Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | First Connecticut Bancorp, Inc. | ||
Entity Central Index Key | 1,511,198 | ||
Trading Symbol | fbnk | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 15,737,863 | ||
Entity Public Float | $ 242.5 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash and due from banks | $ 45,732 | $ 35,232 | |
Interest bearing deposits with other institutions | 13,407 | 7,631 | |
Total cash and cash equivalents | 59,139 | 42,863 | |
Securities held-to-maturity, at amortized cost | 32,246 | 16,224 | |
Securities available-for-sale, at fair value | 132,424 | 188,041 | |
Loans held for sale | 9,637 | 2,417 | |
Loans | [1] | 2,361,796 | 2,138,877 |
Allowance for loan losses | (20,198) | (18,960) | |
Loans, net | 2,341,598 | 2,119,917 | |
Premises and equipment, net | 18,565 | 18,873 | |
Federal Home Loan Bank of Boston stock, at cost | 21,729 | 19,785 | |
Accrued income receivable | 6,747 | 5,777 | |
Bank-owned life insurance | 50,618 | 39,686 | |
Deferred income taxes, net | 15,443 | 16,841 | |
Prepaid expenses and other assets | 20,400 | 14,936 | |
Total assets | 2,708,546 | 2,485,360 | |
Deposits | |||
Interest-bearing | 1,589,970 | 1,402,517 | |
Noninterest-bearing | 401,388 | 330,524 | |
Total Deposits | 1,991,358 | 1,733,041 | |
Federal Home Loan Bank of Boston advances | 377,600 | 401,700 | |
Repurchase agreement borrowings | 10,500 | 21,000 | |
Repurchase liabilities | 35,769 | 48,987 | |
Accrued expenses and other liabilities | 47,598 | 46,069 | |
Total liabilities | 2,462,825 | 2,250,797 | |
Stockholders' Equity | |||
Common stock, $0.01 par value, 30,000,000 shares authorized; 17,976,893 shares issued and 15,881,663 shares outstanding at December 31, 2015 and 18,006,129 shares issued and 16,026,319 shares outstanding at December 31, 2014 | 181 | 181 | |
Additional paid-in-capital | 181,997 | 178,772 | |
Unallocated common stock held by ESOP | (11,626) | (12,681) | |
Treasury stock, at cost (2,095,230 shares at December 31, 2015 and 1,979,810 shares at December 31, 2014) | (30,602) | (28,828) | |
Retained earnings | 112,933 | 103,630 | |
Accumulated other comprehensive loss | (7,162) | (6,511) | |
Total stockholders' equity | 245,721 | 234,563 | |
Total liabilities and stockholders' equity | $ 2,708,546 | $ 2,485,360 | |
[1] | Loans include net deferred loan costs of $4.0 million and $3.8 million at December 31, 2015 and 2014, respectively. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Net deferred loan costs | $ 4 | $ 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 | 17,976,893 | 18,006,129 |
Common stock, shares outstanding | 15,881,663 | 16,026,319 |
Treasury stock, shares | 2,095,230 | 1,979,810 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Interest and fees on loans | ||||
Mortgage | $ 61,920 | $ 56,963 | $ 48,728 | |
Other | 17,584 | 14,159 | 13,183 | |
Interest and dividends on investments | ||||
United States Government and agency obligations | 1,534 | 949 | 478 | |
Other bonds | 79 | 259 | 230 | |
Corporate stocks | 741 | 429 | 252 | |
Other interest income | 26 | 15 | 15 | |
Total interest income | 81,884 | 72,774 | 62,886 | |
Interest expense | ||||
Deposits | 9,372 | 7,369 | 7,182 | |
Federal Home Loan Bank of Boston advances | 3,449 | 1,841 | 1,651 | |
Repurchase agreement borrowings | 448 | 719 | 713 | |
Repurchase liabilities | 106 | 151 | 187 | |
Total interest expense | 13,375 | 10,080 | 9,733 | |
Net interest income | 68,509 | 62,694 | 53,153 | |
Provision for loan losses | 2,440 | 2,588 | 1,530 | |
Net interest income after provision for loan losses | 66,069 | 60,106 | 51,623 | |
Noninterest income | ||||
Fees for customer services | 5,975 | 5,488 | 4,559 | |
Gain on sales of investments | 1,523 | 340 | ||
Net gain on loans sold | 2,492 | 1,419 | 4,825 | |
Brokerage and insurance fee income | 215 | 192 | 150 | |
Bank owned life insurance income | 1,672 | 1,130 | 1,316 | |
Other | 1,570 | 875 | (178) | |
Total noninterest income | 13,447 | 9,104 | 11,012 | |
Noninterest expense | ||||
Salaries and employee benefits | 36,855 | 34,416 | 34,851 | |
Occupancy expense | 5,115 | 5,080 | 4,722 | |
Furniture and equipment expense | 4,204 | 4,342 | 4,079 | |
FDIC assessment | 1,657 | 1,396 | 1,272 | |
Marketing | 2,149 | 1,590 | 1,995 | |
Other operating expenses | 11,230 | 10,224 | 10,843 | |
Total noninterest expense | 61,210 | 57,048 | 57,762 | |
Income before income taxes | 18,306 | 12,162 | 4,873 | |
Income tax expense | 5,727 | 2,827 | 1,169 | |
Net income | $ 12,579 | $ 9,335 | $ 3,704 | |
Net earnings per share (See Note 3): | ||||
Basic (in dollars per share) | [1] | $ 0.84 | $ 0.62 | $ 0.24 |
Diluted (in dollars per share) | [1] | 0.83 | 0.62 | 0.24 |
Dividends per share (in dollars per share) | $ 0.22 | $ 0.17 | $ 0.12 | |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Income (Loss) and Comprehensive Income (Loss) [Abstract] | |||||||||||
