Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
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 | 15,924,088 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and due from banks | $ 35,595 | $ 35,232 | |
Interest bearing deposits with other institutions | 7,397 | 7,631 | |
Total cash and cash equivalents | 42,992 | 42,863 | |
Securities held-to-maturity, at amortized cost | 34,366 | 16,224 | |
Securities available-for-sale, at fair value | 143,799 | 188,041 | |
Loans held for sale | 7,550 | 2,417 | |
Loans | [1] | 2,287,966 | 2,138,877 |
Allowance for loan losses | (19,581) | (18,960) | |
Loans, net | 2,268,385 | 2,119,917 | |
Premises and equipment, net | 17,964 | 18,873 | |
Federal Home Loan Bank of Boston stock, at cost | 21,496 | 19,785 | |
Accrued income receivable | 6,425 | 5,777 | |
Bank-owned life insurance | 50,283 | 39,686 | |
Deferred income taxes, net | 16,450 | 16,841 | |
Prepaid expenses and other assets | 16,507 | 14,936 | |
Total assets | 2,626,217 | 2,485,360 | |
Deposits | |||
Interest-bearing | 1,500,948 | 1,402,517 | |
Noninterest-bearing | 377,092 | 330,524 | |
Total deposits | 1,878,040 | 1,733,041 | |
Federal Home Loan Bank of Boston advances | 400,700 | 401,700 | |
Repurchase agreement borrowings | 10,500 | 21,000 | |
Repurchase liabilities | 56,041 | 48,987 | |
Accrued expenses and other liabilities | 41,854 | 46,069 | |
Total liabilities | 2,387,135 | 2,250,797 | |
Stockholders' Equity | |||
Common stock, $0.01 par value, 30,000,000 shares authorized; 18,006,129 shares issued and 15,922,888 shares outstanding at June 30, 2015 and 18,006,129 shares issued and 16,026,319 shares outstanding at December 31, 2014 | 181 | 181 | |
Additional paid-in-capital | 180,764 | 178,772 | |
Unallocated common stock held by ESOP | (12,160) | (12,681) | |
Treasury stock, at cost (2,083,241 shares at June 30, 2015 and 1,979,810 shares at December 31, 2014) | (30,389) | (28,828) | |
Retained earnings | 108,014 | 103,630 | |
Accumulated other comprehensive loss | (7,328) | (6,511) | |
Total stockholders' equity | 239,082 | 234,563 | |
Total liabilities and stockholders' equity | $ 2,626,217 | $ 2,485,360 | |
[1] | Loans include net deferred loan costs of $4.2 million and $3.8 million at June 30, 2015 and December 31, 2014, respectively. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Net deferred loan costs | $ 4.2 | $ 3.8 |
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 | 18,006,129 | 18,006,129 |
Common stock, shares outstanding | 15,922,888 | 16,026,319 |
Treasury stock, shares | 2,083,241 | 1,979,810 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Interest and fees on loans | |||||
Mortgage | $ 15,331 | $ 13,875 | $ 30,389 | $ 27,303 | |
Other | 4,264 | 3,573 | 8,259 | 6,781 | |
Interest and dividends on investments | |||||
United States Government and agency obligations | 385 | 218 | 708 | 407 | |
Other bonds | 35 | 81 | 53 | 139 | |
Corporate stocks | 145 | 105 | 276 | 198 | |
Other interest income | 4 | 2 | 11 | 6 | |
Total interest income | 20,164 | 17,854 | 39,696 | 34,834 | |
Interest expense | |||||
Deposits | 2,140 | 1,711 | 4,349 | 3,405 | |
Federal Home Loan Bank of Boston advances | 804 | 368 | 1,555 | 687 | |
Repurchase agreement borrowings | 92 | 179 | 255 | 356 | |
Repurchase liabilities | 29 | 32 | 63 | 72 | |
Total interest expense | 3,065 | 2,290 | 6,222 | 4,520 | |
Net interest income | 17,099 | 15,564 | 33,474 | 30,314 | |
Provision for loan losses | 663 | 410 | 1,278 | 915 | |
Net interest income after provision for loan losses | 16,436 | 15,154 | 32,196 | 29,399 | |
Noninterest income | |||||
Fees for customer services | 1,500 | 1,317 | 2,873 | 2,508 | |
Gain on sales of investments | 1,250 | 1,523 | |||
Net gain on loans sold | 412 | 317 | 932 | 439 | |
Brokerage and insurance fee income | 60 | 49 | 109 | 93 | |
Bank owned life insurance income | 324 | 281 | 597 | 563 | |
Other | 528 | 102 | 704 | 225 | |
Total noninterest income | 4,074 | 2,066 | 6,738 | 3,828 | |
Noninterest expense | |||||
Salaries and employee benefits | 9,035 | 8,638 | 17,825 | 16,926 | |
Occupancy expense | 1,272 | 1,209 | 2,639 | 2,558 | |
Furniture and equipment expense | 1,077 | 1,106 | 2,113 | 2,124 | |
FDIC assessment | 402 | 321 | 814 | 649 | |
Marketing | 534 | 509 | 943 | 887 | |
Other operating expenses | 3,277 | 2,471 | 6,200 | 5,070 | |
Total noninterest expense | 15,597 | 14,254 | 30,534 | 28,214 | |
Income before income taxes | 4,913 | 2,966 | 8,400 | 5,013 | |
Income tax expense | 1,441 | 776 | 2,417 | 1,331 | |
Net income | $ 3,472 | $ 2,190 | $ 5,983 | $ 3,682 | |
Net earnings per share (See Note 3): | |||||
Basic (in dollars per share) | [1] | $ 0.23 | $ 0.15 | $ 0.40 | $ 0.24 |
Diluted (in dollars per share) | [1] | 0.23 | 0.14 | 0.40 | 0.24 |
Dividends per share (in dollars per share) | $ 0.05 | $ 0.04 | $ 0.10 | $ 0.07 | |
[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 | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Income (Loss) and Comprehensive Income (Loss) [Abstract] | ||||
Net income | $ 3,472 | $ 2,190 | $ 5,983 | $ 3,682 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding (losses) gains arising during the period | (2,793) | $ 161 | (2,975) | $ 297 |
Less: reclassification adjustment for gains included in net income | 1,250 | 1,523 | ||
Net change in unrealized (losses) gains | (1,543) | $ 161 | (1,452) | $ 297 |
Change related to pension and other postretirement benefit plans | 29 | 86 | 191 | 142 |
Other comprehensive (loss) income, before tax | (1,514) | 247 | (1,261) | 439 |
Income tax (benefit) expense | (533) | 84 | (444) | 149 |
Other comprehensive (loss) income, net of tax | (981) | 163 | (817) | 290 |
Comprehensive income | $ 2,491 | $ 2,353 | $ 5,166 | $ 3,972 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - 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, 2014 | $ 181 | $ 178,772 | $ (12,681) | $ (28,828) | $ 103,630 | $ (6,511) | $ 234,563 |
Balance (in shares) at Dec. 31, 2014 | 16,026,319 | 16,026,319 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | $ 197 | 521 | $ 718 | ||||
Cash dividend paid ($0.10 per common share) | (1,599) | (1,599) | |||||
Treasury stock acquired | $ (1,844) | $ (1,844) | |||||
Treasury stock acquired (in shares) | (124,431) | ||||||
Stock options exercised | |||||||
Stock options exercised (in shares) | 21,000 | (11) | 283 | 272 | |||
Tax benefits from stock-based compensation | $ 4 | $ 4 | |||||
Share based compensation expense | 1,802 | 1,802 | |||||
Net income | 5,983 | 5,983 | |||||
Other comprehensive loss | (817) | (817) | |||||
Balance at Jun. 30, 2015 | $ 181 | $ 180,764 | $ (12,484) | $ (30,389) | $ 108,014 | $ (7,328) | $ 239,082 |
Balance (in shares) at Jun. 30, 2015 | 15,922,888 | 15,922,888 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends per share (in dollars per share) | $ 0.05 | $ 0.04 | $ 0.10 | $ 0.07 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 5,983 | $ 3,682 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Provision for loan losses | 1,278 | 915 |
(Reversal of) provision for off-balance sheet commitments | (3) | 3 |
Depreciation and amortization | 1,351 | 1,578 |
Provision for foreclosed real estate | (5) | |
Amortization of ESOP expense | 718 | 741 |
Share based compensation expense | 1,802 | 1,444 |
Gain on sale of investments | (1,523) | |
Loans originated for sale | (49,809) | (30,308) |
Proceeds from the sale of loans held for sale | 45,608 | 29,357 |
Gain on fair value adjustment for mortgage banking derivatives | (126) | (2) |
Impairment losses on alternative investments | 113 | 41 |
Loss (gain) on sale of foreclosed real estate | 9 | (2) |
Net gain on loans sold | (932) | (439) |
Accretion and amortization of investment security discounts and premiums, net | (25) | (40) |
Amortization and accretion of loan fees and discounts, net | (323) | (371) |
Increase in accrued income receivable | (648) | (216) |
Deferred income tax | 836 | (3) |
Increase in cash surrender value of bank-owned life insurance | (597) | (564) |
Decrease (increase) in prepaid expenses and other assets | 95 | (373) |
(Decrease) increase in accrued expenses and other liabilities | (3,996) | 4,855 |
Net cash (used in) provided by operating activities | (189) | 10,293 |
Cash flow from investing activities | ||
Maturities and calls of securities held-to-maturity | 8,858 | 5,268 |
Maturities, calls and principal payments of securities available-for-sale | 153,384 | 178,511 |
Purchases of securities held-to-maturity | (27,000) | (5,000) |
Purchases of securities available-for-sale | (109,046) | (188,072) |
Loan originations, net of principal repayments | (151,414) | (130,494) |
Purchases of Federal Home Loan Bank of Boston stock, net | (1,711) | (4,588) |
Purchase of bank-owned life insurance | (10,000) | |
Proceeds from sale of foreclosed real estate | 303 | 401 |
Purchases of premises and equipment | (442) | (1,031) |
Net cash used in investing activities | (137,068) | (145,005) |
Cash flows from financing activities | ||
Net (payments to) proceeds from Federal Home Loan Bank of Boston advances | (1,000) | 32,000 |
Decrease in repurchase agreement borrowings | (10,500) | |
Net increase in demand deposits, NOW accounts, savings accounts and money market accounts | 85,774 | 123,137 |
Net increase (decrease) in time deposits | 59,225 | (5,859) |
Net increase in repurchase liabilities | 7,054 | 4,510 |
Stock options exercised | 272 | |
Excess tax benefit from stock-based compensation | 4 | 9 |
Repurchase of common stock | (1,844) | (5,978) |
Cash dividend paid | (1,599) | (1,128) |
Net cash provided by financing activities | 137,386 | 146,691 |
Net increase in cash and cash equivalents | 129 | 11,979 |
Cash and cash equivalents at beginning of period | 42,863 | 38,799 |
Cash and cash equivalents at end of period | 42,992 | 50,778 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 6,179 | 4,526 |
Cash paid for income taxes | 3,384 | 2 |
Loans transferred to other real estate owned | $ 1,991 | $ 434 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 22 branch locations throughout central Connecticut, offering commercial and residential lending as well as wealth management services in Connecticut and western Massachusetts. 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. are presently inactive; 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. 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. During the six months ended June 30, 2015, the Company had repurchased 124,431 of these shares at a cost of $1.8 million. Repurchased shares are held as treasury stock and are available for general corporate purposes. The Company has 780,334 shares remaining available to be repurchased at June 30, 2015. 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, 2014 included in the Company’s 10-K filed on March 16, 2015. 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 Marketable equity and debt securities are classified as either trading, available-for-sale, or held-to-maturity (applies only to debt securities). Management determines the appropriate classifications of securities at the time of purchase. At June 30, 2015 and December 31, 2014, the Company had no debt or equity securities classified as trading. Held-to-maturity securities are debt 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 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. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale 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. If an equity security is deemed other-than-temporarily impaired, the full impairment is considered to be credit-related and a charge to earnings would be recorded. 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 condensed Consolidated Statements of Operations. 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 condensed Consolidated Statements of Operations. Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, installment, commercial, collateral, home equity lines of credit, demand, revolving credit and resort. 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, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort 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 real estate, construction, commercial and resort loan segments that are classified as non-accrual, loans secured by real property in foreclosure or are otherwise likely to be impaired, non-accruing residential and installment loan segments greater than $100,000 and all troubled debt restructurings. Nonperforming loans consist of non-accruing loans, non-accruing loans identified as trouble debt restructurings and loans past due more than 90 days and still accruing interest. 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 regular 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, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort. 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 six months ended June 30, 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – 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 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 ten-year terms 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. Installment, Collateral, Demand, Revolving Credit and Resort – Loans in these segments include loans principally to customers residing in our primary market area with acceptable credit ratings. Our 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. Excluding collateral loans which are fully collateralized by a deposit account, repayment for loans in these segments is dependent on the credit quality of the individual borrower. The resort portfolio consists of a direct receivable loan outside the Northeast which is amortizing to its contractual obligations. The Company 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, commercial and resort 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 June 30, 2015 and December 31, 2014. 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 lower of the related loan balance less any specific allowance for loss or 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 $2.1 million and $400,000 as of June 30, 2015 and December 31, 2014, respectively, 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 $5.0 million at June 30, 2015. 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 policy is to contribute annually the maximum amount that could be deducted for federal income tax purposes, while meeting 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 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. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606).” 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 2014-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods, however, on July 9, 2015 the FASB has delayed the effective date by one year. 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. Early application is not permitted. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860) - Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures”, which aligns the accounting for repurchase to maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. ASU 2014-11 is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods. In addition the disclosure of certain transactions accounted for as a sale is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is prohibited. The adoption of ASU 2014-11 did not have a material impact on the Company’s financial statements (See Note 12). In August 2014, the FASB issued ASU No. 2014-14, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure.” ASU 2014-14 requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. The amendments can be applied using either a prospective transition method or a modified retrospective transition method. Early adoption is permitted. The adoption of ASU 2014-14 did not have an impact on the Company’s financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect ASU 2014-15 to have a significant impact on its financial statements. In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity” (a consensus of the FASB Emerging Issues Task Force). ASU 2014-16 clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement ASU 2014-16 in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. The Company does not expect ASU 2014-16 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”, (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply ASU 2015-01 prospectively. A reporting entity also may apply ASU 2015-01 retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect ASU 2015-01 to have a significant impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope excep |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 6 Months Ended |
Jun. 30, 2015 | |
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 $10.3 million and $10.1 million to meet these requirements at June 30, 2015 and December 31, 2014. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands, except per share data): Net income $ 3,472 $ 2,190 $ 5,983 $ 3,682 Less: Dividends to participating shares (13 ) (16 ) (26 ) (28 ) Income allocated to participating shares (47 ) (41 ) (77 ) (68 ) Net income allocated to common stockholders $ 3,412 $ 2,133 $ 5,880 $ 3,586 Weighted-average shares issued 18,006,129 18,035,335 18,006,129 18,035,335 Less: Average unallocated ESOP shares (1,017,278 ) (1,112,637 ) (1,029,017 ) (1,124,420 ) Average treasury stock (2,034,097 ) (1,920,957 ) (2,005,332 ) (1,800,137 ) Average unvested restricted stock (260,282 ) (400,325 ) (263,565 ) (400,325 ) Weighted-average basic shares outstanding 14,694,472 14,601,416 14,708,215 14,710,453 Plus: Average dilutive shares 144,982 106,056 136,779 103,113 Weighted-average diluted shares outstanding 14,839,454 14,707,472 14,844,994 14,813,566 Net earnings per share (1): Basic $ 0.23 $ 0.15 $ 0.40 $ 0.24 Diluted $ 0.23 $ 0.14 $ 0.40 $ 0.24 (1) Certain per share amounts may not appear to reconcile due to rounding. For the six months ended June 30, 2015 and 2014, respectively, 93,250 and 46,250 options were anti-dilutive and therefore excluded from the earnings per share calculation. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 4. Investment Securities Investment securities are summarized as follows: June 30, 2015 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 Debt securities: U.S. Treasury obligations $ 63,756 $ 171 $ - $ 63,927 $ - $ - $ 63,927 U.S. Government agency obligations 67,011 106 - 67,117 - - 67,117 Government sponsored residential mortgage-backed securities 5,861 300 - 6,161 - - 6,161 Corporate debt securities 1,000 70 - 1,070 - - 1,070 Preferred equity securities 2,000 - (376 ) 1,624 - - 1,624 Marketable equity securities 108 49 (1 ) 156 - - 156 Mutual funds 3,898 - (154 ) 3,744 - - 3,744 Total securities available-for-sale $ 143,634 $ 696 $ (531 ) $ 143,799 $ - $ - $ 143,799 Held-to-maturity U.S. Government agency obligations $ 25,611 $ - $ - $ 25,611 $ 8 $ (79 ) 25,540 Government sponsored residential mortgage-backed securities 8,755 - - 8,755 150 - 8,905 Total securities held-to-maturity $ 34,366 $ - $ - $ 34,366 $ 158 $ (79 ) $ 34,445 December 31, 2014 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 Debt securities: U.S. Treasury obligations $ 123,739 $ 81 $ (4 ) $ 123,816 $ - $ - $ 123,816 U.S. Government agency obligations 49,013 110 (14 ) 49,109 - - 49,109 Government sponsored residential mortgage-backed securities 6,624 283 - 6,907 - - 6,907 Corporate debt securities 1,000 85 - 1,085 - - 1,085 Trust preferred debt securities - 1,557 - 1,557 - - 1,557 Preferred equity securities 2,100 2 (426 ) 1,676 - - 1,676 Marketable equity securities 108 63 (1 ) 170 - - 170 Mutual funds 3,838 - (117 ) 3,721 - - 3,721 Total securities available-for-sale $ 186,422 $ 2,181 $ (562 ) $ 188,041 $ - $ - $ 188,041 Held-to-maturity U.S. Government agency obligations $ 7,000 $ - $ - $ 7,000 $ - $ (8 ) $ 6,992 Government sponsored residential mortgage-backed securities 9,224 - - 9,224 200 - 9,424 Total securities held-to-maturity $ 16,224 $ - $ - $ 16,224 $ 200 $ (8 ) $ 16,416 The following table summarizes 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 June 30, 2015 and December 31, 2014: June 30, 2015 Less than 12 Months 12 Months or More Total Gross Gross Gross Number of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale: Preferred equity securities 1 $ - $ - $ 1,624 $ (376 ) $ 1,624 $ (376 ) Marketable equity securities 1 - - 6 (1 ) 6 (1 ) Mutual funds 1 - - 3,744 (154 ) 3,744 (154 ) Total investment securities in an unrealized loss position 3 $ - $ - $ 5,374 $ (531 ) $ 5,374 $ (531 ) Held-to-maturity U.S. Government agency obligations 3 14,921 (79 ) - - 14,921 (79 ) 3 14,921 (79 ) - - 14,921 (79 ) Total investment securities in an unrealized loss position 6 $ 14,921 $ (79 ) $ 5,374 $ (531 ) $ 20,295 $ (610 ) December 31, 2014 Less than 12 Months 12 Months or More Total Gross Gross Gross Number of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale: U.S. Treasury obligations 4 $ 43,919 $ (4 ) $ - $ - $ 43,919 $ (4 ) U.S. Government agency obligations 2 16,989 (14 ) - - 16,989 (14 ) Preferred equity securities 1 - - 1,574 (426 ) 1,574 (426 ) Marketable equity securities 1 - - 5 (1 ) 5 (1 ) Mutual funds 1 - - 2,842 (117 ) 2,842 (117 ) 9 $ 60,908 $ (18 ) $ 4,421 $ (544 ) $ 65,329 $ (562 ) Held-to-maturity U.S. Government agency obligations Government sponsored residential 1 6,992 (8 ) - - 6,992 (8 ) mortgage-backed securities 1 6,992 (8 ) - - 6,992 (8 ) Total investment securities in an unrealized loss position 10 $ 67,900 $ (26 ) $ 4,421 $ (544 ) $ 72,321 $ (570 ) Management believes that no individual unrealized loss as of June 30, 2015 represents an other-than-temporary impairment (“OTTI”), based on its detailed review of the securities portfolio. The Company has no intent to sell nor is it more likely than not that the Company will be required to sell any of the securities in a loss position during the period of time necessary to recover the unrealized losses, which may be until maturity. The following summarizes the conclusions from our OTTI evaluation for those security types that incurred significant gross unrealized losses as of June 30, 2015: Preferred equity securities - The unrealized loss on preferred equity securities in a loss position for 12 months or more relates to one preferred equity security. This investment is in a global financial institution. When estimating the recovery period for securities in an unrealized loss position, management utilizes analyst forecasts, earnings assumptions and other company-specific financial performance metrics. In addition, this assessment incorporates general market data, industry and sector cycles and related trends to determine a reasonable recovery period. Management evaluated the near-term prospects of the issuer in