Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | First Connecticut Bancorp, Inc. | |
Entity Central Index Key | 1,511,198 | |
Trading Symbol | fbnk | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 15,989,928 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and due from banks | $ 25,385 | $ 33,320 | |
Interest bearing deposits with other institutions | 1,067 | 2,030 | |
Total cash, cash equivalents and restricted cash | 26,452 | 35,350 | |
Debt securities held-to-maturity, at amortized cost | 80,977 | 74,985 | |
Debt securities available-for-sale, at fair value | 89,107 | 80,358 | |
Loans held for sale | 5,980 | 5,295 | |
Loans | [1] | 2,816,807 | 2,748,081 |
Allowance for loan losses | (22,620) | (22,448) | |
Loans, net | 2,794,187 | 2,725,633 | |
Premises and equipment, net | 17,007 | 16,845 | |
Federal Home Loan Bank of Boston stock, at cost | 17,665 | 15,537 | |
Accrued income receivable | 9,043 | 8,979 | |
Bank-owned life insurance | 57,852 | 57,511 | |
Deferred income taxes, net | 7,763 | 7,662 | |
Prepaid expenses and other assets | 31,612 | 26,895 | |
Total assets | 3,137,645 | 3,055,050 | |
Deposits | |||
Interest-bearing | 1,999,802 | 1,960,672 | |
Noninterest-bearing | 443,555 | 473,428 | |
Total deposits | 2,443,357 | 2,434,100 | |
Federal Home Loan Bank of Boston advances | 355,457 | 255,458 | |
Repurchase agreement borrowings | 10,500 | ||
Repurchase liabilities | 16,851 | 34,496 | |
Accrued expenses and other liabilities | 45,119 | 48,037 | |
Total liabilities | 2,860,784 | 2,782,591 | |
Commitments and contingencies (Note 18) | |||
Stockholders' Equity | |||
Common stock, $0.01 par value, 30,000,000 shares authorized; 17,946,190 shares issued and 15,984,932 shares outstanding at March 31, 2018 and 17,947,647 shares issued and 15,952,946 shares outstanding at December 31, 2017 | 181 | 181 | |
Additional paid-in-capital | 186,269 | 185,779 | |
Unallocated common stock held by ESOP | (9,290) | (9,539) | |
Treasury stock, at cost (1,961,258 shares at March 31, 2018 and 1,994,701 shares at December 31, 2017) | (29,204) | (29,620) | |
Retained earnings | 136,303 | 131,887 | |
Accumulated other comprehensive loss | (7,398) | (6,229) | |
Total stockholders' equity | 276,861 | 272,459 | |
Total liabilities and stockholders' equity | $ 3,137,645 | $ 3,055,050 | |
[1] | Loans include net deferred loan costs of $5.8 million and $5.1 million at March 31, 2018 and December 31, 2017, respectively. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Deferred loan costs | $ 5.8 | $ 5.1 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 17,946,190 | 17,947,647 |
Common stock, shares outstanding | 15,984,932 | 15,952,946 |
Treasury stock, shares | 1,961,258 | 1,994,701 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Interest and fees on loans | |||
Mortgage | $ 19,927 | $ 17,558 | |
Other | 5,465 | 4,947 | |
Interest and dividends on investments | |||
United States Government and agency obligations | 797 | 474 | |
Other bonds | 7 | ||
Corporate stocks | 241 | 199 | |
Other interest income | 33 | 27 | |
Total interest income | 26,463 | 23,212 | |
Interest expense | |||
Deposits | 4,339 | 2,911 | |
Federal Home Loan Bank of Boston advances | 1,119 | 949 | |
Repurchase agreement borrowings | 74 | 95 | |
Repurchase liabilities | 9 | 7 | |
Total interest expense | 5,541 | 3,962 | |
Net interest income | 20,922 | 19,250 | |
Provision for loan losses | 465 | 325 | |
Net interest income after provision for loan losses | 20,457 | 18,925 | |
Noninterest income | |||
Fees for customer services | 1,657 | 1,506 | |
Net gain on loans sold | 288 | 416 | |
Brokerage and insurance fee income | 58 | 50 | |
Bank owned life insurance income | 341 | 319 | |
Other | 801 | 874 | |
Total noninterest income | 3,145 | 3,165 | |
Noninterest expense | |||
Salaries and employee benefits | 9,772 | 9,140 | |
Occupancy expense | 1,329 | 1,313 | |
Furniture and equipment expense | 948 | 984 | |
FDIC assessment | 424 | 428 | |
Marketing | 605 | 567 | |
Other operating expenses | 3,161 | 2,720 | |
Total noninterest expense | 16,239 | 15,152 | |
Income before income taxes | 7,363 | 6,938 | |
Income tax expense | 1,352 | 1,845 | |
Net income | $ 6,011 | $ 5,093 | |
Net earnings per share (See Note 3): | |||
Basic (in dollars per share) | [1] | $ 0.39 | $ 0.34 |
Diluted (in dollars per share) | [1] | 0.38 | 0.32 |
Dividends per share | $ 0.16 | $ 0.11 | |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement Of Income (Loss) and Comprehensive Income (Loss) [Abstract] | |||
Net income | $ 6,011 | $ 5,093 | |
Unrealized losses on debt securities: | |||
Unrealized holding (losses) gains arising during the period | [1] | (415) | 137 |
Less: reclassification adjustment for gains included in net income | 0 | 0 | |
Net change in unrealized (losses) gains | (415) | 137 | |
Change related to pension and other postretirement benefit plans | 149 | 163 | |
Other comprehensive (loss) income, before tax | (266) | 300 | |
Income tax (benefit) expense | (57) | 106 | |
Other comprehensive (loss) income, net of tax | (209) | 194 | |
Comprehensive income | $ 5,802 | $ 5,287 | |
[1] | The Company adopted ASU 2016-01 effective January 1, 2018 which requires equity securities to be measured at fair value with changes in fair value recoginized in net income. The prior period includes changes in the fair value of equity securities recognized in other comprehensive income. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid in Capital | Unallocated Common Shares Held by ESOP | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2016 | $ 181 | $ 184,111 | $ (10,567) | $ (30,400) | $ 123,541 | $ (6,690) | $ 260,176 |
Balance (in shares) at Dec. 31, 2016 | 15,897,698 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | 290 | 258 | 548 | ||||
Cash dividend paid ($0.11 per common share) | (1,752) | (1,752) | |||||
Stock options exercised | (14) | 311 | 297 | ||||
Stock options exercised (in shares) | 22,750 | ||||||
Share based compensation expense | 69 | 42 | 111 | ||||
Share based compensation expense (in shares) | 3,066 | ||||||
Net income | 5,093 | 5,093 | |||||
Other comprehensive loss (income) | 194 | 194 | |||||
Balance at Mar. 31, 2017 | $ 181 | 184,456 | (10,309) | (30,047) | 126,882 | (6,496) | 264,667 |
Balance (in shares) at Mar. 31, 2017 | 15,923,514 | ||||||
Balance at Dec. 31, 2017 | $ 181 | 185,779 | (9,539) | (29,620) | 131,887 | (6,229) | $ 272,459 |
Balance (in shares) at Dec. 31, 2017 | 15,952,946 | 15,952,946 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | 364 | 249 | $ 613 | ||||
Cash dividend paid ($0.11 per common share) | (2,555) | (2,555) | |||||
Stock options exercised | (34) | 378 | 344 | ||||
Stock options exercised (in shares) | 26,462 | ||||||
Cancellation of shares for tax withholding | (38) | (38) | |||||
Cancellation of shares for tax withholding (in shares) | (1,457) | ||||||
Share based compensation expense | 198 | 38 | 236 | ||||
Share based compensation expense (in shares) | 6,981 | ||||||
Net income | 6,011 | 6,011 | |||||
Reclassification of disproportionate tax effects resulting from the Tax Cuts and Jobs Act of 2017 pursuant to ASU 2018-02 | 1,275 | (1,275) | |||||
Reclassification of cumulative effect adjustment per ASU 2016-01 | (315) | 315 | |||||
Other comprehensive loss (income) | (209) | (209) | |||||
Balance at Mar. 31, 2018 | $ 181 | $ 186,269 | $ (9,290) | $ (29,204) | $ 136,303 | $ (7,398) | $ 276,861 |
Balance (in shares) at Mar. 31, 2018 | 15,984,932 | 15,984,932 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals)(Unaudited) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends per share | $ 0.16 | $ 0.11 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 6,011 | $ 5,093 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 465 | 325 |
Provision for (reversal of) off-balance sheet commitments | 82 | (23) |
Depreciation and amortization | 460 | 535 |
Amortization of ESOP expense | 613 | 548 |
Share based compensation expense | 236 | 111 |
Amortization of mortgage servicing rights | 223 | 216 |
Loans originated for sale | (21,886) | (23,480) |
Proceeds from the sale of loans held for sale | 21,489 | 24,702 |
Impairment losses on alternative investments | 0 | 10 |
Loss on fair value adjustment for mortgage banking derivatives | 18 | 44 |
Loss on fair value adjustment for equity securities | 88 | |
Net gain on loans sold | (288) | (416) |
Net amortization (accretion) of investment security discounts and premiums | 80 | (12) |
Change in net deferred loan fees and costs | (742) | (428) |
(Increase) decrease in accrued income receivable | (64) | 34 |
Deferred income tax | (44) | (101) |
Increase in cash surrender value of bank-owned life insurance | (341) | (318) |
(Increase) decrease in prepaid expenses and other assets | (2,809) | 91 |
Decrease in accrued expenses and other liabilities | (2,891) | (6,151) |
Net cash provided by operating activities | 700 | 780 |
Cash flows from investing activities | ||
Maturities, calls and principal payments of debt securities held-to-maturity | 1,009 | 449 |
Maturities, calls and principal payments of debt securities available-for-sale | 28,271 | 13,151 |
Purchases of debt securities held-to-maturity | (7,000) | (17,708) |
Purchases of debt securities available-for-sale | (37,549) | (15,023) |
Loan originations, net of principal repayments | (70,441) | (59,435) |
(Purchases) redemptions of Federal Home Loan Bank of Boston stock, net | (2,128) | (40) |
Purchases of premises and equipment | (622) | (436) |
Net cash used in investing activities | (88,460) | (79,042) |
Cash flows from financing activities | ||
Net proceeds from (payments on) Federal Home Loan Bank of Boston advances | 99,999 | (5,000) |
Decrease in repurchase agreement borrowings | (10,500) | |
Net increase in demand deposits, NOW accounts, savings accounts and money market accounts | 5,443 | 71,211 |
Net increase in time deposits | 3,814 | 1,551 |
Net (decrease) increase in repurchase liabilities | (17,645) | 659 |
Stock options exercised | 344 | 297 |
Cancellation of shares for tax withholding | (38) | |
Cash dividend paid | (2,555) | (1,752) |
Net cash provided by financing activities | 78,862 | 66,966 |
Net decrease in cash, cash equivalents and restricted cash | (8,898) | (11,296) |
Cash, cash equivalents and restricted cash at beginning of period | 35,350 | 47,723 |
Cash, cash equivalents and restricted cash at end of period | 26,452 | $ 36,427 |
Supplemental disclosure of cash flow information | ||
Loans transferred to other real estate owned | $ 2,164 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Organization and Business First Connecticut Bancorp, Inc. is a Maryland-chartered bank holding company that wholly owns its only subsidiary, Farmington Bank (collectively with its subsidiary, the “Company”). Farmington Bank's main office is located in Farmington, Connecticut. Farmington Bank is a full-service, community bank with 25 branch locations throughout central Connecticut and western Massachusetts, offering commercial and residential lending as well as wealth management services. Farmington Bank's primary source of income is interest accrued on loans to customers, which include small and middle market businesses and individuals residing primarily in Connecticut and western Massachusetts. However, the Bank will selectively lend to borrowers in other northeastern states. Wholly-owned subsidiaries of Farmington Bank are Farmington Savings Loan Servicing, Inc., a passive investment company that was established to service and hold loans collateralized by real property; Village Investments, Inc.; the Village Corp., Limited, and Village Square Holdings, Inc.; 28 Main Street Corp., is a subsidiary that was formed to hold residential other real estate owned and Village Management Corp., is a subsidiary that was formed to hold commercial other real estate owned, are presently inactive. On June 21, 2013, the Company received regulatory approval to repurchase up to 1,676,452 shares, or 10% of its current outstanding common stock. Repurchased shares are held as treasury stock and are available for general corporate purposes. The Company has 600,945 shares remaining available to be repurchased at March 31, 2018. Basis of Financial Statement Presentation The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has condensed or omitted certain information and footnote disclosures normally included in the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. All significant intercompany transactions and balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2017 included in the Company’s 10-K filed on March 9, 2018. The results of operations for the interim periods are not necessarily indicative of the results for the full year. In preparing the consolidated financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition and revenues and expenses for the interim period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, investment security other-than-temporary impairment judgments and investment security valuation. Investment Securities Debt securities are classified as either available-for-sale or held-to-maturity. Management determines the appropriate classifications of securities at the time of purchase. Held-to-maturity debt securities are securities for which the Company has the ability and intent to hold until maturity. All other securities not included in held-to-maturity are classified as available-for-sale. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted into interest income over the term of the securities using the level yield method. Unrealized gains and losses, net of the related tax effect, on available-for-sale debt securities are excluded from earnings and are reported in accumulated other comprehensive income, a separate component of equity, until realized. Further information relating to the fair value of securities can be found within Note 4 of the Notes to Consolidated Financial Statements. In accordance with Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 320- “Debt and Equity Securities”, a decline in market value of a debt security below amortized cost that is deemed other-than-temporary is charged to earnings for the credit related other-than-temporary impairment ("OTTI"), resulting in the establishment of a new cost basis for the security, while the non-credit related OTTI is recognized in other comprehensive income if there is no intent or requirement to sell the security. The securities portfolio is reviewed on a quarterly basis for the presence of other-than-temporary impairment. Gains and losses on sales of securities are recognized at the time of sale on a specific identification basis. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to other noninterest income in the accompanying Consolidated Statements of Income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date to net gain on loans sold in the accompanying Consolidated Statements of Income. Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other. Construction includes classes for commercial and residential construction. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. When loans are prepaid, sold or participated out, the unamortized portion is recognized as income or expense at that time. Interest on loans is accrued and recognized in interest income based on contractual rates applied to principal amounts outstanding. Accrual of interest is discontinued, and previously accrued income is reversed, when loan payments are more than 90 days past due or when, in the judgment of management, collectability of the loan or loan interest becomes uncertain. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period and there is a sustained period of repayment performance (generally a minimum of six months) by the borrower, in accordance with contractual terms involving payment of cash or cash equivalents. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. If a residential real estate, commercial real estate, construction, commercial, home equity line of credit and other loan is on non-accrual status cash payments are applied towards the reduction of principal. If loans are considered impaired but accruing, cash payments are applied first to interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. The policy for determining past due or delinquency status for all loan portfolio segments is based on the number of days past due or the contractual terms of the loan. A loan is considered delinquent when the customer does not make their payments due according to their contractual terms. Generally, a loan can be demanded at any time if the loan is delinquent or if the borrower fails to meet any other agreed upon terms and conditions. On a quarterly basis, our loan policy requires that we evaluate for impairment all commercial loans classified as non-accrual, loans secured by real property in foreclosure or are otherwise likely to be impaired, non-accruing residential and home equity loan segments greater than $100,000 and all troubled debt restructurings. Nonperforming assets consist of non-accruing loans including non-accruing loans identified as troubled debt restructurings, loans past due more than 90 days and still accruing interest and other real estate owned. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb potential losses inherent in the loan portfolio as of the statement of condition date. The allowance for loan losses consists of a formula allowance following FASB ASC 450 – “Contingencies” and FASB ASC 310 – “Receivables”. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. All reserves are available to cover any losses regardless of how they are allocated. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity line of credit and other. Construction loans include classes for commercial investment real estate construction, commercial owner occupied construction, residential development, residential subdivision construction and residential owner occupied construction loans. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies and nonaccrual loans; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no material changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the three months ended March 31, 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – Residential real estate loans are generally originated in amounts up to 95.0% of the lesser of the appraised value or purchase price of the property, with private mortgage insurance required on loans with a loan-to-value ratio in excess of 80.0%. The Company does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. All residential mortgage loans are underwritten pursuant to secondary market underwriting guidelines which include minimum FICO standards. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment are primarily originated to finance income-producing properties throughout the northeastern states. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, may have an effect on the credit quality in this segment. Management generally obtains rent rolls and other financial information, as appropriate on an annual basis and continually monitors the cash flows of these loans. Construction loans – Loans in this segment include commercial construction loans, real estate subdivision development loans to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. Construction lending contains a unique risk characteristic as loans are originated under market and economic conditions that may change between the time of origination and the completion and subsequent purchaser financing of the property. In addition, construction subdivision loans and commercial and residential construction loans to contractors and developers entail additional risks as compared to single-family residential mortgage lending to owner-occupants. These loans typically involve large loan balances concentrated in single borrowers or groups of related borrowers. Real estate subdivision development loans to developers, licensed contractors and builders are generally speculative real estate development loans for which payment is derived from sale of the property. Credit risk may be affected by cost overruns, time to sell at an adequate price, and market conditions. Construction financing is generally considered to involve a higher degree of credit risk than longer-term financing on improved, owner-occupied real estate. Residential construction credit quality may be impacted by the overall health of the economy, including unemployment rates and housing prices. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity line of credit – Loans in this segment include home equity loans and lines of credit underwritten with a loan-to-value ratio generally limited to no more than 80%, including any first mortgage. Our home equity lines of credit have a 9 year 10 month draw period followed by a 20 year amortization period and adjustable rates of interest which are indexed to the prime rate. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. Other – Includes installment, collateral, demand, revolving credit and resort loans to customers with acceptable credit ratings residing primarily in our market area. Installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts, and unsecured personal loans. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. The resort portfolio consists of a direct receivable loan outside the Northeast which is amortizing to its contractual obligations. The Bank has exited the resort financing market with a residual portfolio remaining. Allocated component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial real estate, construction and commercial loans by the present value of expected cash flows discounted at the effective interest rate; the fair value of the collateral, if applicable; or the observable market price for the loan. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement or they are nonaccrual loans with outstanding balances greater than $100,000. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Management updates the analysis quarterly. The assumptions used in appraisals are reviewed for appropriateness. Updated appraisals or valuations are obtained as needed or adjusted to reflect the estimated decline in the fair value based upon current market conditions for comparable properties. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated component: 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 Company’s Loan Policy allows management to utilize a high and low range of 0.0% to 5.0% of our total allowance for loan losses when establishing an unallocated allowance, when considered necessary. 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. There was no unallocated allowance at March 31, 2018 and December 31, 2017. Troubled Debt Restructuring A loan is considered a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower in modifying or renewing the loan the Company would not otherwise consider. In connection with troubled debt restructurings, terms may be modified to fit the ability of the borrower to repay in line with their current financial status, which may include a reduction in the interest rate to market rate or below, a change in the term or movement of past due amounts to the back-end of the loan or refinancing. A loan is placed on non-accrual status upon being restructured, even if it was not previously, unless the modified loan was current for the six months prior to its modification and we believe the loan is fully collectable in accordance with its new terms. The Company’s policy to restore a restructured loan to performing status is dependent on the receipt of regular payments, generally for a period of six months and one calendar year-end. All troubled debt restructurings are classified as impaired loans and are reviewed for impairment by management on a quarterly basis per Company policy. Foreclosed Real Estate Real estate acquired through foreclosure comprises properties acquired in partial or total satisfaction of problem loans. The properties are acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. At the time these properties are foreclosed, the properties are initially recorded at the fair value at the date of foreclosure less estimated selling costs. Losses arising at the time of acquisition of such properties are charged against the allowance for loan losses. Subsequent loss provisions are charged to the foreclosed real estate valuation allowance and expenses incurred to maintain the properties are charged to noninterest expense. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and a charge to operations is recorded as necessary to reduce the carrying amount to fair value less estimated costs to dispose. Revenue and expense from the operation of other real estate owned and the provision to establish and adjust valuation allowances are included in noninterest expenses. Costs relating to the development and improvement of the property are capitalized, subject to the limit of fair value of the collateral. In the Consolidated Statements of Financial Condition, total prepaid expenses and other assets include foreclosed real estate of $2.2 million and $-0- as of March 31, 2018 and December 31, 2017, with no specific valuation allowance. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $1.6 million at March 31, 2018. Pension and Other Postretirement Benefit Plans The Company’s non-contributory defined-benefit pension plan and certain defined benefit postretirement plans were frozen as of February 28, 2013 and no additional benefits will accrue. The Company has a non-contributory defined benefit pension plan that provides benefits for substantially all employees hired before January 1, 2007 who meet certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined in the Plan Document. The Company’s funding practice is to meet the minimum funding standards established by the Employee Retirement Income Security Act of 1974. In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. A fixed percent of annual costs are paid depending on length of service at retirement. The Company accrues for the estimated costs of these other post-retirement benefits through charges to expense during the years that employees render service. The Company makes contributions to cover the current benefits paid under this plan. The Company believes the policy for determining pension and other post-retirement benefit expenses is critical because judgments are required with respect to the appropriate discount rate, rate of return on assets and other items. The Company reviews and updates the assumptions annually. If the Company’s estimate of pension and post-retirement expense is too low it may experience higher expenses in the future, reducing its net income. If the Company’s estimate is too high, it may experience lower expenses in the future, increasing its net income. Income Taxes On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Tax Act”) was enacted. Substantially all of the provisions of the Tax Act are effective for taxable years beginning after December 31, 2017. The most significant change in the Tax Act that impacts the Company is the reduction in the corporate federal income tax rate from 35% to 21%. ASC Topic 740, Income Taxes, requires the tax effects of changes in tax laws to be recognized in the period in which the law is enacted or December 22, 2017 for the Tax Act. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Thus, at the date of enactment, the Company’s deferred taxes were re-measured based upon the new tax rate resulting in a charge of $5.0 million to income tax expense in the fourth quarter of 2017. The staff of the US Securities and Exchange Commission (SEC) has recognized the complexity of reflecting the impacts of the Tax Act, and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (SAB 118) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. The Company has completed or has made a reasonable estimate for the measurement and accounting of certain effects of the Tax Act which have been reflected in the December 31, 2017 consolidated financial statements. The accounting for these completed and provisional items increased the 2017 deferred income tax provision by $5.0 million for the year ending December 31, 2017 and decreased the accumulated deferred income tax asset by $5.0 million at December 31, 2017. As noted above, the most significant impact resulted from a reduction in the corporate income tax rate to 21%. The items reflected as provisional amounts include the impact of the Tax Act on deferred tax assets and liabilities including the expensing of certain depreciable assets, the impact of certain compensation deduction limitations and similar items. Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a deferred tax asset valuation allowance for the estimated future tax effects attributable to temporary differences and carryforwards when realization is determined not to be more likely than not. FASB ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Pursuant to FASB ASC 740-10, the Company examines its financial statements, its income tax provision and its federal and state income tax returns and analyzes its tax positions, including permanent and temporary differences, as well as the major components of income and expense to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties arising from income tax settlements as part of its provision for income taxes. Revenue Recognition Revenue from Contracts with Customers Accounting Standards Codification ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, such as interest and fee income on loans, interest and dividends on investments, net gain on loans sold, gain on sale of investments, mortgage servicing fees and swap fees. Revenue generating transactions subject to ASC 606 are fees for customer service and brokerage and insurance fees, which are presented in the Consolidated Statements of Income as components of noninterest income, as follows: Fees for customer service: The Company enters into depository agreements with deposit customers whereby the customer is provided with custody services of deposited funds and access to deposited funds. Fees are charged to deposit customers – such as debit card fees; NSF or overdraft protection fees; return item fees; stop payment fees; wire fees; ATM surcharge fees; safe deposit box rental fees; credit card advance fees, etc. Revenue is recognized when the Company’s performance obligation is completed, which is generally monthly, for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations is generally received at the time the performance obligations are satisfied. Brokerage and insurance fees: The Company receives fees from a third party broker dealer as part of a revenue-sharing agreement for fees earned from customers that the Company refers to the third party. These fees are paid to the Company by the third party on a monthly basis and recognized as the Company’s performance obligation is satisfied. Reclassifications Amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the current year presentation. Accounting Standards Adopted in 2018 In August 2015, the FASB issued Accounting Standards Update “ASU” No. 2015-14 "Revenue from Contracts with Customers (Topic 606)." In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the adoption of the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company's fees for customer services, brokerage and insurance fee income items are within the scope of the ASU 2014-09. The timing of the Company's revenue recognition regarding these items did not materially change. The Company adopted ASU No. 2014-09 effective January 1, 2018, utilizing the modified retrospective approach which did not result in a cumulative effect adjustment to opening retained earnings and added additional disclosures related to revenue recognition in Note 1 Summary of Significant Accounting Policies. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Topic 825-10): "Re |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 3 Months Ended |
Mar. 31, 2018 | |
Restrictions On Cash and Due From Banks [Abstract] | |
Restrictions on Cash and Due from Banks | 2. Restrictions on Cash and Due from Banks The Company is required to maintain a percentage of transaction account balances on deposit in non-interest-earning reserves with the Federal Reserve Bank, offset by the Company’s average vault cash. The Company also is required to maintain cash balances to collateralize the Company’s position with certain third parties. The Company had cash and liquid assets of approximately $7.5 million and $9.2 million to meet these requirements at March 31, 2018 and December 31, 2017, respectively. The Company classifies restrictions on cash within “Cash, Cash Equivalents and Restricted Cash” in the Consolidated Statements of Financial Condition. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share: Three Months Ended March 31, 2018 2017 (Dollars in thousands, except per share data): Net income $ 6,011 $ 5,093 Less: Dividends to participating shares (9 ) (3 ) Income allocated to participating shares (9 ) (3 ) Net income allocated to common stockholders $ 5,993 $ 5,087 Weighted-average shares issued 17,984,750 17,959,649 Less: Average unallocated ESOP shares (754,806 ) (850,167 ) Average treasury stock (1,977,443 ) (2,029,444 ) Average unvested restricted stock (37,662 ) (12,002 ) Weighted-average basic shares outstanding 15,214,839 15,068,036 Plus: Average dilutive shares 685,249 623,302 Weighted-average diluted shares outstanding 15,900,088 15,691,338 Net earnings per share (1) Basic $ 0.39 $ 0.34 Diluted $ 0.38 $ 0.32 (1) Certain per share amounts may not appear to reconcile due to rounding. For the three months ended March 31, 2018 and 2017, respectively, 6,599 and 797 options were anti-dilutive and therefore excluded from the earnings per share calculation. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 4. Investment Securities Debt Securities Debt securities have been classified in the consolidated financial statements as available-for-sale or held-to-maturity. The amortized cost of debt securities and their approximate fair values at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 Recognized in OCI Not Recognized in OCI Gross Gross Gross Gross Amortized Unrealized Unrealized Carrying Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Gains Losses Value Available-for-sale U.S. Treasury obligations $ 11,847 $ 43 $ (75 ) $ 11,815 $ - $ - $ 11,815 U.S. Government agency obligations 59,000 - (519 ) 58,481 - - 58,481 Government sponsored residential mortgage-backed securities 18,841 92 (122 ) 18,811 - - 18,811 Total debt securities available-for-sale $ 89,688 $ 135 $ (716 ) $ 89,107 $ - $ - $ 89,107 Held-to-maturity U.S. Treasury obligations $ 4,991 $ - $ - $ 4,991 $ - $ (71 ) $ 4,920 U.S. Government agency obligations 44,982 - - 44,982 - (966 ) 44,016 Government sponsored residential mortgage-backed securities 31,004 - - 31,004 - (560 ) 30,444 Total debt securities held-to-maturity $ 80,977 $ - $ - $ 80,977 $ - $ (1,597 ) $ 79,380 December 31, 2017 Recognized in OCI Not Recognized in OCI Gross Gross Gross Gross Amortized Unrealized Unrealized Carrying Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Gains Losses Value Available-for-sale U.S. Treasury obligations $ 11,847 $ 79 $ (17 ) $ 11,909 $ - $ - $ 11,909 U.S. Government agency obligations 66,000 - (344 ) 65,656 - - 65,656 Government sponsored residential mortgage-backed securities 2,677 116 - 2,793 - - 2,793 Total debt securities available-for-sale $ 80,524 $ 195 $ (361 ) $ 80,358 $ - $ - $ 80,358 Held-to-maturity U.S. Treasury obligations $ 4,991 $ - $ - $ 4,991 $ - $ - $ 4,991 U.S. Government agency obligations 37,982 - - 37,982 - (432 ) 37,550 Government sponsored residential mortgage-backed securities 32,012 - - 32,012 29 (28 ) 32,013 Total debt securities held-to-maturity $ 74,985 $ - $ - $ 74,985 $ 29 $ (460 ) $ 74,554 The following tables summarize debt securities with gross unrealized losses and fair value, aggregated by investment category and length of time the investments have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017: March 31, 2018 Less than 12 Months 12 Months or More Total Number of Gross Gross Gross Debt Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale U.S. Treasury obligations 1 $ 4,925 $ (75 ) $ - $ - $ 4,925 $ (75 ) U.S. Government agency obligations 9 25,765 (235 ) 32,716 (284 ) 58,481 (519 ) Government sponsored residential mortgage-backed securities 3 16,291 (122 ) - - 16,291 (122 ) 13 $ 46,981 $ (432 ) $ 32,716 $ (284 ) $ 79,697 $ (716 ) Held-to-maturity U.S. Treasury obligations 1 $ 4,920 $ (71 ) $ - $ - $ 4,920 $ (71 ) U.S. Government agency obligations 7 39,096 (887 ) 4,920 (79 ) 44,016 (966 ) Government sponsored residential mortgage-backed securities 7 30,444 (560 ) - - 30,444 (560 ) 15 $ 74,460 $ (1,518 ) $ 4,920 $ (79 ) $ 79,380 $ (1,597 ) Total debt securities in an unrealized loss position 28 $ 121,441 $ (1,950 ) $ 37,636 $ (363 ) $ 159,077 $ (2,313 ) December 31, 2017 Less than 12 Months 12 Months or More Total Number of Gross Gross Gross Debt Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale U.S. Treasury obligations 1 $ 4,984 $ (17 ) $ - $ - $ 4,984 $ (17 ) U.S. Government agency obligations 10 18,927 (73 ) 46,729 (271 ) 65,656 (344 ) 11 $ 23,911 $ (90 ) $ 46,729 $ (271 ) $ 70,640 $ (361 ) Held-to-maturity U.S. Government agency obligations 6 $ 32,614 $ (368 ) $ 4,935 $ (64 ) $ 37,549 $ (432 ) Government sponsored residential mortgage-backed securities 4 16,963 (28 ) - - 16,963 (28 ) 10 $ 49,577 $ (396 ) $ 4,935 $ (64 ) $ 54,512 $ (460 ) Total debt securities in an unrealized loss position 21 $ 73,488 $ (486 ) $ 51,664 $ (335 ) $ 125,152 $ (821 ) Management evaluates debt securities for other than temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the debt securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe that any of the securities are impaired due to reasons of credit quality. Accordingly, as of March 31, 2018, management believes that the unrealized losses detailed in the previous table are temporary and no other than temporary impairment loss has been recognized in the Company’s Consolidated Statements of Income. The Company recorded no other-than-temporary impairment charges to the debt securities portfolios for the three months ended March 31, 2018 and 2017. As of March 31, 2018 and December 31, 2017, U.S. Treasury, U.S. Government agency obligations and Government sponsored residential mortgage-backed securities with a fair value of $70.5 million and $93.3 million, respectively, were pledged as collateral for loan derivatives, public funds, repurchase liabilities and repurchase agreement borrowings. The amortized cost and estimated fair value of debt securities at March 31, 2018 and December 31, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties: March 31, 2018 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in thousands) Due in one year or less $ 19,000 $ 18,898 $ - $ - Due after one year through five years 51,847 51,398 30,991 30,253 Due after five years through ten years - - 18,982 18,683 Due after ten years - - - - Government sponsored residential mortgage-backed securities 18,841 18,811 31,004 30,444 $ 89,688 $ 89,107 $ 80,977 $ 79,380 December 31, 2017 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in thousands) Due in one year or less $ 28,000 $ 27,919 $ - $ - Due after one year through five years 49,847 49,646 30,991 30,640 Due after five years through ten years - - 11,982 11,901 Due after ten years - - - - Government sponsored residential mortgage-backed securities 2,677 2,793 32,012 32,013 $ 80,524 $ 80,358 $ 74,985 $ 74,554 Federal Home Loan Bank of Boston (“FHLBB”) Stock The Company, as a member of the FHLBB, owned $17.7 million and $15.5 million of FHLBB capital stock at March 31, 2018 and December 31, 2017, respectively, which is equal to its FHLBB capital stock requirement. The Company evaluated its FHLBB capital stock for potential other-than-temporary impairment at March 31, 2018. Capital adequacy, credit ratings, the value of the stock, overall financial condition of the FHLB system and FHLBB as well as current economic factors were analyzed in the impairment analysis. The Company concluded that its position in FHLBB capital stock is not other-than-temporarily impaired at March 31, 2018. Equity Securities The Company held equity securities with fair values of $6,838,000 and $6,893,000 at March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, the Company recognized a realized loss of $88,000 on the equity securities held at March 31, 2018, which was recorded in “Other noninterest income” within the Consolidated Statements of Income. There were no sales of equity securities during the three months ended March 31, 2018 and 2017. Alternative Investments Alternative investments, which totaled $2.1 million at March 31, 2018 and December 31, 2017, respectively, are included in other assets in the accompanying Consolidated Statements of Financial Condition. The Company’s alternative investments include investments in certain non-public funds, which include limited partnerships, an equity fund and membership stocks. These investments are held at cost and were evaluated for potential other-than-temporary impairment at March 31, 2018. The Company recognized a $-0- and $10,000 other-than-temporary impairment charge on its limited partnerships for the for the three months ended March 31, 2018 and 2017, respectively, included in other noninterest income in the accompanying Consolidated Statements of Income. The Company recognized profit distributions in its limited partnerships of $7,000 and $11,000 for the three months ended March 31, 2018 and 2017, respectively. See a further discussion of fair value in Note 16 - Fair Value Measurements. The Company has $1.6 million in unfunded commitments remaining for its alternative investments as of March 31, 2018. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 5. Loans and Allowance for Loan Losses Loans consisted of the following: March 31, December 31, 2018 2017 (Dollars in thousands) Real estate: Residential $ 1,059,116 $ 989,366 Commercial 1,071,485 1,063,755 Construction 98,469 90,059 Commercial 417,660 429,116 Home equity line of credit 159,030 165,070 Other 5,240 5,650 Total loans 2,811,000 2,743,016 Net deferred loan costs 5,807 5,065 Loans 2,816,807 2,748,081 Allowance for loan losses (22,620 ) (22,448 ) Loans, net $ 2,794,187 $ 2,725,633 Changes in the allowance for loan losses by segments are as follows: For the Three Months Ended March 31, 2018 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,137 $ (200 ) $ - $ 568 $ 4,505 Commercial 11,963 - - 84 12,047 Construction 785 - - 106 891 Commercial 4,155 (14 ) - (151 ) 3,990 Home equity line of credit 1,364 (54 ) - (162 ) 1,148 Other 44 (35 ) 10 20 39 $ 22,448 $ (303 ) $ 10 $ 465 $ 22,620 For the Three Months Ended March 31, 2017 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,134 $ (31 ) $ - $ 144 $ 4,247 Commercial 11,131 (111 ) - 220 11,240 Construction 425 - - 93 518 Commercial 4,400 (322 ) - (163 ) 3,915 Home equity line of credit 1,398 - - (18 ) 1,380 Other 41 (51 ) 10 49 49 $ 21,529 $ (515 ) $ 10 $ 325 $ 21,349 The following table lists the allocation of the allowance by impairment methodology and by loan segment at March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 (Dollars in thousands) Total Reserve Total Reserve Loans individually evaluated for impairment: Real estate: Residential $ 10,735 $ 124 $ 12,971 $ 130 Commercial 8,453 - 8,521 - Construction 4,532 - 4,532 - Commercial 1,606 72 1,076 38 Home equity line of credit 2,586 4 2,585 - Other 471 6 509 6 28,383 206 30,194 174 Loans collectively evaluated for impairment: Real estate: Residential $ 1,055,292 $ 4,381 $ 982,626 $ 4,007 Commercial 1,061,975 12,047 1,054,122 11,963 Construction 93,937 891 85,527 785 Commercial 416,007 3,918 427,986 4,117 Home equity line of credit 156,444 1,144 162,485 1,364 Other 4,769 33 5,141 38 2,788,424 22,414 2,717,887 22,274 Total $ 2,816,807 $ 22,620 $ 2,748,081 $ 22,448 The following is a summary of loan delinquencies at recorded investment values at March 31, 2018 and December 31, 2017: March 31, 2018 30-59 Days 60-89 Days > 90 Days Past Due 90 Past Due Past Due Past Due Total and Still (Dollars in thousands) Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 18 $ 2,908 - $ - 15 $ 4,705 33 $ 7,613 $ - Commercial 1 178 - - - - 1 178 - Construction - - - - 1 4,532 1 4,532 - Commercial 1 20 - - 1 38 2 58 - Home equity line of credit 1 37 2 47 3 491 6 575 - Other 6 52 - - 3 28 9 80 - Total 27 $ 3,195 2 $ 47 23 $ 9,794 52 $ 13,036 $ - December 31, 2017 30-59 Days 60-89 Days > 90 Days Past Due 90 Past Due Past Due Past Due Total and Still (Dollars in thousands) Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 13 $ 2,445 9 $ 1,874 20 $ 7,317 42 $ 11,636 $ - Commercial 1 67 - - - - 1 67 - Construction - - - - 1 4,532 1 4,532 - Commercial - - 1 22 1 38 2 60 - Home equity line of credit 2 223 1 48 4 584 7 855 - Other 7 74 - - 3 30 10 104 - Total 23 $ 2,809 11 $ 1,944 29 $ 12,501 63 $ 17,254 $ - Nonperforming assets consist of non-accruing loans including non-accruing loans identified as troubled debt restructurings, loans past due more than 90 days and still accruing interest and other real estate owned. The following table lists nonperforming assets at: March 31, December 31, (Dollars in thousands) 2018 2017 Nonaccrual loans: Real estate: Residential $ 6,919 $ 9,401 Commercial 62 67 Construction 4,532 4,532 Commercial 757 775 Home equity line of credit 551 963 Other 51 54 Total nonaccruing loans 12,872 15,792 Loans 90 days past due and still accruing - - Other real estate owned 2,164 - Total nonperforming assets $ 15,036 $ 15,792 The following is a summary of information pertaining to impaired loans at March 31, 2018 and December 31, 2017: March 31, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (Dollars in thousands) Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Real estate: Residential $ 9,779 $ 11,210 $ - $ 11,923 $ 14,119 $ - Commercial 8,453 8,488 - 8,521 8,555 - Construction 4,532 4,532 - 4,532 4,532 - Commercial 1,534 1,812 - 1,038 1,303 - Home equity line of credit 2,548 2,627 - 2,585 2,642 - Other 448 468 - 485 504 - Total 27,294 29,137 - 29,084 31,655 - Impaired loans with a valuation allowance: Real estate: Residential 956 973 124 1,048 1,066 130 Commercial - - - - - - Construction - - - - - - Commercial 72 110 72 38 62 38 Home equity line of credit 38 39 4 - - - Other 23 23 6 24 24 6 Total 1,089 1,145 206 1,110 1,152 174 Total impaired loans $ 28,383 $ 30,282 $ 206 $ 30,194 $ 32,807 $ 174 The following table summarizes average recorded investment and interest income recognized on impaired loans: For the Three Months Ended March 31, 2018 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 11,380 $ 31 $ 11,456 $ 27 Commercial 8,505 95 10,775 96 Construction 4,532 - 4,626 - Commercial 1,363 13 1,743 3 Home equity line of credit 2,288 21 1,823 9 Other 497 6 700 7 Total 28,565 166 31,123 142 Impaired loans with a valuation allowance: Real estate: Residential 984 10 1,123 7 Commercial - - 2,874 34 Construction - - - - Commercial 45 - 481 - Home equity line of credit 10 - - - Other 24 - 25 - Total 1,063 10 4,503 41 Total impaired loans $ 29,628 $ 176 $ 35,626 $ 183 There was no interest income recognized on a cash basis method of accounting for the three months ended March 31, 2018 and 2017. The following tables present information on loans whose terms had been modified in a troubled debt restructuring at March 31, 2018 and December 31, 2017: March 31, 2018 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 20 $ 3,284 11 $ 1,784 31 $ 5,068 Commercial 2 617 - - 2 617 Construction - - 1 4,532 1 4,532 Commercial 3 847 5 724 8 1,571 Home equity line of credit 16 2,036 2 60 18 2,096 Other 5 461 1 11 6 472 Total 46 $ 7,245 20 $ 7,111 66 $ 14,356 December 31, 2017 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 18 $ 3,025 12 $ 3,854 30 $ 6,879 Commercial 2 621 - - 2 621 Construction - - 1 4,532 1 4,532 Commercial 2 300 5 776 7 1,076 Home equity line of credit 14 1,731 1 309 15 2,040 Other 5 495 1 13 6 508 Total 41 $ 6,172 20 $ 9,484 61 $ 15,656 The recorded investment balance of TDRs were $14.4 million and $15.7 million at March 31, 2018 and December 31, 2017, respectively. TDRs on accrual status were $7.2 million and $6.2 million while TDRs on nonaccrual status were $7.1 million and $9.5 million at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018, 100% of the accruing TDRs have been performing in accordance with the restructured terms. At March 31, 2018 and December 31, 2017, the allowance for loan losses included specific reserves of $171,000 and $172,000 related to TDRs, respectively. For the three months ended March 31, 2018 and 2017, the Bank had charge-offs totaling $-0- and $33,000, respectively, related to portions of TDRs deemed to be uncollectible. The Bank may provide additional funds to borrowers in TDR status. The amount of additional funds available to borrowers in TDR status was $1.6 million and $107,000 at March 31, 2018 and December 31, 2017, respectively. The following tables include the recorded investment and number of modifications for modified loans. The Company reports the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured for the three months ended March 31, 2018 and 2017: For the Three Months Ended March 31, 2018 For the Three Months Ended March 31, 2017 (Dollars in thousands) Number of Recorded Recorded Investment After Modification (1) Number of Recorded Recorded Investment After Modification (1) Troubled Debt Restructurings: Real estate: Residential 3 $ 387 $ 387 4 $ 596 $ 596 Construction 1 4,532 4,532 - - - Commercial 2 551 551 - - - Home equity line of credit 3 131 131 2 88 88 Total 9 $ 5,601 $ 5,601 $ 6 $ 684 $ 684 (1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. The following tables provide TDR loans that were modified by means of extended maturity, below market adjusted interest rates, a combination of rate and maturity, or by other means including covenant modifications, forbearance and/or the concessions and borrowers discharged in bankruptcy for the three months ended March 31, 2018 and 2017: For the Three Months Ended March 31, 2018 (Dollars in thousands) Number of Extended Maturity (1) Adjusted Interest Rates (1) Combination of Rate and Maturity (1) Other (1) Total Real estate: Residential 3 $ - $ - $ - $ 387 $ 387 Construction 1 - - 4,532 - 4,532 Commercial 2 551 - - - 551 Home equity line of credit 3 131 - - - 131 Total 9 $ 682 $ - $ 4,532 $ 387 $ 5,601 For the Three Months Ended March 31, 2017 (Dollars in thousands) Number of Extended Maturity (1) Adjusted Interest Rates (1) Combination of Rate and Maturity (1) Other (1) Total Real estate: Residential 4 $ 90 $ - $ 335 $ 171 $ 596 Home equity line of credit 2 88 - - - 88 Total 6 $ 178 $ - $ 335 $ 171 $ 684 (1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. A TDR is considered to be in re-default once it is more than 30 days past due following a modification. There were no loans that defaulted and had been modified as a TDR during the twelve month period preceding the default date as of March 31, 2018. There was one construction loan totaling $4.5 million that defaulted and had been modified as a TDR during the twelve month period preceding the default date as of March 31, 2017. Credit Quality Information At the time of loan origination, a risk rating based on a nine point grading system is assigned to each commercial-related loan based on the loan officer’s and management’s assessment of the risk associated with each particular loan. This risk assessment is based on an in depth analysis of a variety of factors. More complex loans and larger commitments require the Company’s internal credit risk management department further evaluate the risk rating of the individual loan or relationship, with credit risk management having final determination of the appropriate risk rating. These more complex loans and relationships receive ongoing periodic review to assess the appropriate risk rating on a post-closing basis with changes made to the risk rating as the borrower’s and economic conditions warrant. The Company’s risk rating system is designed to be a dynamic system and we grade loans on a “real time” basis. The Company places considerable emphasis on risk rating accuracy, risk rating justification, and risk rating triggers. The Company’s risk rating process has been enhanced with its implementation of industry-based risk rating “cards.” The cards are used by the loan officers and promote risk rating accuracy and consistency on an institution-wide basis. Most loans are reviewed annually as part of a comprehensive portfolio review conducted by management and/or by an independent loan review firm. More frequent reviews of loans rated low pass, special mention, substandard and doubtful are conducted by the credit risk management department. The Company utilizes an independent loan review consulting firm to review its rating accuracy and the overall credit quality of its loan portfolio. The review is designed to provide an evaluation of the portfolio with respect to risk rating profile as well as with regard to the soundness of individual loan files. The individual loan reviews include an analysis of the creditworthiness of obligors, via appropriate key ratios and cash flow analysis and an assessment of collateral protection. The consulting firm conducts two loan reviews per year aiming at a 65.0% or higher commercial and industrial loans and commercial real estate portfolio penetration. Summary findings of all loan reviews performed by the outside consulting firm are reported to the board of directors and senior management of the Company upon completion. The Company utilizes a point risk rating scale as follows: Risk Rating Definitions Residential and consumer loans are not rated unless they are 45 days or more delinquent, in which case, depending on past-due days, they will be rated 6, 7 or 8. Loans rated 1 – 5, 55: Commercial loans in these categories are considered “pass” rated loans with low to average risk. Loans rated 6: Residential, Consumer and Commercial loans in this category are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 7: Loans in this category are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 8: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 9: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted. The following table presents the Company’s loans by risk rating at March 31, 2018 and December 31, 2017: March 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 1,049,260 $ 1,572 $ 8,284 $ - $ 1,059,116 Commercial 1,053,480 11,028 6,977 - 1,071,485 Construction 93,937 - 4,532 - 98,469 Commercial 399,198 3,245 15,217 - 417,660 Home equity line of credit 158,287 101 642 - 159,030 Other 5,172 17 51 - 5,240 Total Loans $ 2,759,334 $ 15,963 $ 35,703 $ - $ 2,811,000 December 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 976,768 $ 1,973 $ 10,625 $ - $ 989,366 Commercial 1,046,190 10,505 7,060 - 1,063,755 Construction 85,527 - 4,532 - 90,059 Commercial 408,442 4,202 16,472 - 429,116 Home equity line of credit 164,013 94 963 - 165,070 Other 5,578 18 54 - 5,650 Total Loans $ 2,686,518 $ 16,792 $ 39,706 $ - $ 2,743,016 The Company places considerable emphasis on the early identification of problem assets, problem-resolution and minimizing loss exposure. Delinquency notices are mailed monthly to all delinquent borrowers, advising them of the amount of their delinquency. Residential and consumer lending borrowers are typically given 30 days to pay the delinquent payments or to contact us to make arrangements to bring the loan current over a longer period of time. Generally, if a residential or consumer lending borrower fails to bring the loan current within 90 days from the original due date or to make arrangements to cure the delinquency over a longer period of time, the matter is referred to legal counsel and foreclosure or other collection proceedings are initiated. The Company may consider forbearance or a loan restructuring in certain circumstances where a temporary loss of income is the primary cause of the delinquency, and if a reasonable plan is presented by the borrower to cure the delinquency in a reasonable period of time after his or her income resumes. Problem or delinquent borrowers in our commercial real estate, commercial business and resort portfolios are handled on a case-by-case basis, typically by our Special Assets Department. Appropriate problem-resolution and workout strategies are formulated based on the specific facts and circumstances. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights | 6. Mortgage Servicing Rights The Company services residential real estate mortgage loans that it has sold without recourse to third parties. The carrying value of mortgage servicing rights was $5.4 million at March 31, 2018 and December 31, 2017, and the balance is included in prepaid expenses and other assets in the accompanying Consolidated Statements of Financial Condition. The fair value of mortgage servicing rights approximated $7.6 million and $7.3 million at March 31, 2018 and December 31, 2017, respectively. Total loans sold with servicing rights retained were $17.6 million and $17.7 million for the three months ended March 31, 2018 and 2017, respectively. The net gain on loans sold totaled $288,000 and $416,000 for the three months ended March 31, 2018 and 2017, respectively, and is included in the accompanying Consolidated Statements of Income. The principal balance of loans serviced for others, which are not included in the accompanying Consolidated Statements of Financial Condition, totaled $602.2 million and $598.4 million at March 31, 2018 and December 31, 2017, respectively. Loan servicing fees for others totaling $376,000 and $338,000 for the three months ended March 31, 2018 and 2017, respectively, are included as a component of other noninterest income in the accompanying Consolidated Statements of Income. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | 7. Deposits Deposit balances are as follows: March 31, December 31, 2018 2017 (Dollars in thousands) Noninterest-bearing demand deposits $ 443,555 $ 473,428 Interest-bearing NOW accounts 625,362 623,135 Money market 587,389 559,297 Savings accounts 242,377 237,380 Time deposits 544,674 540,860 Total interest-bearing deposits 1,999,802 1,960,672 Total deposits $ 2,443,357 $ 2,434,100 The Company has established a relationship to participate in a reciprocal deposit program with other financial institutions as a service to our customers. This program provides enhanced FDIC insurance to participating customers. Currently, this program is not being utilized. The Company also has established relationships for brokered deposits. There were brokered deposits totaling $56.5 million and $58.8 million at March 31, 2018 and December 31, 2017, respectively. Time certificates of deposit in denominations of $250,000 or more approximated $132.4 million and $126.3 million at March 31, 2018 and December 31, 2017, respectively. |