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | $ 12,579 | $ 9,335 | $ 3,704 |
Unrealized (losses) gains on securities: | |||||||||||
Unrealized holding (losses) gains arising during the period | (3,525) | $ 1,831 | (1,263) | ||||||||
Less: reclassification adjustment for gains included in net income | 1,523 | 340 | |||||||||
Net change in unrealized (losses) gains | (2,002) | $ 1,831 | (923) | ||||||||
Change related to pension and other postretirement benefit plans | 986 | (5,388) | 3,783 | ||||||||
Other comprehensive (loss) income, before tax | (1,016) | (3,557) | 2,860 | ||||||||
Income tax (benefit) expense | (365) | (1,270) | 972 | ||||||||
Other comprehensive (loss) income, net of tax | (651) | (2,287) | 1,888 | ||||||||
Comprehensive income | $ 11,928 | $ 7,048 | $ 5,592 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid in Capital | Unallocated Common Shares Held by ESOP | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income Loss | Total |
Balance at Dec. 31, 2012 | $ 181 | $ 172,386 | $ (14,806) | $ (4,860) | $ 95,006 | $ (6,112) | $ 241,795 |
Balance (in shares) at Dec. 31, 2012 | 17,714,481 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | 345 | 1,059 | 1,404 | ||||
Cash dividend paid ($0.12, $0.17 and $0.22 per common share for 2013, 2014 and 2015, respectively) | (1,878) | (1,878) | |||||
Treasury stock acquired | (18,910) | (18,910) | |||||
Treasury stock acquired (in shares) | (1,306,053) | ||||||
Stock options exercised | (6) | 1,185 | 1,179 | ||||
Stock options exercised (in shares) | 90,850 | ||||||
Cancellation of shares for tax withholding | (570) | (14) | (584) | ||||
Cancellation of shares for tax withholding (in shares) | (41,636) | ||||||
Tax benefits from stock-based compensation | 35 | 35 | |||||
Share based compensation expense | 3,576 | 3,576 | |||||
Net income | 3,704 | 3,704 | |||||
Other comprehensive income (loss) | 1,888 | 1,888 | |||||
Balance at Dec. 31, 2013 | $ 181 | 175,766 | (13,747) | (22,599) | 96,832 | (4,224) | 232,209 |
Balance (in shares) at Dec. 31, 2013 | 16,457,642 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
ESOP shares released and committed to be released | 414 | 1,066 | 1,480 | ||||
Cash dividend paid ($0.12, $0.17 and $0.22 per common share for 2013, 2014 and 2015, respectively) | (2,537) | (2,537) | |||||
Treasury stock acquired | (6,257) | (6,257) | |||||
Treasury stock acquired (in shares) | (404,217) | ||||||
Stock options exercised | (1) | 28 | 27 | ||||
Stock options exercised (in shares) | 2,100 | ||||||
Cancellation of shares for tax withholding | (440) | (440) | |||||
Cancellation of shares for tax withholding (in shares) | (29,206) | ||||||
Tax benefits from stock-based compensation | 110 | 110 | |||||
Share based compensation expense | 2,923 | 2,923 | |||||
Net income | 9,335 | 9,335 | |||||
Other comprehensive income (loss) | (2,287) | (2,287) | |||||
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 | 467 | 1,055 | $ 1,522 | ||||
Cash dividend paid ($0.12, $0.17 and $0.22 per common share for 2013, 2014 and 2015, respectively) | (3,276) | (3,276) | |||||
Treasury stock acquired | (2,200) | (2,200) | |||||
Treasury stock acquired (in shares) | (147,020) | ||||||
Stock options exercised | (14) | 426 | 412 | ||||
Stock options exercised (in shares) | 31,600 | ||||||
Cancellation of shares for tax withholding | (498) | (498) | |||||
Cancellation of shares for tax withholding (in shares) | (29,236) | ||||||
Tax benefits from stock-based compensation | 152 | 152 | |||||
Share based compensation expense | 3,118 | 3,118 | |||||
Net income | 12,579 | 12,579 | |||||
Other comprehensive income (loss) | (651) | (651) | |||||
Balance at Dec. 31, 2015 | $ 181 | $ 181,997 | $ (11,626) | $ (30,602) | $ 112,933 | $ (7,162) | $ 245,721 |
Balance (in shares) at Dec. 31, 2015 | 15,881,663 | 15,881,663 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Stockholders Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 0.22 | $ 0.17 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income | $ 12,579 | $ 9,335 | $ 3,704 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,440 | 2,588 | 1,530 |
Provision for off-balance sheet commitments | 61 | 4 | 41 |
Depreciation and amortization | 2,640 | 3,100 | 3,079 |
Amortization of ESOP expense | 1,522 | 1,480 | 1,404 |
Share based compensation expense | 3,118 | 2,923 | 3,576 |
Gain on sale of investments | (1,523) | (340) | |
Loans originated for sale | (209,997) | (57,069) | (173,160) |
Proceeds from the sale of loans held for sale | 205,269 | 82,129 | 184,425 |
Loss on disposal of premises and equipment | 62 | 6 | 76 |
(Gain) loss on fair value adjustment for mortgage banking derivatives | (123) | 33 | 441 |
Impairment losses on alternative investments | 144 | 52 | |
Writedowns on foreclosed real estate | 50 | ||