relation to the severity and duration of the impairment. Management concluded that the preferred equity security is not other-than-temporarily impaired at June 30, 2015. Mutual funds - The unrealized loss on mutual funds in a loss position for 12 months or more relates to one mutual fund. The fund invests primarily in high quality debt securities and other debt instruments supporting the affordable housing industry in areas of the United States designated by fund shareholders. When estimating the recovery period for securities in an unrealized loss position, management utilizes analyst forecasts, earnings assumptions and other fund-specific financial performance metrics. In addition, this assessment incorporates general market data, industry and sector cycles and related trends to determine a reasonable recovery period. Management evaluated the near-term prospects of the fund in relation to the severity and duration of the impairment. Management concluded that the mutual fund is not other-than-temporarily impaired at June 30, 2015. The Company recorded no other-than-temporary impairment charges to the investment securities portfolios for the three and six months ended June 30, 2015 and 2014. There were gross realized gains on sales of securities available-for-sale totaling $1.3 million and $1.5 million for the three and six months ended June 30, 2015, respectively. There were no gross realized gains on sales of securities available-for-sale for the three and six months ended June 30, 2014. As of June 30, 2015 and December 31, 2014, U.S. Treasury, U.S. Government agency obligations and Government sponsored residential mortgage-backed securities with a fair value of $133.5 million and $127.4 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 June 30, 2015 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: June 30, 2015 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 $ 69,994 $ 69,996 $ - $ - Due after one year through five years 61,773 62,118 25,611 25,540 Due after five years through ten years - - - - Due after ten years - - - - Government sponsored residential mortgage-backed securities mortgage-backed securities 5,861 6,161 8,755 8,905 $ 137,628 $ 138,275 $ 34,366 $ 34,445 Federal Home Loan Bank of Boston (“FHLBB”) Stock The Company, as a member of the FHLBB, owned $21.5 and $19.8 million of FHLBB capital stock at June 30, 2015 and December 31, 2014, respectively, which is equal to its FHLBB capital stock requirement. The Company evaluated its FHLBB capital stock for potential other-than-temporary impairment at June 30, 2015 and December 31, 2014. Capital adequacy, credit ratings, the value of the stock, overall financial condition of both the FHLB system and FHLBB as well as current economic factors was analyzed in the impairment analysis. The Company concluded that its position in FHLBB capital stock is not other-than-temporarily impaired as of June 30, 2015 and December 31, 2014. Alternative Investments Alternative investments, which totaled $2.5 million and $2.7 million at June 30, 2015 and December 31, 2014, respectively, are included in other assets in the accompanying condensed 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 June 30, 2015. The Company recognized an $113,000 and $41,000 other-than-temporary impairment charge on its limited partnerships for the six months ended June 30, 2015 and 2014, respectively, included in other noninterest income in the accompanying condensed Consolidated Statements of Income. The Company recognized profit distributions in its limited partnerships of $42,000 and $27,000 for the six months ended June 30, 2015. See a further discussion of fair value in Note 15 - Fair Value Measurements. The Company has $692,000 in unfunded commitments remaining for its alternative investments as of June 30, 2015. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 5. Loans and Allowance for Loan Losses Loans consisted of the following: June 30, December 31, 2015 2014 (Dollars in thousands) Real estate: Residential $ 888,376 $ 827,005 Commercial 817,955 765,066 Construction 42,858 57,371 Installment 3,103 3,356 Commercial 359,537 309,708 Collateral 1,551 1,733 Home equity line of credit 169,507 169,768 Revolving credit 77 99 Resort 837 929 Total loans 2,283,801 2,135,035 Net deferred loan costs 4,165 3,842 Loans 2,287,966 2,138,877 Allowance for loan losses (19,581 ) (18,960 ) Loans, net $ 2,268,385 $ 2,119,917 Changes in the allowance for loan losses by segments for the three and six months ended June 30, 2015 and 2014 are as follows: For the Three Months Ended June 30, 2015 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate: Residential $ 4,383 $ (45 ) $ 16 $ 98 $ 4,452 Commercial 8,917 (213 ) - 297 9,001 Construction 472 - - (111 ) 361 Installment 40 (1 ) - (3 ) 36 Commercial 3,427 (18 ) - 336 3,745 Collateral - - - - - Home equity line of credit 1,993 - - (7 ) 1,986 Revolving credit - (59 ) 6 53 - Resort - - - - - $ 19,232 $ (336 ) $ 22 $ 663 $ 19,581 For the Three Months Ended June 30, 2014 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate: Residential $ 3,760 $ (123 ) $ 1 $ (7 ) $ 3,631 Commercial 8,601 - 1 180 8,782 Construction 927 - - (27 ) 900 Installment 42 (3 ) - 2 41 Commercial 2,847 (1 ) 6 237 3,089 Collateral - - - - - Home equity line of credit 1,453 - - 15 1,468 Revolving credit - (12 ) 2 10 - Resort 1 - - - 1 $ 17,631 $ (139 ) $ 10 $ 410 $ 17,912 For the Six Months Ended June 30, 2015 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate Residential $ 4,382 $ (193 ) $ 16 $ 247 $ 4,452 Commercial 8,949 (213 ) - 265 9,001 Construction 478 - - (117 ) 361 Installment 41 (3 ) - (2 ) 36 Commercial 3,250 (20 ) - 515 3,745 Collateral - - - - - Home equity line of credit 1,859 (138 ) - 265 1,986 Revolving credit - (121 ) 15 106 - Resort 1 - - (1 ) - $ 18,960 $ (688 ) $ 31 $ 1,278 $ 19,581 For the Six Months Ended June 30, 2014 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate Residential $ 3,647 $ (262 ) $ 1 $ 245 $ 3,631 Commercial 8,253 (93 ) 1 621 8,782 Construction 1,152 - - (252 ) 900 Installment 48 (3 ) - (4 ) 41 Commercial 3,746 (955 ) 13 285 3,089 Collateral - - - - - Home equity line of credit 1,465 - - 3 1,468 Revolving credit - (26 ) 7 19 - Resort 3 - - (2 ) 1 $ 18,314 $ (1,339 ) $ 22 $ 915 $ 17,912 The following table lists the allocation of the allowance by impairment methodology and by loan segment at June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Reserve Reserve (Dollars in thousands) Total Allocation Total Allocation Loans individually evaluated for impairment: Real estate: Residential $ 11,567 $ 136 $ 11,791 $ 285 Commercial 16,897 48 19,051 233 Construction 4,719 - 4,719 - Installment 277 8 251 8 Commercial 4,643 202 5,680 225 Collateral - - - - Home equity line of credit 1,035 - 1,031 - Revolving Credit - - - - Resort 837 - 929 1 39,975 394 43,452 752 Loans collectively evaluated for impairment: Real estate: Residential $ 881,544 $ 4,316 $ 819,630 $ 4,097 Commercial 800,554 8,953 745,501 8,716 Construction 38,139 361 52,652 478 Installment 2,807 28 3,093 33 Commercial 354,847 3,543 303,980 3,025 Collateral 1,551 - 1,733 - Home equity line of credit 168,472 1,986 168,737 1,859 Revolving Credit 77 - 99 - Resort - - - - 2,247,991 19,187 2,095,425 18,208 Total $ 2,287,966 $ 19,581 $ 2,138,877 $ 18,960 The following is a summary of loan delinquencies at recorded investment values at June 30, 2015 and December 31, 2014: June 30, 2015 Past Due 90 30-59 Days 60-89 Days > 90 Days Days or More (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 17 $ 3,122 4 $ 942 17 $ 6,366 38 $ 10,430 $ - Commercial - - - - 3 1,086 3 1,086 - Construction - - - - 1 187 1 187 - Installment 2 11 - - 1 30 3 41 - Commercial 4 199 - - 3 70 7 269 - Collateral 6 58 - - - - 6 58 - Home equity line of credit 1 65 - - 7 1,050 8 1,115 - Demand 1 58 - - - - 1 58 - Revolving Credit - - - - - - - - - Resort - - - - - - - - - Total 31 $ 3,513 4 $ 942 32 $ 8,789 67 $ 13,244 $ - December 31, 2014 Past Due 90 30-59 Days 60-89 Days > 90 Days Days or More (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 16 $ 3,599 6 $ 1,263 16 $ 6,819 38 $ 11,681 $ - Commercial 2 348 - - 3 1,979 5 2,327 - Construction - - - - 1 187 1 187 - Installment 3 69 2 82 2 33 7 184 - Commercial 1 40 1 4 7 550 9 594 - Collateral 9 99 - - - - 9 99 - Home equity line of credit 3 202 1 349 5 389 9 940 - Demand 1 67 - - - - 1 67 - Revolving Credit - - - - - - - - - Resort - - - - - - - - - Total 35 $ 4,424 10 $ 1,698 34 $ 9,957 79 $ 16,079 $ - 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: June 30, December 31, (Dollars in thousands) 2015 2014 Nonaccrual loans: Real estate: Residential $ 8,678 $ 9,706 Commercial 1,206 2,112 Construction 187 187 Installment 142 155 Commercial 1,686 2,268 Collateral - - Home equity line of credit 1,074 1,040 Demand - - Revolving Credit - - Resort - - Total nonaccruing loans 12,973 15,468 Loans 90 days past due and still accruing - - Other real estate owned 2,079 400 Total nonperforming assets $ 15,052 $ 15,868 The following is a summary of information pertaining to impaired loans at June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 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 $ 10,425 $ 11,543 $ - $ 5,862 $ 6,286 $ - Commercial 13,953 13,995 - 13,804 13,828 - Construction 4,719 4,965 - 4,719 4,965 - Installment 250 264 - 220 232 - Commercial 4,085 4,199 - 3,527 3,584 - Collateral - - - - - - Home equity line of credit 1,035 1,048 - 1,031 1,264 - Revolving Credit - - - - - - Resort 837 837 - - - - Total 35,304 36,851 - 29,163 30,159 - Impaired loans with a valuation allowance: Real estate: Residential 1,142 1,158 136 5,929 6,848 285 Commercial 2,944 2,944 48 5,247 5,523 233 Construction - - - - - - Installment 27 27 8 31 31 8 Commercial 558 675 202 2,153 2,266 225 Collateral - - - - - - Home equity line of credit - - - - - - Revolving Credit - - - - - - Resort - - - 929 929 1 Total 4,671 4,804 394 14,289 15,597 752 Total impaired loans $ 39,975 $ 41,655 $ 394 $ 43,452 $ 45,756 $ 752 The following table summarizes average recorded investment and interest income recognized on impaired loans: Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, June 30, June 30, 2015 2015 2015 2014 2014 2014 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income (Dollars in thousands) Investment Recognized Recognized Investment Recognized Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 7,934 $ 26 $ 53 $ 6,895 $ 20 $ 43 Commercial 14,016 147 289 16,844 174 429 Construction 3,586 34 68 140 - - Installment 230 4 7 143 3 7 Commercial 3,879 26 55 3,658 27 84 Collateral - - - - - - Home equity line of credit 953 - 2 470 - - Revolving Credit - - - - - - Resort 859 7 14 - - - Total 31,457 244 488 28,150 224 563 Impaired loans with a valuation allowance: Real estate: Residential 3,652 9 18 5,275 7 27 Commercial 4,674 35 87 4,080 15 47 Construction - - - 47 - - Installment 29 - - 28 - - Commercial 1,417 5 10 2,717 30 53 Collateral - - - - - - Home equity line of credit - - - - - - Revolving Credit - - - - - - Resort - - - 1,175 8 19 Total 9,772 49 115 13,322 60 146 Total impaired loans $ 41,229 $ 293 $ 603 $ 41,472 $ 284 $ 709 There was no interest income recognized on a cash basis method of accounting for the three and six months ended June 30, 2015 and 2014. The following tables present information on loans whose terms had been modified in a troubled debt restructuring at June 30, 2015 and December 31, 2014: June 30, 2015 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Loans Investment Real estate: Residential 14 $ 2,308 11 $ 5,664 25 $ 7,972 Commercial 5 7,207 - - 5 7,207 Construction 1 4,532 1 187 2 4,719 Installment 5 243 1 35 6 278 Commercial 7 2,365 8 1,615 15 3,980 Collateral - - - - - - Home equity line of credit 3 153 - - 3 153 Demand - - - - - - Revolving Credit - - - - - - Resort 1 837 - - 1 837 Total 36 $ 17,645 21 $ 7,501 57 $ 25,146 December 31, 2014 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Loans Investment Real estate: Residential 11 $ 1,849 10 $ 5,608 21 $ 7,457 Commercial 7 8,359 - - 7 8,359 Construction 1 4,532 1 187 2 4,719 Installment 4 212 1 39 5 251 Commercial 8 2,783 5 1,621 13 4,404 Collateral - - - - - - Home equity line of credit - - 2 126 2 126 Demand - - - - - - Revolving Credit - - - - - - Resort 1 929 - - 1 929 Total 32 $ 18,664 19 $ 7,581 51 $ 26,245 The recorded investment balance of TDRs approximated $25.1 million and $26.2 million at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015 and December 31, 2014, the majority of the Company’s TDRs are on accrual status. TDRs on accrual status were $17.6 million and $18.7 million while TDRs on nonaccrual status were $7.5 million and $7.6 million at June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, 100% of the accruing TDRs have been performing in accordance with the restructured terms. At June 30, 2015 and December 31, 2014, the allowance for loan losses included specific reserves of $377,000 and $592,000 related to TDRs, respectively. For the six months ended June 30, 2015 and 2014, the Bank had charge-offs totaling $204,000 and $982,000, 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 $390,000 and $206,000 at June 30, 2015 and December 31, 2014, 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 and six months ended June 30, 2015 and 2014: For the Three Months Ended June 30, 2015 For the Six Months Ended June 30, 2015 Recorded Recorded Recorded Recorded Investment Investment Investment Investment Number of Prior to After Number of Prior to After (Dollars in thousands) Modifications Modification Modification (1) Modifications Modification Modification (1) Troubled Debt Restructurings: Real estate Residential 5 $ 922 $ 922 6 $ 1,043 $ 1,042 Commercial - - - 1 493 490 Installment - - - 1 44 43 Commercial 2 34 34 3 132 131 Home equity line of credit 1 26 26 3 153 153 Total 8 $ 982 $ 982 14 $ 1,865 $ 1,859 For the Three Months Ended June 30, 2014 For the Six Months Ended June 30, 2014 Recorded Recorded Recorded Recorded Investment Investment Investment Investment Number of Prior to After Number of Prior to After (Dollars in thousands) Modifications Modification Modification (1) Modifications Modification Modification (1) Troubled Debt Restructurings: Real estate Residential 2 $ 278 $ 278 9 $ 1,463 $ 1,450 Installment 1 17 17 1 17 17 Commercial 2 283 283 4 3,763 3,759 Total 5 $ 578 $ 578 14 $ 5,243 $ 5,226 (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 table provides 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 and six months ended June 30, 2015 and 2014: For the Three Months Ended June 30, 2015 Adjusted Number of Extended Interest Combination (Dollars in thousands) Modifications Maturity Rates of Rate and Other Total Real estate Residential 5 $ - $ - $ - $ 922 $ 922 Commercial - - - - - - Installment - - - - - - Commercial 2 - - 34 - 34 Home equity line of credit 1 - - - 26 26 Total 8 $ - $ - $ 34 $ 948 $ 982 For the Six Months Ended June 30, 2015 Adjusted Number of Extended Interest Combination (Dollars in thousands) Modifications Maturity Rates of Rate and Other Total Real estate Residential 6 $ - $ - $ - $ 1,042 $ 1,042 Commercial 1 - - - 490 490 Installment 1 - - - 43 43 Commercial 3 - - 34 97 131 Home equity line of credit 3 - - - 153 153 Total 14 $ - $ - $ 34 $ 1,825 $ 1,859 For the Three Months Ended June 30, 2014 Adjusted Combination Number of Extended Interest of Rate and (Dollars in thousands) Modifications Maturity Rates Maturity Other Total Real Estate Residential 2 $ - $ - $ - $ 278 $ 278 Installment 1 - - - 17 17 Commercial 2 241 - - 42 283 Total 5 $ 241 $ - $ - $ 337 $ 578 For the Six Months Ended June 30, 2014 Adjusted Combination Number of Extended Interest of Rate and (Dollars in thousands) Modifications Maturity Rates Maturity Other Total Real estate Residential 9 $ - $ - $ - $ 1,450 $ 1,450 Installment 1 - - - 17 17 Commercial 4 2,621 - - 1,138 3,759 Total 14 $ 2,621 $ - $ - $ 2,605 $ 5,226 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 during the three and six months ended June 30, 2015. The following loans defaulted and had been modified as a TDR during the twelve month period preceding the default date during the three and six months ended June 30, 2014. For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment (1) Loans Investment (1) Real estate Residential 1 $ 498 2 $ 711 Commercial 2 454 2 454 Total 3 $ 952 4 $ 1,165 (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. 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 June 30, 2015 and December 31, 2014: June 30, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 877,474 $ 1,488 $ 9,414 $ - $ 888,376 Commercial 796,600 11,413 9,942 - 817,955 Construction 38,139 - 4,719 - 42,858 Installment 2,922 38 143 - 3,103 Commercial 339,470 5,180 14,703 184 359,537 Collateral 1,551 - - - 1,551 Home equity line of credit 168,046 302 1,159 - 169,507 Revolving Credit 77 - - - 77 Resort 837 - - - 837 Total Loans $ 2,225,116 $ 18,421 $ 40,080 $ 184 $ 2,283,801 December 31, 2014 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 815,209 $ 488 $ 11,308 $ - $ 827,005 Commercial 741,278 12,550 11,238 - 765,066 Construction 51,947 705 4,719 - 57,371 Installment 3,113 41 202 - 3,356 Commercial 285,185 14,754 9,557 212 309,708 Collateral 1,733 - - - 1,733 Home equity line of credit 168,238 302 1,228 - 169,768 Revolving Credit 99 - - - 99 Resort 929 - - - 929 Total Loans $ 2,067,731 $ 28,840 $ 38,252 $ 212 $ 2,135,035 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 $3.4 million and $3.3 million at June 30, 2015 and December 31, 2014, respectively, and the balance is included in prepaid expenses and other assets in the accompanying condensed Consolidated Statements of Financial Condition. The fair value of mortgage servicing rights approximated $3.9 million and $3.6 million at June 30, 2015 and December 31, 2014, respectively. Total loans sold with servicing rights retained were $36.1 million and $21.8 million for the six months ended June 30, 2015 and 2014, respectively. The net gain on loans sold totaled $932,000 and $439,000 for the six months ended June 30, 2015 and 2014, respectively, and is included in the accompanying condensed Consolidated Statements of Operations. The principal balance of loans serviced for others, which are not included in the accompanying condensed Consolidated Statements of Financial Condition, totaled $347.6 million and $335.2 million at June 30, 2015 and December 31, 2014, respectively. Loan servicing fees for others totaling $426,000 and $375,000 for the six months ended June 30, 2015 and 2014, respectively, are included as a component of other noninterest income in the accompanying condensed Consolidated Statements of Operations. |
Credit Arrangements
Credit Arrangements | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | 7. 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 June 30, 2015 and December 31, 2014. The Company has access to a pre-approved unsecured line of credit with a financial institution totaling $20.0 million, which was undrawn at June 30, 2015 and December 31, 2014. The Company has access to a $3.5 million unsecured line of credit agreement with a bank which expires on September 30, 2015. The line was undrawn at June 30, 2015 and December 31, 2014. The Company maintains a cash balance of $262,500 with the bank to avoid fees associated with the above line. 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 $400.7 million and $401.7 million at June 30, 2015 and December 31, 2014, respectively. Advances from the FHLBB are collateralized by first mortgage loans with an estimated eligible collateral value of $874.6 million and $812.8 million at June 30, 2015 and December 31, 2014, respectively. The Company has available borrowings of $125.9 million and $122.5 million at June 30, 2015 and December 31, 2014, 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 $77.7 million and $71.0 million on an overnight basis at June 30, 2015 and December 31, 2014, respectively, and was undrawn as of June 30, 2015 and December 31, 2014. The funding arrangement was collateralized by $147.8 million and $141.6 million in pledged commercial real estate loans as of June 30, 2015 and December 31, 2014, respectively. The Bank has a Master Repurchase Agreement borrowing facility with a broker. Borrowings under the Master Repurchase Agreement are secured by the Company’s investments in certain securities with a fair value of $11.6 million and $23.0 million at June 30, 2015 and December 31, 2014, respectively. Outstanding borrowings totaled $10.5 million and $21.0 million at June 30, 2015 and December 31, 2014, respectively. 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 $56.0 million and $49.0 million at June 30, 2015 and December 31, 2014, 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 $63.4 million and $74.4 million as of June 30, 2015 and December 31, 2014, respectively. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift [Abstract] | |
Deposits | 8. Deposits Deposit balances are as follows: June 30, December 31, 2015 2014 (Dollars in thousands) Noninterest-bearing demand deposits $ 377,092 $ 330,524 Interest-bearing NOW accounts 425,789 355,412 Money market 430,558 470,991 Savings accounts 220,154 210,892 Time deposits 424,447 365,222 Total interest-bearing deposits 1,500,948 1,402,517 Total deposits $ 1,878,040 $ 1,733,041 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. The Company also has established a relationship for brokered deposits. There were brokered deposits totaling $52.2 million and $-0- at June 30, 2015 and December 31, 2014, respectively. Time certificates of deposit in denominations of $250,000 or more approximated $88.3 million and $83.4 million at June 30, 2015 and December 31, 2014, respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | 9. Pension and Other Postretirement Benefit Plans The following tables set forth the components of net periodic pension and benefit costs. Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Service cost $ - $ - $ 14 $ 15 Interest cost 259 256 30 37 Expected return on plan assets (362 ) (335 ) - - Amortization: Loss 176 76 3 5 Prior service cost - - (13 ) (13 ) Net periodic benefit cost $ 73 $ (3 ) $ 34 $ 44 Pension Benefits Other Postretirement Benefits Six Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Service cost $ - $ - $ 29 $ 30 Interest cost 518 511 61 73 Expected return on plan assets (724 ) (670 ) - - Amortization: - - Loss 354 153 6 9 Prior service cost - - (25 ) (25 ) Net periodic benefit cost $ 148 $ (6 ) $ 71 $ 87 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 contributed a total of $1.0 million to the qualified defined benefit plan for the year ended December 31, 2015. 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 June 30, 2015, the loan had an outstanding balance of $13.0 million and an interest rate of 4.25%. 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 $718,000 and $740,000 for the six months ended June 30, 2015 and 2014, respectively. Shares held by the ESOP include the following as of June 30, 2015: Allocated 381,444 Committed to be released 47,289 Unallocated 1,001,683 1,430,416 The fair value of unallocated ESOP shares was $15.9 million at June 30, 2015. |