Credit Arrangements
Credit Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | 8. Credit Arrangements The Company has access to a pre-approved line of credit with the Federal Home Loan Bank of Boston (“FHLBB”) for $8.8 million, which was undrawn at March 31, 2018 and December 31, 2017. The Company has access to pre-approved unsecured lines of credit with financial institutions totaling $58.5 million which were undrawn at March 31, 2018 and December 31, 2017. The Company maintains a cash balance of $512,500 with certain financial institutions to avoid fees associated with the lines. In accordance with an agreement with the FHLBB, the Company is required to maintain qualified collateral, as defined in the FHLBB Statement of Credit Policy, free and clear of liens, pledges and encumbrances, as collateral for the advances, if any, and the preapproved line of credit. The Company is in compliance with these collateral requirements. FHLBB advances totaled $355.5 million and $255.5 million at March 31, 2018 and December 31, 2017, respectively. Advances from the FHLBB are collateralized by first residential and commercial mortgages and home equity lines of credit with an estimated eligible collateral value of $1.6 billion at March 31, 2018 and December 31, 2017. The Company had available borrowings of $604.2 million and $706.9 million at March 31, 2018 and December 31, 2017, respectively, subject to collateral requirements of the FHLBB. The Company also had letters of credit of $96.5 million and $79.5 million at March 31, 2018 and December 31, 2017, respectively, subject to collateral requirements of the FHLBB. The Company is required to acquire and hold shares of capital stock in the FHLBB in an amount at least equal to the sum of 0.35% of the aggregate principal amount of its unpaid residential mortgage loans and similar obligations at the beginning of each year, or up to 4.5% of its advances (borrowings) from the FHLBB. The carrying value of FHLBB stock approximates fair value based on the redemption provisions of the stock. The Company participates in the Federal Reserve Bank’s discount window loan collateral program that enables the Company to borrow up to $69.1 million and $72.2 million on an overnight basis at March 31, 2018 and December 31, 2017, respectively, and was undrawn as of March 31, 2018 and December 31, 2017. The funding arrangement was collateralized by $134.1 million and $139.2 million in pledged commercial real estate loans as of March 31, 2018 and December 31, 2017, respectively. The Bank had a Master Repurchase Agreement borrowing facility with a broker which matured in March 2018. Borrowings under the Master Repurchase Agreement were secured by the Company’s investments in certain securities and cash with a fair value of $11.2 million at December 31, 2017. Outstanding borrowings totaled $10.5 million at December 31, 2017. The Bank offers overnight repurchase liability agreements to commercial or municipal customers whose excess deposit account balances are swept daily into collateralized repurchase liability accounts. The overnight repurchase liability agreements do not contain master netting arrangements. The Bank had repurchase liabilities outstanding of $16.9 million and $34.5 million at March 31, 2018 and December 31, 2017, respectively. They are secured by the Company’s investment in specific issues of U.S. Treasury obligations, Government sponsored residential mortgage-backed securities and U.S. Government agency obligations with a market value of $39.0 million and $39.6 million as of March 31, 2018 and December 31, 2017, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | 9. Pension and Other Postretirement Benefit Plans Effective January 1, 2018, the Company retrospectively adopted ASU 2017-07 ( see Note 1 The following tables set forth the components of net periodic pension and benefit costs. Pension Benefits Other Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 (Dollars in thousands) Service cost $ - $ - $ 16 $ 14 Interest cost 234 250 23 25 Expected return on plan assets (336 ) (295 ) - - Amortization: Loss 163 176 - - Prior service cost - - (12 ) (13 ) Recognized net gain - - (2 ) (2 ) Net periodic benefit cost $ 61 $ 131 $ 25 $ 24 The Company’s non-contributory defined-benefit pension plan and certain defined benefit postretirement plans were frozen as of February 28, 2013 and no additional benefits will accrue. The Company’s funding practice is to meet the minimum funding standards established by the Employee Retirement Income Security Act of 1974. Since the supplemental plan and the postretirement benefit plans are unfunded, the Company accrues for the estimated costs of these plans through charges to expense during the year that employees render service. The Company makes contributions to cover the current benefits paid under these plans. Employee Stock Ownership Plan The Company established the ESOP to provide eligible employees the opportunity to own Company stock. The Company provided a loan to the Farmington Bank Employee Stock Ownership Plan Trust in the amount needed to purchase up to 1,430,416 shares of the Company’s common stock. The loan bears an interest rate equal to the Wall Street Journal Prime Rate plus one percentage point, adjusted annually, and provides for annual payments of interest and principal over the 15 year term of the loan. At March 31, 2018, the loan had an outstanding balance of $10.0 million and an interest rate of 5.50%. The Bank has committed to make contributions to the ESOP sufficient to support the debt service of the loan. The loan is secured by the unallocated shares purchased. The ESOP compensation expense was $614,000 and $548,000 for the three months ended March 31, 2018 and 2017, respectively. Shares held by the ESOP include the following as of March 31, 2018: Allocated 667,527 Committed to be released 23,514 Unallocated 739,375 1,430,416 The fair value of unallocated ESOP shares was $18.9 million at March 31, 2018. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock Incentive Plans | 10. Stock Incentive Plans In August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan provides for a total of 2,503,228 shares of common stock for issuance upon the grant or exercise of awards. The Plan allows for the granting of 1,788,020 non-qualified stock options and 715,208 shares of restricted stock. In May 2016, the Company’s shareholders approved the First Connecticut Bancorp, Inc. 2016 Stock Incentive Plan (the “2016 Plan”) replacing the 2012 Plan. The 2016 Plan provides for a total of 300,000 shares of common stock for issuance upon the grant or exercise of awards. Under the 2012 Plan, stock options granted vested 20% immediately and vested 20% at each annual anniversary of the grant date and expire ten years after grant date. Under the 2016 Plan, stock options granted vest at each annual anniversary of the grant date over a 3 year period and expire ten years after grant date. The Company recognizes compensation expense for the fair values of these awards, which vest on a straight-line basis over the requisite service period of the awards. The Company classifies share-based compensation for employees within “Salaries and employee benefits” and share-based payments for outside directors within “Other operating expenses” in the Consolidated Statements of Income. For the three months ended March 31, 2018 and 2017, the Company recorded $234,000 and $111,000 of share-based compensation expense, respectively, comprised of $31,000 and $20,000 of stock option expense, respectively and $203,000 and $91,000 of restricted stock expense, respectively. Expected future compensation expense relating to the 82,302 non-vested options outstanding at March 31, 2018 is $336,000 over the remaining weighted-average period of 2.52 years. Expected future compensation expense relating to the 54,274 non-vested restricted stock outstanding at March 31, 2018 is $1.2 million over the remaining weighted-average period of 2.49 years. The fair value of the options awarded is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. Expected volatility is based on the Company’s historical volatility. Prior to July 1, 2017, expected volatility was based on the Company’s historical volatility and the historical volatility of a peer group as the Company did not have reliably determined stock price for the period needed that was at least equal to its expected term and the Company’s historical volatility may not have reflected future expectations. The peer group consisted of financial institutions located in New England and the Mid-Atlantic regions of the United States based on whose common stock is traded on a national securities exchange, asset size, tangible capital ratio and earnings factors. The expected term of options granted is derived from using the simplified method due to the Company not having sufficient historical share option experience upon which to estimate an expected term. The risk-free rate is based on the grant date for a traded zero-coupon U.S. Treasury bond with a term equal to the option’s expected term. Weighted-average assumptions for the three months ended March 31, 2018 and 2017: 2018 2017 Weighted per share average fair value of options granted $ 4.81 $ 5.09 Weighted-average assumptions: Risk-free interest rate 2.69 % 2.05 % Expected volatility 22.11 % 22.08 % Expected dividend yield 2.49 % 1.94 % Weighted-average dividend yield 2.44% - 2.53 % 1.89% - 2.00 % Expected life of options granted 6.0 years 6.0 years The following is a summary of the Company’s stock option activity and related information for its option grants for the three months ended March 31, 2018. Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2017 1,437,426 $ 13.36 Granted 38,600 25.05 Exercised (26,462 ) 13.02 Forfeited - - Expired - - Outstanding at March 31, 2018 1,449,564 $ 13.68 4.80 $ 17,298 Exercisable at March 31, 2018 1,367,262 $ 13.10 4.54 $ 17,091 The total intrinsic value of options exercised during the three months ended March 31, 2018 was $369,000. The following is a summary of the status of the Company’s restricted stock for the three months ended March 31, 2018. Restricted Stock Awards Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Weighted-Average Number of Weighted-Average Number of Weighted-Average Unvested at December 31, 2017 - $ - 14,012 $ 24.48 14,686 $ 21.60 Granted 2,646 26.50 14,701 25.05 15,210 22.25 Vested (2,646 ) 26.50 (4,335 ) 24.27 - - Forfeited - - - - - - Unvested at March 31, 2018 - $ - 24,378 $ 24.86 29,896 $ 21.93 Restricted stock awards: On a semi-annual basis, stock awards are granted to the Bank’s directors as share-based compensation and vest upon grant date. The Company recognizes compensation expense for the fair value of these awards using the Company's common stock closing price at the date of grant. Time-based restricted stock units: Time-based restricted stock units vest over a service period of three years. The Company recognizes compensation expense for the fair value of these units using the Company's common stock closing price at the date of grant, which vest on a straight-line basis over the requisite service period of the units. Performance-based restricted stock units: Performance-based restricted stock units vests after a three year performance period with a two year holding period. The units vest with a share quantity in a range from zero to 150% dependent on the Company’s average return on average assets and earnings per share, each weighted 50%. The Company recognizes compensation expense over the vesting period, based on a fair value calculated using the Chaffe model. In this model, the discount is estimated as the value of an at-the money put option with a life equal to the restriction period, divided by the price of a fully liquid share of stock. Compensation expense is subject to adjustment based on management's assessment of the Company's performance relative to the target number of shares performance criteria. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 11. Derivative Financial Instruments Non-Hedge Accounting Derivatives/Non-designated Hedges: Interest Rate Swap Agreements The Company does not use derivatives for trading or speculative purposes. Interest rate swap derivatives not designated as hedges are offered to certain qualifying commercial customers and to manage the Company’s exposure to interest rate movements but do not meet the strict hedge accounting definition under FASB ASC 815, “Derivatives and Hedging”. The interest rate swap agreements enable these customers to synthetically fix the interest rate on variable interest rate loans. The customers pay a variable rate and enter into a fixed rate swap agreement with the Company. The credit risk associated with the interest rate swap derivatives executed with these customers is essentially the same as that involved in extending loans and is subject to the Company’s normal credit policies. The Company obtains collateral, if needed, based upon its assessment of the customers’ credit quality. Generally, interest rate swap agreements are offered to “pass” rated customers requesting long-term commercial loans or commercial mortgages in amounts generally of at least $1.0 million. The interest rate swap agreement with our customers is cross-collateralized by the loan collateral. The interest rate swap agreements do not have any embedded interest rate caps or floors. For every variable interest rate swap agreement entered into with a commercial customer, the Company simultaneously enters into a fixed rate interest rate swap agreement with a correspondent bank, agreeing to pay a fixed income stream and receive a variable interest rate swap. The Company is party to master netting agreements with its correspondent bank; however, the Company does not offset assets and liabilities for financial statement presentation purposes. The master netting agreements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of cash is received or posted by the counterparty with the net liability position, in accordance with contract thresholds. As of March 31, 2018, based on its current position the correspondent bank has paid $8.9 million into a collateral account to collateralize its position. The Company and correspondent bank have an agreement to secure any outstanding payable in excess of $100,000. Credit-risk-related Contingent Features The Company’s agreements with its derivative counterparties contain the following provisions: · if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations; · if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions, and the Company would be required to settle its obligations under the agreements; · if the Company fails to maintain a specified minimum leverage ratio, then the Company could be declared in default on its derivative obligations; and · if a specified event or condition occurs that materially changes the Company’s creditworthiness in an adverse manner, it may be required to fully collateralize its obligations under the derivative instrument. The Company is in compliance with the above provisions as of March 31, 2018. The Company has established a derivatives policy which sets forth the parameters for such transactions (including underwriting guidelines, rate setting process, maximum maturity, approval and documentation requirements), as well as identifies internal controls for the management of risks related to these hedging activities (such as approval of counterparties, limits on counterparty credit risk, maximum loan amounts, and limits to single dealer counterparties). The interest rate swap derivatives executed with our customers and our counterparties, are marked to market and are included with prepaid expenses and other assets and accrued expenses and other liabilities on the Consolidated Statements of Financial Condition at fair value. The Company had the following outstanding interest rate swaps that were not designated for hedge accounting: March 31, 2018 December 31, 2017 (Dollars in thousands) Consolidated Notional Fair Value Notional Fair Value Commercial loan customer interest rate swap position Other Assets $ 134,891 $ 2,043 $ 197,086 $ 4,927 Counterparty interest rate swap position Other Assets 312,877 10,629 214,642 5,356 Commercial loan customer interest rate swap position Other Liabilities 312,877 (10,614 ) 214,642 (5,318 ) Counterparty interest rate swap position Other Liabilities 134,891 (2,068 ) 197,086 (5,013 ) Risk Participation Agreements The Company also enters into risk participation agreements under which it may either assume or sell credit risk associated with a borrower’s performance under certain interest rate derivative contracts. In those instances where the Company has assumed credit risk, it is not a direct counterparty to the derivative contract with the borrower and have entered into the risk participation agreement because it is a party to the related loan agreement with the borrower. In those instances in which the Company has sold credit risk, it is the sole counterparty to the derivative contract with the borrower and has entered into the risk participation agreement because other banks participate in the related loan agreement. The Company manages its credit risk under risk participation agreements by monitoring the creditworthiness of the borrower, based on the Company’s normal credit review process. The fair value of the risk participation agreements in an asset and liability position was $-0- and ($13,000) and $1,000 and ($23,000) at March 31, 2018 and December 31, 2017, respectively and are included with prepaid expenses and other assets and accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. Mortgage Banking Derivatives Certain derivative instruments, primarily forward sales of mortgage loans and mortgage-backed securities (“MBS”) are utilized by the Company in its efforts to manage risk of loss associated with its mortgage loan commitments and mortgage loans held for sale. Prior to closing and funding certain single-family residential mortgage loans, an interest-rate lock commitment is generally extended to the borrower. During the period from commitment date to closing date, the Company is subject to the risk that market rates of interest may change. If market rates rise, investors generally will pay less to purchase such loans resulting in a reduction in the gain on sale of the loans or, possibly, a loss. In an effort to mitigate such risk, forward delivery sales commitments, under which the Company agrees to deliver whole mortgage loans to various investors or issue MBS, are established. At March 31, 2018, the notional amount of outstanding rate locks totaled approximately $22.5 million. The notional amount of outstanding commitments to sell residential mortgage loans totaled approximately $19.6 million, which included mandatory forward commitments totaling approximately $11.4 million at March 31, 2018. The forward commitments establish the price to be received upon the sale of the related mortgage loan, thereby mitigating certain interest rate risk. There is, however, still certain execution risk specifically related to the Company’s ability to close and deliver to its investors the mortgage loans it has committed to sell. |
Offsetting of Financial Assets
Offsetting of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | 12. Offsetting of Financial Assets and Liabilities The following tables present the remaining contractual maturities of the Company’s repurchase agreement borrowings and repurchase liabilities as of March 31, 2018 and December 31, 2017, disaggregated by the class of collateral pledged. March 31, 2018 December 31, 2017 Remaining Contractual Maturity of the Agreements Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight Up to One One Year to Total Overnight Up to One One Year to Total Repurchase agreement borrowings U.S. Government agency obligations $ - $ - $ - $ - $ - $ 6,000 $ - $ 6,000 Government sponsored residential mortgage-backed securities - - - - - 4,500 - 4,500 Total repurchase agreement borrowings - - - - - 10,500 - 10,500 Repurchase liabilities U.S. Government agency obligations 16,851 - - 16,851 34,496 - - 34,496 Total repurchase liabilities 16,851 - - 16,851 34,496 - - 34,496 Total $ 16,851 $ - $ - $ 16,851 $ 34,496 $ 10,500 $ - $ 44,996 The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreements should the Company be in default (e.g., fail to make an interest payment to the counterparty). The collateral is held by a third party financial institution in the Company's trustee account. The counterparty has the right to sell or repledge the investment securities if the Company defaults. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization in the event of counterparty default. The following tables present the potential effect of rights of setoff associated with the Company’s recognized financial assets and liabilities at March 31, 2018 and December 31, 2017: March 31, 2018 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 12,672 $ - $ 12,672 $ - $ - $ - $ 12,672 Total $ 12,672 $ - $ 12,672 $ - $ - $ - $ 12,672 March 31, 2018 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 12,682 $ - $ 12,682 $ - $ - $ - $ 12,682 Total $ 12,682 $ - $ 12,682 $ - $ - $ - $ 12,682 December 31, 2017 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,283 $ - $ 10,283 $ - $ - $ - $ 10,283 Total $ 10,283 $ - $ 10,283 $ - $ - $ - $ 10,283 December 31, 2017 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,331 $ - $ 10,331 $ - $ - $ - $ 10,331 Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 20,831 $ - $ 20,831 $ - $ 10,500 $ - $ 10,331 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | 13. Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and unused lines of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated Statements of Financial Condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments whose contract amounts represent credit risk are as follows: March 31, December 31, 2018 2017 (Dollars in thousands) Approved loan commitments $ 85,934 $ 39,974 Unadvanced portion of construction loans 57,547 50,014 Unused lines for home equity loans 206,148 205,350 Unused revolving lines of credit 321 336 Unused commercial letters of credit 3,498 3,940 Unused commercial lines of credit 244,589 219,597 $ 598,037 $ 519,211 Financial instruments with off-balance sheet risk had a valuation allowance of $85,000 and $2,000 as of March 31, 2018 and December 31, 2017, respectively. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held is primarily residential property and commercial assets. The Company had off-balance sheet risk related to its risk participation agreements totaling $241,000 and $998,000 at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018 and December 31, 2017, the Company had no off-balance sheet special purpose entities and participated in no securitizations of assets. |
Significant Group Concentration