(Gain) loss on sale of foreclosed real estate | (570) | (81) | 59 |
Net gain on loans sold | (2,492) | (1,419) | (4,825) |
Accretion and amortization of investment security discounts and premiums, net | (65) | (26) | (51) |
Amortization and accretion of loan fees and discounts, net | (141) | (850) | 385 |
Increase in accrued income receivable | (970) | (860) | (502) |
Deferred income tax | 1,763 | (687) | (313) |
Increase in cash surrender value of bank-owned life insurance | (1,293) | (1,130) | (1,207) |
(Increase) decrease in prepaid expenses and other assets | (5,562) | (3,919) | 3,486 |
Increase (decrease) in accrued expenses and other liabilities | 2,410 | 7,145 | (10,475) |
Net cash provided by operating activities | 9,322 | 42,754 | 11,333 |
Cash flows from investing activities | |||
Maturities and calls of securities held-to-maturity | 24,978 | 8,759 | 4 |
Maturities, calls and principal payments of securities available-for-sale | 278,288 | 306,574 | 317,867 |
Purchases of securities held-to-maturity | (41,000) | (12,000) | (9,981) |
Purchases of securities available-for-sale | (223,085) | (341,867) | (331,043) |
Loan originations, net of principal repayments | (226,267) | (344,757) | (283,130) |
Purchases of Federal Home Loan Bank of Boston stock, net | (1,944) | (6,649) | (4,197) |
Purchase of bank-owned life insurance | (10,000) | ||
Proceeds from sale of foreclosed real estate | 2,928 | 1,296 | 495 |
Proceeds from bank-owned life insurance | 361 | 100 | |
Purchases of premises and equipment | (2,394) | (1,360) | (3,807) |
Net cash used in investing activities | (198,135) | (390,004) | (313,692) |
Cash flows from financing activities | |||
Net (payments on) proceeds from Federal Home Loan Bank of Boston advances | (24,100) | 142,700 | 131,000 |
Decrease in repurchase agreement borrowings | (10,500) | ||
Net increase in demand deposits, NOW accounts, savings accounts and money market accounts | 182,749 | 192,806 | 203,902 |
Net increase (decrease) in time deposits | 75,568 | 26,734 | (20,856) |
Net decrease in repurchase liabilities | (13,218) | (1,829) | (3,371) |
Stock options exercised | 412 | 27 | 1,185 |
Excess tax benefit from stock-based compensation | 152 | 110 | 35 |
Cancellation of shares for tax withholding | (498) | (440) | (590) |
Repurchase of common stock | (2,200) | (6,257) | (18,910) |
Cash dividend paid | (3,276) | (2,537) | (1,878) |
Net cash provided by financing activities | 205,089 | 351,314 | 290,517 |
Net increase (decrease) in cash and cash equivalents | 16,276 | 4,064 | (11,842) |
Cash and cash equivalents at beginning of period | 42,863 | 38,799 | 50,641 |
Cash and cash equivalents at end of period | 59,139 | 42,863 | 38,799 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 13,270 | 9,977 | 9,785 |
Cash paid for income taxes | 4,944 | 1,502 | 4,300 |
Loans transferred to other real estate owned | $ 2,287 | $ 1,217 | $ 398 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 23 branch locations throughout central Connecticut and western Massachusetts, offering commercial and residential lending as well as wealth management services. Farmington Bank's primary source of income is interest accrued on loans to customers, which include small and middle market businesses and individuals residing primarily in Connecticut and western Massachusetts. However, the Bank will selectively lend to borrowers in other northeastern states. Wholly-owned subsidiaries of Farmington Bank are Farmington Savings Loan Servicing, Inc., a passive investment company that was established to service and hold loans collateralized by real property; Village Investments, Inc.; the Village Corp., Limited, and Village Square Holdings, Inc.; 28 Main Street Corp., is a subsidiary that was formed to hold residential other real estate owned and Village Management Corp., is a subsidiary that was formed to hold commercial other real estate owned, are presently inactive. On June 21, 2013, the Company received regulatory approval to repurchase up to 1,676,452 shares, or 10% of its current outstanding common stock. During the year ended December 31, 2015, the Company had repurchased 147,020 of these shares at a cost of $2.2 million. Repurchased shares are held as treasury stock and are available for general corporate purposes. The Company has 757,745 shares remaining available to be repurchased at December 31, 2015. Basis of Financial Statement Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The consolidated financial statements include the accounts of First Connecticut Bancorp, Inc. and its wholly-owned subsidiary, Farmington Bank. All significant intercompany transactions and balances have been eliminated in consolidation. 