ||
Available for sale securities | 14,568 | 16,325 |
Fair Value Measurements Recurring | Level 2 | Mortgage backed securities | ||
Available-for-sale investment securities: | ||
Available for sale securities | $ 4,772 | $ 5,682 |
Fair Value Measurements Recurring | Level 3 | ||
Available-for-sale investment securities: | ||
Derivative liability | ||
Fair Value Measurements Recurring | Level 3 | U.S. Government and agency obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 3 | State agency and municipal obligations | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 3 | Corporate bonds | ||
Available-for-sale investment securities: | ||
Available for sale securities | ||
Fair Value Measurements Recurring | Level 3 | Mortgage backed securities | ||
Available-for-sale investment securities: | ||
Available for sale securities |
FAIR VALUE MEASUREMENTS - Fin64
FAIR VALUE MEASUREMENTS - Financial instruments carried at fair value on nonrecurring basis (Details 1) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Foreclosed real estate | ||
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Foreclosed real estate | ||
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 9,580 | $ 8,281 |
Foreclosed real estate | $ 1,328 | $ 950 |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on nonrecurring basis (Details 2) - Level 3 - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 9,580 | $ 8,281 |
Foreclosed real estate | 1,328 | 950 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 9,580 | $ 8,281 |
Valuation Methodology, Appraisals | Appraisals | Appraisals |
Valuation Methodology, Discounted cash flows | Discounted cash flows | Discounted cash flows |
Impaired loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input, Discount for dated appraisals | 8.00% | |
Unobservable Input, Discount rate | 3.25% | 3.25% |
Impaired loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input, Discount for dated appraisals | 10.00% | |
Unobservable Input, Discount rate | 7.00% | 8.25% |
Foreclosed Real Estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed real estate | $ 1,328 | $ 950 |
Valuation Methodology, Appraisals | Appraisals | Appraisals |
Foreclosed Real Estate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input, Discount for dated appraisals | 10.00% | 7.34% |
Foreclosed Real Estate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable Input, Discount for dated appraisals | 66.00% | 66.60% |
MERGERS AND ACQUISITIONS - Cons
MERGERS AND ACQUISITIONS - Consideration paid (Details) - Quinnipiac $ in Thousands | Oct. 01, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash consideration paid to Quinnipiac shareholders | $ 3,648 |
Equity consideration paid to Quinnipiac shareholders | 9,676 |
Total Consideration paid | $ 13,324 |
MERGERS AND ACQUISITIONS - Reco
MERGERS AND ACQUISITIONS - Recognized amounts of identifiable assets acquired and (liabilities) assumed (Details 1) - Quinnipiac $ in Thousands | Oct. 01, 2014USD ($) | |
Business Acquisition [Line Items] | ||
Cash | $ 6,195 | |
Available for sale investments securities | 8,504 | |
Loans | 97,851 | |
Premises and equipment | 4,046 | |
Other real estate owned | 129 | |
Core deposit intangibles | 530 | |
Deferred tax assets, net | 682 | |
Other assets | 756 | |
Deposits | (100,643) | |
FHLB advances | (7,000) | |
Other liabilities | (315) | |
Total identifiable net assets | 10,735 | |
Goodwill | 2,589 | |
As Acquired | ||
Business Acquisition [Line Items] | ||
Cash | 6,195 | |
Available for sale investments securities | 8,533 | |
Loans | 97,103 | |
Premises and equipment | 4,046 | |
Other real estate owned | $ 129 | |
Core deposit intangibles | ||
Deferred tax assets, net | $ 1,070 | |
Other assets | 756 | |
Deposits | (100,391) | |
FHLB advances | (7,000) | |
Other liabilities | (315) | |
Total identifiable net assets | $ 10,126 | |
Fair Value Adjustments | ||
Business Acquisition [Line Items] | ||
Cash | ||
Available for sale investments securities | $ (29) | [1] |
Loans | $ 748 | [2] |
Premises and equipment | ||
Other real estate owned | ||
Core deposit intangibles | $ 530 | [3] |
Deferred tax assets, net | $ (388) | [4] |
Other assets | ||
Deposits | $ (252) | [5] |
FHLB advances | ||
Other liabilities | ||
Total identifiable net assets | $ 609 | |
[1] | The adjustment represents the mark to market adjustment on available for sale investment securities. | |
[2] | The adjustment represents the adjustment of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. | |
[3] | Represents the economic value of the acquired core deposit base (total deposits less jumbo time deposits). The core deposit intangible will be amortized over an estimated life of 8.8 years based on the double declining balance method of amortization. | |
[4] | Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles and other purchase accounting adjustments. | |
[5] | The adjustment represents the fair value of time deposits, which were valued at a premium of 0.57% as they bore somewhat higher rates than the prevailing market. |
MERGERS AND ACQUISITIONS - Re68
MERGERS AND ACQUISITIONS - Recognized amounts of identifiable assets acquired and (liabilities) assumed (Parentheticals) (Details 1) - Quinnipiac Bank & Trust Company - Core Deposit | Oct. 01, 2014 |
Business Acquisition [Line Items] | |
Estimated life of core deposit | 8 years 9 months 18 days |
Premium rate on time deposits | 0.57% |
MERGERS AND ACQUISITIONS - Info
MERGERS AND ACQUISITIONS - Information about acquired loan portfolio subject to purchased credit impaired accounting guidance (Details 2) - Quinnipiac $ in Thousands | Oct. 01, 2014USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 1,729 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (6) |
Expected cash flows at acquisition | 1,723 |
Interest component of expected cash flows (accretable discount) | (478) |
Fair value of acquired loans | $ 1,245 |
MERGERS AND ACQUISITIONS (Detai
MERGERS AND ACQUISITIONS (Detail textuals) - Quinnipiac $ in Thousands | Oct. 01, 2014USD ($)Branchshares |
Business Acquisition [Line Items] | |
Number of banking offices | Branch | 2 |
Cash consideration paid to Quinnipiac shareholders | $ 3,648 |
Assets with a carrying value | 117,800 |
Loans outstanding with carrying value | 97,100 |
Deposits with carrying value | 100,400 |
Deposits with book value | $ 10,100 |
Common shares | |
Business Acquisition [Line Items] | |
Shares issued to acquired company as a result of acquisition | shares | 510,122 |
SUBORDINATED DEBENTURES (Detail
SUBORDINATED DEBENTURES (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | ||
Aug. 19, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Senior Noncumulative Perpetual Preferred Stock redemption amount | $ 10,980 | $ 10,980 | |
Fixed rated subordinated notes | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 25,500 | ||
Notes non-callable term (in years) | 5 years | ||
Stated maturity date of notes | Aug. 15, 2025 | ||
Quarterly pay fixed interest rate of notes | 5.75% | ||
Senior Noncumulative Perpetual Preferred Stock redemption amount | $ 11,000 |