Stock Incentive Plan
Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock Incentive Plan | 10. Stock Incentive Plan In August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan (the “Plan”). The 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 accordance with generally accepted accounting principles for Share-Based Payments, the Company expenses the fair value of all share-based compensation grants over the requisite service periods. Stock options granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016 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. Restricted shares granted vested 20% immediately and will vest 20% at each annual anniversary of the grant date through 2016. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award. 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 statement of operations. For the six months ended June 30, 2015 and 2014, the Company recorded $1.8 million and $1.4 million of share-based compensation expense, respectively, comprised of $726,000 and $587,000 of stock option expense, respectively and $1.1 million and $857,000 of restricted stock expense, respectively. Expected future compensation expense relating to the 654,684 non-vested options outstanding at June 30, 2015, is $1.4 million over the remaining weighted-average period of 1.45 years. Expected future compensation expense relating to the 252,580 non-vested restricted shares at June 30, 2015, is $1.8 million over the remaining weighted-average period of 1.19 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 and the historical volatility of a peer group as the Company does not have reliably determined stock price for the period needed that is at least equal to its expected term and the Company’s recent historical volatility may not reflect 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 six months ended June 30, 2015 and 2014: 2015 2014 Weighted per share average fair value of options granted $ 3.33 $ 4.27 Weighted-average assumptions: Risk-free interest rate 1.51 % 1.90 % Expected volatility 26.03 % 30.56 % Expected dividend yield 1.99 % 1.89 % Weighted-average dividend yield 1.25% - 2.59 % 1.09% - 2.51 % 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 six months ended June 30, 2015. Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Term Intrinsic Value Stock Options Exercise Price (in years) (in thousands) Outstanding at December 31, 2014 1,671,157 $ 13.04 Granted 21,000 15.66 Exercised (21,000 ) 12.95 Forfeited (15,600 ) 12.95 Expired (1,200 ) 12.95 Outstanding at June 30, 2015 1,654,357 $ 13.08 6.96 $ 4,606 Exercisable at June 30, 2015 999,673 $ 13.02 6.69 $ 2,854 The total intrinsic value of options exercised during the three months ended June 30, 2015 was $43,000. The following is a summary of the status of the Company’s restricted stock for the six months ended June 30, 2015. Number of Weighted-Average Restricted Grant Date Stock Fair Value Unvested at December 31, 2014 266,884 $ 12.95 Granted - - Vested (14,304 ) 12.95 Forfeited - - Unvested at June 30, 2015 252,580 $ 12.95 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 11. Derivative Financial Instruments Non-Hedge Accounting Derivatives/Non-designated Hedges: 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 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 banks; 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 June 30, 2015, the Company maintained a cash balance of $7.0 million with a correspondent bank to collateralize its position. As of June 30, 2015, the Company has an agreement with a correspondent bank to secure any outstanding receivable in excess of $10.0 million. 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 June 30, 2015. 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: June 30, 2015 December 31, 2014 Consolidated Estimated Estimated Balance Sheet # of Notional Fair # of Notional Fair (Dollars in thousands) Location Instruments Amount Values Instruments Amount Values Commercial loan customer interest rate swap position Other Assets $ 44 $ 184,680 $ 6,392 43 $ 174,884 $ 7,167 Commercial loan customer interest rate swap position Other Liabilities 13 54,996 (738 ) 8 27,988 (431 ) Counterparty interest rate swap position Other Liabilities 57 239,676 (5,726 ) 51 202,872 (6,821 ) The Company recorded the changes in the fair value of non-hedge accounting derivatives as a component of other noninterest income except for interest received and paid which is reported in interest income in the accompanying condensed consolidated statements of operations as follows: For The Three Months Ended June 30, 2015 2014 MTM (Loss) MTM (Loss) Interest Income Gain Recorded Interest Income Gain Recorded Recorded in in Noninterest Recorded in in Noninterest Interest Income Income Net Impact Interest Income Income Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (1,160 ) $ (4,078 ) $ (5,238 ) $ (860 ) $ 1,048 $ 188 Counterparty interest rate swap position 1,160 4,078 5,238 860 (1,048 ) (188 ) Total $ - $ - $ - $ - $ - $ - For The Six Months Ended June 30, 2015 2014 MTM (Loss) MTM (Loss) Interest Income Gain Recorded Interest Income Gain Recorded Recorded in in Noninterest Recorded in in Noninterest Interest Income Income Net Impact Interest Income Income Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (2,337 ) $ (775 ) $ (3,112 ) $ (1,715 ) $ 1,384 $ (331 ) Counterparty interest rate swap position 2,337 775 3,112 1,715 (1,384 ) 331 Total $ - $ - $ - $ - $ - $ - 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 June 30, 2015, the notional amount of outstanding rate locks totaled approximately $17.6 million. The notional amount of outstanding commitments to sell residential mortgage loans totaled approximately $18.5 million, which included mandatory forward commitments totaling approximately $13.2 million at June 30, 2015. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting Of Financial Assets And Liabilities Abstract [Abstract] | |
Offsetting of Financial Assets and Liabilities | 12. Offsetting of Financial Assets and Liabilities The following table presents the remaining contractual maturities of the Company’s repurchase agreement borrowings and repurchase liabilities as of June 30, 2015, disaggregated by the class of collateral pledged. June 30, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to One Year One Year to Three Years 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 54,613 — — 54,613 Government sponsored residential mortgage-backed securities 1,428 — — 1,428 Total repurchase liabilities 56,041 — — 56,041 Total $ 56,041 $ — $ 10,500 $ 66,541 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 table presents the potential effect of rights of setoff associated with the Company’s recognized financial assets and liabilities at June 30, 2015 and December 31, 2014: June 30, 2015 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Assets Presented in Securities Cash of Recognized Statement of the Statement of Financial Collateral Collateral Net Assets Financial Condition Financial Condition Instruments Received Received Amount (Dollars in thousands) Interest rate swap derivatives $ 6,392 $ - $ 6,392 $ - $ - $ 6,392 $ - Total $ 6,392 $ - $ 6,392 $ - $ - $ 6,392 $ - June 30, 2015 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Liabilities Presented Securities Cash of Recognized Statement of in the Statement of Financial Collateral Collateral Net Liabilities Financial Condition Financial Condition Instruments Pledged Pledged Amount (Dollars in thousands) Interest rate swap derivatives $ 6,464 $ - $ 6,464 $ - $ - $ 6,464 $ - Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 16,964 $ - $ 16,964 $ - $ 10,500 $ 6,464 $ - December 31, 2014 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Assets Presented in Securities Cash of Recognized Statement of the Statement of Financial Collateral Collateral Net Assets Financial Condition Financial Condition Instruments Received Received Amount (Dollars in thousands) Interest rate swap derivatives $ 7,167 $ - $ 7,167 $ - $ - $ 6,750 $ 417 Total $ 7,167 $ - $ 7,167 $ - $ - $ 6,750 $ 417 December 31, 2014 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Liabilities Presented Securities Cash of Recognized Statement of in the Statement of Financial Collateral Collateral Net Liabilities Financial Condition Financial Condition Instruments Pledged Pledged Amount (Dollars in thousands) Interest rate swap derivatives $ 7,252 $ - $ 7,252 $ - $ - $ 6,750 $ 502 Repurchase agreement borrowings 21,000 - 21,000 - 21,000 - - Total $ 28,252 $ - $ 28,252 $ - $ 21,000 $ 6,750 $ 502 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2015 | |
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 statement of 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: June 30, December 31, 2015 2014 (Dollars in thousands) Approved loan commitments $ 114,347 $ 33,737 Unadvanced portion of construction loans 25,612 41,604 Unused lines for home equity loans 180,622 173,493 Unused revolving lines of credit 371 367 Unused commercial letters of credit 4,005 4,028 Unused commercial lines of credit 177,513 190,247 $ 502,470 $ 443,476 Financial instruments with off-balance sheet risk had a valuation allowance of $437,000 and $440,000 as of June 30, 2015 and December 31, 2014, 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. At June 30, 2015 and December 31, 2014, 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 | 6 Months Ended |
Jun. 30, 2015 | |
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. 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 six months ended June 30, 2015 and 2014. 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: 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. Interest Rate Swap Derivatives: Forward loan sale commitments and derivative loan commitments: The following table details the financial instruments carried at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: June 30, 2015 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 63,927 $ 63,927 $ - $ - U.S. Government agency obligations 67,117 67,117 - - Government sponsored residential mortgage-backed securities 6,161 - 6,161 - Corporate debt securities 1,070 - 1,070 - Preferred equity securities 1,624 - 1,624 - Marketable equity securities 156 156 - - Mutual funds 3,744 - 3,744 - Securities available-for-sale 143,799 131,200 12,599 - Interest rate swap derivative 6,392 - 6,392 - Derivative loan commitments 127 - - 127 Forward loan sales commitments 13 - - 13 Total $ 150,331 $ 131,200 $ 18,991 $ 140 Liabilities Interest rate swap derivative $ 6,464 $ - $ 6,464 $ - Total $ 6,464 $ - $ 6,464 $ - December 31, 2014 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 123,816 $ 123,816 $ - $ - U.S. Government agency obligations 49,109 49,109 - - Government sponsored residential mortgage-backed securities 6,907 - 6,907 - Corporate debt securities 1,085 - 1,085 - Trust preferred debt securities 1,557 - 1,557 - Preferred equity securities 1,676 - 1,676 - Marketable equity securities 170 170 - - Mutual funds 3,721 - 3,721 - Securities available-for-sale 188,041 173,095 14,946 - Interest rate swap derivative 7,167 - 7,167 - Derivative loan commitments 40 - - 40 Total $ 195,248 $ 173,095 $ 22,113 $ 40 Liabilities Interest rate swap derivative $ 7,252 $ - $ 7,252 $ - Forward loan sales commitments 26 - - 26 Total $ 7,278 $ - $ 7,252 $ 26 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 Commitments, Net For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Balance, at beginning of period $ 144 $ 96 $ 14 $ 47 Total realized gain (loss): Included in earnings (4 ) (46 ) 126 3 Balance, at the end of period $ 140 $ 50 $ 140 $ 50 The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis at June 30, 2015 and December 31, 2014: June 30, 2015 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 140 Adjusted quoted prices in active markets Embedded servicing value 1.19 December 31, 2014 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 14 Adjusted quoted prices in active markets Embedded servicing value 1.07 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 June 30, 2015 and December 31, 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: June 30, 2015 December 31, 2014 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 $ - $ - $ 3,106 $ - $ - $ 1,647 Other real estate owned - - 1,149 - - - The following is a description of the valuation methodologies used for instruments measured 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 June 30, 2015 and December 31, 2014: June 30, 2015 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 3,106 Appraisals Discount for dated appraisal 0% - 20% 10.0 % Discount for costs to sell 8% - 15% 11.5 % Other real estate owned $ 1,149 Appraisals Discount for costs to sell 5% - 10% 7.5 % December 31, 2014 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 1,647 Appraisals Discount for dated appraisal 0% - 20% 10.0 % Discount for costs to sell 8% - 15% 11.5 % Disclosures about Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosure for financial instruments: Cash and cash equivalents: Investment in Federal Home Loan Bank of Boston (“FHLBB”) stock: Alternative Investments: Loans: Deposits: Borrowed funds: Repurchase liabilities: The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2015 and December 31, 2014. 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. June 30, 2015 December 31, 2014 Estimated Estimated Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value (Dollars in thousands) Financial assets Securities held-to-maturity Level 2 $ 34,366 $ 34,445 $ 16,224 $ 16,416 Securities available-for-sale See previous table 143,799 143,799 188,041 188,041 Loans Level 3 2,287,966 2,275,898 2,135,035 2,130,994 Loans held-for-sale Level 2 7,550 7,593 2,417 2,469 Mortgage servicing rights Level 3 3,352 3,907 3,336 3,572 Federal Home Loan Bank of Boston stock Level 2 21,496 21,496 19,785 19,785 Alternative investments Level 3 2,518 2,447 2,694 2,695 Interest rate swap derivatives Level 2 6,392 6,392 7,167 7,167 Forward loan sales commitments Level 3 13 13 - - Derivative loan commitments Level 3 1 27 127 40 40 Financial liabilities Deposits other than time deposits Level 1 1,453,593 1,453,593 1,367,819 1,367,819 Time deposits Level 2 424,447 427,997 365,222 368,974 Federal Home Loan Bank of Boston advances Level 2 400,700 400,464 401,700 400,226 Repurchase agreement borrowings Level 2 10,500 11,147 21,000 21,669 Repurchase liabilities Level 2 56,041 56,042 48,987 48,986 Interest rate swap derivatives Level 2 6,464 6,464 7,252 7,252 Forward loan sales commitments Level 3 - - 26 26 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and December 31, 2014 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 June 30, 2015. 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: To Be Well Minimum Required Capitalized Under for Capital Adequacy Prompt Corrective Actual Purposes Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At June 30, 2015 Total Capital (to Risk Weighted Assets) $ 227,863 11.24 % $ 162,180 8.00 % $ 202,725 10.00 % Tier I Capital (to Risk Weighted Assets) 207,845 10.25 121,665 6.00 162,220 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 207,845 10.25 91,249 4.50 131,804 6.50 Tier I Leverage Capital (to Average Assets) 207,845 8.09 102,766 4.00 128,458 5.00 At December 31, 2014 Total Capital (to Risk Weighted Assets) $ 220,616 11.65 % $ 151,496 8.00 % $ 189,370 10.00 % Tier I Capital (to Risk Weighted Assets) 201,216 10.63 75,716 4.00 113,574 6.00 Tier I Leverage Capital (to Average Assets) 201,216 8.25 97,559 4.00 121,949 5.00 First Connecticut Bancorp, Inc.: At June 30, 2015 Total Capital (to Risk Weighted Assets) $ 266,115 13.11 % $ 162,389 8.00 % $ 202,986 10.00 % Tier I Capital (to Risk Weighted Assets) 246,097 12.12 121,830 6.00 162,440 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 246,097 12.12 91,373 4.50 131,983 6.50 Tier I Leverage Capital (to Average Assets) 246,097 9.57 102,862 4.00 128,577 5.00 At December 31, 2014 Total Capital (to Risk Weighted Assets) $ 260,157 13.73 % $ 151,585 8.00 % $ 189,481 10.00 % Tier I Capital (to Risk Weighted Assets) 240,757 12.70 75,829 4.00 113,743 6.00 Tier I Leverage Capital (to Average Assets) 240,757 9.86 97,670 4.00 122,088 5.00 |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income | 17. The following table presents a reconciliation of the changes in components of other comprehensive income for years indicated, including the amount of income tax expense allocated to each component of other comprehensive income: For the Three Months Ended June 30, 2015 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized losses on available-for-sale securities $ (2,793 ) $ 983 $ (1,810 ) Less: net security gains reclassified into other noninterest income 1,250 (440 ) 810 Net change in fair value of securities available-for-sale (1,543 ) 543 (1,000 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 29 (10 ) 19 Total other comprehensive loss $ (1,514 ) $ 533 $ (981 ) For the Three Months Ended June 30, 2014 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized gains on available-for-sale securities $ 161 $ (55 ) $ 106 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 161 (55 ) 106 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 86 (29 ) 57 Total other comprehensive income $ 247 $ (84 ) $ 163 For the Six Months Ended June 30, 2015 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized losses on available-for-sale securities $ (2,975 ) $ 1,047 $ (1,928 ) Less: net security gains reclassified into other noninterest income 1,523 (536 ) 987 Net change in fair value of securities available-for-sale (1,452 ) 511 (941 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 191 (67 ) 124 Total other comprehensive loss $ (1,261 ) $ 444 $ (817 ) For the Six Months Ended June 30, 2014 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized gains on available-for-sale securities $ 297 $ (101 ) $ 196 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 297 (101 ) 196 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 142 (48 ) 94 Total other comprehensive income $ 439 $ (149 ) $ 290 (1) Amounts are included in salaries and employee benefits in the unaudited Consolidated Statements of Income. |
Legal Actions
Legal Actions | 6 Months Ended |
Jun. 30, 2015 | |
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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. The Company foreclosed on a property recorded at fair value less costs to sell resulting in a $213,000 charge-off for the three months ended June 30, 2015. The foreclosed real estate was subsequently sold on July 24, 2015 at a pre-tax gain of $557,000. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014 included in the Company’s 10-K filed on March 16, 2015. 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 Marketable equity and debt securities are classified as either trading, available-for-sale, or held-to-maturity (applies only to debt securities). Management determines the appropriate classifications of securities at the time of purchase. At June 30, 2015 and December 31, 2014, the Company had no debt or equity securities classified as trading. Held-to-maturity securities are debt 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 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. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale 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. If an equity security is deemed other-than-temporarily impaired, the full impairment is considered to be credit-related and a charge to earnings would be recorded. 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 condensed Consolidated Statements of Operations. 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 condensed Consolidated Statements of Operations. |
Loans | Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, installment, commercial, collateral, home equity lines of credit, demand, revolving credit and resort. 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, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort 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 real estate, construction, commercial and resort loan segments that are classified as non-accrual, loans secured by real property in foreclosure or are otherwise likely to be impaired, non-accruing residential and installment loan segments greater than $100,000 and all troubled debt restructurings. Nonperforming loans consist of non-accruing loans, non-accruing loans identified as trouble debt restructurings and loans past due more than 90 days and still accruing interest. |
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 regular 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, installment, commercial, collateral, home equity line of credit, demand, revolving credit and resort. 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 six months ended June 30, 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – 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 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 ten-year terms 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. Installment, Collateral, Demand, Revolving Credit and Resort – Loans in these segments include loans principally to customers residing in our primary market area with acceptable credit ratings. Our 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. Excluding collateral loans which are fully collateralized by a deposit account, repayment for loans in these segments is dependent on the credit quality of the individual borrower. The resort portfolio consists of a direct receivable loan outside the Northeast which is amortizing to its contractual obligations. The Company 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, commercial and resort 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 June 30, 2015 and December 31, 2014. |
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 lower of the related loan balance less any specific allowance for loss or 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 $2.1 million and $400,000 as of June 30, 2015 and December 31, 2014, respectively, 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 $5.0 million at June 30, 2015. |