Significant Group Concentrations of Credit Risk | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Group Concentrations of Credit Risk | 14. Significant Group Concentrations of Credit Risk The Company primarily grants commercial, residential and consumer loans to customers located within its primary market area in the state of Connecticut and western Massachusetts. The majority of the Company’s loan portfolio is comprised of commercial and residential mortgages. The Company has no negative amortization or option adjustable rate mortgage loans. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 15. Fair Value Measurements Fair value estimates are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information. In accordance with FASB ASC 820-10, the fair value estimates are measured within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10 are described as follows: · Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; · Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; · Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. When available, quoted market prices are used. In other cases, fair values are based on estimates using present value or other valuation techniques. These techniques involve uncertainties and are significantly affected by the assumptions used and judgments made regarding risk characteristics of various financial instruments, discount rates, and estimates of future cash flows, future expected loss experience and other factors. Changes in assumptions could significantly affect these estimates. Derived fair value estimates cannot be substantiated by comparison to independent markets and, in certain cases, could not be realized in an immediate sale of the instrument. Fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not financial instruments. Accordingly, the aggregate fair value amounts presented do not purport to represent the underlying market value of the Company. There were no transfers between levels during the three months ended March 31, 2018 and 2017. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following is a description of the valuation methodologies used for instruments measured at fair value: Debt securities available-for-sale: The Company utilizes a third party, nationally-recognized pricing service (“pricing service”); subject to review by management, to estimate fair value measurements for the majority of its investment securities portfolio. The pricing service evaluates each asset class based on relevant market information considering observable data that may include dealer quotes, reported trades, market spreads, cash flows, the U.S. Treasury yield curve, the LIBOR swap yield curve, trade execution data, market prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair value prices on all investment securities are reviewed for reasonableness by management. Also, management assessed the valuation techniques used by the pricing service based on a review of their pricing methodology to ensure proper pricing and hierarchy classifications. Management employs procedures to monitor the pricing service’s assumptions and establishes processes to challenge the pricing service’s valuations that appear unusual or unexpected. Equity securities: Derivatives: Forward loan sale commitments and derivative loan commitments: The following tables detail the financial instruments carried at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: March 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets Debt securities available-for-sale: U.S. Treasury obligations $ 11,815 $ - $ 11,815 $ - U.S. Government agency obligations 58,481 - 58,481 - Government sponsored residential mortgage-backed securities 18,811 - 18,811 - Equity securities 6,838 2,005 4,833 - Interest rate swap derivative 12,672 - 12,672 - Derivative loan commitments 148 - - 148 Total $ 108,765 $ 2,005 $ 106,612 $ 148 Liabilities Interest rate swap derivative $ 12,682 $ - $ 12,682 $ - Risk participation agreements 13 - 13 - Forward loan sales commitments 96 - - 96 Total $ 12,791 $ - $ 12,695 $ 96 December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets Debt securities available-for-sale: U.S. Treasury obligations $ 11,909 $ - $ 11,909 $ - U.S. Government agency obligations 65,656 - 65,656 - Government sponsored residential mortgage-backed securities 2,793 - 2,793 - Equity securities 6,893 1,994 4,899 - Interest rate swap derivative 10,283 - 10,283 - Risk participation agreements 1 - 1 - Derivative loan commitments 126 - - 126 Total $ 97,661 $ 1,994 $ 95,541 $ 126 Liabilities Interest rate swap derivative $ 10,331 $ - $ 10,331 $ - Risk participation agreements 23 - 23 - Forward loan sales commitments 56 - - 56 Total $ 10,410 $ - $ 10,354 $ 56 The following table presents additional information about assets measured at fair value for which the Company has utilized Level 3 inputs. Derivative and Forward Loan Sales For the Three Months Ended March 31, 2018 2017 (Dollars in thousands) Balance, at beginning of period $ 70 $ 183 Total realized (loss) gain: Included in earnings (18 ) (44 ) Balance, at the end of period $ 52 $ 139 The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017: March 31, 2018 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 52 Adjusted quoted prices in active markets Embedded servicing value 1.32 % December 31, 2017 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 70 Adjusted quoted prices in active markets Embedded servicing value 1.33 % The embedded servicing value represents the value assigned for mortgage servicing rights and based on management’s judgment. When the embedded servicing value increases or decreases there is a direct correlation with fair value. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with generally accepted accounting principles. 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 March 31, 2018 and December 31, 2017 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: March 31, 2018 December 31, 2017 Quoted Prices in Significant Significant Quoted Prices in Significant Significant Active Markets for Observable Unobservable Active Markets for Observable Unobservable Identical Assets Inputs Inputs Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) (Dollars in thousands) Impaired loans $ - $ - $ 1,199 $ - $ - $ 2,645 Other real estate owned - - 2,164 - - - The following is a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis: Mortgage Servicing Rights Loans Held for Sale: Impaired Loans: Other Real Estate Owned: The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at March 31, 2018 and December 31, 2017: March 31, 2018 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 1,199 Appraisals Discount for dated appraisal 5% - 20% 12.50 % Discount for costs to sell 8% - 15% 11.50 % Other real estate owned $ 2,164 Appraisals Discount for costs to sell 8% - 15% 11.50 % Discount for condition 10% - 30% 20.00 % December 31, 2017 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 2,645 Appraisals Discount for dated appraisal 5% - 20% 12.50 % Discount for costs to sell 8% - 15% 11.50 % The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2018 and December 31, 2017. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. March 31, 2018 December 31, 2017 GAAP Estimated Estimated Measurement Fair Value Carrying Fair Carrying Fair Category Hierarchy Level Amount Value Amount Value (Dollars in thousands) Financial assets Debt securities held-to-maturity Amortized Cost Level 2 $ 80,977 $ 79,380 $ 74,985 $ 74,554 Debt securities available-for-sale Fair Value See previous table 89,107 89,107 80,358 80,358 Equity securities Fair Value See previous table 6,838 6,838 6,893 6,893 Loans (1) Amortized Cost Level 3 2,816,807 2,690,031 2,748,081 2,699,794 Loans held-for-sale Lower of Cost or Market Level 2 5,980 5,995 5,295 5,375 Mortgage servicing rights Lower of Cost or Market Level 3 5,406 7,636 5,399 7,274 Federal Home Loan Bank of Boston stock Amortized Cost Level 2 17,665 17,665 15,537 15,537 Alternative investments Amortized Cost Level 3 2,083 1,898 2,112 1,939 Interest rate swap derivatives Fair Value Level 2 12,672 12,672 10,283 10,283 Risk participation agreements Fair Value Level 2 - - 1 1 Derivative loan commitments Fair Value Level 3 148 148 126 126 Financial liabilities Deposits other than time deposits Amortized Cost Level 1 1,898,683 1,898,683 1,893,240 1,893,240 Time deposits Amortized Cost Level 2 544,674 548,641 540,860 544,968 Federal Home Loan Bank of Boston advances Amortized Cost Level 2 355,457 353,142 255,458 254,228 Repurchase agreement borrowings Amortized Cost Level 2 - - 10,500 10,394 Repurchase liabilities Amortized Cost Level 2 16,851 16,838 34,496 34,475 (1) Per ASU 2016-01 which became effective January 1, 2018, the fair value of loans was determined using an exit price methodology in the current period. Prior period loans fair value was estimated based on an entrance price methodology therefore the fair value adjustments between periods are not comparable. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2018 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | 16. Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on their financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to quantitative judgments by the regulators about components, risk weightings and other factors. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the "Basel III Capital Rules"). The Basel III Capital Rules, among other things, (i) introduced a new capital measure called "Common Equity Tier 1", (ii) specify that Tier 1 capital consists of Common Equity Tier 1 and "Additional Tier 1 Capital" instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other components of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations and a higher minimum Tier I capital requirement. Additionally, institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The Basel III Capital Rules became effective for the Company beginning on January 1, 2015 with certain transition provisions fully phased in through January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier I capital and common equity Tier I capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations) and of Tier I capital (as defined in the regulations) to average assets (as defined in the regulations). Management believes, as of March 31, 2018 and December 31, 2017 that the Company and the Bank meet all capital adequacy requirements to which they are subject. The Federal Deposit Insurance Corporation categorizes the Company and the Bank as well capitalized under the regulatory framework for prompt corrective action as of March 31, 2018. To be categorized as well capitalized, the Company and the Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier I capital and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution’s category. The following table provides information on the capital amounts and ratios for the Company and the Bank: Actual Minimum Required To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At March 31, 2018 Total Capital (to Risk Weighted Assets) $ 280,093 11.30 % $ 198,266 8.00 % $ 247,833 10.00 % Tier I Capital (to Risk Weighted Assets) 257,388 10.39 148,699 6.00 198,265 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 257,388 10.39 111,524 4.50 161,091 6.50 Tier I Leverage Capital (to Average Assets) 257,388 8.31 123,941 4.00 154,926 5.00 At December 31, 2017 Total Capital (to Risk Weighted Assets) $ 272,227 11.20 % $ 194,415 8.00 % $ 243,019 10.00 % Tier I Capital (to Risk Weighted Assets) 249,777 10.28 145,811 6.00 194,415 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 249,777 10.28 109,358 4.50 157,962 6.50 Tier I Leverage Capital (to Average Assets) 249,777 8.28 120,598 4.00 150,748 5.00 First Connecticut Bancorp, Inc.: At March 31, 2018 Total Capital (to Risk Weighted Assets) $ 306,964 12.38 % $ 198,329 8.00 % $ 247,911 10.00 % Tier I Capital (to Risk Weighted Assets) 284,259 11.47 148,748 6.00 198,330 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 284,259 11.47 111,561 4.50 161,143 6.50 Tier I Leverage Capital (to Average Assets) 284,259 9.17 123,963 4.00 154,953 5.00 At December 31, 2017 Total Capital (to Risk Weighted Assets) $ 300,876 12.38 % $ 194,485 8.00 % $ 243,107 10.00 % Tier I Capital (to Risk Weighted Assets) 278,426 11.45 145,864 6.00 194,486 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 278,426 11.45 109,398 4.50 158,020 6.50 Tier I Leverage Capital (to Average Assets) 278,426 9.23 120,606 4.00 150,758 5.00 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income | 17. Other Comprehensive Income The following table presents the changes in accumulated other comprehensive loss, net of tax by component: For the Three Months Ended March 31, 2018 Debt Securities Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2017 $ (368 ) $ (5,861 ) $ (6,229 ) Other comprehensive loss during the period (326 ) - (326 ) Amount reclassified from accumulated other comprehensive loss, net of tax - 117 117 Net change (326 ) 117 (209 ) Balance at March 31, 2018 $ (694 ) $ (5,744 ) $ (6,438 ) For the Three Months Ended March 31, 2017 Investment Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2016 $ (263 ) $ (6,427 ) $ (6,690 ) Other comprehensive income during the period 89 - 89 Amount reclassified from accumulated other comprehensive loss, net of tax - 105 105 Net change 89 105 194 Balance at March 31, 2017 $ (174 ) $ (6,322 ) $ (6,496 ) The following tables present a reconciliation of the changes in components of other comprehensive (loss) income for the periods indicated, including the amount of income tax expense allocated to each component of other comprehensive (loss) income: For the Three Months Ended March 31, 2018 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale debt securities $ (415 ) $ 89 $ (326 ) Less: net debt security gains reclassified into other noninterest income - - - Net change in fair value of debt securities available-for-sale (415 ) 89 (326 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 149 (32 ) 117 Total other comprehensive loss $ (266 ) $ 57 $ (209 ) For the Three Months Ended March 31, 2017 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized gains on available-for-sale securities $ 137 $ (48 ) $ 89 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 137 (48 ) 89 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 163 (58 ) 105 Total other comprehensive income $ 300 $ (106 ) $ 194 (1) Amounts are included in other operating expenses in the unaudited Consolidated Statements of Income. |
Legal Actions
Legal Actions | 3 Months Ended |
Mar. 31, 2018 | |
Loss Contingency [Abstract] | |
Legal Actions | 18. Legal Actions The Company and its subsidiary are involved in various legal proceedings which have arisen in the normal course of business. The Company believes the resolution of these legal actions is not expected to have a material adverse effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. The Company has condensed or omitted certain information and footnote disclosures normally included in the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America pursuant to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. All significant intercompany transactions and balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2017 included in the Company’s 10-K filed on March 9, 2018. The results of operations for the interim periods are not necessarily indicative of the results for the full year. In preparing the consolidated financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statement of condition and revenues and expenses for the interim period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, investment security other-than-temporary impairment judgments and investment security valuation. |
Investment Securities | Investment Securities Debt securities are classified as either available-for-sale or held-to-maturity. Management determines the appropriate classifications of securities at the time of purchase. Held-to-maturity debt securities are securities for which the Company has the ability and intent to hold until maturity. All other securities not included in held-to-maturity are classified as available-for-sale. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted into interest income over the term of the securities using the level yield method. Unrealized gains and losses, net of the related tax effect, on available-for-sale debt securities are excluded from earnings and are reported in accumulated other comprehensive income, a separate component of equity, until realized. Further information relating to the fair value of securities can be found within Note 4 of the Notes to Consolidated Financial Statements. In accordance with Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 320- “Debt and Equity Securities”, a decline in market value of a debt security below amortized cost that is deemed other-than-temporary is charged to earnings for the credit related other-than-temporary impairment ("OTTI"), resulting in the establishment of a new cost basis for the security, while the non-credit related OTTI is recognized in other comprehensive income if there is no intent or requirement to sell the security. The securities portfolio is reviewed on a quarterly basis for the presence of other-than-temporary impairment. Gains and losses on sales of securities are recognized at the time of sale on a specific identification basis. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to other noninterest income in the accompanying Consolidated Statements of Income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date to net gain on loans sold in the accompanying Consolidated Statements of Income. |
Loans | Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, commercial, home equity lines of credit and other. Construction includes classes for commercial and residential construction. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. When loans are prepaid, sold or participated out, the unamortized portion is recognized as income or expense at that time. Interest on loans is accrued and recognized in interest income based on contractual rates applied to principal amounts outstanding. Accrual of interest is discontinued, and previously accrued income is reversed, when loan payments are more than 90 days past due or when, in the judgment of management, collectability of the loan or loan interest becomes uncertain. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within a reasonable period and there is a sustained period of repayment performance (generally a minimum of six months) by the borrower, in accordance with contractual terms involving payment of cash or cash equivalents. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. If a residential real estate, commercial real estate, construction, commercial, home equity line of credit and other loan is on non-accrual status cash payments are applied towards the reduction of principal. If loans are considered impaired but accruing, cash payments are applied first to interest income and then as a reduction of principal as specified in the contractual agreement, unless the collection of the remaining principal amount due is considered doubtful. The policy for determining past due or delinquency status for all loan portfolio segments is based on the number of days past due or the contractual terms of the loan. A loan is considered delinquent when the customer does not make their payments due according to their contractual terms. Generally, a loan can be demanded at any time if the loan is delinquent or if the borrower fails to meet any other agreed upon terms and conditions. On a quarterly basis, our loan policy requires that we evaluate for impairment all commercial loans classified as non-accrual, loans secured by real property in foreclosure or are otherwise likely to be impaired, non-accruing residential and home equity loan segments greater than $100,000 and all troubled debt restructurings. Nonperforming assets consist of non-accruing loans including non-accruing loans identified as troubled debt restructurings, loans past due more than 90 days and still accruing interest and other real estate owned. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb potential losses inherent in the loan portfolio as of the statement of condition date. The allowance for loan losses consists of a formula allowance following FASB ASC 450 – “Contingencies” and FASB ASC 310 – “Receivables”. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. All reserves are available to cover any losses regardless of how they are allocated. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction, commercial, home equity line of credit and other. Construction loans include classes for commercial investment real estate construction, commercial owner occupied construction, residential development, residential subdivision construction and residential owner occupied construction loans. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies and nonaccrual loans; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no material changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the three months ended March 31, 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – Residential real estate loans are generally originated in amounts up to 95.0% of the lesser of the appraised value or purchase price of the property, with private mortgage insurance required on loans with a loan-to-value ratio in excess of 80.0%. The Company does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. All residential mortgage loans are underwritten pursuant to secondary market underwriting guidelines which include minimum FICO standards. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment are primarily originated to finance income-producing properties throughout the northeastern states. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, may have an effect on the credit quality in this segment. Management generally obtains rent rolls and other financial information, as appropriate on an annual basis and continually monitors the cash flows of these loans. Construction loans – Loans in this segment include commercial construction loans, real estate subdivision development loans to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. Construction lending contains a unique risk characteristic as loans are originated under market and economic conditions that may change between the time of origination and the completion and subsequent purchaser financing of the property. In addition, construction subdivision loans and commercial and residential construction loans to contractors and developers entail additional risks as compared to single-family residential mortgage lending to owner-occupants. These loans typically involve large loan balances concentrated in single borrowers or groups of related borrowers. Real estate subdivision development loans to developers, licensed contractors and builders are generally speculative real estate development loans for which payment is derived from sale of the property. Credit risk may be affected by cost overruns, time to sell at an adequate price, and market conditions. Construction financing is generally considered to involve a higher degree of credit risk than longer-term financing on improved, owner-occupied real estate. Residential construction credit quality may be impacted by the overall health of the economy, including unemployment rates and housing prices. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Home equity line of credit – Loans in this segment include home equity loans and lines of credit underwritten with a loan-to-value ratio generally limited to no more than 80%, including any first mortgage. Our home equity lines of credit have a 9 year 10 month draw period followed by a 20 year amortization period and adjustable rates of interest which are indexed to the prime rate. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. Other – Includes installment, collateral, demand, revolving credit and resort loans to customers with acceptable credit ratings residing primarily in our market area. Installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts, and unsecured personal loans. The overall health of the economy, including unemployment rates and housing prices, may have an effect on the credit quality in this segment. The resort portfolio consists of a direct receivable loan outside the Northeast which is amortizing to its contractual obligations. The Bank has exited the resort financing market with a residual portfolio remaining. Allocated component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for commercial real estate, construction and commercial loans by the present value of expected cash flows discounted at the effective interest rate; the fair value of the collateral, if applicable; or the observable market price for the loan. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement or they are nonaccrual loans with outstanding balances greater than $100,000. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Management updates the analysis quarterly. The assumptions used in appraisals are reviewed for appropriateness. Updated appraisals or valuations are obtained as needed or adjusted to reflect the estimated decline in the fair value based upon current market conditions for comparable properties. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated component: 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 Company’s Loan Policy allows management to utilize a high and low range of 0.0% to 5.0% of our total allowance for loan losses when establishing an unallocated allowance, when considered necessary. 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. There was no unallocated allowance at March 31, 2018 and December 31, 2017. |
Troubled Debt Restructuring | Troubled Debt Restructuring A loan is considered a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower in modifying or renewing the loan the Company would not otherwise consider. In connection with troubled debt restructurings, terms may be modified to fit the ability of the borrower to repay in line with their current financial status, which may include a reduction in the interest rate to market rate or below, a change in the term or movement of past due amounts to the back-end of the loan or refinancing. A loan is placed on non-accrual status upon being restructured, even if it was not previously, unless the modified loan was current for the six months prior to its modification and we believe the loan is fully collectable in accordance with its new terms. The Company’s policy to restore a restructured loan to performing status is dependent on the receipt of regular payments, generally for a period of six months and one calendar year-end. All troubled debt restructurings are classified as impaired loans and are reviewed for impairment by management on a quarterly basis per Company policy. |