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 policy is to contribute annually the maximum amount that could be deducted for federal income tax purposes, while meeting 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 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606).” 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 2014-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods, however, on July 9, 2015 the FASB has delayed the effective date by one year. 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. Early application is not permitted. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860) - Repurchase to Maturity Transactions, Repurchase Financings, and Disclosures”, which aligns the accounting for repurchase to maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. ASU 2014-11 is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods. In addition the disclosure of certain transactions accounted for as a sale is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is prohibited. The adoption of ASU 2014-11 did not have a material impact on the Company’s financial statements (See Note 12). In August 2014, the FASB issued ASU No. 2014-14, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure.” ASU 2014-14 requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2014. The amendments can be applied using either a prospective transition method or a modified retrospective transition method. Early adoption is permitted. The adoption of ASU 2014-14 did not have an impact on the Company’s financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 provides guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company does not expect ASU 2014-15 to have a significant impact on its financial statements. In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity” (a consensus of the FASB Emerging Issues Task Force). ASU 2014-16 clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement ASU 2014-16 in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. The Company does not expect ASU 2014-16 to have a significant impact on its financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items”, (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU 2015-01 eliminates from GAAP the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply ASU 2015-01 prospectively. A reporting entity also may apply ASU 2015-01 retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect ASU 2015-01 to have a significant impact on its financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect ASU 2015-02 to have a significant impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company does not expect ASU 2015-05 to have a significant impact on its financial statements. In May, 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent))”. This ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value (“NAV”) per share practical expedient. In addition, this ASU removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. ASU No. 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015 and which should be applied retrospectively to all periods presented. Earlier application is permitted. The Company does not expect ASU 2015-07 to have a significant impact on its financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted earnings per common share | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands, except per share data): Net income $ 3,472 $ 2,190 $ 5,983 $ 3,682 Less: Dividends to participating shares (13 ) (16 ) (26 ) (28 ) Income allocated to participating shares (47 ) (41 ) (77 ) (68 ) Net income allocated to common stockholders $ 3,412 $ 2,133 $ 5,880 $ 3,586 Weighted-average shares issued 18,006,129 18,035,335 18,006,129 18,035,335 Less: Average unallocated ESOP shares (1,017,278 ) (1,112,637 ) (1,029,017 ) (1,124,420 ) Average treasury stock (2,034,097 ) (1,920,957 ) (2,005,332 ) (1,800,137 ) Average unvested restricted stock (260,282 ) (400,325 ) (263,565 ) (400,325 ) Weighted-average basic shares outstanding 14,694,472 14,601,416 14,708,215 14,710,453 Plus: Average dilutive shares 144,982 106,056 136,779 103,113 Weighted-average diluted shares outstanding 14,839,454 14,707,472 14,844,994 14,813,566 Net earnings per share (1): Basic $ 0.23 $ 0.15 $ 0.40 $ 0.24 Diluted $ 0.23 $ 0.14 $ 0.40 $ 0.24 (1) Certain per share amounts may not appear to reconcile due to rounding. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities | June 30, 2015 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 Debt securities: U.S. Treasury obligations $ 63,756 $ 171 $ - $ 63,927 $ - $ - $ 63,927 U.S. Government agency obligations 67,011 106 - 67,117 - - 67,117 Government sponsored residential mortgage-backed securities 5,861 300 - 6,161 - - 6,161 Corporate debt securities 1,000 70 - 1,070 - - 1,070 Preferred equity securities 2,000 - (376 ) 1,624 - - 1,624 Marketable equity securities 108 49 (1 ) 156 - - 156 Mutual funds 3,898 - (154 ) 3,744 - - 3,744 Total securities available-for-sale $ 143,634 $ 696 $ (531 ) $ 143,799 $ - $ - $ 143,799 Held-to-maturity U.S. Government agency obligations $ 25,611 $ - $ - $ 25,611 $ 8 $ (79 ) 25,540 Government sponsored residential mortgage-backed securities 8,755 - - 8,755 150 - 8,905 Total securities held-to-maturity $ 34,366 $ - $ - $ 34,366 $ 158 $ (79 ) $ 34,445 December 31, 2014 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 Debt securities: U.S. Treasury obligations $ 123,739 $ 81 $ (4 ) $ 123,816 $ - $ - $ 123,816 U.S. Government agency obligations 49,013 110 (14 ) 49,109 - - 49,109 Government sponsored residential mortgage-backed securities 6,624 283 - 6,907 - - 6,907 Corporate debt securities 1,000 85 - 1,085 - - 1,085 Trust preferred debt securities - 1,557 - 1,557 - - 1,557 Preferred equity securities 2,100 2 (426 ) 1,676 - - 1,676 Marketable equity securities 108 63 (1 ) 170 - - 170 Mutual funds 3,838 - (117 ) 3,721 - - 3,721 Total securities available-for-sale $ 186,422 $ 2,181 $ (562 ) $ 188,041 $ - $ - $ 188,041 Held-to-maturity U.S. Government agency obligations $ 7,000 $ - $ - $ 7,000 $ - $ (8 ) $ 6,992 Government sponsored residential mortgage-backed securities 9,224 - - 9,224 200 - 9,424 Total securities held-to-maturity $ 16,224 $ - $ - $ 16,224 $ 200 $ (8 ) $ 16,416 |
Schedule of gross unrealized losses and fair value aggregated by investment category | June 30, 2015 Less than 12 Months 12 Months or More Total Gross Gross Gross Number of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale: Preferred equity securities 1 $ - $ - $ 1,624 $ (376 ) $ 1,624 $ (376 ) Marketable equity securities 1 - - 6 (1 ) 6 (1 ) Mutual funds 1 - - 3,744 (154 ) 3,744 (154 ) Total investment securities in an unrealized loss position 3 $ - $ - $ 5,374 $ (531 ) $ 5,374 $ (531 ) Held-to-maturity U.S. Government agency obligations 3 14,921 (79 ) - - 14,921 (79 ) 3 14,921 (79 ) - - 14,921 (79 ) Total investment securities in an unrealized loss position 6 $ 14,921 $ (79 ) $ 5,374 $ (531 ) $ 20,295 $ (610 ) December 31, 2014 Less than 12 Months 12 Months or More Total Gross Gross Gross Number of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Securities Value Loss Value Loss Value Loss Available-for-sale: U.S. Treasury obligations 4 $ 43,919 $ (4 ) $ - $ - $ 43,919 $ (4 ) U.S. Government agency obligations 2 16,989 (14 ) - - 16,989 (14 ) Preferred equity securities 1 - - 1,574 (426 ) 1,574 (426 ) Marketable equity securities 1 - - 5 (1 ) 5 (1 ) Mutual funds 1 - - 2,842 (117 ) 2,842 (117 ) 9 $ 60,908 $ (18 ) $ 4,421 $ (544 ) $ 65,329 $ (562 ) Held-to-maturity U.S. Government agency obligations Government sponsored residential 1 6,992 (8 ) - - 6,992 (8 ) mortgage-backed securities 1 6,992 (8 ) - - 6,992 (8 ) Total investment securities in an unrealized loss position 10 $ 67,900 $ (26 ) $ 4,421 $ (544 ) $ 72,321 $ (570 ) |
Schedule of amortized cost and estimated market value of debt securities by contractual maturity | June 30, 2015 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 $ 69,994 $ 69,996 $ - $ - Due after one year through five years 61,773 62,118 25,611 25,540 Due after five years through ten years - - - - Due after ten years - - - - Government sponsored residential mortgage-backed securities mortgage-backed securities 5,861 6,161 8,755 8,905 $ 137,628 $ 138,275 $ 34,366 $ 34,445 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of loans | June 30, December 31, 2015 2014 (Dollars in thousands) Real estate: Residential $ 888,376 $ 827,005 Commercial 817,955 765,066 Construction 42,858 57,371 Installment 3,103 3,356 Commercial 359,537 309,708 Collateral 1,551 1,733 Home equity line of credit 169,507 169,768 Revolving credit 77 99 Resort 837 929 Total loans 2,283,801 2,135,035 Net deferred loan costs 4,165 3,842 Loans 2,287,966 2,138,877 Allowance for loan losses (19,581 ) (18,960 ) Loans, net $ 2,268,385 $ 2,119,917 |
Schedule of changes in the allowance for loan losses by segments | For the Three Months Ended June 30, 2015 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate: Residential $ 4,383 $ (45 ) $ 16 $ 98 $ 4,452 Commercial 8,917 (213 ) - 297 9,001 Construction 472 - - (111 ) 361 Installment 40 (1 ) - (3 ) 36 Commercial 3,427 (18 ) - 336 3,745 Collateral - - - - - Home equity line of credit 1,993 - - (7 ) 1,986 Revolving credit - (59 ) 6 53 - Resort - - - - - $ 19,232 $ (336 ) $ 22 $ 663 $ 19,581 For the Three Months Ended June 30, 2014 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate: Residential $ 3,760 $ (123 ) $ 1 $ (7 ) $ 3,631 Commercial 8,601 - 1 180 8,782 Construction 927 - - (27 ) 900 Installment 42 (3 ) - 2 41 Commercial 2,847 (1 ) 6 237 3,089 Collateral - - - - - Home equity line of credit 1,453 - - 15 1,468 Revolving credit - (12 ) 2 10 - Resort 1 - - - 1 $ 17,631 $ (139 ) $ 10 $ 410 $ 17,912 For the Six Months Ended June 30, 2015 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate Residential $ 4,382 $ (193 ) $ 16 $ 247 $ 4,452 Commercial 8,949 (213 ) - 265 9,001 Construction 478 - - (117 ) 361 Installment 41 (3 ) - (2 ) 36 Commercial 3,250 (20 ) - 515 3,745 Collateral - - - - - Home equity line of credit 1,859 (138 ) - 265 1,986 Revolving credit - (121 ) 15 106 - Resort 1 - - (1 ) - $ 18,960 $ (688 ) $ 31 $ 1,278 $ 19,581 For the Six Months Ended June 30, 2014 Balance at Provision for beginning of (Reduction) Balance at period Charge-offs Recoveries loan losses end of period (Dollars in thousands) Real estate Residential $ 3,647 $ (262 ) $ 1 $ 245 $ 3,631 Commercial 8,253 (93 ) 1 621 8,782 Construction 1,152 - - (252 ) 900 Installment 48 (3 ) - (4 ) 41 Commercial 3,746 (955 ) 13 285 3,089 Collateral - - - - - Home equity line of credit 1,465 - - 3 1,468 Revolving credit - (26 ) 7 19 - Resort 3 - - (2 ) 1 $ 18,314 $ (1,339 ) $ 22 $ 915 $ 17,912 |
Schedule of the allowance by impairment methodology and by loan segment | June 30, 2015 December 31, 2014 Reserve Reserve (Dollars in thousands) Total Allocation Total Allocation Loans individually evaluated for impairment: Real estate: Residential $ 11,567 $ 136 $ 11,791 $ 285 Commercial 16,897 48 19,051 233 Construction 4,719 - 4,719 - Installment 277 8 251 8 Commercial 4,643 202 5,680 225 Collateral - - - - Home equity line of credit 1,035 - 1,031 - Revolving Credit - - - - Resort 837 - 929 1 39,975 394 43,452 752 Loans collectively evaluated for impairment: Real estate: Residential $ 881,544 $ 4,316 $ 819,630 $ 4,097 Commercial 800,554 8,953 745,501 8,716 Construction 38,139 361 52,652 478 Installment 2,807 28 3,093 33 Commercial 354,847 3,543 303,980 3,025 Collateral 1,551 - 1,733 - Home equity line of credit 168,472 1,986 168,737 1,859 Revolving Credit 77 - 99 - Resort - - - - 2,247,991 19,187 2,095,425 18,208 Total $ 2,287,966 $ 19,581 $ 2,138,877 $ 18,960 |
Schedule of loan delinquencies at recorded investment values | June 30, 2015 Past Due 90 30-59 Days 60-89 Days > 90 Days Days or More (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 17 $ 3,122 4 $ 942 17 $ 6,366 38 $ 10,430 $ - Commercial - - - - 3 1,086 3 1,086 - Construction - - - - 1 187 1 187 - Installment 2 11 - - 1 30 3 41 - Commercial 4 199 - - 3 70 7 269 - Collateral 6 58 - - - - 6 58 - Home equity line of credit 1 65 - - 7 1,050 8 1,115 - Demand 1 58 - - - - 1 58 - Revolving Credit - - - - - - - - - Resort - - - - - - - - - Total 31 $ 3,513 4 $ 942 32 $ 8,789 67 $ 13,244 $ - December 31, 2014 Past Due 90 30-59 Days 60-89 Days > 90 Days Days or More (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 16 $ 3,599 6 $ 1,263 16 $ 6,819 38 $ 11,681 $ - Commercial 2 348 - - 3 1,979 5 2,327 - Construction - - - - 1 187 1 187 - Installment 3 69 2 82 2 33 7 184 - Commercial 1 40 1 4 7 550 9 594 - Collateral 9 99 - - - - 9 99 - Home equity line of credit 3 202 1 349 5 389 9 940 - Demand 1 67 - - - - 1 67 - Revolving Credit - - - - - - - - - Resort - - - - - - - - - Total 35 $ 4,424 10 $ 1,698 34 $ 9,957 79 $ 16,079 $ - |
Schedule of nonperforming assets | June 30, December 31, (Dollars in thousands) 2015 2014 Nonaccrual loans: Real estate: Residential $ 8,678 $ 9,706 Commercial 1,206 2,112 Construction 187 187 Installment 142 155 Commercial 1,686 2,268 Collateral - - Home equity line of credit 1,074 1,040 Demand - - Revolving Credit - - Resort - - Total nonaccruing loans 12,973 15,468 Loans 90 days past due and still accruing - - Other real estate owned 2,079 400 Total nonperforming assets $ 15,052 $ 15,868 |
Schedule of summary of information pertaining to impaired loans | June 30, 2015 December 31, 2014 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 $ 10,425 $ 11,543 $ - $ 5,862 $ 6,286 $ - Commercial 13,953 13,995 - 13,804 13,828 - Construction 4,719 4,965 - 4,719 4,965 - Installment 250 264 - 220 232 - Commercial 4,085 4,199 - 3,527 3,584 - Collateral - - - - - - Home equity line of credit 1,035 1,048 - 1,031 1,264 - Revolving Credit - - - - - - Resort 837 837 - - - - Total 35,304 36,851 - 29,163 30,159 - Impaired loans with a valuation allowance: Real estate: Residential 1,142 1,158 136 5,929 6,848 285 Commercial 2,944 2,944 48 5,247 5,523 233 Construction - - - - - - Installment 27 27 8 31 31 8 Commercial 558 675 202 2,153 2,266 225 Collateral - - - - - - Home equity line of credit - - - - - - Revolving Credit - - - - - - Resort - - - 929 929 1 Total 4,671 4,804 394 14,289 15,597 752 Total impaired loans $ 39,975 $ 41,655 $ 394 $ 43,452 $ 45,756 $ 752 |
Schedule of average recorded investment and interest income recognized on impaired loans | Three Months Six Months Three Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, June 30, June 30, 2015 2015 2015 2014 2014 2014 Average Interest Interest Average Interest Interest Recorded Income Income Recorded Income Income (Dollars in thousands) Investment Recognized Recognized Investment Recognized Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 7,934 $ 26 $ 53 $ 6,895 $ 20 $ 43 Commercial 14,016 147 289 16,844 174 429 Construction 3,586 34 68 140 - - Installment 230 4 7 143 3 7 Commercial 3,879 26 55 3,658 27 84 Collateral - - - - - - Home equity line of credit 953 - 2 470 - - Revolving Credit - - - - - - Resort 859 7 14 - - - Total 31,457 244 488 28,150 224 563 Impaired loans with a valuation allowance: Real estate: Residential 3,652 9 18 5,275 7 27 Commercial 4,674 35 87 4,080 15 47 Construction - - - 47 - - Installment 29 - - 28 - - Commercial 1,417 5 10 2,717 30 53 Collateral - - - - - - Home equity line of credit - - - - - - Revolving Credit - - - - - - Resort - - - 1,175 8 19 Total 9,772 49 115 13,322 60 146 Total impaired loans $ 41,229 $ 293 $ 603 $ 41,472 $ 284 $ 709 |
Schedule of loans terms modified in a troubled debt restructuring | June 30, 2015 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Loans Investment Real estate: Residential 14 $ 2,308 11 $ 5,664 25 $ 7,972 Commercial 5 7,207 - - 5 7,207 Construction 1 4,532 1 187 2 4,719 Installment 5 243 1 35 6 278 Commercial 7 2,365 8 1,615 15 3,980 Collateral - - - - - - Home equity line of credit 3 153 - - 3 153 Demand - - - - - - Revolving Credit - - - - - - Resort 1 837 - - 1 837 Total 36 $ 17,645 21 $ 7,501 57 $ 25,146 December 31, 2014 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Loans Investment Real estate: Residential 11 $ 1,849 10 $ 5,608 21 $ 7,457 Commercial 7 8,359 - - 7 8,359 Construction 1 4,532 1 187 2 4,719 Installment 4 212 1 39 5 251 Commercial 8 2,783 5 1,621 13 4,404 Collateral - - - - - - Home equity line of credit - - 2 126 2 126 Demand - - - - - - Revolving Credit - - - - - - Resort 1 929 - - 1 929 Total 32 $ 18,664 19 $ 7,581 51 $ 26,245 |
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 June 30, 2015 For the Six Months Ended June 30, 2015 Recorded Recorded Recorded Recorded Investment Investment Investment Investment Number of Prior to After Number of Prior to After (Dollars in thousands) Modifications Modification Modification (1) Modifications Modification Modification (1) Troubled Debt Restructurings: Real estate Residential 5 $ 922 $ 922 6 $ 1,043 $ 1,042 Commercial - - - 1 493 490 Installment - - - 1 44 43 Commercial 2 34 34 3 132 131 Home equity line of credit 1 26 26 3 153 153 Total 8 $ 982 $ 982 14 $ 1,865 $ 1,859 For the Three Months Ended June 30, 2014 For the Six Months Ended June 30, 2014 Recorded Recorded Recorded Recorded Investment Investment Investment Investment Number of Prior to After Number of Prior to After (Dollars in thousands) Modifications Modification Modification (1) Modifications Modification Modification (1) Troubled Debt Restructurings: Real estate Residential 2 $ 278 $ 278 9 $ 1,463 $ 1,450 Installment 1 17 17 1 17 17 Commercial 2 283 283 4 3,763 3,759 Total 5 $ 578 $ 578 14 $ 5,243 $ 5,226 (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, below market adjusted interest rates, a combination of rate and maturity, or by other means including covenant modifications, forbearance concessions | For the Three Months Ended June 30, 2015 Adjusted Number of Extended Interest Combination (Dollars in thousands) Modifications Maturity Rates of Rate and Other Total Real estate Residential 5 $ - $ - $ - $ 922 $ 922 Commercial - - - - - - Installment - - - - - - Commercial 2 - - 34 - 34 Home equity line of credit 1 - - - 26 26 Total 8 $ - $ - $ 34 $ 948 $ 982 For the Six Months Ended June 30, 2015 Adjusted Number of Extended Interest Combination (Dollars in thousands) Modifications Maturity Rates of Rate and Other Total Real estate Residential 6 $ - $ - $ - $ 1,042 $ 1,042 Commercial 1 - - - 490 490 Installment 1 - - - 43 43 Commercial 3 - - 34 97 131 Home equity line of credit 3 - - - 153 153 Total 14 $ - $ - $ 34 $ 1,825 $ 1,859 For the Three Months Ended June 30, 2014 Adjusted Combination Number of Extended Interest of Rate and (Dollars in thousands) Modifications Maturity Rates Maturity Other Total Real Estate Residential 2 $ - $ - $ - $ 278 $ 278 Installment 1 - - - 17 17 Commercial 2 241 - - 42 283 Total 5 $ 241 $ - $ - $ 337 $ 578 For the Six Months Ended June 30, 2014 Adjusted Combination Number of Extended Interest of Rate and (Dollars in thousands) Modifications Maturity Rates Maturity Other Total Real estate Residential 9 $ - $ - $ - $ 1,450 $ 1,450 Installment 1 - - - 17 17 Commercial 4 2,621 - - 1,138 3,759 Total 14 $ 2,621 $ - $ - $ 2,605 $ 5,226 |
Schedule of loans modified as a TDR | For the Three Months Ended For the Six Months Ended June 30, 2014 June 30, 2014 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment (1) Loans Investment (1) Real estate Residential 1 $ 498 2 $ 711 Commercial 2 454 2 454 Total 3 $ 952 4 $ 1,165 (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 | June 30, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 877,474 $ 1,488 $ 9,414 $ - $ 888,376 Commercial 796,600 11,413 9,942 - 817,955 Construction 38,139 - 4,719 - 42,858 Installment 2,922 38 143 - 3,103 Commercial 339,470 5,180 14,703 184 359,537 Collateral 1,551 - - - 1,551 Home equity line of credit 168,046 302 1,159 - 169,507 Revolving Credit 77 - - - 77 Resort 837 - - - 837 Total Loans $ 2,225,116 $ 18,421 $ 40,080 $ 184 $ 2,283,801 December 31, 2014 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 815,209 $ 488 $ 11,308 $ - $ 827,005 Commercial 741,278 12,550 11,238 - 765,066 Construction 51,947 705 4,719 - 57,371 Installment 3,113 41 202 - 3,356 Commercial 285,185 14,754 9,557 212 309,708 Collateral 1,733 - - - 1,733 Home equity line of credit 168,238 302 1,228 - 169,768 Revolving Credit 99 - - - 99 Resort 929 - - - 929 Total Loans $ 2,067,731 $ 28,840 $ 38,252 $ 212 $ 2,135,035 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of deposit | June 30, December 31, 2015 2014 (Dollars in thousands) Noninterest-bearing demand deposits $ 377,092 $ 330,524 Interest-bearing NOW accounts 425,789 355,412 Money market 430,558 470,991 Savings accounts 220,154 210,892 Time deposits 424,447 365,222 Total interest-bearing deposits 1,500,948 1,402,517 Total deposits $ 1,878,040 $ 1,733,041 |
Pension and Other Postretirem33
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic pension and benefit costs | Pension Benefits Other Postretirement Benefits Three Months Ended June 30, Three Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Service cost $ - $ - $ 14 $ 15 Interest cost 259 256 30 37 Expected return on plan assets (362 ) (335 ) - - Amortization: Loss 176 76 3 5 Prior service cost - - (13 ) (13 ) Net periodic benefit cost $ 73 $ (3 ) $ 34 $ 44 Pension Benefits Other Postretirement Benefits Six Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Service cost $ - $ - $ 29 $ 30 Interest cost 518 511 61 73 Expected return on plan assets (724 ) (670 ) - - Amortization: - - Loss 354 153 6 9 Prior service cost - - (25 ) (25 ) Net periodic benefit cost $ 148 $ (6 ) $ 71 $ 87 |
Schedule of shares held by the ESOP | Allocated 381,444 Committed to be released 47,289 Unallocated 1,001,683 1,430,416 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of weighted-average assumptions | 2015 2014 Weighted per share average fair value of options granted $ 3.33 $ 4.27 Weighted-average assumptions: Risk-free interest rate 1.51 % 1.90 % Expected volatility 26.03 % 30.56 % Expected dividend yield 1.99 % 1.89 % Weighted-average dividend yield 1.25% - 2.59 % 1.09% - 2.51 % Expected life of options granted 6.0 years 6.0 years |
Schedule of summary of the company's stock option activity and related information for its option grants | Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Term Intrinsic Value Stock Options Exercise Price (in years) (in thousands) Outstanding at December 31, 2014 1,671,157 $ 13.04 Granted 21,000 15.66 Exercised (21,000 ) 12.95 Forfeited (15,600 ) 12.95 Expired (1,200 ) 12.95 Outstanding at June 30, 2015 1,654,357 $ 13.08 6.96 $ 4,606 Exercisable at June 30, 2015 999,673 $ 13.02 6.69 $ 2,854 |
Schedule of summary of the status of the company's restricted stock | Number of Weighted-Average Restricted Grant Date Stock Fair Value Unvested at December 31, 2014 266,884 $ 12.95 Granted - - Vested (14,304 ) 12.95 Forfeited - - Unvested at June 30, 2015 252,580 $ 12.95 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swaps that were not designated for hedge accounting | June 30, 2015 December 31, 2014 Consolidated Estimated Estimated Balance Sheet # of Notional Fair # of Notional Fair (Dollars in thousands) Location Instruments Amount Values Instruments Amount Values Commercial loan customer interest rate swap position Other Assets $ 44 $ 184,680 $ 6,392 43 $ 174,884 $ 7,167 Commercial loan customer interest rate swap position Other Liabilities 13 54,996 (738 ) 8 27,988 (431 ) Counterparty interest rate swap position Other Liabilities 57 239,676 (5,726 ) 51 202,872 (6,821 ) |
Schedule of changes in the fair value of non-hedge accounting derivatives | For The Three Months Ended June 30, 2015 2014 MTM (Loss) MTM (Loss) Interest Income Gain Recorded Interest Income Gain Recorded Recorded in in Noninterest Recorded in in Noninterest Interest Income Income Net Impact Interest Income Income Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (1,160 ) $ (4,078 ) $ (5,238 ) $ (860 ) $ 1,048 $ 188 Counterparty interest rate swap position 1,160 4,078 5,238 860 (1,048 ) (188 ) Total $ - $ - $ - $ - $ - $ - For The Six Months Ended June 30, 2015 2014 MTM (Loss) MTM (Loss) Interest Income Gain Recorded Interest Income Gain Recorded Recorded in in Noninterest Recorded in in Noninterest Interest Income Income Net Impact Interest Income Income Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (2,337 ) $ (775 ) $ (3,112 ) $ (1,715 ) $ 1,384 $ (331 ) Counterparty interest rate swap position 2,337 775 3,112 1,715 (1,384 ) 331 Total $ - $ - $ - $ - $ - $ - |
Offsetting of Financial Asset36
Offsetting of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Offsetting Of Financial Assets And Liabilities Abstract [Abstract] | |
Remaining Contractual Maturities Of Collateral Pledged On Repurchase Agreement Borrowings And Repurchase Liabilities [Table Text Block] | June 30, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to One Year One Year to Three Years 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 54,613 — — 54,613 Government sponsored residential mortgage-backed securities 1,428 — — 1,428 Total repurchase liabilities 56,041 — — 56,041 Total $ 56,041 $ — $ 10,500 $ 66,541 |
Schedule of potential effect of rights of setoff associated with recognized financial assets and liabilities | June 30, 2015 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Assets Presented in Securities Cash of Recognized Statement of the Statement of Financial Collateral Collateral Net Assets Financial Condition Financial Condition Instruments Received Received Amount (Dollars in thousands) Interest rate swap derivatives $ 6,392 $ - $ 6,392 $ - $ - $ 6,392 $ - Total $ 6,392 $ - $ 6,392 $ - $ - $ 6,392 $ - June 30, 2015 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Liabilities Presented Securities Cash of Recognized Statement of in the Statement of Financial Collateral Collateral Net Liabilities Financial Condition Financial Condition Instruments Pledged Pledged Amount (Dollars in thousands) Interest rate swap derivatives $ 6,464 $ - $ 6,464 $ - $ - $ 6,464 $ - Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 16,964 $ - $ 16,964 $ - $ 10,500 $ 6,464 $ - December 31, 2014 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Assets Presented in Securities Cash of Recognized Statement of the Statement of Financial Collateral Collateral Net Assets Financial Condition Financial Condition Instruments Received Received Amount (Dollars in thousands) Interest rate swap derivatives $ 7,167 $ - $ 7,167 $ - $ - $ 6,750 $ 417 Total $ 7,167 $ - $ 7,167 $ - $ - $ 6,750 $ 417 December 31, 2014 Gross Amounts Not Offset in the Statement of Financial Condition Gross Amounts Net Amounts of Gross Amount Offset in the Liabilities Presented Securities Cash of Recognized Statement of in the Statement of Financial Collateral Collateral Net Liabilities Financial Condition Financial Condition Instruments Pledged Pledged Amount (Dollars in thousands) Interest rate swap derivatives $ 7,252 $ - $ 7,252 $ - $ - $ 6,750 $ 502 Repurchase agreement borrowings 21,000 - 21,000 - 21,000 - - Total $ 28,252 $ - $ 28,252 $ - $ 21,000 $ 6,750 $ 502 |
Financial Instruments with Of37
Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Schedule of financial instruments whose contract amounts represent credit risk | June 30, December 31, 2015 2014 (Dollars in thousands) Approved loan commitments $ 114,347 $ 33,737 Unadvanced portion of construction loans 25,612 41,604 Unused lines for home equity loans 180,622 173,493 Unused revolving lines of credit 371 367 Unused commercial letters of credit 4,005 4,028 Unused commercial lines of credit 177,513 190,247 $ 502,470 $ 443,476 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | June 30, 2015 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 63,927 $ 63,927 $ - $ - U.S. Government agency obligations 67,117 67,117 - - Government sponsored residential mortgage-backed securities 6,161 - 6,161 - Corporate debt securities 1,070 - 1,070 - Preferred equity securities 1,624 - 1,624 - Marketable equity securities 156 156 - - Mutual funds 3,744 - 3,744 - Securities available-for-sale 143,799 131,200 12,599 - Interest rate swap derivative 6,392 - 6,392 - Derivative loan commitments 127 - - 127 Forward loan sales commitments 13 - - 13 Total $ 150,331 $ 131,200 $ 18,991 $ 140 Liabilities Interest rate swap derivative $ 6,464 $ - $ 6,464 $ - Total $ 6,464 $ - $ 6,464 $ - December 31, 2014 Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 123,816 $ 123,816 $ - $ - U.S. Government agency obligations 49,109 49,109 - - Government sponsored residential mortgage-backed securities 6,907 - 6,907 - Corporate debt securities 1,085 - 1,085 - Trust preferred debt securities 1,557 - 1,557 - Preferred equity securities 1,676 - 1,676 - Marketable equity securities 170 170 - - Mutual funds 3,721 - 3,721 - Securities available-for-sale 188,041 173,095 14,946 - Interest rate swap derivative 7,167 - 7,167 - Derivative loan commitments 40 - - 40 Total $ 195,248 $ 173,095 $ 22,113 $ 40 Liabilities Interest rate swap derivative $ 7,252 $ - $ 7,252 $ - Forward loan sales commitments 26 - - 26 Total $ 7,278 $ - $ 7,252 $ 26 |
Schedule of assets measured at fair value according to Level 3 inputs | Derivative and Forward Loan Sales Commitments, Net For the Three Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 (Dollars in thousands) Balance, at beginning of period $ 144 $ 96 $ 14 $ 47 Total realized gain (loss): Included in earnings (4 ) (46 ) 126 3 Balance, at the end of period $ 140 $ 50 $ 140 $ 50 |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis | June 30, 2015 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 140 Adjusted quoted prices in active markets Embedded servicing value 1.19 December 31, 2014 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 14 Adjusted quoted prices in active markets Embedded servicing value 1.07 |
Schedule of financial instruments carried at fair value on a nonrecurring basis | June 30, 2015 December 31, 2014 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 $ - $ - $ 3,106 $ - $ - $ 1,647 Other real estate owned - - 1,149 - - - |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis | June 30, 2015 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 3,106 Appraisals Discount for dated appraisal 0% - 20% 10.0 % Discount for costs to sell 8% - 15% 11.5 % Other real estate owned $ 1,149 Appraisals Discount for costs to sell 5% - 10% 7.5 % December 31, 2014 Significant Weighted (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Average Inputs Impaired loans $ 1,647 Appraisals Discount for dated appraisal 0% - 20% 10.0 % Discount for costs to sell 8% - 15% 11.5 % |
Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments | June 30, 2015 December 31, 2014 Estimated Estimated Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value (Dollars in thousands) Financial assets Securities held-to-maturity Level 2 $ 34,366 $ 34,445 $ 16,224 $ 16,416 Securities available-for-sale See previous table 143,799 143,799 188,041 188,041 Loans Level 3 2,287,966 2,275,898 2,135,035 2,130,994 Loans held-for-sale Level 2 7,550 7,593 2,417 2,469 Mortgage servicing rights Level 3 3,352 3,907 3,336 3,572 Federal Home Loan Bank of Boston stock Level 2 21,496 21,496 19,785 19,785 Alternative investments Level 3 2,518 2,447 2,694 2,695 Interest rate swap derivatives Level 2 6,392 6,392 7,167 7,167 Forward loan sales commitments Level 3 13 13 - - Derivative loan commitments Level 3 127 127 40 40 Financial liabilities Deposits other than time deposits Level 1 1,453,593 1,453,593 1,367,819 1,367,819 Time deposits Level 2 424,447 427,997 365,222 368,974 Federal Home Loan Bank of Boston advances Level 2 400,700 400,464 401,700 400,226 Repurchase agreement borrowings Level 2 10,500 11,147 21,000 21,669 Repurchase liabilities Level 2 56,041 56,042 48,987 48,986 Interest rate swap derivatives Level 2 6,464 6,464 7,252 7,252 Forward loan sales commitments Level 3 - - 26 26 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Matters Disclosure [Abstract] | |
Schedule of actual capital amounts and ratios for the Company and the Bank | To Be Well Minimum Required Capitalized Under for Capital Adequacy Prompt Corrective Actual Purposes Action (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At June 30, 2015 Total Capital (to Risk Weighted Assets) $ 227,863 11.24 % $ 162,180 8.00 % $ 202,725 10.00 % Tier I Capital (to Risk Weighted Assets) 207,845 10.25 121,665 6.00 162,220 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 207,845 10.25 91,249 4.50 131,804 6.50 Tier I Leverage Capital (to Average Assets) 207,845 8.09 102,766 4.00 128,458 5.00 At December 31, 2014 Total Capital (to Risk Weighted Assets) $ 220,616 11.65 % $ 151,496 8.00 % $ 189,370 10.00 % Tier I Capital (to Risk Weighted Assets) 201,216 10.63 75,716 4.00 113,574 6.00 Tier I Leverage Capital (to Average Assets) 201,216 8.25 97,559 4.00 121,949 5.00 First Connecticut Bancorp, Inc.: At June 30, 2015 Total Capital (to Risk Weighted Assets) $ 266,115 13.11 % $ 162,389 8.00 % $ 202,986 10.00 % Tier I Capital (to Risk Weighted Assets) 246,097 12.12 121,830 6.00 162,440 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 246,097 12.12 91,373 4.50 131,983 6.50 Tier I Leverage Capital (to Average Assets) 246,097 9.57 102,862 4.00 128,577 5.00 At December 31, 2014 Total Capital (to Risk Weighted Assets) $ 260,157 13.73 % $ 151,585 8.00 % $ 189,481 10.00 % Tier I Capital (to Risk Weighted Assets) 240,757 12.70 75,829 4.00 113,743 6.00 Tier I Leverage Capital (to Average Assets) 240,757 9.86 97,670 4.00 122,088 5.00 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of reconciliation of the changes in components of other comprehensive income | For the Three Months Ended June 30, 2015 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized losses on available-for-sale securities $ (2,793 ) $ 983 $ (1,810 ) Less: net security gains reclassified into other noninterest income 1,250 (440 ) 810 Net change in fair value of securities available-for-sale (1,543 ) 543 (1,000 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 29 (10 ) 19 Total other comprehensive loss $ (1,514 ) $ 533 $ (981 ) For the Three Months Ended June 30, 2014 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized gains on available-for-sale securities $ 161 $ (55 ) $ 106 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 161 (55 ) 106 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 86 (29 ) 57 Total other comprehensive income $ 247 $ (84 ) $ 163 For the Six Months Ended June 30, 2015 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized losses on available-for-sale securities $ (2,975 ) $ 1,047 $ (1,928 ) Less: net security gains reclassified into other noninterest income 1,523 (536 ) 987 Net change in fair value of securities available-for-sale (1,452 ) 511 (941 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 191 (67 ) 124 Total other comprehensive loss $ (1,261 ) $ 444 $ (817 ) For the Six Months Ended June 30, 2014 Pre Tax Amount Tax Benefit (Expense) After Tax Amount (Dollars in thousands) Unrealized gains on available-for-sale securities $ 297 $ (101 ) $ 196 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 297 (101 ) 196 Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 142 (48 ) 94 Total other comprehensive income $ 439 $ (149 ) $ 290 (1) Amounts are included in salaries and employee benefits in the unaudited Consolidated Statements of Income. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Detail Textuals ) $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($)Officeshares | Jun. 21, 2013shares | |
Accounting Policies [Abstract] | ||
Number of branch offices | Office | 22 | |
Number of shares approved for repurchase | 1,676,452 | |
Shares to be repurchased in percentage | 10.00% | |
Number of shares repurchased | 124,431 | |
Value of shares repurchased | $ | $ 1.8 | |
Number of shares remaining to repurchase | 780,334 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Detail Textuals 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Minimum limit of nonaccrual loans outstanding | $ 100,000 | |
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. | |
Foreclosed real estate included in prepaid expenses and other assets | $ 2,100,000 | $ 400,000 |
Foreclosure proceedings applicable jurisdiction totaled | $ 5,000,000 | |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of unallocated allowances | 0.00% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of unallocated allowances | 5.00% | |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [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 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum limit loan-to-value ratio in percentage | 80.00% | |
Term of line of credit | 10 years |
Restrictions on Cash and Due 43
Restrictions on Cash and Due from Banks (Detail Textuals) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Restrictions On Cash and Due From Banks [Abstract] | ||
Cash and liquid assets required | $ 10.3 | $ 10.1 |
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 | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 3,472 | $ 2,190 | $ 5,983 | $ 3,682 | |
Less: Dividends to participating shares | (13) | (16) | (26) | (28) | |
Income allocated to participating shares | (47) | (41) | (77) | (68) | |
Net income allocated to common stockholders | $ 3,412 | $ 2,133 | $ 5,880 | $ 3,586 | |
Weighted-average shares issued | 18,006,129 | 18,035,335 | 18,006,129 | 18,035,335 | |
Less: Average unallocated ESOP shares | (1,017,278) | (1,112,637) | (1,029,017) | (1,124,420) | |
Average treasury stock | (2,034,097) | (1,920,957) | (2,005,332) | (1,800,137) | |
Average unvested restricted stock | (260,282) | (400,325) | (263,565) | (400,325) | |
Weighted-average basic shares outstanding | 14,694,472 | 14,601,416 | 14,708,215 | 14,710,453 | |
Plus: Average dilutive shares | 144,982 | 106,056 | 136,779 | 103,113 | |
Weighted-average diluted shares outstanding | 14,839,454 | 14,707,472 | 14,844,994 | 14,813,566 | |
Net earnings per share: | |||||
Basic (in dollars per share) | [1] | $ 0.23 | $ 0.15 | $ 0.40 | $ 0.24 |
Diluted (in dollars per share) | [1] | $ 0.23 | $ 0.14 | $ 0.40 | $ 0.24 |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from earnings per share calculation | 93,250 | 46,250 |
Investment Securities - Summary
Investment Securities - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Amortized Cost | $ 143,634 | $ 186,422 |
Gross Unrealized Gains - Recognized in OCI | 696 | 2,181 |
Gross Unrealized Losses - Recognized in OCI | (531) | (562) |
Carrying Value | $ 143,799 | $ 188,041 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 143,799 | $ 188,041 |
Held-to-maturity | ||
Amortized Cost | $ 34,366 | $ 16,224 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross unrealized losses - Recognized in OCI | ||
Carrying Value | $ 34,366 | $ 16,224 |
Gross Unrealized Gains - Not Recognized in OCI | 158 | 200 |
Gross Unrealized Losses - Not Recognized in OCI | (79) | (8) |
Fair Value | 34,445 | 16,416 |
U.S. Treasury obligations | ||
Available-for-sale | ||
Amortized Cost | 63,756 | 123,739 |
Gross Unrealized Gains - Recognized in OCI | $ 171 | 81 |
Gross Unrealized Losses - Recognized in OCI | (4) | |
Carrying Value | $ 63,927 | $ 123,816 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 63,927 | $ 123,816 |
U.S. Government agency obligations | ||
Available-for-sale | ||
Amortized Cost | 67,011 | 49,013 |
Gross Unrealized Gains - Recognized in OCI | $ 106 | 110 |
Gross Unrealized Losses - Recognized in OCI | (14) | |
Carrying Value | $ 67,117 | $ 49,109 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 67,117 | $ 49,109 |
Held-to-maturity | ||
Amortized Cost | $ 25,611 | $ 7,000 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross unrealized losses - Recognized in OCI | ||
Carrying Value | $ 25,611 | $ 7,000 |
Gross Unrealized Gains - Not Recognized in OCI | 8 | |
Gross Unrealized Losses - Not Recognized in OCI | (79) | $ (8) |
Fair Value | 25,540 | 6,992 |
Government sponsored residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 5,861 | 6,624 |
Gross Unrealized Gains - Recognized in OCI | $ 300 | $ 283 |
Gross Unrealized Losses - Recognized in OCI | ||
Carrying Value | $ 6,161 | $ 6,907 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 6,161 | $ 6,907 |
Held-to-maturity | ||
Amortized Cost | $ 8,755 | $ 9,224 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross unrealized losses - Recognized in OCI | ||
Carrying Value | $ 8,755 | $ 9,224 |
Gross Unrealized Gains - Not Recognized in OCI | $ 150 | $ 200 |
Gross Unrealized Losses - Not Recognized in OCI | ||
Fair Value | $ 8,905 | $ 9,424 |
Corporate debt securities | ||
Available-for-sale | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains - Recognized in OCI | $ 70 | $ 85 |
Gross Unrealized Losses - Recognized in OCI | ||
Carrying Value | $ 1,070 | $ 1,085 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 1,070 | $ 1,085 |
Trust preferred debt securities | ||
Available-for-sale | ||
Amortized Cost | ||
Gross Unrealized Gains - Recognized in OCI | $ 1,557 | |
Gross Unrealized Losses - Recognized in OCI | ||
Carrying Value | $ 1,557 | |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 1,557 | |
Preferred equity securities | ||
Available-for-sale | ||
Amortized Cost | $ 2,000 | 2,100 |
Gross Unrealized Gains - Recognized in OCI | 2 | |
Gross Unrealized Losses - Recognized in OCI | $ (376) | (426) |
Carrying Value | $ 1,624 | $ 1,676 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 1,624 | $ 1,676 |
Marketable equity securities | ||
Available-for-sale | ||
Amortized Cost | 108 | 108 |
Gross Unrealized Gains - Recognized in OCI | 49 | 63 |
Gross Unrealized Losses - Recognized in OCI | (1) | (1) |
Carrying Value | $ 156 | $ 170 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 156 | $ 170 |
Mutual funds | ||
Available-for-sale | ||
Amortized Cost | $ 3,898 | $ 3,838 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross Unrealized Losses - Recognized in OCI | $ (154) | $ (117) |
Carrying Value | $ 3,744 | $ 3,721 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 3,744 | $ 3,721 |
Investment Securities - Gross u
Investment Securities - Gross unrealized losses and fair value (Details 1) $ in Thousands | Jun. 30, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Available-for-sale: | ||
Number of Securities | Security | 3 | 9 |
Less than 12 Months, Fair Value | $ 60,908 | |
Less than 12 months, Gross Unrealized Loss | (18) | |
12 months or more, Fair Value | $ 5,374 | 4,421 |
12 months or more, Gross Unrealized Loss | (531) | (544) |
Total Fair Value | 5,374 | 65,329 |
Total Gross Unrealized Loss | $ (531) | $ (562) |
Held-to-maturity | ||
Number of Securities | Security | 3 | 1 |
Less than 12 months, Fair Value | $ 14,921 | $ 6,992 |
Less than 12 months, Gross Unrealized Loss | $ (79) | $ (8) |
12 months or more, Fair Value | ||
12 months or more, Gross Unrealized Loss | ||
Total Fair Value | $ 14,921 | $ 6,992 |
Total Gross Unrealized Loss | $ (79) | $ (8) |
Total number of securities | Security | 6 | 10 |
Total investment securities in an unrealized loss position less than 12 months fair value | $ 14,921 | $ 67,900 |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (79) | (26) |
Total investment securities in an unrealized loss position 12 months or more fair value | 5,374 | 4,421 |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (531) | (544) |
Total investment securities in an unrealized loss position fair value | 20,295 | 72,321 |
Total investment securities in an unrealized loss position gross unrealized loss | $ (610) | $ (570) |
U.S. Treasury obligations | ||
Available-for-sale: | ||
Number of Securities | Security | 4 | |
Less than 12 Months, Fair Value | $ 43,919 | |
Less than 12 months, Gross Unrealized Loss | $ (4) | |
12 months or more, Fair Value | ||
12 months or more, Gross Unrealized Loss | ||
Total Fair Value | $ 43,919 | |
Total Gross Unrealized Loss | $ (4) | |
Held-to-maturity | ||
Number of Securities | Security | ||
U.S. Government agency obligations | ||
Available-for-sale: | ||
Number of Securities | Security | 2 | |
Less than 12 Months, Fair Value | $ 16,989 | |
Less than 12 months, Gross Unrealized Loss | $ (14) | |
12 months or more, Fair Value | ||
12 months or more, Gross Unrealized Loss | ||
Total Fair Value | $ 16,989 | |
Total Gross Unrealized Loss | $ (14) | |
Held-to-maturity | ||
Number of Securities | Security | 3 | |
Less than 12 months, Fair Value | $ 14,921 | |
Less than 12 months, Gross Unrealized Loss | $ (79) | |
12 months or more, Fair Value | ||
12 months or more, Gross Unrealized Loss | ||
Total Fair Value | $ 14,921 | |
Total Gross Unrealized Loss | $ (79) | |
Preferred equity securities | ||
Available-for-sale: | ||
Number of Securities | Security | 1 | 1 |
Less than 12 Months, Fair Value | ||
Less than 12 months, Gross Unrealized Loss | ||
12 months or more, Fair Value | $ 1,624 | $ 1,574 |
12 months or more, Gross Unrealized Loss | (376) | (426) |
Total Fair Value | 1,624 | 1,574 |
Total Gross Unrealized Loss | $ (376) | $ (426) |
Marketable equity securities | ||
Available-for-sale: | ||
Number of Securities | Security | 1 | 1 |
Less than 12 Months, Fair Value | ||
Less than 12 months, Gross Unrealized Loss | ||
12 months or more, Fair Value | $ 6 | $ 5 |
12 months or more, Gross Unrealized Loss | (1) | (1) |