Foreclosed Real Estate | Foreclosed Real Estate Real estate acquired through foreclosure comprises properties acquired in partial or total satisfaction of problem loans. The properties are acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. At the time these properties are foreclosed, the properties are initially recorded at the fair value at the date of foreclosure less estimated selling costs. Losses arising at the time of acquisition of such properties are charged against the allowance for loan losses. Subsequent loss provisions are charged to the foreclosed real estate valuation allowance and expenses incurred to maintain the properties are charged to noninterest expense. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and a charge to operations is recorded as necessary to reduce the carrying amount to fair value less estimated costs to dispose. Revenue and expense from the operation of other real estate owned and the provision to establish and adjust valuation allowances are included in noninterest expenses. Costs relating to the development and improvement of the property are capitalized, subject to the limit of fair value of the collateral. In the Consolidated Statements of Financial Condition, total prepaid expenses and other assets include foreclosed real estate of $2.2 million and $-0- as of March 31, 2018 and December 31, 2017, with no specific valuation allowance. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction totaled $1.6 million at March 31, 2018. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company’s non-contributory defined-benefit pension plan and certain defined benefit postretirement plans were frozen as of February 28, 2013 and no additional benefits will accrue. The Company has a non-contributory defined benefit pension plan that provides benefits for substantially all employees hired before January 1, 2007 who meet certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined in the Plan Document. The Company’s funding practice is to meet the minimum funding standards established by the Employee Retirement Income Security Act of 1974. In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. A fixed percent of annual costs are paid depending on length of service at retirement. The Company accrues for the estimated costs of these other post-retirement benefits through charges to expense during the years that employees render service. The Company makes contributions to cover the current benefits paid under this plan. The Company believes the policy for determining pension and other post-retirement benefit expenses is critical because judgments are required with respect to the appropriate discount rate, rate of return on assets and other items. The Company reviews and updates the assumptions annually. If the Company’s estimate of pension and post-retirement expense is too low it may experience higher expenses in the future, reducing its net income. If the Company’s estimate is too high, it may experience lower expenses in the future, increasing its net income. |
Income Taxes | Income Taxes On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Tax Act”) was enacted. Substantially all of the provisions of the Tax Act are effective for taxable years beginning after December 31, 2017. The most significant change in the Tax Act that impacts the Company is the reduction in the corporate federal income tax rate from 35% to 21%. ASC Topic 740, Income Taxes, requires the tax effects of changes in tax laws to be recognized in the period in which the law is enacted or December 22, 2017 for the Tax Act. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. Thus, at the date of enactment, the Company’s deferred taxes were re-measured based upon the new tax rate resulting in a charge of $5.0 million to income tax expense in the fourth quarter of 2017. The staff of the US Securities and Exchange Commission (SEC) has recognized the complexity of reflecting the impacts of the Tax Act, and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (SAB 118) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the Tax Act being enacted. The Company has completed or has made a reasonable estimate for the measurement and accounting of certain effects of the Tax Act which have been reflected in the December 31, 2017 consolidated financial statements. The accounting for these completed and provisional items increased the 2017 deferred income tax provision by $5.0 million for the year ending December 31, 2017 and decreased the accumulated deferred income tax asset by $5.0 million at December 31, 2017. As noted above, the most significant impact resulted from a reduction in the corporate income tax rate to 21%. The items reflected as provisional amounts include the impact of the Tax Act on deferred tax assets and liabilities including the expensing of certain depreciable assets, the impact of certain compensation deduction limitations and similar items. Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a deferred tax asset valuation allowance for the estimated future tax effects attributable to temporary differences and carryforwards when realization is determined not to be more likely than not. FASB ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Pursuant to FASB ASC 740-10, the Company examines its financial statements, its income tax provision and its federal and state income tax returns and analyzes its tax positions, including permanent and temporary differences, as well as the major components of income and expense to determine whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes interest and penalties arising from income tax settlements as part of its provision for income taxes. |
Revenue Recognition | Revenue Recognition Revenue from Contracts with Customers Accounting Standards Codification ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Company’s revenue-generating transactions are not subject to ASC 606, such as interest and fee income on loans, interest and dividends on investments, net gain on loans sold, gain on sale of investments, mortgage servicing fees and swap fees. Revenue generating transactions subject to ASC 606 are fees for customer service and brokerage and insurance fees, which are presented in the Consolidated Statements of Income as components of noninterest income, as follows: Fees for customer service: The Company enters into depository agreements with deposit customers whereby the customer is provided with custody services of deposited funds and access to deposited funds. Fees are charged to deposit customers – such as debit card fees; NSF or overdraft protection fees; return item fees; stop payment fees; wire fees; ATM surcharge fees; safe deposit box rental fees; credit card advance fees, etc. Revenue is recognized when the Company’s performance obligation is completed, which is generally monthly, for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations is generally received at the time the performance obligations are satisfied. Brokerage and insurance fees: The Company receives fees from a third party broker dealer as part of a revenue-sharing agreement for fees earned from customers that the Company refers to the third party. These fees are paid to the Company by the third party on a monthly basis and recognized as the Company’s performance obligation is satisfied. |
Reclassifications | Reclassifications Amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the current year presentation. |
Recent Accounting Pronouncements | Accounting Standards Adopted in 2018 In August 2015, the FASB issued Accounting Standards Update “ASU” No. 2015-14 "Revenue from Contracts with Customers (Topic 606)." In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the adoption of the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company's fees for customer services, brokerage and insurance fee income items are within the scope of the ASU 2014-09. The timing of the Company's revenue recognition regarding these items did not materially change. The Company adopted ASU No. 2014-09 effective January 1, 2018, utilizing the modified retrospective approach which did not result in a cumulative effect adjustment to opening retained earnings and added additional disclosures related to revenue recognition in Note 1 Summary of Significant Accounting Policies. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Topic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASU No. 2016-01 effective January 1, 2018 utilizing the modified retrospective approach which resulted in a $315,000 cumulative effect adjustment to opening retained earnings related to unrealized losses on equity securities previously recorded in accumulated other comprehensive loss. In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides cash flow statement classification guidance for certain transactions including how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance is effective for public business entities for annual years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company adopted ASU 2016-15 effective January 1, 2018 and it did not have a material impact on its accounting and disclosures. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash”. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash. Restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of ASU 2016-18 requires a retrospective transition method applied to each period presented. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2016-18 effective January 1, 2018 and it did not have a material impact on its accounting and disclosures. In March 2017, the FASB issued ASU No. 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments also allow only the service cost component to be eligible for capitalization when applicable. The guidance is effective for public business entities for annual years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASU 2017-07 effective January 1, 2018 and it did not have a material impact on its accounting and disclosures. The Company elected to apply the practical expedient and use the amounts disclosed in Note 9 to the consolidated financial statements included in Part I, Item 1 of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 as the estimation basis for applying the retrospective presentation requirements of the standard. Three Months Ended Impact of Three Months Ended As previously reported 2017-07 As reported (Dollars in thousands) Noninterest expense Salaries and employee benefits $ 9,327 $ (187 ) $ 9,140 Other operating expenses 2,533 187 2,720 In May 2017, the FASB issued ASU No. 2017-09 “Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting.” ASU 2017-09 provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The guidance is effective for public business entities for annual years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied on a prospective basis to an award modified on or after the adoption date. The Company adopted ASU 2017-09 effective January 1, 2018 and it did not have a material impact on its accounting and disclosures. In February 2018, the FASB issued ASU No. 2018-02,”Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the reduction of the federal corporate income tax rate pursuant to enactment of the Tax Cuts and Jobs Act. The guidance is effective for public business entities for annual years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Entities electing the reclassification are required to apply the guidance either at the beginning of the period of adoption or retrospectively for all periods impacted. The Company early adopted this standard effective January 1, 2018 and reclassified $1,275,000 to opening retained earnings that was recorded to income tax expense due to re-measuring from 35% to 21% the federal taxes on the accumulated other comprehensive loss components related to available-for-sale, held-to-maturity securities and pension. Accounting Standards Pending Adoption In February 2016, the FASB issued ASU No. 2016-02 "Leases (Topic 842)." ASU 2016-02 supersedes Topic 840, Leases. This ASU is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Some of the provisions in ASU 2016-02 include the following: 1) requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease), 2) requires lessor accounting to be updated to align with certain changes to the lessee model and the new revenue recognition standard, 3) an arrangement contains an embedded lease if property, plant, or equipment is explicitly or implicitly identified and its use is controlled by the customer, 4) in certain circumstances, the lessee is required to remeasure the lease payments, and 5) requires extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the impact of ASU 2016-02 on its accounting and disclosures. In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326)" requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. This ASU also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 is effective for public business entities for annual periods beginning after December 31, 2019, including interim periods within those fiscal years. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Management has established an internal committee to manage the implementation of ASU 2016-13. The committee is led by the Company’s Chief Financial Officer and Chief Risk Officer and includes representatives of the Bank’s loan operations, credit administration, accounting and technology departments. The committee has reviewed, evaluated and selected a third-party software solution and is currently in the process of identifying and gathering the necessary historical data. The committee is currently analyzing the provisions of the ASU and published regulatory guidance. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and its effects on financial statement line items | Three Months Ended Impact of Three Months Ended As previously reported 2017-07 As reported (Dollars in thousands) Noninterest expense Salaries and employee benefits $ 9,327 $ (187 ) $ 9,140 Other operating expenses 2,533 187 2,720 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted earnings per share | Three Months Ended March 31, 2018 2017 (Dollars in thousands, except per share data): Net income $ 6,011 $ 5,093 Less: Dividends to participating shares (9 ) (3 ) Income allocated to participating shares (9 ) (3 ) Net income allocated to common stockholders $ 5,993 $ 5,087 Weighted-average shares issued 17,984,750 17,959,649 Less: Average unallocated ESOP shares (754,806 ) (850,167 ) Average treasury stock (1,977,443 ) (2,029,444 ) Average unvested restricted stock (37,662 ) (12,002 ) Weighted-average basic shares outstanding 15,214,839 15,068,036 Plus: Average dilutive shares 685,249 623,302 Weighted-average diluted shares outstanding 15,900,088 15,691,338 Net earnings per share (1) Basic $ 0.39 $ 0.34 Diluted $ 0.38 $ 0.32 (1) Certain per share amounts may not appear to reconcile due to rounding. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair values of debt securities available-for-sale or held-to-maturity | March 31, 2018 Recognized in OCI Not Recognized in OCI Gross Gross Gross Gross Amortized Unrealized Unrealized Carrying Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Gains Losses Value Available-for-sale U.S. Treasury obligations $ 11,847 $ 43 $ (75 ) $ 11,815 $ - $ - $ 11,815 U.S. Government agency obligations 59,000 - (519 ) 58,481 - - 58,481 Government sponsored residential mortgage-backed securities 18,841 92 (122 ) 18,811 - - 18,811 Total debt securities available-for-sale $ 89,688 $ 135 $ (716 ) $ 89,107 $ - $ - $ 89,107 Held-to-maturity U.S. Treasury obligations $ 4,991 $ - $ - $ 4,991 $ - $ (71 ) $ 4,920 U.S. Government agency obligations 44,982 - - 44,982 - (966 ) 44,016 Government sponsored residential mortgage-backed securities 31,004 - - 31,004 - (560 ) 30,444 Total debt securities held-to-maturity $ 80,977 $ - $ - $ 80,977 $ - $ (1,597 ) $ 79,380 December 31, 2017 Recognized in OCI Not Recognized in OCI Gross Gross Gross Gross Amortized Unrealized Unrealized Carrying Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Gains Losses Value Available-for-sale U.S. Treasury obligations $ 11,847 $ 79 $ (17 ) $ 11,909 $ - $ - $ 11,909 U.S. Government agency obligations 66,000 - (344 ) 65,656 - - 65,656 Government sponsored residential mortgage-backed securities 2,677 116 - 2,793 - - 2,793 Total debt securities available-for-sale $ 80,524 $ 195 $ (361 ) $ 80,358 $ - $ - $ 80,358 Held-to-maturity U.S. Treasury obligations $ 4,991 $ - $ - $ 4,991 $ - $ - $ 4,991 U.S. Government agency obligations 37,982 - - 37,982 - (432 ) 37,550 Government sponsored residential mortgage-backed securities 32,012 - - 32,012 29 (28 ) 32,013 Total debt securities held-to-maturity $ 74,985 $ - $ - $ 74,985 $ 29 $ (460 ) $ 74,554 |
Schedule of gross unrealized losses and fair value, aggregated by investment category | March 31, 2018 Less than 12 Months 12 Months or More Total Number of Gross Gross Gross Debt Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale U.S. Treasury obligations 1 $ 4,925 $ (75 ) $ - $ - $ 4,925 $ (75 ) U.S. Government agency obligations 9 25,765 (235 ) 32,716 (284 ) 58,481 (519 ) Government sponsored residential mortgage-backed securities 3 16,291 (122 ) - - 16,291 (122 ) 13 $ 46,981 $ (432 ) $ 32,716 $ (284 ) $ 79,697 $ (716 ) Held-to-maturity U.S. Treasury obligations 1 $ 4,920 $ (71 ) $ - $ - $ 4,920 $ (71 ) U.S. Government agency obligations 7 39,096 (887 ) 4,920 (79 ) 44,016 (966 ) Government sponsored residential mortgage-backed securities 7 30,444 (560 ) - - 30,444 (560 ) 15 $ 74,460 $ (1,518 ) $ 4,920 $ (79 ) $ 79,380 $ (1,597 ) Total debt securities in an unrealized loss position 28 $ 121,441 $ (1,950 ) $ 37,636 $ (363 ) $ 159,077 $ (2,313 ) December 31, 2017 Less than 12 Months 12 Months or More Total Number of Gross Gross Gross Debt Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale U.S. Treasury obligations 1 $ 4,984 $ (17 ) $ - $ - $ 4,984 $ (17 ) U.S. Government agency obligations 10 18,927 (73 ) 46,729 (271 ) 65,656 (344 ) 11 $ 23,911 $ (90 ) $ 46,729 $ (271 ) $ 70,640 $ (361 ) Held-to-maturity U.S. Government agency obligations 6 $ 32,614 $ (368 ) $ 4,935 $ (64 ) $ 37,549 $ (432 ) Government sponsored residential mortgage-backed securities 4 16,963 (28 ) - - 16,963 (28 ) 10 $ 49,577 $ (396 ) $ 4,935 $ (64 ) $ 54,512 $ (460 ) Total debt securities in an unrealized loss position 21 $ 73,488 $ (486 ) $ 51,664 $ (335 ) $ 125,152 $ (821 ) |
Schedule of amortized cost and estimated market value of debt securities by contractual maturity | March 31, 2018 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in thousands) Due in one year or less $ 19,000 $ 18,898 $ - $ - Due after one year through five years 51,847 51,398 30,991 30,253 Due after five years through ten years - - 18,982 18,683 Due after ten years - - - - Government sponsored residential mortgage-backed securities 18,841 18,811 31,004 30,444 $ 89,688 $ 89,107 $ 80,977 $ 79,380 December 31, 2017 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in thousands) Due in one year or less $ 28,000 $ 27,919 $ - $ - Due after one year through five years 49,847 49,646 30,991 30,640 Due after five years through ten years - - 11,982 11,901 Due after ten years - - - - Government sponsored residential mortgage-backed securities 2,677 2,793 32,012 32,013 $ 80,524 $ 80,358 $ 74,985 $ 74,554 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of loans | March 31, December 31, 2018 2017 (Dollars in thousands) Real estate: Residential $ 1,059,116 $ 989,366 Commercial 1,071,485 1,063,755 Construction 98,469 90,059 Commercial 417,660 429,116 Home equity line of credit 159,030 165,070 Other 5,240 5,650 Total loans 2,811,000 2,743,016 Net deferred loan costs 5,807 5,065 Loans 2,816,807 2,748,081 Allowance for loan losses (22,620 ) (22,448 ) Loans, net $ 2,794,187 $ 2,725,633 |
Schedule of changes in the allowance for loan losses by segments | For the Three Months Ended March 31, 2018 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,137 $ (200 ) $ - $ 568 $ 4,505 Commercial 11,963 - - 84 12,047 Construction 785 - - 106 891 Commercial 4,155 (14 ) - (151 ) 3,990 Home equity line of credit 1,364 (54 ) - (162 ) 1,148 Other 44 (35 ) 10 20 39 $ 22,448 $ (303 ) $ 10 $ 465 $ 22,620 For the Three Months Ended March 31, 2017 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,134 $ (31 ) $ - $ 144 $ 4,247 Commercial 11,131 (111 ) - 220 11,240 Construction 425 - - 93 518 Commercial 4,400 (322 ) - (163 ) 3,915 Home equity line of credit 1,398 - - (18 ) 1,380 Other 41 (51 ) 10 49 49 $ 21,529 $ (515 ) $ 10 $ 325 $ 21,349 |
Schedule of the allowance by impairment methodology and by loan segment | March 31, 2018 December 31, 2017 (Dollars in thousands) Total Reserve Total Reserve Loans individually evaluated for impairment: Real estate: Residential $ 10,735 $ 124 $ 12,971 $ 130 Commercial 8,453 - 8,521 - Construction 4,532 - 4,532 - Commercial 1,606 72 1,076 38 Home equity line of credit 2,586 4 2,585 - Other 471 6 509 6 28,383 206 30,194 174 Loans collectively evaluated for impairment: Real estate: Residential $ 1,055,292 $ 4,381 $ 982,626 $ 4,007 Commercial 1,061,975 12,047 1,054,122 11,963 Construction 93,937 891 85,527 785 Commercial 416,007 3,918 427,986 4,117 Home equity line of credit 156,444 1,144 162,485 1,364 Other 4,769 33 5,141 38 2,788,424 22,414 2,717,887 22,274 Total $ 2,816,807 $ 22,620 $ 2,748,081 $ 22,448 |
Schedule of loan delinquencies at recorded investment values | March 31, 2018 30-59 Days 60-89 Days > 90 Days Past Due 90 Past Due Past Due Past Due Total and Still (Dollars in thousands) Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 18 $ 2,908 - $ - 15 $ 4,705 33 $ 7,613 $ - Commercial 1 178 - - - - 1 178 - Construction - - - - 1 4,532 1 4,532 - Commercial 1 20 - - 1 38 2 58 - Home equity line of credit 1 37 2 47 3 491 6 575 - Other 6 52 - - 3 28 9 80 - Total 27 $ 3,195 2 $ 47 23 $ 9,794 52 $ 13,036 $ - December 31, 2017 30-59 Days 60-89 Days > 90 Days Past Due 90 Past Due Past Due Past Due Total and Still (Dollars in thousands) Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 13 $ 2,445 9 $ 1,874 20 $ 7,317 42 $ 11,636 $ - Commercial 1 67 - - - - 1 67 - Construction - - - - 1 4,532 1 4,532 - Commercial - - 1 22 1 38 2 60 - Home equity line of credit 2 223 1 48 4 584 7 855 - Other 7 74 - - 3 30 10 104 - Total 23 $ 2,809 11 $ 1,944 29 $ 12,501 63 $ 17,254 $ - |
Schedule of non-accruing loans including non-accruing loans identified as troubled debt restructurings | March 31, December 31, (Dollars in thousands) 2018 2017 Nonaccrual loans: Real estate: Residential $ 6,919 $ 9,401 Commercial 62 67 Construction 4,532 4,532 Commercial 757 775 Home equity line of credit 551 963 Other 51 54 Total nonaccruing loans 12,872 15,792 Loans 90 days past due and still accruing - - Other real estate owned 2,164 - Total nonperforming assets $ 15,036 $ 15,792 |
Schedule of summary of information pertaining to impaired loans | March 31, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (Dollars in thousands) Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Real estate: Residential $ 9,779 $ 11,210 $ - $ 11,923 $ 14,119 $ - Commercial 8,453 8,488 - 8,521 8,555 - Construction 4,532 4,532 - 4,532 4,532 - Commercial 1,534 1,812 - 1,038 1,303 - Home equity line of credit 2,548 2,627 - 2,585 2,642 - Other 448 468 - 485 504 - Total 27,294 29,137 - 29,084 31,655 - Impaired loans with a valuation allowance: Real estate: Residential 956 973 124 1,048 1,066 130 Commercial - - - - - - Construction - - - - - - Commercial 72 110 72 38 62 38 Home equity line of credit 38 39 4 - - - Other 23 23 6 24 24 6 Total 1,089 1,145 206 1,110 1,152 174 Total impaired loans $ 28,383 $ 30,282 $ 206 $ 30,194 $ 32,807 $ 174 |
Schedule of average recorded investment and interest income recognized on impaired loans | For the Three Months Ended March 31, 2018 2017 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 11,380 $ 31 $ 11,456 $ 27 Commercial 8,505 95 10,775 96 Construction 4,532 - 4,626 - Commercial 1,363 13 1,743 3 Home equity line of credit 2,288 21 1,823 9 Other 497 6 700 7 Total 28,565 166 31,123 142 Impaired loans with a valuation allowance: Real estate: Residential 984 10 1,123 7 Commercial - - 2,874 34 Construction - - - - Commercial 45 - 481 - Home equity line of credit 10 - - - Other 24 - 25 - Total 1,063 10 4,503 41 Total impaired loans $ 29,628 $ 176 $ 35,626 $ 183 |
Schedule of loans terms modified in a troubled debt restructuring | March 31, 2018 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 20 $ 3,284 11 $ 1,784 31 $ 5,068 Commercial 2 617 - - 2 617 Construction - - 1 4,532 1 4,532 Commercial 3 847 5 724 8 1,571 Home equity line of credit 16 2,036 2 60 18 2,096 Other 5 461 1 11 6 472 Total 46 $ 7,245 20 $ 7,111 66 $ 14,356 December 31, 2017 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 18 $ 3,025 12 $ 3,854 30 $ 6,879 Commercial 2 621 - - 2 621 Construction - - 1 4,532 1 4,532 Commercial 2 300 5 776 7 1,076 Home equity line of credit 14 1,731 1 309 15 2,040 Other 5 495 1 13 6 508 Total 41 $ 6,172 20 $ 9,484 61 $ 15,656 |
Schedule of recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured | For the Three Months Ended March 31, 2018 For the Three Months Ended March 31, 2017 (Dollars in thousands) Number of Recorded Recorded Investment After Modification (1) Number of Recorded Recorded Investment After Modification (1) Troubled Debt Restructurings: Real estate: Residential 3 $ 387 $ 387 4 $ 596 $ 596 Construction 1 4,532 4,532 - - - Commercial 2 551 551 - - - Home equity line of credit 3 131 131 2 88 88 Total 9 $ 5,601 $ 5,601 $ 6 $ 684 $ 684 (1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. |
Schedule of TDR loans modified by means of extended maturity including covenant modifications, forbearance and/or the concessions and borrowers discharged in bankruptcy | For the Three Months Ended March 31, 2018 (Dollars in thousands) Number of Extended Maturity (1) Adjusted Interest Rates (1) Combination of Rate and Maturity (1) Other (1) Total Real estate: Residential 3 $ - $ - $ - $ 387 $ 387 Construction 1 - - 4,532 - 4,532 Commercial 2 551 - - - 551 Home equity line of credit 3 131 - - - 131 Total 9 $ 682 $ - $ 4,532 $ 387 $ 5,601 For the Three Months Ended March 31, 2017 (Dollars in thousands) Number of Extended Maturity (1) Adjusted Interest Rates (1) Combination of Rate and Maturity (1) Other (1) Total Real estate: Residential 4 $ 90 $ - $ 335 $ 171 $ 596 Home equity line of credit 2 88 - - - 88 Total 6 $ 178 $ - $ 335 $ 171 $ 684 (1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. |
Schedule of loans by risk rating | March 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 1,049,260 $ 1,572 $ 8,284 $ - $ 1,059,116 Commercial 1,053,480 11,028 6,977 - 1,071,485 Construction 93,937 - 4,532 - 98,469 Commercial 399,198 3,245 15,217 - 417,660 Home equity line of credit 158,287 101 642 - 159,030 Other 5,172 17 51 - 5,240 Total Loans $ 2,759,334 $ 15,963 $ 35,703 $ - $ 2,811,000 December 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 976,768 $ 1,973 $ 10,625 $ - $ 989,366 Commercial 1,046,190 10,505 7,060 - 1,063,755 Construction 85,527 - 4,532 - 90,059 Commercial 408,442 4,202 16,472 - 429,116 Home equity line of credit 164,013 94 963 - 165,070 Other 5,578 18 54 - 5,650 Total Loans $ 2,686,518 $ 16,792 $ 39,706 $ - $ 2,743,016 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of deposit balances | March 31, December 31, 2018 2017 (Dollars in thousands) Noninterest-bearing demand deposits $ 443,555 $ 473,428 Interest-bearing NOW accounts 625,362 623,135 Money market 587,389 559,297 Savings accounts 242,377 237,380 Time deposits 544,674 540,860 Total interest-bearing deposits 1,999,802 1,960,672 Total deposits $ 2,443,357 $ 2,434,100 |
Pension and Other Postretirem33
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic pension and benefit costs | Pension Benefits Other Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 (Dollars in thousands) Service cost $ - $ - $ 16 $ 14 Interest cost 234 250 23 25 Expected return on plan assets (336 ) (295 ) - - Amortization: Loss 163 176 - - Prior service cost - - (12 ) (13 ) Recognized net gain - - (2 ) (2 ) Net periodic benefit cost $ 61 $ 131 $ 25 $ 24 |
Schedule of shares held by the ESOP | Shares held by the ESOP include the following as of March 31, 2018: Allocated 667,527 Committed to be released 23,514 Unallocated 739,375 1,430,416 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of weighted-average assumptions | 2018 2017 Weighted per share average fair value of options granted $ 4.81 $ 5.09 Weighted-average assumptions: Risk-free interest rate 2.69 % 2.05 % Expected volatility 22.11 % 22.08 % Expected dividend yield 2.49 % 1.94 % Weighted-average dividend yield 2.44% - 2.53 % 1.89% - 2.00 % Expected life of options granted 6.0 years 6.0 years |