Total Fair Value | 6 | 5 |
Total Gross Unrealized Loss | $ (1) | $ (1) |
Mutual funds | ||
Available-for-sale: | ||
Number of Securities | Security | 1 | 1 |
Less than 12 Months, Fair Value | ||
Less than 12 months, Gross Unrealized Loss | ||
12 months or more, Fair Value | $ 3,744 | $ 2,842 |
12 months or more, Gross Unrealized Loss | (154) | (117) |
Total Fair Value | 3,744 | 2,842 |
Total Gross Unrealized Loss | $ (154) | $ (117) |
Government sponsored residential mortgage-backed securities | ||
Held-to-maturity | ||
Number of Securities | Security | 1 | |
Less than 12 months, Fair Value | $ 6,992 | |
Less than 12 months, Gross Unrealized Loss | $ (8) | |
12 months or more, Fair Value | ||
12 months or more, Gross Unrealized Loss | ||
Total Fair Value | $ 6,992 | |
Total Gross Unrealized Loss | $ (8) |
Investment Securities - Amortiz
Investment Securities - Amortized cost and estimated market value of debt securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-Sale - Amortized Cost | ||
Due in one year or less | $ 69,994 | |
Due after one year through five years | $ 61,773 | |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities | $ 5,861 | |
Available-for-sale, Amortized Cost | 137,628 | |
Available-for-Sale - Estimated Fair Value | ||
Due in one year or less | 69,996 | |
Due after one year through five years | $ 62,118 | |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities | $ 6,161 | |
Available-for-Sale, Estimated Fair Value | $ 138,275 | |
Held-to-Maturity - Amortized Cost | ||
Due in one year or less | ||
Due after one year through five years | $ 25,611 | |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities | $ 8,755 | |
Held-to-Maturity, Amortized Cost | $ 34,366 | $ 16,224 |
Held-to-Maturity - Estimated Fair Value | ||
Due in one year or less | ||
Due after one year through five years | $ 25,540 | |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities | $ 8,905 | |
Held-to-Maturity, Estimated Fair Value | $ 34,445 | $ 16,416 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains on sales of securities available-for-sale | $ 1.3 | $ 1.5 | |
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 | $ 133.5 | $ 133.5 | $ 127.4 |
Investment Securities (Detail50
Investment Securities (Detail Textuals 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 21,496 | $ 19,785 |
Federal Home Loan Bank of Boston ("FHLBB") Stock | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 21,500 | $ 19,800 |
Investment Securities (Detail51
Investment Securities (Detail Textuals 2) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Alternative investments | $ 2,500,000 | $ 2,700,000 | |
Amount of profit distributed in limited partnerships | 42,000 | $ 27,000 | |
Unfunded commitments for alternative investments | 692,000 | ||
Other noninterest income | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Loss on fair value adjustments in its limited partnerships | 113,000 | $ 41,000 | |
Other assets | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Alternative investments | $ 2,500,000 | $ 2,700,000 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | $ (19,581) | $ (18,960) | ||||
Loans, net | 2,268,385 | 2,119,917 | ||||
Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 2,283,801 | 2,135,035 | ||||
Net deferred loan costs | 4,165 | 3,842 | ||||
Loans | 2,287,966 | 2,138,877 | ||||
Allowance for loan losses | (19,581) | $ (19,232) | (18,960) | $ (17,912) | $ (17,631) | $ (18,314) |
Loans, net | 2,268,385 | 2,119,917 | ||||
Loans receivable | Real estate Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 888,376 | 827,005 | ||||
Allowance for loan losses | (4,452) | (4,383) | (4,382) | (3,631) | (3,760) | (3,647) |
Loans receivable | Real estate Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 817,955 | 765,066 | ||||
Allowance for loan losses | (9,001) | (8,917) | (8,949) | (8,782) | (8,601) | (8,253) |
Loans receivable | Real estate Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 42,858 | 57,371 | ||||
Allowance for loan losses | (361) | (472) | (478) | (900) | (927) | (1,152) |
Loans receivable | Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 3,103 | 3,356 | ||||
Allowance for loan losses | (36) | (40) | (41) | (41) | (42) | (48) |
Loans receivable | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 359,537 | 309,708 | ||||
Allowance for loan losses | (3,745) | $ (3,427) | (3,250) | $ (3,089) | $ (2,847) | $ (3,746) |
Loans receivable | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 1,551 | $ 1,733 | ||||
Allowance for loan losses | ||||||
Loans receivable | Home equity line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 169,507 | $ 169,768 | ||||
Allowance for loan losses | (1,986) | $ (1,993) | (1,859) | $ (1,468) | $ (1,453) | $ (1,465) |
Loans receivable | Revolving credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 77 | $ 99 | ||||
Allowance for loan losses | ||||||
Loans receivable | Resort | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 837 | $ 929 | ||||
Allowance for loan losses | $ (1) | $ (1) | $ (1) | $ (3) |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses - Changes in allowance for loan losses by segments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 18,960 | |||
Provision for (Reduction) loan losses | 1,278 | $ 915 | ||
Balance at end of period | $ 19,581 | 19,581 | ||
Loans receivable | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 19,232 | $ 17,631 | 18,960 | 18,314 |
Charge-offs | (336) | (139) | (688) | (1,339) |
Recoveries | 22 | 10 | 31 | 22 |
Provision for (Reduction) loan losses | 663 | 410 | 1,278 | 915 |
Balance at end of period | 19,581 | 17,912 | 19,581 | 17,912 |
Loans receivable | Real estate Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 4,383 | 3,760 | 4,382 | 3,647 |
Charge-offs | (45) | (123) | (193) | (262) |
Recoveries | 16 | 1 | 16 | 1 |
Provision for (Reduction) loan losses | 98 | (7) | 247 | 245 |
Balance at end of period | 4,452 | 3,631 | 4,452 | 3,631 |
Loans receivable | Real estate Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 8,917 | $ 8,601 | 8,949 | 8,253 |
Charge-offs | $ (213) | $ (213) | (93) | |
Recoveries | $ 1 | 1 | ||
Provision for (Reduction) loan losses | $ 297 | 180 | $ 265 | 621 |
Balance at end of period | 9,001 | 8,782 | 9,001 | 8,782 |
Loans receivable | Real estate Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 472 | $ 927 | $ 478 | $ 1,152 |
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | $ (111) | $ (27) | $ (117) | $ (252) |
Balance at end of period | 361 | 900 | 361 | 900 |
Loans receivable | Installment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 40 | 42 | 41 | 48 |
Charge-offs | $ (1) | $ (3) | $ (3) | $ (3) |
Recoveries | ||||
Provision for (Reduction) loan losses | $ (3) | $ 2 | $ (2) | $ (4) |
Balance at end of period | 36 | 41 | 36 | 41 |
Loans receivable | Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,427 | 2,847 | 3,250 | 3,746 |
Charge-offs | $ (18) | (1) | $ (20) | (955) |
Recoveries | 6 | 13 | ||
Provision for (Reduction) loan losses | $ 336 | 237 | $ 515 | 285 |
Balance at end of period | $ 3,745 | $ 3,089 | $ 3,745 | $ 3,089 |
Loans receivable | Collateral | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | ||||
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | ||||
Balance at end of period | ||||
Loans receivable | Home equity line of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 1,993 | $ 1,453 | $ 1,859 | $ 1,465 |
Charge-offs | $ (138) | |||
Recoveries | ||||
Provision for (Reduction) loan losses | $ (7) | $ 15 | $ 265 | $ 3 |
Balance at end of period | $ 1,986 | $ 1,468 | $ 1,986 | $ 1,468 |
Loans receivable | Revolving credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | ||||
Charge-offs | $ (59) | $ (12) | $ (121) | $ (26) |
Recoveries | 6 | 2 | 15 | 7 |
Provision for (Reduction) loan losses | $ 53 | $ 10 | $ 106 | $ 19 |
Balance at end of period | ||||
Loans receivable | Resort | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 1 | $ 1 | $ 3 | |
Charge-offs | ||||
Recoveries | ||||
Provision for (Reduction) loan losses | $ (1) | $ (2) | ||
Balance at end of period | $ 1 | $ 1 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses - Allocation of the allowance by impairment methodology and by loan segment (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Reserve Allocation | $ 19,581 | $ 18,960 | ||||
Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | 39,975 | 43,452 | ||||
Reserve Allocation - Loans individually evaluated for impairment | 394 | 752 | ||||
Total - Loans collectively evaluated for impairment | 2,247,991 | 2,095,425 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 19,187 | 18,208 | ||||
Total loans | 2,287,966 | 2,138,877 | ||||
Total Reserve Allocation | 19,581 | $ 19,232 | 18,960 | $ 17,912 | $ 17,631 | $ 18,314 |
Loans receivable | Real estate Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | 11,567 | 11,791 | ||||
Reserve Allocation - Loans individually evaluated for impairment | 136 | 285 | ||||
Total - Loans collectively evaluated for impairment | 881,544 | 819,630 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 4,316 | 4,097 | ||||
Total Reserve Allocation | 4,452 | 4,383 | 4,382 | 3,631 | 3,760 | 3,647 |
Loans receivable | Real estate Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | 16,897 | 19,051 | ||||
Reserve Allocation - Loans individually evaluated for impairment | 48 | 233 | ||||
Total - Loans collectively evaluated for impairment | 800,554 | 745,501 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 8,953 | 8,716 | ||||
Total Reserve Allocation | 9,001 | 8,917 | 8,949 | 8,782 | 8,601 | 8,253 |
Loans receivable | Real estate Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | $ 4,719 | $ 4,719 | ||||
Reserve Allocation - Loans individually evaluated for impairment | ||||||
Total - Loans collectively evaluated for impairment | $ 38,139 | $ 52,652 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 361 | 478 | ||||
Total Reserve Allocation | 361 | 472 | 478 | 900 | 927 | 1,152 |
Loans receivable | Installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | 277 | 251 | ||||
Reserve Allocation - Loans individually evaluated for impairment | 8 | 8 | ||||
Total - Loans collectively evaluated for impairment | 2,807 | 3,093 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 28 | 33 | ||||
Total Reserve Allocation | 36 | 40 | 41 | 41 | 42 | 48 |
Loans receivable | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | 4,643 | 5,680 | ||||
Reserve Allocation - Loans individually evaluated for impairment | 202 | 225 | ||||
Total - Loans collectively evaluated for impairment | 354,847 | 303,980 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 3,543 | 3,025 | ||||
Total Reserve Allocation | $ 3,745 | $ 3,427 | $ 3,250 | $ 3,089 | $ 2,847 | $ 3,746 |
Loans receivable | Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | ||||||
Reserve Allocation - Loans individually evaluated for impairment | ||||||
Total - Loans collectively evaluated for impairment | $ 1,551 | $ 1,733 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | ||||||
Total Reserve Allocation | ||||||
Loans receivable | Home equity line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | $ 1,035 | $ 1,031 | ||||
Reserve Allocation - Loans individually evaluated for impairment | ||||||
Total - Loans collectively evaluated for impairment | $ 168,472 | $ 168,737 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | 1,986 | 1,859 | ||||
Total Reserve Allocation | $ 1,986 | $ 1,993 | $ 1,859 | $ 1,468 | $ 1,453 | $ 1,465 |
Loans receivable | Revolving credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | ||||||
Reserve Allocation - Loans individually evaluated for impairment | ||||||
Total - Loans collectively evaluated for impairment | $ 77 | $ 99 | ||||
Reserve Allocation - Loans collectively evaluated for impairment | ||||||
Total Reserve Allocation | ||||||
Loans receivable | Resort | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total - Loans individually evaluated for impairment | $ 837 | $ 929 | ||||
Reserve Allocation - Loans individually evaluated for impairment | $ 1 | |||||
Total - Loans collectively evaluated for impairment | ||||||
Reserve Allocation - Loans collectively evaluated for impairment | ||||||
Total Reserve Allocation | $ 1 | $ 1 | $ 1 | $ 3 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses - Summary of loan delinquencies at recorded investment (Details 3) - Loans receivable $ in Thousands | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 67 | 79 |
Loan receivable, recorded investment, past due | $ 13,244 | $ 16,079 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 31 | 35 |
Loan receivable, recorded investment, past due | $ 3,513 | $ 4,424 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 4 | 10 |
Loan receivable, recorded investment, past due | $ 942 | $ 1,698 |
> 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 32 | 34 |
Loan receivable, recorded investment, past due | $ 8,789 | $ 9,957 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 38 | 38 |
Loan receivable, recorded investment, past due | $ 10,430 | $ 11,681 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Real estate Residential | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 17 | 16 |
Loan receivable, recorded investment, past due | $ 3,122 | $ 3,599 |
Real estate Residential | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 4 | 6 |
Loan receivable, recorded investment, past due | $ 942 | $ 1,263 |
Real estate Residential | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 17 | 16 |
Loan receivable, recorded investment, past due | $ 6,366 | $ 6,819 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 3 | 5 |
Loan receivable, recorded investment, past due | $ 1,086 | $ 2,327 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Real estate Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 2 | |
Loan receivable, recorded investment, past due | $ 348 | |
Real estate Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Real estate Commercial | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 3 | 3 |
Loan receivable, recorded investment, past due | $ 1,086 | $ 1,979 |
Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 1 |
Loan receivable, recorded investment, past due | $ 187 | $ 187 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Real estate Construction | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Real estate Construction | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Real estate Construction | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 1 |
Loan receivable, recorded investment, past due | $ 187 | $ 187 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 3 | 7 |
Loan receivable, recorded investment, past due | $ 41 | $ 184 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Installment | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 2 | 3 |
Loan receivable, recorded investment, past due | $ 11 | $ 69 |
Installment | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 2 | |
Loan receivable, recorded investment, past due | $ 82 | |
Installment | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 2 |
Loan receivable, recorded investment, past due | $ 30 | $ 33 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 7 | 9 |
Loan receivable, recorded investment, past due | $ 269 | $ 594 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Commercial | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 4 | 1 |
Loan receivable, recorded investment, past due | $ 199 | $ 40 |
Commercial | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | |
Loan receivable, recorded investment, past due | $ 4 | |
Commercial | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 3 | 7 |
Loan receivable, recorded investment, past due | $ 70 | $ 550 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 6 | 9 |
Loan receivable, recorded investment, past due | $ 58 | $ 99 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Collateral | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 6 | 9 |
Loan receivable, recorded investment, past due | $ 58 | $ 99 |
Collateral | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Collateral | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 8 | 9 |
Loan receivable, recorded investment, past due | $ 1,115 | $ 940 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Home equity line of credit | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 3 |
Loan receivable, recorded investment, past due | $ 65 | $ 202 |
Home equity line of credit | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | |
Loan receivable, recorded investment, past due | $ 349 | |
Home equity line of credit | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 7 | 5 |
Loan receivable, recorded investment, past due | $ 1,050 | $ 389 |
Demand | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 1 |
Loan receivable, recorded investment, past due | $ 58 | $ 67 |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Demand | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | 1 | 1 |
Loan receivable, recorded investment, past due | $ 58 | $ 67 |
Demand | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Demand | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Revolving credit | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Revolving credit | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Revolving credit | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | $ 0 | |
Loan receivable, recorded investment, past due 90 days or more and still accruing | ||
Resort | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Resort | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due | ||
Resort | > 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loan receivable, recorded investment, past due | Loan | ||
Loan receivable, recorded investment, past due |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Nonperforming assets (Details 4) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other real estate owned | $ 2,100,000 | $ 400,000 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 12,973,000 | $ 15,468,000 |
Loans 90 days past due and still accruing | ||
Other real estate owned | $ 2,079,000 | $ 400,000 |
Total nonperforming assets | 15,052,000 | 15,868,000 |
Loans receivable | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 8,678,000 | $ 9,706,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 1,206,000 | $ 2,112,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 187,000 | $ 187,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 142,000 | $ 155,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 1,686,000 | $ 2,268,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | ||
Loans 90 days past due and still accruing | ||
Loans receivable | Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 1,074,000 | $ 1,040,000 |
Loans 90 days past due and still accruing | ||
Loans receivable | Demand | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | ||
Loans 90 days past due and still accruing | ||
Loans receivable | Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | ||
Loans 90 days past due and still accruing | ||
Loans receivable | Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | ||
Loans 90 days past due and still accruing |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Summary of impaired loans (Details 5) - Loans receivable - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 35,304 | $ 29,163 |
Unpaid Principal Balance | 36,851 | 30,159 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 4,671 | 14,289 |
Unpaid Principal Balance | 4,804 | 15,597 |
Related Allowance | 394 | 752 |
Total Recorded Investment | 39,975 | 43,452 |
Total Unpaid Principal Balance | 41,655 | 45,756 |
Total Related Allowance | (394) | (752) |
Real estate Residential | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 10,425 | 5,862 |
Unpaid Principal Balance | 11,543 | 6,286 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 1,142 | 5,929 |
Unpaid Principal Balance | 1,158 | 6,848 |
Related Allowance | 136 | 285 |
Real estate Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 13,953 | 13,804 |
Unpaid Principal Balance | 13,995 | 13,828 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 2,944 | 5,247 |
Unpaid Principal Balance | 2,944 | 5,523 |
Related Allowance | 48 | 233 |
Real estate Construction | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 4,719 | 4,719 |
Unpaid Principal Balance | $ 4,965 | $ 4,965 |
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Installment | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 250 | $ 220 |
Unpaid Principal Balance | 264 | 232 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 27 | 31 |
Unpaid Principal Balance | 27 | 31 |
Related Allowance | 8 | 8 |
Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 4,085 | 3,527 |
Unpaid Principal Balance | 4,199 | 3,584 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 558 | 2,153 |
Unpaid Principal Balance | 675 | 2,266 |
Related Allowance | $ 202 | $ 225 |
Collateral | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Home equity line of credit | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 1,035 | $ 1,031 |
Unpaid Principal Balance | $ 1,048 | $ 1,264 |
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Revolving credit | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Resort | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 837 | |
Unpaid Principal Balance | $ 837 | |
Impaired loans with a valuation allowance | ||
Recorded Investment | $ 929 | |
Unpaid Principal Balance | 929 | |
Related Allowance | $ 1 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Summary of information pertaining to impaired loans (Details 6) - Loans receivable - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 31,457 | $ 28,150 | ||
Interest Income Recognized | $ 244 | $ 224 | 488 | 563 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 9,772 | 13,322 | ||
Interest Income Recognized | 49 | 60 | 115 | 146 |
Total Average Recorded Investment | 41,229 | 41,472 | ||
Total Interest Income Recognized | 293 | 284 | 603 | 709 |
Real estate Residential | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 7,934 | 6,895 | ||
Interest Income Recognized | 26 | 20 | 53 | 43 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 3,652 | 5,275 | ||
Interest Income Recognized | 9 | 7 | 18 | 27 |
Real estate Commercial | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 14,016 | 16,844 | ||
Interest Income Recognized | 147 | 174 | 289 | 429 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 4,674 | 4,080 | ||
Interest Income Recognized | 35 | $ 15 | 87 | 47 |