Schedule of stock option activity | Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2017 1,437,426 $ 13.36 Granted 38,600 25.05 Exercised (26,462 ) 13.02 Forfeited - - Expired - - Outstanding at March 31, 2018 1,449,564 $ 13.68 4.80 $ 17,298 Exercisable at March 31, 2018 1,367,262 $ 13.10 4.54 $ 17,091 |
Schedule of summary of the status of the Company's restricted stock | Restricted Stock Awards Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Number of Weighted-Average Number of Weighted-Average Number of Weighted-Average Unvested at December 31, 2017 - $ - 14,012 $ 24.48 14,686 $ 21.60 Granted 2,646 26.50 14,701 25.05 15,210 22.25 Vested (2,646 ) 26.50 (4,335 ) 24.27 - - Forfeited - - - - - - Unvested at March 31, 2018 - $ - 24,378 $ 24.86 29,896 $ 21.93 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate swaps that were not designated for hedge accounting | March 31, 2018 December 31, 2017 (Dollars in thousands) Consolidated Notional Fair Value Notional Fair Value Commercial loan customer interest rate swap position Other Assets $ 134,891 $ 2,043 $ 197,086 $ 4,927 Counterparty interest rate swap position Other Assets 312,877 10,629 214,642 5,356 Commercial loan customer interest rate swap position Other Liabilities 312,877 (10,614 ) 214,642 (5,318 ) Counterparty interest rate swap position Other Liabilities 134,891 (2,068 ) 197,086 (5,013 ) |
Offsetting of Financial Asset36
Offsetting of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Offsetting [Abstract] | |
Schedule of contractual maturities of repurchase agreement borrowings and repurchase liabilities | March 31, 2018 December 31, 2017 Remaining Contractual Maturity of the Agreements Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight Up to One One Year to Total Overnight Up to One One Year to Total Repurchase agreement borrowings U.S. Government agency obligations $ - $ - $ - $ - $ - $ 6,000 $ - $ 6,000 Government sponsored residential mortgage-backed securities - - - - - 4,500 - 4,500 Total repurchase agreement borrowings - - - - - 10,500 - 10,500 Repurchase liabilities U.S. Government agency obligations 16,851 - - 16,851 34,496 - - 34,496 Total repurchase liabilities 16,851 - - 16,851 34,496 - - 34,496 Total $ 16,851 $ - $ - $ 16,851 $ 34,496 $ 10,500 $ - $ 44,996 |
Schedule of potential effect of rights of setoff associated with recognized financial assets and liabilities | March 31, 2018 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 12,672 $ - $ 12,672 $ - $ - $ - $ 12,672 Total $ 12,672 $ - $ 12,672 $ - $ - $ - $ 12,672 March 31, 2018 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 12,682 $ - $ 12,682 $ - $ - $ - $ 12,682 Total $ 12,682 $ - $ 12,682 $ - $ - $ - $ 12,682 December 31, 2017 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,283 $ - $ 10,283 $ - $ - $ - $ 10,283 Total $ 10,283 $ - $ 10,283 $ - $ - $ - $ 10,283 December 31, 2017 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,331 $ - $ 10,331 $ - $ - $ - $ 10,331 Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 20,831 $ - $ 20,831 $ - $ 10,500 $ - $ 10,331 |
Financial Instruments with Of37
Financial Instruments with Off-Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Schedule of contract amounts represent credit risk of financial instruments | March 31, December 31, 2018 2017 (Dollars in thousands) Approved loan commitments $ 85,934 $ 39,974 Unadvanced portion of construction loans 57,547 50,014 Unused lines for home equity loans 206,148 205,350 Unused revolving lines of credit 321 336 Unused commercial letters of credit 3,498 3,940 Unused commercial lines of credit 244,589 219,597 $ 598,037 $ 519,211 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | March 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets Debt securities available-for-sale: U.S. Treasury obligations $ 11,815 $ - $ 11,815 $ - U.S. Government agency obligations 58,481 - 58,481 - Government sponsored residential mortgage-backed securities 18,811 - 18,811 - Equity securities 6,838 2,005 4,833 - Interest rate swap derivative 12,672 - 12,672 - Derivative loan commitments 148 - - 148 Total $ 108,765 $ 2,005 $ 106,612 $ 148 Liabilities Interest rate swap derivative $ 12,682 $ - $ 12,682 $ - Risk participation agreements 13 - 13 - Forward loan sales commitments 96 - - 96 Total $ 12,791 $ - $ 12,695 $ 96 December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets Debt securities available-for-sale: U.S. Treasury obligations $ 11,909 $ - $ 11,909 $ - U.S. Government agency obligations 65,656 - 65,656 - Government sponsored residential mortgage-backed securities 2,793 - 2,793 - Equity securities 6,893 1,994 4,899 - Interest rate swap derivative 10,283 - 10,283 - Risk participation agreements 1 - 1 - Derivative loan commitments 126 - - 126 Total $ 97,661 $ 1,994 $ 95,541 $ 126 Liabilities Interest rate swap derivative $ 10,331 $ - $ 10,331 $ - Risk participation agreements 23 - 23 - Forward loan sales commitments 56 - - 56 Total $ 10,410 $ - $ 10,354 $ 56 |
Schedule of additional information about assets measured at fair value of utilized Level 3 inputs | Derivative and Forward Loan Sales For the Three Months Ended March 31, 2018 2017 (Dollars in thousands) Balance, at beginning of period $ 70 $ 183 Total realized (loss) gain: Included in earnings (18 ) (44 ) Balance, at the end of period $ 52 $ 139 |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis | March 31, 2018 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 52 Adjusted quoted prices in active markets Embedded servicing value 1.32 % December 31, 2017 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 70 Adjusted quoted prices in active markets Embedded servicing value 1.33 % |
Schedule of financial instruments carried at fair value on a nonrecurring basis | March 31, 2018 December 31, 2017 Quoted Prices in Significant Significant Quoted Prices in Significant Significant Active Markets for Observable Unobservable Active Markets for Observable Unobservable Identical Assets Inputs Inputs Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) (Dollars in thousands) Impaired loans $ - $ - $ 1,199 $ - $ - $ 2,645 Other real estate owned - - 2,164 - - - |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis | March 31, 2018 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 1,199 Appraisals Discount for dated appraisal 5% - 20% 12.50 % Discount for costs to sell 8% - 15% 11.50 % Other real estate owned $ 2,164 Appraisals Discount for costs to sell 8% - 15% 11.50 % Discount for condition 10% - 30% 20.00 % December 31, 2017 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 2,645 Appraisals Discount for dated appraisal 5% - 20% 12.50 % Discount for costs to sell 8% - 15% 11.50 % |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments | March 31, 2018 December 31, 2017 GAAP Estimated Estimated Measurement Fair Value Carrying Fair Carrying Fair Category Hierarchy Level Amount Value Amount Value (Dollars in thousands) Financial assets Debt securities held-to-maturity Amortized Cost Level 2 $ 80,977 $ 79,380 $ 74,985 $ 74,554 Debt securities available-for-sale Fair Value See previous table 89,107 89,107 80,358 80,358 Equity securities Fair Value See previous table 6,838 6,838 6,893 6,893 Loans (1) Amortized Cost Level 3 2,816,807 2,690,031 2,748,081 2,699,794 Loans held-for-sale Lower of Cost or Market Level 2 5,980 5,995 5,295 5,375 Mortgage servicing rights Lower of Cost or Market Level 3 5,406 7,636 5,399 7,274 Federal Home Loan Bank of Boston stock Amortized Cost Level 2 17,665 17,665 15,537 15,537 Alternative investments Amortized Cost Level 3 2,083 1,898 2,112 1,939 Interest rate swap derivatives Fair Value Level 2 12,672 12,672 10,283 10,283 Risk participation agreements Fair Value Level 2 - - 1 1 Derivative loan commitments Fair Value Level 3 148 148 126 126 Financial liabilities Deposits other than time deposits Amortized Cost Level 1 1,898,683 1,898,683 1,893,240 1,893,240 Time deposits Amortized Cost Level 2 544,674 548,641 540,860 544,968 Federal Home Loan Bank of Boston advances Amortized Cost Level 2 355,457 353,142 255,458 254,228 Repurchase agreement borrowings Amortized Cost Level 2 - - 10,500 10,394 Repurchase liabilities Amortized Cost Level 2 16,851 16,838 34,496 34,475 (1) Per ASU 2016-01 which became effective January 1, 2018, the fair value of loans was determined using an exit price methodology in the current period. Prior period loans fair value was estimated based on an entrance price methodology therefore the fair value adjustments between periods are not comparable. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Regulatory Matters Disclosure [Abstract] | |
Schedule of capital amounts and ratios for the Company and the Bank | Actual Minimum Required To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At March 31, 2018 Total Capital (to Risk Weighted Assets) $ 280,093 11.30 % $ 198,266 8.00 % $ 247,833 10.00 % Tier I Capital (to Risk Weighted Assets) 257,388 10.39 148,699 6.00 198,265 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 257,388 10.39 111,524 4.50 161,091 6.50 Tier I Leverage Capital (to Average Assets) 257,388 8.31 123,941 4.00 154,926 5.00 At December 31, 2017 Total Capital (to Risk Weighted Assets) $ 272,227 11.20 % $ 194,415 8.00 % $ 243,019 10.00 % Tier I Capital (to Risk Weighted Assets) 249,777 10.28 145,811 6.00 194,415 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 249,777 10.28 109,358 4.50 157,962 6.50 Tier I Leverage Capital (to Average Assets) 249,777 8.28 120,598 4.00 150,748 5.00 First Connecticut Bancorp, Inc.: At March 31, 2018 Total Capital (to Risk Weighted Assets) $ 306,964 12.38 % $ 198,329 8.00 % $ 247,911 10.00 % Tier I Capital (to Risk Weighted Assets) 284,259 11.47 148,748 6.00 198,330 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 284,259 11.47 111,561 4.50 161,143 6.50 Tier I Leverage Capital (to Average Assets) 284,259 9.17 123,963 4.00 154,953 5.00 At December 31, 2017 Total Capital (to Risk Weighted Assets) $ 300,876 12.38 % $ 194,485 8.00 % $ 243,107 10.00 % Tier I Capital (to Risk Weighted Assets) 278,426 11.45 145,864 6.00 194,486 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 278,426 11.45 109,398 4.50 158,020 6.50 Tier I Leverage Capital (to Average Assets) 278,426 9.23 120,606 4.00 150,758 5.00 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive loss, net of tax by component | For the Three Months Ended March 31, 2018 Debt Securities Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2017 $ (368 ) $ (5,861 ) $ (6,229 ) Other comprehensive loss during the period (326 ) - (326 ) Amount reclassified from accumulated other comprehensive loss, net of tax - 117 117 Net change (326 ) 117 (209 ) Balance at March 31, 2018 $ (694 ) $ (5,744 ) $ (6,438 ) For the Three Months Ended March 31, 2017 Investment Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2016 $ (263 ) $ (6,427 ) $ (6,690 ) Other comprehensive income during the period 89 - 89 Amount reclassified from accumulated other comprehensive loss, net of tax - 105 105 Net change 89 105 194 Balance at March 31, 2017 $ (174 ) $ (6,322 ) $ (6,496 ) |
Schedule of reconciliation of the changes in components of other comprehensive (loss) income | For the Three Months Ended March 31, 2018 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale debt securities $ (415 ) $ 89 $ (326 ) Less: net debt security gains reclassified into other noninterest income - - - Net change in fair value of debt securities available-for-sale (415 ) 89 (326 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 149 (32 ) 117 Total other comprehensive loss $ (266 ) $ 57 $ (209 ) For the Three Months Ended March 31, 2017 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized gains on available-for-sale securities $ 137 $ (48 ) $ 89 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 137 (48 ) 89 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 163 (58 ) 105 Total other comprehensive income $ 300 $ (106 ) $ 194 (1) Amounts are included in other operating expenses in the unaudited Consolidated Statements of Income. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Salaries and employee benefits | $ 9,772 | $ 9,140 |
Other operating expenses | $ 3,161 | 2,720 |
Impact of Adoption of ASU 2017-07 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Salaries and employee benefits | (187) | |
Other operating expenses | 187 | |
As previously reported | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Salaries and employee benefits | 9,327 | |
Other operating expenses | $ 2,533 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Detail Textuals) | Mar. 31, 2018Office | Jun. 21, 2013shares |
Accounting Policies [Abstract] | ||
Number of branch offices | Office | 25 | |
Number of shares approved for repurchase | 1,676,452 | |
Shares to be repurchased in percentage | 10.00% | |
Number of shares remaining to repurchase | 600,945 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Detail Textuals 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Minimum limit of nonaccrual loans outstanding | $ 100,000 | |
Foreclosed real estate included in prepaid expenses and other assets | $ 2,164 | $ 0 |
Defined benefit plans, general information | In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. | |
Recorded investment | $ 1,600 | |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of unallocated allowances | 0.00% | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of unallocated allowances | 5.00% | |
Real estate | Residential real estate | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Threshold percentage limit of purchase price of the property | 95.00% | |
Maximum limit loan-to-value ratio in percentage | 80.00% | |
Home equity line of credit | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Maximum limit loan-to-value ratio in percentage | 80.00% | |
Term of line of credit | 9 years 10 months | |
Amortization period | 20 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Detail Textuals 2) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
US corporate income tax rate | 35.00% | |
Corporate income tax rate effective in 2018 | 21.00% | |
Impact of tax rate changes | $ 5,000,000 | |
Reduction in the value of deferred tax asset due to change in federal tax rate | $ 5,000,000 | |
Reclass stranded tax effects to retained earnings per ASU | $ 1,275,000 | |
ASU No. 2016-01 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reclass stranded tax effects to retained earnings per ASU | $ 315,000 |
Restrictions on Cash and Due 45
Restrictions on Cash and Due from Banks (Detail Textuals) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Restrictions On Cash and Due From Banks [Abstract] | ||
Cash and liquid assets | $ 7.5 | $ 9.2 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 6,011 | $ 5,093 | |
Less: Dividends to participating shares | (9) | (3) | |
Income allocated to participating shares | (9) | (3) | |
Net income allocated to common stockholders | $ 5,993 | $ 5,087 | |
Weighted-average shares issued (in shares) | 17,984,750 | 17,959,649 | |
Less: Average unallocated ESOP shares | (754,806) | (850,167) | |
Average treasury stock | (1,977,443) | (2,029,444) | |
Average unvested restricted stock | (37,662) | (12,002) | |
Weighted-average basic shares outstanding (in shares) | 15,214,839 | 15,068,036 | |
Plus: Average dilutive shares | 685,249 | 623,302 | |
Weighted-average diluted shares outstanding (in shares) | 15,900,088 | 15,691,338 | |
Net earnings per share: | |||
Basic (in dollars per share) | [1] | $ 0.39 | $ 0.34 |
Diluted (in dollars per share) | [1] | $ 0.38 | $ 0.32 |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from earnings per share calculation | 6,599 | 797 |
Investment Securities - Summary
Investment Securities - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale | ||
Amortized Cost | $ 89,688 | $ 80,524 |
Gross Unrealized Gains - Recognized in OCI | 135 | 195 |
Gross Unrealized Losses - Recognized in OCI | (716) | (361) |
Carrying Value | 89,107 | 80,358 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses -Not Recognized in OCI | 0 | 0 |
Fair Value | 89,107 | 80,358 |
Held-to-maturity | ||
Amortized Cost | 80,977 | 74,985 |
Gross Unrealized Gains - Recognized in OCI | 0 | 0 |
Gross Unrealized losses - Recognized in OCI | 0 | 0 |
Carrying Value | 80,977 | 74,985 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 29 |
Gross Unrealized Losses - Not Recognized in OCI | (1,597) | (460) |
Fair Value | 79,380 | 74,554 |
U.S. Treasury obligations | ||
Available-for-sale | ||
Amortized Cost | 11,847 | 11,847 |
Gross Unrealized Gains - Recognized in OCI | 43 | 79 |
Gross Unrealized Losses - Recognized in OCI | (75) | (17) |
Carrying Value | 11,815 | 11,909 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses -Not Recognized in OCI | 0 | 0 |
Fair Value | 11,815 | 11,909 |
Held-to-maturity | ||
Amortized Cost | 4,991 | 4,991 |
Gross Unrealized Gains - Recognized in OCI | 0 | 0 |
Gross Unrealized losses - Recognized in OCI | 0 | 0 |
Carrying Value | 4,991 | 4,991 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses - Not Recognized in OCI | (71) | 0 |
Fair Value | 4,920 | 4,991 |
U.S. Government agency obligations | ||
Available-for-sale | ||
Amortized Cost | 59,000 | 66,000 |
Gross Unrealized Gains - Recognized in OCI | 0 | 0 |
Gross Unrealized Losses - Recognized in OCI | (519) | (344) |
Carrying Value | 58,481 | 65,656 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses -Not Recognized in OCI | 0 | 0 |
Fair Value | 58,481 | 65,656 |
Held-to-maturity | ||
Amortized Cost | 44,982 | 37,982 |
Gross Unrealized Gains - Recognized in OCI | 0 | 0 |
Gross Unrealized losses - Recognized in OCI | 0 | 0 |
Carrying Value | 44,982 | 37,982 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses - Not Recognized in OCI | (966) | (432) |
Fair Value | 44,016 | 37,550 |
Government sponsored residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 18,841 | 2,677 |
Gross Unrealized Gains - Recognized in OCI | 92 | 116 |
Gross Unrealized Losses - Recognized in OCI | (122) | 0 |
Carrying Value | 18,811 | 2,793 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 0 |
Gross Unrealized Losses -Not Recognized in OCI | 0 | 0 |
Fair Value | 18,811 | 2,793 |
Held-to-maturity | ||
Amortized Cost | 31,004 | 32,012 |
Gross Unrealized Gains - Recognized in OCI | 0 | 0 |
Gross Unrealized losses - Recognized in OCI | 0 | 0 |
Carrying Value | 31,004 | 32,012 |
Gross Unrealized Gains - Not Recognized in OCI | 0 | 29 |
Gross Unrealized Losses - Not Recognized in OCI | (560) | (28) |
Fair Value | $ 30,444 | $ 32,013 |
Investment Securities - Gross u
Investment Securities - Gross unrealized losses and fair value (Details 1) $ in Thousands | Mar. 31, 2018USD ($)SecuritiesSecurity | Dec. 31, 2017USD ($)SecuritiesSecurity |
Available-for-sale: | ||
Number of Securities | Security | 13 | 11 |
Less than 12 Months Fair Value | $ 46,981 | $ 23,911 |
Less than 12 months Gross Unrealized Loss | (432) | (90) |
12 months or more Fair Value | 32,716 | 46,729 |
12 months or more Gross Unrealized Loss | (284) | (271) |
Total Fair Value | 79,697 | 70,640 |
Total Gross Unrealized Loss | $ (716) | $ (361) |
Held-to-maturity | ||
Number of Securities | Securities | 15 | 10 |
Less than 12 months Fair Value | $ 74,460 | $ 49,577 |
Less than 12 Months Gross Unrealized Loss | (1,518) | (396) |
12 months or more Fair Value | 4,920 | 4,935 |
12 months or more Gross Unrealized Loss | (79) | (64) |
Total Fair Value | 79,380 | 54,512 |
Total Gross Unrealized Loss | $ (1,597) | $ (460) |
Investment securities | ||
Total number of securities | Security | 28 | 21 |
Total investment securities in an unrealized loss position less than 12 months fair value | $ 121,441 | $ 73,488 |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (1,950) | (486) |
Total investment securities in an unrealized loss position 12 months or more fair value | 37,636 | 51,664 |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (363) | (335) |
Total investment securities in an unrealized loss position fair value | 159,077 | 125,152 |
Total investment securities in an unrealized loss position gross unrealized loss | $ (2,313) | $ (821) |
U.S. Treasury obligations | ||
Available-for-sale: | ||
Number of Securities | Security | 1 | 1 |
Less than 12 Months Fair Value | $ 4,925 | $ 4,984 |
Less than 12 months Gross Unrealized Loss | (75) | (17) |
12 months or more Fair Value | 0 | 0 |
12 months or more Gross Unrealized Loss | 0 | 0 |
Total Fair Value | 4,925 | 4,984 |
Total Gross Unrealized Loss | $ (75) | $ (17) |
Held-to-maturity | ||
Number of Securities | Securities | 1 | |
Less than 12 months Fair Value | $ 4,920 | |
Less than 12 Months Gross Unrealized Loss | (71) | |
12 months or more Fair Value | 0 | |
12 months or more Gross Unrealized Loss | 0 | |
Total Fair Value | 4,920 | |
Total Gross Unrealized Loss | $ (71) | |
U.S. Government agency obligations | ||
Available-for-sale: | ||
Number of Securities | Security | 9 | 10 |
Less than 12 Months Fair Value | $ 25,765 | $ 18,927 |
Less than 12 months Gross Unrealized Loss | (235) | (73) |
12 months or more Fair Value | 32,716 | 46,729 |
12 months or more Gross Unrealized Loss | (284) | (271) |
Total Fair Value | 58,481 | 65,656 |
Total Gross Unrealized Loss | $ (519) | $ (344) |
Held-to-maturity | ||
Number of Securities | Securities | 7 | 6 |
Less than 12 months Fair Value | $ 39,096 | $ 32,614 |
Less than 12 Months Gross Unrealized Loss | (887) | (368) |
12 months or more Fair Value | 4,920 | 4,935 |
12 months or more Gross Unrealized Loss | (79) | (64) |
Total Fair Value | 44,016 | 37,549 |
Total Gross Unrealized Loss | $ (966) | $ (432) |
Government sponsored residential mortgage-backed securities | ||
Available-for-sale: | ||
Number of Securities | Security | 3 | |
Less than 12 Months Fair Value | $ 16,291 | |
Less than 12 months Gross Unrealized Loss | (122) | |
12 months or more Fair Value | 0 | |
12 months or more Gross Unrealized Loss | 0 | |
Total Fair Value | 16,291 | |
Total Gross Unrealized Loss | $ (122) | |
Held-to-maturity | ||
Number of Securities | Securities | 7 | 4 |
Less than 12 months Fair Value | $ 30,444 | $ 16,963 |
Less than 12 Months Gross Unrealized Loss | (560) | (28) |
12 months or more Fair Value | 0 | 0 |
12 months or more Gross Unrealized Loss | 0 | 0 |
Total Fair Value | 30,444 | 16,963 |
Total Gross Unrealized Loss | $ (560) | $ (28) |
Investment Securities - Amortiz
Investment Securities - Amortized cost and estimated market value of debt securities (Details 2) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-Sale - Amortized Cost | ||
Due in one year or less | $ 19,000 | $ 28,000 |
Due after one year through five years | 51,847 | 49,847 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Government sponsored residential mortgage-backed securities, available-for-sale, amortized cost | 18,841 | 2,677 |
Available-for-sale, Amortized Cost | 89,688 | 80,524 |
Available-for-Sale - Estimated Fair Value | ||
Due in one year or less | 18,898 | 27,919 |
Due after one year through five years | 51,398 | 49,646 |
Due after five years through ten years | 0 | 0 |
Due after ten years | 0 | 0 |
Government sponsored residential mortgage-backed securities, available-for-sale, fair value | 18,811 | 2,793 |
Carrying Value | 89,107 | 80,358 |
Held-to-Maturity - Amortized Cost | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 30,991 | 30,991 |
Due after five years through ten years | 18,982 | 11,982 |
Due after ten years | 0 | 0 |
Government sponsored residential mortgage-backed securities | 31,004 | 32,012 |
Held-to-Maturity, Amortized Cost | 80,977 | 74,985 |
Held-to-Maturity - Estimated Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 30,253 | 30,640 |
Due after five years through ten years | 18,683 | 11,901 |
Due after ten years | 0 | 0 |
Government sponsored residential mortgage-backed securities, held-to-maturity, fair value | 30,444 | 32,013 |
Held-to-Maturity, Estimated Fair Value | $ 79,380 | $ 74,554 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
U.S. Treasury, U.S. Government agency obligations and Government sponsored residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of securities pledged as collateral for loan derivatives, public funds, repurchase liabilities and repurchase agreement borrowings | $ 70.5 | $ 93.3 |
Investment Securities (Detail52
Investment Securities (Detail Textuals 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 17,665 | $ 15,537 |
Federal Home Loan Bank Of Boston | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 17,700 | $ 15,500 |
Investment Securities (Detail53
Investment Securities (Detail Textuals 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Fair value of equity securities | $ 6,838,000 | $ 6,893,000 |
Realized loss on equity securities | $ 88,000 |
Investment Securities (Detail54
Investment Securities (Detail Textuals 3) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Profit distributions in limited partnerships for alternative investments | $ 7,000 | $ 11,000 | |
Unfunded commitments for alternative investments | 1,600,000 | ||
Other noninterest income | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Other-than-temporary impairment charge | 0 | $ 10,000 | |
Other assets | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Alternative investments | $ 2,100,000 | $ 2,100,000 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,811,000 | $ 2,743,016 | ||
Net deferred loan costs | 5,807 | 5,065 | ||
Loans | 2,816,807 | 2,748,081 | ||
Allowance for loan losses | (22,620) | (22,448) | $ (21,349) | $ (21,529) |
Loans, net | 2,794,187 | 2,725,633 | ||
Real estate | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,059,116 | 989,366 | ||
Allowance for loan losses | (4,505) | (4,137) | (4,247) | (4,134) |
Real estate | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,071,485 | 1,063,755 | ||
Allowance for loan losses | (12,047) | (11,963) | (11,240) | (11,131) |
Real estate | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 98,469 | 90,059 | ||
Allowance for loan losses | (891) | (785) | (518) | (425) |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 417,660 | 429,116 | ||
Allowance for loan losses | (3,990) | (4,155) | (3,915) | (4,400) |
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 159,030 | 165,070 | ||
Allowance for loan losses | (1,148) | (1,364) | (1,380) | (1,398) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 5,240 | 5,650 | ||
Allowance for loan losses | $ (39) | $ (44) | $ (49) | $ (41) |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Changes in allowance for loan losses by segments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 22,448 | $ 21,529 |
Charge-offs | (303) | (515) |
Recoveries | 10 | 10 |
Provision for (Reduction of) loan losses | 465 | 325 |
Balance at end of period | 22,620 | 21,349 |
Real estate | Residential | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 4,137 | 4,134 |
Charge-offs | (200) | (31) |
Recoveries | 0 | 0 |
Provision for (Reduction of) loan losses | 568 | 144 |
Balance at end of period | 4,505 | 4,247 |
Real estate | Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 11,963 | 11,131 |
Charge-offs | 0 | (111) |
Recoveries | 0 | 0 |
Provision for (Reduction of) loan losses | 84 | 220 |
Balance at end of period | 12,047 | 11,240 |
Real estate | Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 785 | 425 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision for (Reduction of) loan losses | 106 | 93 |
Balance at end of period | 891 | 518 |
Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 4,155 | 4,400 |
Charge-offs | (14) | (322) |
Recoveries | 0 | 0 |
Provision for (Reduction of) loan losses | (151) | (163) |
Balance at end of period | 3,990 | 3,915 |
Home equity line of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 1,364 | 1,398 |
Charge-offs | (54) | 0 |
Recoveries | 0 | 0 |
Provision for (Reduction of) loan losses | (162) | (18) |
Balance at end of period | 1,148 | 1,380 |
Other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 44 | 41 |
Charge-offs | (35) | (51) |
Recoveries | 10 | 10 |
Provision for (Reduction of) loan losses | 20 | 49 |
Balance at end of period | $ 39 | $ 49 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Allocation of allowance by impairment methodology and by loan segment (Details 2) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | $ 28,383 | $ 30,194 | ||
Reserve Allocation - Loans individually evaluated for impairment | 206 | 174 | ||
Total -Loans collectively evaluated for impairment | 2,788,424 | 2,717,887 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 22,414 | 22,274 | ||
Total loans | 2,816,807 | 2,748,081 | ||
Total Reserve Allocation | 22,620 | 22,448 | $ 21,349 | $ 21,529 |
Real estate | Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 10,735 | 12,971 | ||
Reserve Allocation - Loans individually evaluated for impairment | 124 | 130 | ||
Total -Loans collectively evaluated for impairment | 1,055,292 | 982,626 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 4,381 | 4,007 | ||
Total Reserve Allocation | 4,505 | 4,137 | 4,247 | 4,134 |
Real estate | Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 8,453 | 8,521 | ||
Reserve Allocation - Loans individually evaluated for impairment | 0 | 0 | ||
Total -Loans collectively evaluated for impairment | 1,061,975 | 1,054,122 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 12,047 | 11,963 | ||
Total Reserve Allocation | 12,047 | 11,963 | 11,240 | 11,131 |
Real estate | Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 4,532 | 4,532 | ||
Reserve Allocation - Loans individually evaluated for impairment | 0 | 0 | ||
Total -Loans collectively evaluated for impairment | 93,937 | 85,527 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 891 | 785 | ||
Total Reserve Allocation | 891 | 785 | 518 | 425 |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 1,606 | 1,076 | ||
Reserve Allocation - Loans individually evaluated for impairment | 72 | 38 | ||
Total -Loans collectively evaluated for impairment | 416,007 | 427,986 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 3,918 | 4,117 | ||
Total Reserve Allocation | 3,990 | 4,155 | 3,915 | 4,400 |
Home equity line of credit | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 2,586 | 2,585 | ||
Reserve Allocation - Loans individually evaluated for impairment | 4 | 0 | ||
Total -Loans collectively evaluated for impairment | 156,444 | 162,485 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 1,144 | 1,364 | ||
Total Reserve Allocation | 1,148 | 1,364 | 1,380 | 1,398 |
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total - Loans individually evaluated for impairment | 471 | 509 | ||
Reserve Allocation - Loans individually evaluated for impairment | 6 | 6 | ||
Total -Loans collectively evaluated for impairment | 4,769 | 5,141 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 33 | 38 | ||
Total Reserve Allocation | $ 39 | $ 44 | $ 49 | $ 41 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Summary of loan delinquencies at recorded investment (Details 3) $ in Thousands | Mar. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 52 | 63 |
Loan receivable, recorded investment | $ 13,036 | $ 17,254 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 27 | 23 |
Loan receivable, recorded investment | $ 3,195 | $ 2,809 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 11 |
Loan receivable, recorded investment | $ 47 | $ 1,944 |
> 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 23 | 29 |
Loan receivable, recorded investment | $ 9,794 | $ 12,501 |
Real estate | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 33 | 42 |
Loan receivable, recorded investment | $ 7,613 | $ 11,636 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Real estate | Residential | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 18 | 13 |
Loan receivable, recorded investment | $ 2,908 | $ 2,445 |
Real estate | Residential | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 9 |
Loan receivable, recorded investment | $ 0 | $ 1,874 |
Real estate | Residential | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 15 | 20 |
Loan receivable, recorded investment | $ 4,705 | $ 7,317 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 178 | $ 67 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Real estate | Commercial | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 178 | $ 67 |
Real estate | Commercial | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 0 |
Loan receivable, recorded investment | $ 0 | $ 0 |
Real estate | Commercial | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 0 |
Loan receivable, recorded investment | $ 0 | $ 0 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 4,532 | $ 4,532 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Real estate | Construction | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 0 |
Loan receivable, recorded investment | $ 0 | $ 0 |
Real estate | Construction | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 0 |
Loan receivable, recorded investment | $ 0 | $ 0 |
Real estate | Construction | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 4,532 | $ 4,532 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 2 |
Loan receivable, recorded investment | $ 58 | $ 60 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Commercial | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 0 |
Loan receivable, recorded investment | $ 20 | $ 0 |
Commercial | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 1 |
Loan receivable, recorded investment | $ 0 | $ 22 |
Commercial | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 38 | $ 38 |
Home equity line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 6 | 7 |
Loan receivable, recorded investment | $ 575 | $ 855 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Home equity line of credit | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 2 |
Loan receivable, recorded investment | $ 37 | $ 223 |
Home equity line of credit | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 1 |
Loan receivable, recorded investment | $ 47 | $ 48 |
Home equity line of credit | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 4 |
Loan receivable, recorded investment | $ 491 | $ 584 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 9 | 10 |
Loan receivable, recorded investment | $ 80 | $ 104 |
Loan receivable, recorded investment, 90 days past due and still accruing | $ 0 | $ 0 |
Other | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 6 | 7 |
Loan receivable, recorded investment | $ 52 | $ 74 |
Other | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 0 | 0 |
Loan receivable, recorded investment | $ 0 | $ 0 |
Other | > 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 3 |
Loan receivable, recorded investment | $ 28 | $ 30 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Nonperforming assets (Details 4) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | $ 12,872 | $ 15,792 |
Loans 90 days past due and still accruing | 0 | 0 |
Other real estate owned | 2,164 | 0 |
Total nonperforming assets | 15,036 | 15,792 |
Real estate | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 6,919 | 9,401 |
Loans 90 days past due and still accruing | 0 | 0 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 62 | 67 |
Loans 90 days past due and still accruing | 0 | 0 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 4,532 | 4,532 |
Loans 90 days past due and still accruing | 0 | 0 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 757 | 775 |
Loans 90 days past due and still accruing | 0 | 0 |
Home equity line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 551 | 963 |
Loans 90 days past due and still accruing | 0 | 0 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccruing loans | 51 | 54 |
Loans 90 days past due and still accruing | $ 0 | $ 0 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Summary of impaired loans (Details 5) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 27,294 | $ 29,084 |
Unpaid Principal Balance | 29,137 | 31,655 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 1,089 | 1,110 |
Unpaid Principal Balance | 1,145 | 1,152 |
Related Allowance | 206 | 174 |
Total Recorded Investment | 28,383 | 30,194 |
Total Unpaid Principal Balance | 30,282 | 32,807 |
Total Related Allowance | 206 | 174 |
Real estate | Residential | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 9,779 | 11,923 |
Unpaid Principal Balance | 11,210 | 14,119 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 956 | 1,048 |
Unpaid Principal Balance | 973 | 1,066 |
Related Allowance | 124 | 130 |
Real estate | Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 8,453 | 8,521 |
Unpaid Principal Balance | 8,488 | 8,555 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Real estate | Construction | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 4,532 | 4,532 |
Unpaid Principal Balance | 4,532 | 4,532 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,534 | 1,038 |
Unpaid Principal Balance | 1,812 | 1,303 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 72 | 38 |
Unpaid Principal Balance | 110 | 62 |
Related Allowance | 72 | 38 |
Home equity line of credit | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 2,548 | 2,585 |
Unpaid Principal Balance | 2,627 | 2,642 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 38 | 0 |
Unpaid Principal Balance | 39 | 0 |
Related Allowance | 4 | 0 |
Other | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 448 | 485 |
Unpaid Principal Balance | 468 | 504 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 23 | 24 |
Unpaid Principal Balance | 23 | 24 |
Related Allowance | $ 6 | $ 6 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses - Summary of information pertaining to impaired loans (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Impaired loans without a valuation allowance | ||
Average Recorded Investment | $ 28,565 | $ 31,123 |
Interest Income Recognized | 166 | 142 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 1,063 | 4,503 |
Interest Income Recognized | 10 | 41 |
Total Average Recorded Investment | 29,628 | 35,626 |
Total Interest Income Recognized | 176 | 183 |
Real estate | Residential | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 11,380 | 11,456 |
Interest Income Recognized | 31 | 27 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 984 | 1,123 |
Interest Income Recognized | 10 | 7 |
Real estate | Commercial | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 8,505 | 10,775 |
Interest Income Recognized | 95 | 96 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 0 | 2,874 |
Interest Income Recognized | 0 | 34 |
Real estate | Construction | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 4,532 | 4,626 |
Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Commercial | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 1,363 | 1,743 |
Interest Income Recognized | 13 | 3 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 45 | 481 |
Interest Income Recognized | 0 | 0 |
Home equity line of credit | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 2,288 | 1,823 |
Interest Income Recognized | 21 | 9 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 10 | 0 |
Interest Income Recognized | 0 | 0 |
Other | ||
Impaired loans without a valuation allowance | ||
Average Recorded Investment | 497 | 700 |
Interest Income Recognized | 6 | 7 |
Impaired loans with a valuation allowance | ||
Average Recorded Investment | 24 | 25 |
Interest Income Recognized | $ 0 | $ 0 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Information modified in a troubled debt restructuring (Details 7) $ in Thousands | Mar. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan |
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 46 | 41 |
TDRs on Accrual Status of Recorded Investment | $ | $ 7,245 | $ 6,172 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 20 | 20 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 7,111 | $ 9,484 |
Number of Total TDRs of Loans | Loan | 66 | 61 |
Total TDRs of Recorded Investment | $ | $ 14,356 | $ 15,656 |
Real estate | Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 20 | 18 |
TDRs on Accrual Status of Recorded Investment | $ | $ 3,284 | $ 3,025 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 11 | 12 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 1,784 | $ 3,854 |
Number of Total TDRs of Loans | Loan | 31 | 30 |
Total TDRs of Recorded Investment | $ | $ 5,068 | $ 6,879 |
Real estate | Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 2 | 2 |
TDRs on Accrual Status of Recorded Investment | $ | $ 617 | $ 621 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 0 | 0 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 0 | $ 0 |
Number of Total TDRs of Loans | Loan | 2 | 2 |
Total TDRs of Recorded Investment | $ | $ 617 | $ 621 |
Real estate | Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 0 | 0 |
TDRs on Accrual Status of Recorded Investment | $ | $ 0 | $ 0 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 1 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 4,532 | $ 4,532 |
Number of Total TDRs of Loans | Loan | 1 | 1 |
Total TDRs of Recorded Investment | $ | $ 4,532 | $ 4,532 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 3 | 2 |
TDRs on Accrual Status of Recorded Investment | $ | $ 847 | $ 300 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 5 | 5 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 724 | $ 776 |
Number of Total TDRs of Loans | Loan | 8 | 7 |
Total TDRs of Recorded Investment | $ | $ 1,571 | $ 1,076 |
Home equity line of credit | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 16 | 14 |
TDRs on Accrual Status of Recorded Investment | $ | $ 2,036 | $ 1,731 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 2 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 60 | $ 309 |
Number of Total TDRs of Loans | Loan | 18 | 15 |
Total TDRs of Recorded Investment | $ | $ 2,096 | $ 2,040 |
Other | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 5 | 5 |
TDRs on Accrual Status of Recorded Investment | $ | $ 461 | $ 495 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 1 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 11 | $ 13 |
Number of Total TDRs of Loans | Loan | 6 | 6 |
Total TDRs of Recorded Investment | $ | $ 472 | $ 508 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Recorded investment and number of modifications for modified loans (Details 8) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | ||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 9 | 6 | |
Recorded Investment Prior to Modification | $ 5,601 | $ 684 | |
Recorded Investment After Modification | [1] | $ 5,601 | $ 684 |
Real estate | Residential | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 3 | 4 | |
Recorded Investment Prior to Modification | $ 387 | $ 596 | |
Recorded Investment After Modification | [1] | $ 387 | $ 596 |
Real estate | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 1 | 0 | |
Recorded Investment Prior to Modification | $ 4,532 | $ 0 | |
Recorded Investment After Modification | [1] | $ 4,532 | $ 0 |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 2 | 0 | |
Recorded Investment Prior to Modification | $ 551 | $ 0 | |
Recorded Investment After Modification | [1] | $ 551 | $ 0 |
Home equity line of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 3 | 2 | |
Recorded Investment Prior to Modification | $ 131 | $ 88 | |
Recorded Investment After Modification | [1] | $ 131 | $ 88 |
[1] | The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses - TDR loans (Details 9) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | ||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 9 | 6 | |
Extended Maturity | [1] | $ 682 | $ 178 |
Adjusted Interest Rates | [1] | 0 | 0 |
Combination of Rate and Maturity | [1] | 4,532 | 335 |
Other | [1] | 387 | 171 |
Total | [1] | $ 5,601 | $ 684 |
Real estate | Residential | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 3 | 4 | |
Extended Maturity | [1] | $ 0 | $ 90 |
Adjusted Interest Rates | [1] | 0 | 0 |
Combination of Rate and Maturity | [1] | 0 | 335 |
Other | [1] | 387 | 171 |
Total | [1] | $ 387 | $ 596 |
Real estate | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 1 | 0 | |
Extended Maturity | [1] | $ 0 | |
Adjusted Interest Rates | [1] | 0 | |
Combination of Rate and Maturity | [1] | 4,532 | |
Other | [1] | 0 | |
Total | [1] | $ 4,532 | $ 0 |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 2 | 0 | |
Extended Maturity | [1] | $ 551 | |
Adjusted Interest Rates | [1] | 0 | |
Combination of Rate and Maturity | [1] | 0 | |
Other | [1] | 0 | |
Total | [1] | $ 551 | $ 0 |
Home equity line of credit | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Modifications | Loan | 3 | 2 | |
Extended Maturity | [1] | $ 131 | $ 88 |
Adjusted Interest Rates | [1] | 0 | 0 |
Combination of Rate and Maturity | [1] | 0 | 0 |
Other | [1] | 0 | 0 |
Total | [1] | $ 131 | $ 88 |
[1] | The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses - Risk rating (Details 10) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 2,811,000 | $ 2,743,016 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,759,334 | 2,686,518 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 15,963 | 16,792 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 35,703 | 39,706 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,059,116 | 989,366 |
Real estate | Residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,049,260 | 976,768 |
Real estate | Residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,572 | 1,973 |
Real estate | Residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,284 | 10,625 |
Real estate | Residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,071,485 | 1,063,755 |
Real estate | Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,053,480 | 1,046,190 |
Real estate | Commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,028 | 10,505 |
Real estate | Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,977 | 7,060 |
Real estate | Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 98,469 | 90,059 |
Real estate | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 93,937 | 85,527 |
Real estate | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Real estate | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,532 | 4,532 |
Real estate | Construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 417,660 | 429,116 |
Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 399,198 | 408,442 |
Commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,245 | 4,202 |
Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 15,217 | 16,472 |
Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Home equity line of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 159,030 | 165,070 |
Home equity line of credit | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 158,287 | 164,013 |
Home equity line of credit | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 101 | 94 |
Home equity line of credit | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 642 | 963 |
Home equity line of credit | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,240 | 5,650 |
Other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,172 | 5,578 |
Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17 | 18 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 51 | 54 |
Other | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan 66
Loans and Allowance for Loan Losses (Detail Textuals) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Receivables [Abstract] | |||
Recorded investment balance of TDRs approximated | $ 14,356,000 | $ 15,656,000 | |
TDRs on accrual status | 7,245,000 | 6,172,000 | |
TDRs on nonaccrual status | $ 7,111,000 | 9,484,000 | |
Percentage of accruing TDRs | 100.00% | ||
Allowance for loan losses included specific reserves | $ 171,000 | 172,000 | |
Bank charge-offs | 0 | $ 33,000 | |
Additional funds available to borrowers in TDR status | $ 1,600,000 | $ 107,000 | |
Number of loan reviews undertaken by consulting firms | Loan | 2 | ||
Threshold for percentage of market penetration for specified segment in loans of total lending | 65.00% |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Detail Textuals) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Servicing Assets At Amortized Value [Line Items] | |||
Loans sold with servicing rights retained | $ 223,000 | $ 216,000 | |
Net gain on loans sold | 288,000 | 416,000 | |
Other noninterest income | |||
Servicing Assets At Amortized Value [Line Items] | |||
Loan servicing fees | 376,000 | 338,000 | |
Mortgage servicing rights | |||
Servicing Assets At Amortized Value [Line Items] | |||
Carrying value of mortgage servicing rights | 5,400,000 | $ 5,400,000 | |
Fair value of mortgage servicing rights | 7,600,000 | 7,300,000 | |
Loans sold with servicing rights retained | 17,600,000 | 17,700,000 | |
Net gain on loans sold | 288,000 | $ 416,000 | |
Principal balance of loans serviced for others | $ 602,200,000 | $ 598,400,000 |
Deposits - Deposit balances and
Deposits - Deposit balances and weighted average interest rates (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand deposits | $ 443,555 | $ 473,428 |
Interest-bearing | ||
NOW accounts | 625,362 | 623,135 |
Money market | 587,389 | 559,297 |
Savings accounts | 242,377 | 237,380 |
Time deposits | 544,674 | 540,860 |
Total interest-bearing deposits | 1,999,802 | 1,960,672 |
Total deposits | $ 2,443,357 | $ 2,434,100 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Brokered deposit | $ 56.5 | $ 58.8 |
Time certificates of deposit in denominations of $250,000 or more | $ 132.4 | $ 126.3 |
Credit Arrangements (Detail Tex
Credit Arrangements (Detail Textuals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Balance with the bank | $ 7,500,000 | $ 9,200,000 |
Federal Home Loan Bank Of Boston | Unsecured line of credit with bank | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 58,500,000 | 58,500,000 |
Balance with the bank | 512,500 | |
Federal Home Loan Bank Of Boston | Line of credit | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | $ 8,800,000 | $ 8,800,000 |
Credit Arrangements (Detail T71
Credit Arrangements (Detail Textuals 1) - Federal Home Loan Bank Of Boston - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank of Boston advances | $ 355.5 | $ 255.5 |
Collateral value first mortgage loans | 1.6 | 1.6 |
Line of credit facility, remaining borrowing capacity | 604.2 | 706.9 |
Letter of credit | $ 96.5 | $ 79.5 |
Minimum percent of aggregate principal amount of unpaid residential mortgage loans for acquiring shares in FHLBB | 0.35% | |
Maximum percent of advances (borrowings) from the FHLBB to acquire shares in FHLBB | 4.50% |
Credit Arrangements (Detail T72
Credit Arrangements (Detail Textuals 2) - Discount Window Loan Collateral Program - Federal Reserve Bank Advances - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Maximum amount borrowed under discount window loan collateral program on an overnight basis | $ 69.1 | $ 72.2 |
Collateralized amount of funding arrangement in pledged commercial real estate loans | $ 134.1 | $ 139.2 |
Credit Arrangements (Detail T73
Credit Arrangements (Detail Textuals 3) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Investments in certain securities | $ 39,000 | $ 39,600 |
Repurchase liabilities | 16,851 | 34,496 |
Master Repurchase Agreement Borrowing Facility | Broker | ||
Line of Credit Facility [Line Items] | ||
Investments in certain securities | 11,200 | |
Outstanding borrowings | 10,500 | |
Repurchase liabilities | $ 16,900 | $ 34,500 |
Pension and Other Postretirem74
Pension and Other Postretirement Benefit Plans - Shares held by ESOP (Details 1) - Farmington Bank Employee Stock Ownership Plan Member | Mar. 31, 2018shares |
Employee Stock Ownership Plan (Esop) Disclosures [Line Items] | |
Allocated | 667,527 |
Committed to be released | 23,514 |
Unallocated | 739,375 |
Total shares held by the ESOP | 1,430,416 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefit Plans (Detail Textuals) - Farmington Bank Employee Stock Ownership Plan (ESOP) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Loan provided by the company to purchase common stock (in shares) | 1,430,416 | |
Term of loan for annual payments of interest and principal | 15 years | |
Debt structure direct loan description of variable rate basis | Wall Street Journal Prime Rate | |
Debt structure direct loan basis spread on variable rate | 1.00% | |
Outstanding balance of loan provided by the company to purchase common stock | $ 10,000,000 | |
Interest rate of outstanding balance of Loan provided by the company to purchase common stock | 5.50% | |
ESOP compensation expense | $ 614,000 | $ 548,000 |
Fair value of unallocated ESOP shares | $ 18,900,000 |
Pension and Other Postretirem76
Pension and Other Postretirement Benefit Plans - Components of net periodic pension and benefit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefits | ||
Components of net periodic pension cost: | ||
Service cost | $ 0 | $ 0 |
Interest cost | 234 | 250 |
Expected return on plan assets | (336) | (295) |
Amortization: | ||
Loss | 163 | 176 |
Prior service cost | 0 | 0 |
Recognized net gain | 0 | 0 |
Net periodic benefit cost | 61 | 131 |
Other Postretirement Benefits | ||
Components of net periodic pension cost: | ||
Service cost | 16 | 14 |
Interest cost | 23 | 25 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Loss | 0 | 0 |
Prior service cost | (12) | (13) |
Recognized net gain | (2) | (2) |
Net periodic benefit cost | $ 25 | $ 24 |
Stock Incentive Plan - Weighte
Stock Incentive Plan - Weighted-average estimated fair values of stock option grants (Details) - Stock options - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted per share average fair value of options granted | $ 4.81 | $ 5.09 |
Weighted-average assumptions: | ||
Risk-free interest rate | 2.69% | 2.05% |
Expected volatility | 22.11% | 22.08% |
Expected dividend yield | 2.49% | 1.94% |
Expected life of options granted | 6 years | 6 years |
Minimum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 2.44% | 1.89% |
Maximum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 2.53% | 2.00% |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Company's stock option activity (Details 1) - Stock options $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Stock Options | |
Outstanding at December 31, 2017 | shares | 1,437,426 |
Granted | shares | 38,600 |
Exercised | shares | (26,462) |
Forfeited | shares | 0 |
Expired | shares | 0 |
Outstanding at March 31, 2018 | shares | 1,449,564 |
Exercisable at March 31, 2018 | shares | 1,367,262 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2017 | $ / shares | $ 13.36 |
Granted | $ / shares | 25.05 |
Exercised | $ / shares | 13.02 |
Forfeited | $ / shares | 0 |
Expired | $ / shares | 0 |
Outstanding at March 31, 2018 | $ / shares | 13.68 |
Exercisable at March 31, 2018 | $ / shares | $ 13.10 |
Weighted-average remaining contractual term (in years) | 4 years 9 months 18 days |
Weighted-average remaining contractual term exercisable at March 31, 2018 (in years) | 4 years 6 months 15 days |
Aggregate intrinsic value of options outstanding | $ | $ 17,298 |
Aggregate intrinsic value exercisable at March 31, 2018 | $ | $ 17,091 |
Stock Incentive Plan - Summar79