Real estate Construction | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 3,586 | $ 140 | ||
Interest Income Recognized | $ 34 | $ 68 | ||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | $ 47 | |||
Interest Income Recognized | ||||
Installment | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 230 | $ 143 | ||
Interest Income Recognized | $ 4 | $ 3 | 7 | 7 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | $ 29 | $ 28 | ||
Interest Income Recognized | ||||
Commercial | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 3,879 | $ 3,658 | ||
Interest Income Recognized | $ 26 | $ 27 | 55 | 84 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 1,417 | 2,717 | ||
Interest Income Recognized | $ 5 | $ 30 | $ 10 | $ 53 |
Collateral | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Home equity line of credit | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 953 | $ 470 | ||
Interest Income Recognized | $ 2 | |||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Revolving credit | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Resort | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 859 | |||
Interest Income Recognized | $ 7 | $ 14 | ||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | $ 1,175 | |||
Interest Income Recognized | $ 8 | $ 19 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Information modified in a troubled debt restructuring (Details 7) - Loans receivable $ in Thousands | Jun. 30, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 36 | 32 |
TDRs on Accrual Status of Recorded Investment | $ | $ 17,645 | $ 18,664 |
Number of TDRs on Nonaccrual Status of Loans | 21 | 19 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 7,501 | $ 7,581 |
Number of Total TDRs of Loans | 57 | 51 |
Total TDRs of Recorded Investment | $ | $ 25,146 | $ 26,245 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 14 | 11 |
TDRs on Accrual Status of Recorded Investment | $ | $ 2,308 | $ 1,849 |
Number of TDRs on Nonaccrual Status of Loans | 11 | 10 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 5,664 | $ 5,608 |
Number of Total TDRs of Loans | 25 | 21 |
Total TDRs of Recorded Investment | $ | $ 7,972 | $ 7,457 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 5 | 7 |
TDRs on Accrual Status of Recorded Investment | $ | $ 7,207 | $ 8,359 |
Number of TDRs on Nonaccrual Status of Loans | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | 5 | 7 |
Total TDRs of Recorded Investment | $ | $ 7,207 | $ 8,359 |
Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 1 | 1 |
TDRs on Accrual Status of Recorded Investment | $ | $ 4,532 | $ 4,532 |
Number of TDRs on Nonaccrual Status of Loans | 1 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 187 | $ 187 |
Number of Total TDRs of Loans | 2 | 2 |
Total TDRs of Recorded Investment | $ | $ 4,719 | $ 4,719 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 5 | 4 |
TDRs on Accrual Status of Recorded Investment | $ | $ 243 | $ 212 |
Number of TDRs on Nonaccrual Status of Loans | 1 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 35 | $ 39 |
Number of Total TDRs of Loans | 6 | 5 |
Total TDRs of Recorded Investment | $ | $ 278 | $ 251 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 7 | 8 |
TDRs on Accrual Status of Recorded Investment | $ | $ 2,365 | $ 2,783 |
Number of TDRs on Nonaccrual Status of Loans | 8 | 5 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 1,615 | $ 1,621 |
Number of Total TDRs of Loans | 15 | 13 |
Total TDRs of Recorded Investment | $ | $ 3,980 | $ 4,404 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | ||
TDRs on Accrual Status of Recorded Investment | $ | ||
Number of TDRs on Nonaccrual Status of Loans | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | ||
Total TDRs of Recorded Investment | $ | ||
Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 3 | |
TDRs on Accrual Status of Recorded Investment | $ | $ 153 | |
Number of TDRs on Nonaccrual Status of Loans | 2 | |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 126 | |
Number of Total TDRs of Loans | 3 | 2 |
Total TDRs of Recorded Investment | $ | $ 153 | $ 126 |
Demand | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | ||
TDRs on Accrual Status of Recorded Investment | $ | ||
Number of TDRs on Nonaccrual Status of Loans | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | ||
Total TDRs of Recorded Investment | $ | ||
Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | ||
TDRs on Accrual Status of Recorded Investment | $ | ||
Number of TDRs on Nonaccrual Status of Loans | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | ||
Total TDRs of Recorded Investment | $ | ||
Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | 1 | 1 |
TDRs on Accrual Status of Recorded Investment | $ | $ 837 | $ 929 |
Number of TDRs on Nonaccrual Status of Loans | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | 1 | 1 |
Total TDRs of Recorded Investment | $ | $ 837 | $ 929 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Recorded investment and number of modifications for modified loans (Details 8) - Loans receivable $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 8 | 5 | 14 | 14 | |
Recorded Investment Prior to Modification | $ 982 | $ 578 | $ 1,865 | $ 5,243 | |
Recorded Investment After Modification | [1] | $ 982 | $ 578 | $ 1,859 | $ 5,226 |
Real estate Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 5 | 2 | 6 | 9 | |
Recorded Investment Prior to Modification | $ 922 | $ 278 | $ 1,043 | $ 1,463 | |
Recorded Investment After Modification | [1] | $ 922 | $ 278 | $ 1,042 | $ 1,450 |
Real estate Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 1 | ||||
Recorded Investment Prior to Modification | $ 493 | ||||
Recorded Investment After Modification | [1] | $ 490 | |||
Installment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 1 | 1 | 1 | ||
Recorded Investment Prior to Modification | $ 17 | $ 44 | $ 17 | ||
Recorded Investment After Modification | [1] | $ 17 | $ 43 | $ 17 | |
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 2 | 2 | 3 | 4 | |
Recorded Investment Prior to Modification | $ 34 | $ 283 | $ 132 | $ 3,763 | |
Recorded Investment After Modification | [1] | $ 34 | $ 283 | $ 131 | $ 3,759 |
Home equity line of credit | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Modifications | Loan | 1 | 3 | |||
Recorded Investment Prior to Modification | $ 26 | $ 153 | |||
Recorded Investment After Modification | [1] | $ 26 | $ 153 | ||
[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 61
Loans and Allowance for Loan Losses - TDR loans (Details 9) - Loans receivable $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 8 | 5 | 14 | 14 |
Extended Maturity | $ 241 | $ 2,621 | ||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 34 | $ 34 | ||
Other | 948 | $ 337 | 1,825 | $ 2,605 |
Total | $ 982 | $ 578 | $ 1,859 | $ 5,226 |
Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 5 | 2 | 6 | 9 |
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 922 | $ 278 | $ 1,042 | $ 1,450 |
Total | $ 922 | $ 278 | $ 1,042 | $ 1,450 |
Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | |||
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 490 | |||
Total | $ 490 | |||
Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 1 | 1 | |
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 17 | $ 43 | $ 17 | |
Total | $ 17 | $ 43 | $ 17 | |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 2 | 2 | 3 | 4 |
Extended Maturity | $ 241 | $ 2,621 | ||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 34 | $ 34 | ||
Other | $ 42 | 97 | $ 1,138 | |
Total | $ 34 | $ 283 | $ 131 | $ 3,759 |
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 3 | ||
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 26 | $ 153 | ||
Total | $ 26 | $ 153 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Loans modified as TDR (Details 10) - Jun. 30, 2014 - Loans receivable $ in Thousands | USD ($)Loan | USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | 3 | 4 | |
Recorded Investment | $ | [1] | $ 952 | $ 1,165 |
Real Estate Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | 1 | 2 | |
Recorded Investment | $ | [1] | $ 498 | $ 711 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | 2 | 2 | |
Recorded Investment | $ | [1] | $ 454 | $ 454 |
[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 63
Loans and Allowance for Loan Losses - Risk rating (Details 11) - Loans receivable - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,283,801 | $ 2,135,035 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,225,116 | 2,067,731 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 18,421 | 28,840 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 40,080 | 38,252 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 184 | 212 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 888,376 | 827,005 |
Real estate Residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 877,474 | 815,209 |
Real estate Residential | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,488 | 488 |
Real estate Residential | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 9,414 | $ 11,308 |
Real estate Residential | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 817,955 | $ 765,066 |
Real estate Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 796,600 | 741,278 |
Real estate Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,413 | 12,550 |
Real estate Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 9,942 | $ 11,238 |
Real estate Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 42,858 | $ 57,371 |
Real estate Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 38,139 | 51,947 |
Real estate Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 705 | |
Real estate Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 4,719 | $ 4,719 |
Real estate Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 3,103 | $ 3,356 |
Installment | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,922 | 3,113 |
Installment | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 38 | 41 |
Installment | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 143 | $ 202 |
Installment | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 359,537 | $ 309,708 |
Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 339,470 | 285,185 |
Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,180 | 14,754 |
Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14,703 | 9,557 |
Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 184 | 212 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,551 | 1,733 |
Collateral | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,551 | $ 1,733 |
Collateral | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Collateral | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Collateral | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 169,507 | $ 169,768 |
Home equity line of credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 168,046 | 168,238 |
Home equity line of credit | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 302 | 302 |
Home equity line of credit | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,159 | $ 1,228 |
Home equity line of credit | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 77 | $ 99 |
Revolving credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 77 | $ 99 |
Revolving credit | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Revolving credit | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Revolving credit | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 837 | $ 929 |
Resort | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 837 | $ 929 |
Resort | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Resort | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Resort | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans |
Loans and Allowance for Loan 64
Loans and Allowance for Loan Losses (Detail Textuals) - Loans receivable | 6 Months Ended | ||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Recorded investment balance of TDRs approximated | $ 25,146,000 | $ 26,245,000 | |
TDRs on accrual status | 17,645,000 | 18,664,000 | |
TDRs on nonaccrual status | $ 7,501,000 | 7,581,000 | |
Percentage of accruing TDRs | 100.00% | ||
Allowance for loan losses included specific reserves | $ 377,000 | 592,000 | |
Bank charge-offs | 204,000 | $ 982,000 | |
Additional funds available to borrowers in TDR status | $ 390,000 | $ 206,000 | |
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 | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Servicing Assets At Amortized Value [Line Items] | |||||
Net gain on loans sold | $ 412,000 | $ 317,000 | $ 932,000 | $ 439,000 | |
Mortgage servicing rights | |||||
Servicing Assets At Amortized Value [Line Items] | |||||
Fair value of mortgage servicing rights | 3,900,000 | 3,900,000 | $ 3,600,000 | ||
Loans sold with servicing rights retained | 36,100,000 | 21,800,000 | |||
Net gain on loans sold | 932,000 | 439,000 | |||
Principal balance of loans serviced for others | 347,600,000 | 347,600,000 | 335,200,000 | ||
Mortgage servicing rights | Other noninterest income | |||||
Servicing Assets At Amortized Value [Line Items] | |||||
Loan servicing fees | 426,000 | $ 375,000 | |||
Mortgage servicing rights | Prepaid expenses and other assets | |||||
Servicing Assets At Amortized Value [Line Items] | |||||
Carrying value of mortgage servicing rights | $ 3,400,000 | $ 3,400,000 | $ 3,300,000 |
Credit Arrangements (Detail Tex
Credit Arrangements (Detail Textuals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Balance with the bank | $ 10,300,000 | $ 10,100,000 |
Federal Home Loan Bank of Boston ("FHLBB") Stock | Line of credit | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 8,800,000 | 8,800,000 |
Federal Home Loan Bank of Boston ("FHLBB") Stock | Unsecured line of credit with bank | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 20,000,000 | 20,000,000 |
Amount under unsecured line of credit agreement | 3,500,000 | 3,500,000 |
Balance with the bank | $ 262,500 | $ 262,500 |
Credit Arrangements (Detail T67
Credit Arrangements (Detail Textuals 1) - Federal Home Loan Bank of Boston ("FHLBB") Stock - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank of Boston advances | $ 400.7 | $ 401.7 |
Collateral value first mortgage loans | 874.6 | 812.8 |
Line of credit facility, remaining borrowing capacity | $ 125.9 | $ 122.5 |
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 T68
Credit Arrangements (Detail Textuals 2) - Discount Window Loan Collateral Program - Federal Reserve Bank Advances - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Amount borrowed under discount window loan collateral program | $ 77.7 | $ 71 |
Collateralized amount of funding arrangement in pledged commercial real estate loans | $ 147.8 | $ 141.6 |
Credit Arrangements (Detail T69
Credit Arrangements (Detail Textuals 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Treasury bill securities with a fair value | $ 63,400 | $ 74,400 |
Repurchase liabilities | 56,041 | 48,987 |
Master Repurchase Agreement Borrowing Facility | Broker | ||
Line of Credit Facility [Line Items] | ||
Treasury bill securities with a fair value | 11,600 | 23,000 |
Outstanding borrowings | 10,500 | 21,000 |
Repurchase liabilities | $ 56,000 | $ 49,000 |
Deposits - Deposit balances and
Deposits - Deposit balances and weighted average interest rates (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand deposits | $ 377,092 | $ 330,524 |
Interest-bearing | ||
NOW accounts | 425,789 | 355,412 |
Money market | 430,558 | 470,991 |
Savings accounts | 220,154 | 210,892 |
Time deposits | 424,447 | 365,222 |
Total interest-bearing deposits | 1,500,948 | 1,402,517 |
Total deposits | $ 1,878,040 | $ 1,733,041 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Brokered deposits | $ 52.2 | $ 0 |
Time certificates of deposit in denominations of $250,000 or more | $ 88.3 | $ 83.4 |
Pension and Other Postretirem72
Pension and Other Postretirement Benefit Plans - Components of net periodic pension and benefit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | ||||
Components of net periodic pension cost | ||||
Service cost | ||||
Interest cost | $ 259 | $ 256 | $ 518 | $ 511 |
Expected return on plan assets | (362) | (335) | (724) | (670) |
Amortization: | ||||
Loss | $ 176 | $ 76 | $ 354 | $ 153 |
Prior service cost | ||||
Net periodic benefit cost | $ 73 | $ (3) | $ 148 | $ (6) |
Other Postretirement Benefits | ||||
Components of net periodic pension cost | ||||
Service cost | 14 | 15 | 29 | 30 |
Interest cost | $ 30 | $ 37 | $ 61 | $ 73 |
Expected return on plan assets | ||||
Amortization: | ||||
Loss | $ 3 | $ 5 | $ 6 | $ 9 |
Prior service cost | (13) | (13) | (25) | (25) |
Net periodic benefit cost | $ 34 | $ 44 | $ 71 | $ 87 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefit Plans - Shares held by ESOP (Details 1) - Farmington Bank Employee Stock Ownership Plan (ESOP) | Jun. 30, 2015shares |
Employee Stock Ownership Plan (Esop) Disclosures [Line Items] | |
Allocated | 381,444 |
Committed to be released | 47,289 |
Unallocated | 1,001,683 |
Total shares held by the ESOP | 1,430,416 |
Pension and Other Postretirem74
Pension and Other Postretirement Benefit Plans (Detail Textuals) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Qualified Defined Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated contribution to qualified defined benefit plan for year ended December 31, 2015 | $ 1 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefit Plans (Detail Textuals 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Fair value of unallocated ESOP shares | $ 15,900,000 | |
Farmington Bank Employee Stock Ownership Plan (ESOP) | Farmington Bank | ||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Loan provided by the company to purchase common stock (in shares) | 1,430,416 | |
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% | |
Term of loan for annual payments of interest and principal | 15 years | |
Outstanding balance of loan provided by the company to purchase common stock | $ 13,000,000 | |
Interest rate of outstanding balance of Loan provided by the company to purchase common stock | 4.25% | |
ESOP compensation expense | $ 718,000 | $ 740,000 |
Stock Incentive Plan - Weighted
Stock Incentive Plan - Weighted-average estimated fair values of stock option grants (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted per share average fair value of options granted | $ 3.33 | $ 4.27 |
Weighted-average assumptions: | ||
Risk-free interest rate | 1.51% | 1.90% |
Expected volatility | 26.03% | 30.56% |
Expected dividend yield | 1.99% | 1.89% |
Expected life of options granted | 6 years | 6 years |
Minimum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 1.25% | 1.09% |
Maximum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 2.59% | 2.51% |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Company's stock option activity (Details 1) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Thousands | Total |
Number of Stock Options | |
Exercised | (272) |
Stock options | |
Number of Stock Options | |
Outstanding at December 31, 2014 | 1,671,157 |
Granted | 21,000 |
Exercised | (21,000) |
Forfeited | (15,600) |
Expired | (1,200) |
Outstanding at June 30, 2015 | 1,654,357 |
Exercisable at June 30, 2015 | 999,673 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2014 | $ 13.04 |
Granted | 15.66 |
Exercised | 12.95 |
Forfeited | 12.95 |
Expired | 12.95 |
Outstanding at June 30, 2015 | 13.08 |
Exercisable at June 30, 2015 | $ 13.02 |
Weighted-Average Remaining Contractual Term (in years) | 6 years 11 months 16 days |
Aggregate intrinsic value of options outstanding at June 30, 2015 | $ 4,606 |
Weighted-average remaining contractual term Exercisable at June 30, 2015 (in years) | 6 years 11 months 16 days |
Aggregate intrinsic value of options exercisable at June 30, 2015 | $ 2,854 |
Stock Incentive Plan - Summar78
Stock Incentive Plan - Summary of status of Company's restricted stock (Details 2) - 6 months ended Jun. 30, 2015 - Restricted Stock - $ / shares | Total |
Number of Restricted Stock | |
Unvested at December 31, 2014 | 266,884 |
Granted | |
Vested | (14,304) |
Forfeited | |
Unvested at June 30, 2015 | 252,580 |
Weighted-Average Grant Date Fair Value | |
Unvested at December 31, 2014 | $ 12.95 |
Granted | |
Vested | $ 12.95 |
Forfeited | |
Unvested at June 30, 2015 | $ 12.95 |
Stock Incentive Plan (Detail Te
Stock Incentive Plan (Detail Textuals) - USD ($) | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Aug. 31, 2012 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-vested restricted shares | 252,580 | 266,884 | ||
2012 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grants | 2,503,228 | |||
Share-based compensation expense | $ 1,800,000 | $ 1,400,000 | ||
Method used | Black-Scholes option pricing model | |||
Total intrinsic value of options exercised | $ 43,000 | |||
2012 Stock Incentive Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiry term of stock options | 10 years | |||
Share-based compensation expense | $ 726,000 | 587,000 | ||
Number of non-vested options outstanding | 654,684 | |||
Expected future compensation expense | $ 1,400,000 | |||
Expected unrecognized compensation expense, weighted average period | 1 year 5 months 12 days | |||
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 through 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage of stock awards | 20.00% | |||
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 | |||
Share-based compensation expense | $ 1,100,000 | $ 857,000 | ||
Expected future compensation expense | $ 1,800,000 | |||
Number of non-vested restricted shares | 252,580 | |||
Expected unrecognized compensation expense, weighted average period | 1 year 2 months 9 days | |||
2012 Stock Incentive Plan | Restricted Stock | Vested Immediately | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage of stock awards | 20.00% | |||
2012 Stock Incentive Plan | Restricted Stock | Vest each annual anniversary of the grant date through 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage of stock awards | 20.00% | |||
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 |
Derivative Financial Instrume80
Derivative Financial Instruments - Not designated outstanding interest rate swaps (Details) - Not Designated as Hedging Instrument $ in Thousands | Jun. 30, 2015USD ($)Derivatives | Dec. 31, 2014USD ($)Derivatives |
Other assets | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivatives | 44 | 43 |
Notional Amount | $ 184,680 | $ 174,884 |
Estimated Fair Values | $ 6,392 | $ 7,167 |
Other Liabilities | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivatives | 13 | 8 |
Notional Amount | $ 54,996 | $ 27,988 |
Estimated Fair Values | $ (738) | $ (431) |