Stock Incentive Plan - Summary of status of Company's restricted stock (Details 2) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Restricted Stock | |
Number of Restricted Stock | |
Unvested at December 31, 2017 | shares | 0 |
Granted | shares | 2,646 |
Vested | shares | (2,646) |
Forfeited | shares | 0 |
Unvested at March 31, 2018 | shares | 0 |
Weighted-Average Grant Date Fair Value | |
Unvested at December 31, 2017 | $ / shares | $ 0 |
Granted | $ / shares | 26.50 |
Vested | $ / shares | 26.50 |
Forfeited | $ / shares | 0 |
Unvested at March 31, 2018 | $ / shares | $ 0 |
Time Based Restricted Stock Units | |
Number of Restricted Stock | |
Unvested at December 31, 2017 | shares | 14,012 |
Granted | shares | 14,701 |
Vested | shares | (4,335) |
Forfeited | shares | 0 |
Unvested at March 31, 2018 | shares | 24,378 |
Weighted-Average Grant Date Fair Value | |
Unvested at December 31, 2017 | $ / shares | $ 24.48 |
Granted | $ / shares | 25.05 |
Vested | $ / shares | 24.27 |
Forfeited | $ / shares | 0 |
Unvested at March 31, 2018 | $ / shares | $ 24.86 |
Performance Based Restricted Stock Units | |
Number of Restricted Stock | |
Unvested at December 31, 2017 | shares | 14,686 |
Granted | shares | 15,210 |
Vested | shares | 0 |
Forfeited | shares | 0 |
Unvested at March 31, 2018 | shares | 29,896 |
Weighted-Average Grant Date Fair Value | |
Unvested at December 31, 2017 | $ / shares | $ 21.60 |
Granted | $ / shares | 22.25 |
Vested | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Unvested at March 31, 2018 | $ / shares | $ 21.93 |
Stock Incentive Plan (Detail Te
Stock Incentive Plan (Detail Textuals) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | May 31, 2016 | Aug. 31, 2012 | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of non-vested restricted shares | 0 | 0 | |||
Time Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage of stock awards | 3.00% | ||||
Number of non-vested restricted shares | 24,378 | 14,012 | |||
Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Description of vesting period and rights for stock awards | Performance-based restricted stock units vests after a three year performance period with a two year holding period. The units vest with a share quantity in a range from zero to 150% dependent on the Company's average return on average assets and earnings per share, each weighted 50%. | ||||
Number of non-vested restricted shares | 29,896 | 14,686 | |||
2012 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for grants | 2,503,228 | ||||
2012 Stock Incentive Plan | Stock options | Vested Immediately | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage of stock awards | 20.00% | ||||
2012 Stock Incentive Plan | Stock options | Vest each annual anniversary of the grant date and expire ten years after grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage of stock awards | 20.00% | ||||
Expiry term of stock options | 10 years | ||||
2012 Stock Incentive Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for grants | 715,208 | ||||
2012 Stock Incentive Plan | Non Qualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for grants | 1,788,020 | ||||
Stock Incentive Plan 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for grants | 300,000 | ||||
Share-based compensation expense | $ 234,000 | $ 111,000 | |||
Method used | Black-Scholes option pricing model | ||||
Stock Incentive Plan 2016 | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of stock awards | 3 years | ||||
Expiry term of stock options | 10 years | ||||
Share-based compensation expense | $ 31,000 | 20,000 | |||
Number of non-vested options outstanding | 82,302 | ||||
Expected future compensation expense | $ 336,000 | ||||
Remaining weighted-average period | 2 years 6 months 7 days | ||||
Total intrinsic value of options exercised | $ 369,000 | ||||
Stock Incentive Plan 2016 | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 203,000 | $ 91,000 | |||
Number of non-vested options outstanding | 54,274 | ||||
Expected future compensation expense | $ 1,200,000 | ||||
Remaining weighted-average period | 2 years 5 months 27 days |
Derivative Financial Instrume81
Derivative Financial Instruments - Not designated outstanding interest rate swaps (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 134,891 | $ 197,086 |
Estimated Fair Values | 2,043 | 4,927 |
Other Assets | Counterparty interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 312,877 | 214,642 |
Estimated Fair Values | 10,629 | 5,356 |
Other Liabilities | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 312,877 | 214,642 |
Estimated Fair Values | (10,614) | (5,318) |
Other Liabilities | Counterparty interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 134,891 | 197,086 |
Estimated Fair Values | $ (2,068) | $ (5,013) |
Derivative Financial Instrume82
Derivative Financial Instruments (Detail Textuals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Minimum threshold amount of long-term commercial loans or commercial mortgages to offer interest rate swap agreements | $ 1,000,000 | |
Amount paid by correspondent bank to collateralize company's position | 8,900,000 | |
Outstanding receivables secured in excess of by a correspondent bank | 100,000 | |
Outstanding rate locks | Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mortgage banking derivatives, notional amount | 22,500,000 | |
Outstanding commitments to sell residential mortgage loans | Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mortgage banking derivatives, notional amount | 19,600,000 | |
Mandatory forward commitments | Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mortgage banking derivatives, notional amount | 11,400,000 | |
Risk participation agreements | Other Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value | 0 | $ 1,000 |
Risk participation agreements | Other Liabilities | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value | $ 13,000 | $ 23,000 |
Offsetting of Financial Asset83
Offsetting of Financial Assets and Liabilities - Summary of repurchase agreement borrowings and repurchase liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | $ 0 | $ 10,500 |
Total repurchase liabilities | 16,851 | 34,496 |
Total | 16,851 | 44,996 |
U.S. Government agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 6,000 |
Total repurchase liabilities | 16,851 | 34,496 |
Government sponsored residential mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 4,500 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 0 |
Total repurchase liabilities | 16,851 | 34,496 |
Total | 16,851 | 34,496 |
Overnight and Continuous | U.S. Government agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 0 |
Total repurchase liabilities | 16,851 | 34,496 |
Overnight and Continuous | Government sponsored residential mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 0 |
Up to One Year | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 10,500 |
Total repurchase liabilities | 0 | 0 |
Total | 0 | 10,500 |
Up to One Year | U.S. Government agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 6,000 |
Total repurchase liabilities | 0 | 0 |
Up to One Year | Government sponsored residential mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 4,500 |
One Year to Three Years | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 0 |
Total repurchase liabilities | 0 | 0 |
Total | 0 | 0 |
One Year to Three Years | U.S. Government agency obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | 0 | 0 |
Total repurchase liabilities | 0 | 0 |
One Year to Three Years | Government sponsored residential mortgage-backed securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total repurchase agreement borrowings | $ 0 | $ 0 |
Offsetting of Financial Asset84
Offsetting of Financial Assets and Liabilities - Potential effect of rights of setoff associated with recognized financial assets and liabilities (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap derivatives, gross amount of recognized assets | $ 12,672 | $ 10,283 |
Interest rate swap derivatives, gross amounts offset in statement of financial condition | 0 | 0 |
Interest rate swap derivatives, Net amounts of assets presented in statement of financial condition | 12,672 | 10,283 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, Financial instruments | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, securities collateral received | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, cash collateral received | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, Net amount | 12,672 | 10,283 |
Gross amount of recognized assets | 12,672 | 10,283 |
Gross amounts offset in statement of financial condition | 0 | 0 |
Net amounts of assets presented in statement of financial condition | 12,672 | 10,283 |
Gross amounts not offset in statement of financial condition, financial instruments | 0 | 0 |
Gross amounts not offset in statement of financial condition, securities collateral received | 0 | 0 |
Gross amounts not offset in statement of financial condition, cash collateral received | 0 | 0 |
Gross amounts not offset in statement of financial condition, Net amount | 12,672 | 10,283 |
Interest rate swap derivatives, Gross amount of recognized liabilities | 12,682 | 10,331 |
Interest rate swap derivatives, Gross amounts offset in statement of financial condition | 0 | 0 |
Interest rate swap derivatives, Net amounts of liabilities presented in statement of financial condition | 12,682 | 10,331 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition liabilities, Financial instruments | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, securities collateral pledged | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, cash collateral pledged | 0 | 0 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition liabilities, Net amount | 12,682 | 10,331 |
Repurchase agreement borrowings, Gross amount of recognized liabilities | 10,500 | |
Repurchase agreement borrowings, Gross amounts offset in statement of financial condition | 0 | |
Repurchase agreement borrowings, Net amounts of liabilities presented in statement of financial condition | 10,500 | |
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition liabilities, financial instruments | 0 | |
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition, securities collateral pledged | 10,500 | |
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition, cash collateral pledged | 0 | |
Repurchase agreement borrowings, Net amount | 0 | |
Gross amount of recognized liabilities | 12,682 | 20,831 |
Gross amounts offset in statement of financial condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Condition | 12,682 | 20,831 |
Gross amounts not offset in statement of financial condition liabilities, Financial instruments | 0 | 0 |
Gross amounts not offset in statement of financial condition, securities collateral pledged | 0 | 10,500 |
Gross amounts not offset in statement of financial condition, cash collateral pledged | 0 | 0 |
Gross amounts not offset in statement of financial condition liabilities, Net amount | $ 12,682 | $ 10,331 |
Financial Instruments with Of85
Financial Instruments with Off-Balance Sheet Risk - Financial instruments whose contract amounts represent credit risk (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 598,037 | $ 519,211 |
Approved loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 85,934 | 39,974 |
Unadvanced portion of construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 57,547 | 50,014 |
Unused lines for home equity loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 206,148 | 205,350 |
Unused revolving lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 321 | 336 |
Unused commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 3,498 | 3,940 |
Unused commercial lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 244,589 | $ 219,597 |
Financial Instruments with Of86
Financial Instruments with Off-Balance Sheet Risk (Details Textuals) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||
Financial instruments with off-balance sheet risk, valuation allowance | $ 85,000 | $ 2,000 |
Off balance sheet risk related to risk participation agreements | $ 241,000 | $ 998,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Securities available-for-sale | $ 95,945 | $ 87,251 |
Total | ||
Assets | ||
Securities available-for-sale | 89,107 | 80,358 |
Total Assets | 108,765 | 97,661 |
Liabilities | ||
Total Liabilities | 12,791 | 10,410 |
Fair Value Measurements Recurring | Total | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 11,815 | 11,909 |
Fair Value Measurements Recurring | Total | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 58,481 | 65,656 |
Fair Value Measurements Recurring | Total | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 18,811 | 2,793 |
Fair Value Measurements Recurring | Total | Equity securities | ||
Assets | ||
Securities available-for-sale | 6,838 | 6,893 |
Fair Value Measurements Recurring | Total | Interest rate swap derivative | ||
Assets | ||
Total Assets | 12,672 | 10,283 |
Liabilities | ||
Total Liabilities | 12,682 | 10,331 |
Fair Value Measurements Recurring | Total | Risk participation agreements | ||
Assets | ||
Total Assets | 1 | |
Liabilities | ||
Total Liabilities | 13 | 23 |
Fair Value Measurements Recurring | Total | Derivative loan commitments | ||
Assets | ||
Total Assets | 148 | 126 |
Fair Value Measurements Recurring | Total | Forward loan sales commitments | ||
Liabilities | ||
Total Liabilities | 96 | 56 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Total Assets | 2,005 | 1,994 |
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets | ||
Securities available-for-sale | 2,005 | 1,994 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap derivative | ||
Assets | ||
Total Assets | 0 | 0 |
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Risk participation agreements | ||
Assets | ||
Total Assets | 0 | |
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative loan commitments | ||
Assets | ||
Total Assets | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward loan sales commitments | ||
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | ||
Assets | ||
Total Assets | 106,612 | 95,541 |
Liabilities | ||
Total Liabilities | 12,695 | 10,354 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 11,815 | 11,909 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 58,481 | 65,656 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 18,811 | 2,793 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Equity securities | ||
Assets | ||
Securities available-for-sale | 4,833 | 4,899 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Interest rate swap derivative | ||
Assets | ||
Total Assets | 12,672 | 10,283 |
Liabilities | ||
Total Liabilities | 12,682 | 10,331 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Risk participation agreements | ||
Assets | ||
Total Assets | 1 | |
Liabilities | ||
Total Liabilities | 13 | 23 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Derivative loan commitments | ||
Assets | ||
Total Assets | 0 | 0 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Forward loan sales commitments | ||
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Total Assets | 148 | 126 |
Liabilities | ||
Total Liabilities | 96 | 56 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets | ||
Securities available-for-sale | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap derivative | ||
Assets | ||
Total Assets | 0 | 0 |
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Risk participation agreements | ||
Assets | ||
Total Assets | 0 | |
Liabilities | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Derivative loan commitments | ||
Assets | ||
Total Assets | 148 | 126 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Forward loan sales commitments | ||
Liabilities | ||
Total Liabilities | $ 96 | $ 56 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional information about assets measured at fair value (Details 1) - Fair Value Measurements Recurring - Derivative and Forward Loan Sales Commitments, Net - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, at beginning of period | $ 70 | $ 183 |
Total realized (loss) gain: | ||
Included in earnings | (18) | (44) |
Balance, at the end of period | $ 52 | $ 139 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation methodology and unobservable inputs for Level 3 assets (Details 2) - Level 3 - Fair Value Measurements Recurring - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 148 | $ 126 |
Derivative and forward loan sales commitments, net | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 52 | $ 70 |
Valuation Methodology | Adjusted quoted prices in active markets | Adjusted quoted prices in active markets |
Significant Unobservable Inputs | Embedded servicing value | Embedded servicing value |
Mortgage serving rights of input embedded servicing value percent | 1.32% | 1.33% |
Fair Value Measurements - Ass90
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details 3) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 0 | $ 0 |
Other real estate owned | 0 | 0 |
Significant Observable Inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 1,199 | 2,645 |
Other real estate owned | $ 2,164 | $ 0 |
Fair Value Measurements - Val91
Fair Value Measurements - Valuation methodology and unobservable inputs for Level 3 assets (Details 4) - Significant Unobservable Inputs (Level 3) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Impaired loans | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 1,199 | $ 2,645 |
Valuation Methodology | Appraisals | Appraisals |
Impaired loans | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 5.00% | 5.00% |
Discount for costs to sell | 8.00% | 8.00% |
Impaired loans | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 20.00% | 20.00% |
Discount for costs to sell | 15.00% | 15.00% |
Impaired loans | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 12.50% | 12.50% |
Discount for costs to sell | 11.50% | 11.50% |
Other real estate owned | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 2,164 | |
Valuation Methodology | Appraisals | |
Other real estate owned | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 8.00% | |
Discount for condition | 10.00% | |
Other real estate owned | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 15.00% | |
Discount for condition | 30.00% | |
Other real estate owned | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 11.50% | |
Discount for condition | 20.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amount, fair value of financial instruments (Details 5) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Debt securities held-to-maturity | $ 80,977 | $ 74,985 | |
Debt securities available-for-sale | 89,107 | 80,358 | |
Equity securities | 6,838 | 6,893 | |
Loans | [1] | 2,816,807 | 2,748,081 |
Financial liabilities | |||
Time deposits | 544,674 | 540,860 | |
Federal Home Loan Bank of Boston advances | 355,457 | 255,458 | |
Repurchase agreement borrowings | 10,500 | ||
Repurchase liabilities | 16,851 | 34,496 | |
Carrying Amount | |||
Financial assets | |||
Debt securities held-to-maturity | 80,977 | 74,985 | |
Debt securities available-for-sale | 89,107 | 80,358 | |
Equity securities | 6,838 | 6,893 | |
Loans | [2] | 2,816,807 | 2,748,081 |
Loans held-for-sale | 5,980 | 5,295 | |
Mortgage servicing rights | 5,406 | 5,399 | |
Federal Home Loan Bank of Boston stock | 17,665 | 15,537 | |
Alternative investments | 2,083 | 2,112 | |
Interest rate swap derivatives | 12,672 | 10,283 | |
Risk participation agreements | 0 | 1 | |
Derivative loan commitments | 148 | 126 | |
Financial liabilities | |||
Deposits other than time deposits | 1,898,683 | 1,893,240 | |
Time deposits | 544,674 | 540,860 | |
Federal Home Loan Bank of Boston advances | 355,457 | 255,458 | |
Repurchase agreement borrowings | 0 | 10,500 | |
Repurchase liabilities | 16,851 | 34,496 | |
Estimated Fair Value | |||
Financial assets | |||
Debt securities held-to-maturity | 79,380 | 74,554 | |
Debt securities available-for-sale | 89,107 | 80,358 | |
Equity securities | 6,838 | 6,893 | |
Loans | [2] | 2,690,031 | 2,699,794 |
Loans held-for-sale | 5,995 | 5,375 | |
Mortgage servicing rights | 7,636 | 7,274 | |
Federal Home Loan Bank of Boston stock | 17,665 | 15,537 | |
Alternative investments | 1,898 | 1,939 | |
Interest rate swap derivatives | 12,672 | 10,283 | |
Risk participation agreements | 0 | 1 | |
Derivative loan commitments | 148 | 126 | |
Financial liabilities | |||
Deposits other than time deposits | 1,898,683 | 1,893,240 | |
Time deposits | 548,641 | 544,968 | |
Federal Home Loan Bank of Boston advances | 353,142 | 254,228 | |
Repurchase agreement borrowings | 0 | 10,394 | |
Repurchase liabilities | $ 16,838 | $ 34,475 | |
[1] | Loans include net deferred loan costs of $5.8 million and $5.1 million at March 31, 2018 and December 31, 2017, respectively. | ||
[2] | Per ASU 2016-01 which became effective January 1, 2018, the fair value of loans was determined using an exit price methodology in the current period. Prior period loans fair value was estimated based on an entrance price methodology therefore the fair value adjustments between periods are not comparable. |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other noninterest income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recognized (loss) gain on forward loan sale commitments | $ (18,000) | $ (44,000) |
Regulatory Matters - Actual cap
Regulatory Matters - Actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 306,964 | $ 300,876 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 12.38% | 12.38% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 198,329 | $ 194,485 |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 247,911 | $ 243,107 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 10.00% | 10.00% |
Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 284,259 | $ 278,426 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 11.47% | 11.45% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 148,748 | $ 145,864 |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 198,330 | $ 194,486 |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 284,259 | $ 278,426 |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 11.47% | 11.45% |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 111,561 | $ 109,398 |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 161,143 | $ 158,020 |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | 6.50% |
Tier I Leverage Capital (to Average Assets) Actual Amount | $ 284,259 | $ 278,426 |
Tier I Leverage Capital (to Average Assets) Actual Ratio | 9.17% | 9.23% |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 123,963 | $ 120,606 |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 154,953 | $ 150,758 |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 5.00% | 5.00% |
Farmington Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 280,093 | $ 272,227 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 11.30% | 11.20% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 198,266 | $ 194,415 |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 247,833 | $ 243,019 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 10.00% | 10.00% |
Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 257,388 | $ 249,777 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.39% | 10.28% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 148,699 | $ 145,811 |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 198,265 | $ 194,415 |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 8.00% | 8.00% |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 257,388 | $ 249,777 |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.39% | 10.28% |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 111,524 | $ 109,358 |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 161,091 | $ 157,962 |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | 6.50% |
Tier I Leverage Capital (to Average Assets) Actual Amount | $ 257,388 | $ 249,777 |
Tier I Leverage Capital (to Average Assets) Actual Ratio | 8.31% | 8.28% |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 123,941 | $ 120,598 |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 154,926 | $ 150,748 |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 5.00% | 5.00% |
Regulatory Matters (Detail Text
Regulatory Matters (Detail Textuals) | Mar. 31, 2018 |
Regulatory Matters Disclosure [Abstract] | |
Percentage of tier one capital greater than risk weighted assets | 2.50% |
Other Comprehensive Income - Ch
Other Comprehensive Income - Changes in accumulated other comprehensive loss, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ (6,229) | |
Balance | (7,398) | |
Investment Securities Available-for-Sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (368) | $ (263) |
Other comprehensive income (loss) | (326) | 89 |
Amount reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 |
Net change | (326) | 89 |
Balance | (694) | (174) |
Employee Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (5,861) | (6,427) |
Other comprehensive income (loss) | 0 | 0 |
Amount reclassified from accumulated other comprehensive loss, net of tax | 117 | 105 |
Net change | 117 | 105 |
Balance | (5,744) | (6,322) |
Accumulated Other Comprehensive (Loss) Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (6,229) | (6,690) |
Other comprehensive income (loss) | (326) | 89 |
Amount reclassified from accumulated other comprehensive loss, net of tax | 117 | 105 |
Net change | (209) | 194 |
Balance | $ (6,438) | $ (6,496) |
Other Comprehensive Income - Re
Other Comprehensive Income - Reconciliation of changes in components of other comprehensive income for periods indicated, including amount of income tax expense allocated to each component of other comprehensive income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Unrealized losses on available-for-sale securities, Pre Tax Amount | [1] | $ (415) | $ 137 |
Unrealized losses on available-for-sale securities, Tax Benefit (Expense) | 89 | (48) | |
Unrealized losses on available-for-sale securities, After Tax Amount | (326) | 89 | |
Less: net security gains reclassified into other noninterest income, Pre Tax Amount | 0 | 0 | |
Less: net security gains reclassified into other noninterest income, Tax Benefit (Expense) | 0 | 0 | |
Less: net security gains reclassified into other noninterest income, After Tax Amount | 0 | 0 | |
Net change in fair value of securities available-for-sale, Pre Tax Amount | (415) | 137 | |
Net change in fair value of securities available-for-sale, Tax Benefit (Expense) | 89 | (48) | |
Net change in fair value of securities available-for-sale, After Tax Amount | (326) | 89 | |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, Pre Tax Amount | [2] | 149 | 163 |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, Tax Benefit (Expense) | [2] | (32) | 58 |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, After Tax Amount | [2] | 117 | 105 |
Total other comprehensive income, Pre Tax Amount | (266) | 300 | |
Total other comprehensive income, Tax Benefit (Expense) | 57 | (106) | |
Total other comprehensive income, After Tax Amount | $ (209) | $ 194 | |
[1] | The Company adopted ASU 2016-01 effective January 1, 2018 which requires equity securities to be measured at fair value with changes in fair value recoginized in net income. The prior period includes changes in the fair value of equity securities recognized in other comprehensive income. | ||
[2] | Amounts are included in other operating expenses in the unaudited Consolidated Statements of Income. |