Other Liabilities | Counterparty interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivatives | 57 | 51 |
Notional Amount | $ 239,676 | $ 202,872 |
Estimated Fair Values | $ (5,726) | $ (6,821) |
Derivative Financial Instrume81
Derivative Financial Instruments - Changes in the fair value of non-hedge accounting derivatives (Details 1) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Commercial loan customer interest rate swap position | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | $ (5,238) | $ 188 | $ (3,112) | $ (331) |
Commercial loan customer interest rate swap position | Interest Income Recorded in Interest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | (1,160) | (860) | (2,337) | (1,715) |
Commercial loan customer interest rate swap position | MTM (Loss) Gain Recorded in Noninterest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | (4,078) | 1,048 | (775) | 1,384 |
Counterparty interest rate swap position | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | 5,238 | (188) | 3,112 | 331 |
Counterparty interest rate swap position | Interest Income Recorded in Interest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | 1,160 | 860 | 2,337 | 1,715 |
Counterparty interest rate swap position | MTM (Loss) Gain Recorded in Noninterest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | $ 4,078 | $ (1,048) | $ 775 | $ (1,384) |
Interest rate swap derivative | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | ||||
Interest rate swap derivative | Interest Income Recorded in Interest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives | ||||
Interest rate swap derivative | MTM (Loss) Gain Recorded in Noninterest Income | ||||
Derivative [Line Items] | ||||
Changes in fair value of non-hedge accounting derivatives |
Derivative Financial Instrume82
Derivative Financial Instruments (Detail Textuals) $ in Millions | Jun. 30, 2015USD ($) |
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 |
Cash balance maintained with a correspondent bank to collateralize company's position | 7 |
Outstanding receivables secured in excess of by a correspondent bank | 10 |
Forward Contracts | Outstanding rate locks | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Mortgage banking derivatives, notional amount | 17.6 |
Forward Contracts | Outstanding commitments to sell residential mortgage loans | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Mortgage banking derivatives, notional amount | 18.5 |
Forward Contracts | Mandatory forward commitments | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Mortgage banking derivatives, notional amount | $ 13.2 |
Offsetting of Financial Asset83
Offsetting of Financial Assets and Liabilities - Summary of repurchase agreement borrowings and repurchase liabilities (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 10,500 |
Total repurchase liabilities | 56,041 |
Total | 66,541 |
U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | 6,000 |
Total repurchase liabilities | 54,613 |
Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | 4,500 |
Total repurchase liabilities | $ 1,428 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | $ 56,041 |
Total | $ 56,041 |
Overnight and Continuous | U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | $ 54,613 |
Overnight and Continuous | Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | $ 1,428 |
Up to One Year | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | |
Total | |
Up to One Year | U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | |
Up to One Year | Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | |
One Year to Three Years | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 10,500 |
Total repurchase liabilities | |
Total | $ 10,500 |
One Year to Three Years | U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 6,000 |
Total repurchase liabilities | |
One Year to Three Years | Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 4,500 |
Total repurchase liabilities |
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 | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap derivatives, gross amount of recognized assets | $ 6,392 | $ 7,167 |
Interest rate swap derivatives, gross amounts offset in statement of financial condition | ||
Interest rate swap derivatives, Net amounts of assets presented in statement of financial condition | $ 6,392 | $ 7,167 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, Financial instruments | ||
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, securities collateral received | ||
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, cash collateral received | $ 6,392 | $ 6,750 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, Net | 417 | |
Gross amount of recognized assets | $ 6,392 | $ 7,167 |
Gross amounts offset in statement of financial condition | ||
Net amounts of assets presented in statement of financial condition | $ 6,392 | $ 7,167 |
Gross amounts not offset in statement of financial condition, financial instruments | ||
Gross amounts not offset in statement of financial condition, securities collateral received | ||
Gross amounts not offset in statement of financial condition, cash collateral received | $ 6,392 | $ 6,750 |
Gross amounts not offset in statement of financial condition, Net amount | 417 | |
Interest rate swap derivatives, Gross amount of recognized liabilities | $ 6,464 | $ 7,252 |
Interest rate swap derivatives, Gross amounts offset in statement of financial condition | ||
Interest rate swap derivatives, Net amounts of liabilities presented in statement of financial condition | $ 6,464 | $ 7,252 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition liabilities, Financial instruments | ||
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, securities collateral pledged | ||
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, cash collateral pledged | $ 6,464 | $ 6,750 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition liabilities, Net | 502 | |
Repurchase agreement borrowings, Gross amount of recognized liabilities | $ 10,500 | $ 21,000 |
Repurchase agreement borrowings, Gross amounts offset in statement of financial condition | ||
Repurchase agreement borrowings, Net amounts of liabilities presented in statement of financial condition | $ 10,500 | $ 21,000 |
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition liabilities, financial instruments | ||
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition, securities collateral pledged | $ 10,500 | $ 21,000 |
Repurchase agreement borrowings, Gross amounts not offset in statement of financial condition, cash collateral pledged | ||
Repurchase agreement borrowings, Net | ||
Gross amount of recognized liabilities | $ 16,964 | $ 28,252 |
Gross amounts offset in statement of financial condition | ||
Gross Amounts not offset in statement of financial condition liabilities, Financial instruments | $ 16,964 | $ 28,252 |
Gross amounts not offset in statement of financial condition liabilities, Financial instruments | ||
Gross amounts not offset in statement of financial condition, securities collateral pledged | $ 10,500 | $ 21,000 |
Gross amounts not offset in statement of financial condition, cash collateral pledged | $ 6,464 | 6,750 |
Gross amounts not offset in statement of financial condition liabilities, Net amount | $ 502 |
Financial Instruments with Of85
Financial Instruments with Off-Balance Sheet Risk - Financial instruments whose contract amounts represent credit risk (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 502,470 | $ 443,476 |
Approved loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 114,347 | 33,737 |
Unadvanced portion of construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 25,612 | 41,604 |
Unused lines for home equity loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 180,622 | 173,493 |
Unused revolving lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 371 | 367 |
Unused commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 4,005 | 4,028 |
Unused commercial lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 177,513 | $ 190,247 |
Financial Instruments with Of86
Financial Instruments with Off-Balance Sheet Risk (Details Textuals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||
Financial instruments with off-balance sheet risk, valuation allowance | $ 437,000 | $ 440,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Securities available-for-sale | $ 143,799 | $ 188,041 |
Fair Value Measurements Recurring | Total | ||
Assets | ||
Securities available-for-sale | 143,799 | 188,041 |
Total Assets | 150,331 | 195,248 |
Liabilities | ||
Total Liabilities | 6,464 | 7,278 |
Fair Value Measurements Recurring | Total | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 63,927 | 123,816 |
Fair Value Measurements Recurring | Total | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 67,117 | 49,109 |
Fair Value Measurements Recurring | Total | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 6,161 | 6,907 |
Fair Value Measurements Recurring | Total | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | 1,070 | 1,085 |
Fair Value Measurements Recurring | Total | Trust preferred debt securities | ||
Assets | ||
Securities available-for-sale | 1,557 | |
Fair Value Measurements Recurring | Total | Preferred equity securities | ||
Assets | ||
Securities available-for-sale | 1,624 | 1,676 |
Fair Value Measurements Recurring | Total | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | 156 | 170 |
Fair Value Measurements Recurring | Total | Mutual funds | ||
Assets | ||
Securities available-for-sale | 3,744 | 3,721 |
Fair Value Measurements Recurring | Total | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | 6,392 | 7,167 |
Liabilities | ||
Derivative Liabilities | 6,464 | 7,252 |
Fair Value Measurements Recurring | Total | Derivative loan commitments | ||
Assets | ||
Derivative Assets | 127 | 40 |
Fair Value Measurements Recurring | Total | Forward loan sales commitments | ||
Assets | ||
Derivative Assets | 13 | |
Liabilities | ||
Derivative Liabilities | 26 | |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available-for-sale | 131,200 | 173,095 |
Total Assets | $ 131,200 | $ 173,095 |
Liabilities | ||
Total Liabilities | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | $ 63,927 | $ 123,816 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | $ 67,117 | $ 49,109 |
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 | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Trust preferred debt securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred equity securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | $ 156 | $ 170 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative loan commitments | ||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward loan sales commitments | ||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | ||
Assets | ||
Securities available-for-sale | $ 12,599 | $ 14,946 |
Total Assets | 18,991 | 22,113 |
Liabilities | ||
Total Liabilities | $ 6,464 | $ 7,252 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | $ 6,161 | $ 6,907 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | 1,070 | 1,085 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Trust preferred debt securities | ||
Assets | ||
Securities available-for-sale | 1,557 | |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Preferred equity securities | ||
Assets | ||
Securities available-for-sale | $ 1,624 | $ 1,676 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Mutual funds | ||
Assets | ||
Securities available-for-sale | $ 3,744 | $ 3,721 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | 6,392 | 7,167 |
Liabilities | ||
Derivative Liabilities | $ 6,464 | $ 7,252 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Derivative loan commitments | ||
Assets | ||
Derivative Assets | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Forward loan sales commitments | ||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available-for-sale | ||
Total Assets | $ 140 | $ 40 |
Liabilities | ||
Total Liabilities | $ 26 | |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Trust preferred debt securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Preferred equity securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Assets | ||
Securities available-for-sale | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Derivative loan commitments | ||
Assets | ||
Derivative Assets | $ 127 | $ 40 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Forward loan sales commitments | ||
Assets | ||
Derivative Assets | $ 13 | |
Liabilities | ||
Derivative Liabilities | $ 26 |
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 | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, at beginning of period | $ 144 | $ 96 | $ 14 | $ 47 |
Total realized gain (loss): | ||||
Included in earnings | (4) | (46) | 126 | 3 |
Balance, at the end of period | $ 140 | $ 50 | $ 140 | $ 50 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 140 | $ 40 |
Derivative and forward loan sales commitments, net | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 140 | $ 14 |
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 | 1.19% | 1.07% |
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 | Jun. 30, 2015 | Dec. 31, 2014 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Other real estate owned | ||
Significant Observable Inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Other real estate owned | ||
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 3,106 | $ 1,647 |
Other real estate owned | $ 1,149 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 3,106 | $ 1,647 |
Valuation Methodology | Appraisals | Appraisals |
Impaired loans | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 0.00% | 0.00% |
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 | 10.00% | 10.00% |
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 | $ 1,149 | |
Valuation Methodology | Appraisals | |
Other real estate owned | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 5.00% | |
Other real estate owned | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 10.00% | |
Other real estate owned | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for costs to sell | 7.50% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amount, fair value of financial instruments (Details 5) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financial assets | |||
Securities held-to-maturity | $ 34,366 | $ 16,224 | |
Securities available-for-sale | 143,799 | 188,041 | |
Loans | [1] | 2,287,966 | 2,138,877 |
Alternative investments | 2,500 | 2,700 | |
Financial liabilities | |||
Time deposits | 424,447 | 365,222 | |
Federal Home Loan Bank of Boston advances | 400,700 | 401,700 | |
Repurchase agreement borrowings | 10,500 | 21,000 | |
Repurchase liabilities | 56,041 | 48,987 | |
Carrying Amount | |||
Financial assets | |||
Securities held-to-maturity | [2] | 34,366 | 16,224 |
Securities available-for-sale | 143,799 | 188,041 | |
Loans | [3] | 2,287,966 | 2,135,035 |
Loans held-for-sale | [2] | 7,550 | 2,417 |
Mortgage servicing rights | [3] | 3,352 | 3,336 |
Federal Home Loan Bank of Boston stock | [2] | 21,496 | 19,785 |
Alternative investments | [3] | 2,518 | 2,694 |
Interest rate swap derivatives | [2] | 6,392 | $ 7,167 |
Forward loan sales commitments | [3] | 13 | |
Derivative loan commitments | [3] | 127 | $ 40 |
Financial liabilities | |||
Deposits other than time deposits | [4] | 1,453,593 | 1,367,819 |
Time deposits | [2] | 424,447 | 365,222 |
Federal Home Loan Bank of Boston advances | [2] | 400,700 | 401,700 |
Repurchase agreement borrowings | [2] | 10,500 | 21,000 |
Repurchase liabilities | [2] | 56,041 | 48,987 |
Interest rate swap derivatives | [2] | $ 6,464 | 7,252 |
Forward loan sales commitments | [3] | 26 | |
Estimated Fair Value | |||
Financial assets | |||
Securities held-to-maturity | [2] | $ 34,445 | 16,416 |
Securities available-for-sale | 143,799 | 188,041 | |
Loans | [3] | 2,275,898 | 2,130,994 |
Loans held-for-sale | [2] | 7,593 | 2,469 |
Mortgage servicing rights | [3] | 3,907 | 3,572 |
Federal Home Loan Bank of Boston stock | [2] | 21,496 | 19,785 |
Alternative investments | [3] | 2,447 | 2,695 |
Interest rate swap derivatives | [2] | 6,392 | $ 7,167 |
Forward loan sales commitments | [3] | 13 | |
Derivative loan commitments | [3] | 127 | $ 40 |
Financial liabilities | |||
Deposits other than time deposits | [4] | 1,453,593 | 1,367,819 |
Time deposits | [2] | 427,997 | 368,974 |
Federal Home Loan Bank of Boston advances | [2] | 400,464 | 400,226 |
Repurchase agreement borrowings | [2] | 11,147 | 21,669 |
Repurchase liabilities | [2] | 56,042 | 48,986 |
Interest rate swap derivatives | [2] | $ 6,464 | 7,252 |
Forward loan sales commitments | [3] | $ 26 | |
[1] | Loans include net deferred loan costs of $4.2 million and $3.8 million at June 30, 2015 and December 31, 2014, respectively. | ||
[2] | Level 2 | ||
[3] | Level 3 | ||
[4] | Level 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured On Recurring and Nonrecurring Basis [Line Items] | |||
Total alternative investments | $ 2,500,000 | $ 2,700,000 | |
Unfunded commitments for alternative investments | 692,000 | ||
Other noninterest income | |||
Fair Value, Assets and Liabilities Measured On Recurring and Nonrecurring Basis [Line Items] | |||
Recognized forward loan sale commitments and derivative loan commitments | 126,000 | $ 2,000 | |
Loss on fair value adjustments in its limited partnerships | $ 113,000 | $ 41,000 |
Regulatory Matters - Actual cap
Regulatory Matters - Actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 266,115 | $ 260,157 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 13.11% | 13.73% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 162,389 | $ 151,585 |
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 | $ 202,986 | $ 189,481 |
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 | $ 246,097 | $ 240,757 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 12.12% | 12.70% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 121,830 | $ 75,829 |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 4.00% |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 162,440 | $ 113,743 |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 8.00% | 6.00% |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 246,097 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 12.12% | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 91,373 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 131,983 | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | |
Tier I Capital (to Average Assets) Actual Amount | $ 246,097 | $ 240,757 |
Tier I Capital (to Average Assets) Actual Ratio | 9.57% | 9.86% |
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 102,862 | $ 97,670 |
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 128,577 | $ 122,088 |
Tier I 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 | $ 227,863 | $ 220,616 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 11.24% | 11.65% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 162,180 | $ 151,496 |
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 | $ 202,725 | $ 189,370 |
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 | $ 207,845 | $ 201,216 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.25% | 10.63% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 121,665 | $ 75,716 |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 6.00% | 4.00% |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 162,220 | $ 113,574 |
Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 8.00% | 6.00% |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Amount | $ 207,845 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.25% | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 91,249 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.50% | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 131,804 | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | |
Tier I Capital (to Average Assets) Actual Amount | $ 207,845 | $ 201,216 |
Tier I Capital (to Average Assets) Actual Ratio | 8.09% | 8.25% |
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 102,766 | $ 97,559 |
Tier I Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 128,458 | $ 121,949 |
Tier I 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) | Jun. 30, 2015 |
Regulatory Matters Disclosure [Abstract] | |
Percentage of tier one capital greater than risk weighted assets | 2.50% |
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 | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Unrealized gains (losses) on available-for-sale securities, Pre Tax Amount | $ (2,793) | $ 161 | $ (2,975) | $ 297 | |
Unrealized gains (losses) on available-for-sale securities, Tax Benefit (Expense) | 983 | (55) | 1,047 | (101) | |
Unrealized gains (losses) on available-for-sale securities, After Tax Amount | (1,810) | $ 106 | (1,928) | $ 196 | |
Less: net security gains reclassified into other noninterest income, Pre Tax Amount | 1,250 | 1,523 | |||
Less: net security gains reclassified into other noninterest income, Tax Benefit (Expense) | (440) | (536) | |||
Less: net security gains reclassified into other noninterest income, After Tax Amount | 810 | 987 | |||
Net change in fair value of securities available-for-sale, Pre Tax Amount | (1,543) | $ 161 | (1,452) | $ 297 | |
Net change in fair value of securities available-for-sale, Tax Benefit (Expense) | 543 | (55) | 511 | (101) | |
Net change in fair value of securities available-for-sale, After Tax Amount | (1,000) | 106 | (941) | 196 | |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, Pre Tax Amount | [1] | 29 | 86 | 191 | 142 |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, Tax Benefit (Expense) | [1] | (10) | (29) | (67) | (48) |
Reclassification adjustment for prior service costs and net gain included in net periodic pension costs, After Tax Amount | [1] | 19 | 57 | 124 | 94 |
Total other comprehensive income, Pre Tax Amount | (1,514) | 247 | (1,261) | 439 | |
Total other comprehensive income, Tax Benefit (Expense) | 533 | (84) | 444 | (149) | |
Total other comprehensive income, After Tax Amount | $ (981) | $ 163 | $ (817) | $ 290 | |
[1] | Amounts are included in salaries and employee benefits in the unaudited Consolidated Statements of Income. |
Subsequent Event (Detail Textua
Subsequent Event (Detail Textuals) - USD ($) | 1 Months Ended | 3 Months Ended |
Jul. 24, 2015 | Jun. 30, 2015 | |
Subsequent Event [Line Items] | ||
Charge-off foreclosed property recorded at fair value | $ 213,000 | |
Subsequent event | ||
Subsequent Event [Line Items] | ||
Foreclosed real estate was subsequently sold pre tax gain | $ 557,000 |