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 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. Out of Period Adjustments In the fourth quarter of 2014, the Company recorded a correction of an error to reflect the estimated fair value of two trust preferred debt securities which increased securities available-for-sale by $1.6 million, decreased deferred income taxes by $600,000 and increased comprehensive income by $1.0 million due to the unrealized gains on the securities, net of tax. The majority of the increase in estimated fair value relates to prior periods. After evaluating the quantitative and qualitative aspects of the adjustments, the Company concluded that its prior period financial statements were not materially misstated and, therefore, no restatement was required. There were no out-of-period adjustments for the year ended December 31, 2015. Cash and Cash Equivalents The Company defines cash and cash equivalents for consolidated cash flow purposes as cash due from banks, federal funds sold and money market funds. Cash flows from loans and deposits are reported net. The balances of cash and due from banks, federal funds sold and money market funds, at times, may exceed federally insured limits. The Company has not experienced any losses from such concentrations. 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 December 31, 2015 and 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. Federal Home Loan Bank of Boston Stock The Company, which is a member of the Federal Home Loan Bank system, is required to maintain an investment in capital stock of the Federal Home Loan Bank of Boston (“FHLBB”). Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. As of December 31, 2015 and 2014, no impairment has been recognized. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to other noninterest income in the accompanying Consolidated Statements of Income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date to net gain on loans sold in the accompanying Consolidated Statements of Income. Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, 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 quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. All reserves are available to cover any losses regardless of how they are allocated. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction, 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 year ended December 31, 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 December 31, 2015 and 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. Mortgage Servicing Rights The Company capitalizes mortgage servicing rights for loans originated and then sold with servicing retained based on the fair market value on the origination date. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income and such amortization is included in the consolidated statements of income as a reduction of mortgage servicing fee income. Mortgage servicing rights are evaluated for impairment by comparing their aggregate carrying amount to their fair value. An independent appraisal of the fair value of the Company’s mortgage servicing rights is obtained quarterly and is used by management to evaluate the reasonableness of the fair value estimates. Management reviews the independent appraisal and performs procedures to determine appropriateness. Impairment is recognized as an adjustment to mortgage servicing rights and mortgage servicing income. Foreclosed Real Estate Real estate acquired through foreclosure comprises properties acquired in partial or total satisfaction of problem loans. The properties are acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. At the time these properties are foreclosed, the properties are initially recorded at the fair value at the date of foreclosure less estimated selling costs. Losses arising at the time of acquisition of such properties are charged against the allowance for loan losses. Subsequent loss provisions are charged to the foreclosed real estate valuation allowance and expenses incurred to maintain the properties are charged to noninterest expense. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and a charge to operations is recorded as necessary to reduce the carrying amount to fair value less estimated costs to dispose. Revenue and expense from the operation of other real estate owned and the provision to establish and adjust valuation allowances are included in noninterest expenses. Costs relating to the development and improvement of the property are capitalized, subject to the limit of fair value of the collateral. In the Consolidated Statements of Financial Condition, total prepaid expenses and other assets include foreclosed real estate of $279,000 and $400,000 as of December 31, 2015 and 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 $4.5 million at December 31, 2015. Bank Owned Life Insurance Bank owned life insurance ("'BOLI") represents life insurance on certain employees who have consented to allow the Company to be the beneficiary of those policies. BOLI is recorded as an asset at cash surrender value. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other non-interest income and are not subject to income tax. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three to ten years for furniture and equipment and five to forty years for premises. Leasehold improvements are amortized on a straight-line basis over the term of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Maintenance and repairs are charged to non-interest expense as incurred, while significant improvements are capitalized. Derivative Financial Instruments 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 and do not meet the hedge accounting parameters under FASB ASC 815 “Derivatives and Hedging”. Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. Changes in the fair value of derivatives not designated in hedging relationships are recognized directly in earnings. Pension and Other Postretirement Benefit Plans The Company’s non-contributory defined-benefit pension plan and certain defined benefit postretirement plans were frozen as of February 28, 2013 and no additional benefits will accrue. The Company has a non-contributory defined benefit pension plan that provides benefits for substantially all employees hired before January 1, 2007 who meet certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined in the Plan Document. The Company’s funding practice is to meet the minimum funding standards established by the Employee Retirement Income Security Act of 1974. In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. A fixed percent of annual costs are paid depending on length of service at retirement. The Company accrues for the estimated costs of these other post-retirement benefits through charges to expense during the years that employees render service. The Company makes contributions to cover the current benefits paid under this plan. The Company believes the policy for determining pension and other post-retirement benefit expenses is critical because judgments are required with respect to the appropriate discount rate, rate of return on assets and other items. The Company reviews and updates the assumptions annually. If the Company’s estimate of pension and post-retirement expense is too low it may experience higher expenses in the future, reducing its net income. If the Company’s estimate is too high, it may experience lower expenses in the future, increasing its net income. Repurchase Liabilities Repurchase agreements are accounted for as secured borrowings since the Company maintains effective control over the transferred securities and the transfer meets the other criteria for such accounting. Securities are sold to a counterparty with an agreement to repurchase the same or substantially the same security at a specified price and date. The Company has repurchase agreements with commercial or municipal customers that are offered as a commercial banking service. Customer repurchase agreements are for a term of one day and are backed by the purchasers’ interest in certain U.S. Treasury Bills or other U.S. Government securities. Obligations to repurchase securities sold are reflected as a liability in the Consolidated Statements of Financial Condition. The Company does not record transactions of repurchase agreements as sales. The securities underlying the repurchase agreements remain in the available-for-sale investment securities portfolio. Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Fee Income Fee income for customer services which are not deferred are recorded on an accrual basis when earned. Advertising Costs Advertising costs are expensed as incurred. 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 authorit |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 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 $17.7 million and $10.1 million to meet these requirements at December 31, 2015 and 2014, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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: For the Years Ended December 31, 2015 2014 2013 (Dollars in thousands, except per share data): Net income $ 12,579 $ 9,335 $ 3,704 Less: Dividends to participating shares (41 ) (55 ) (56 ) Income allocated to participating shares (135 ) (161 ) (55 ) Net income allocated to common stockholders $ 12,403 $ 9,119 $ 3,593 Weighted-average shares issued 17,996,918 18,025,893 18,059,089 Less: Average unallocated ESOP shares (1,005,011 ) (1,100,393 ) (1,195,730 ) Average treasury stock (2,048,101 ) (1,886,168 ) (1,118,785 ) Average unvested restricted stock (217,199 ) (357,185 ) (491,153 ) Weighted-average basic shares outstanding 14,726,607 14,682,147 15,253,421 Plus: Average dilutive shares 223,047 111,199 16,791 Weighted-average diluted shares outstanding 14,949,654 14,793,346 15,270,212 Net earnings per share (1) Basic $ 0.84 $ 0.62 $ 0.24 Diluted $ 0.83 $ 0.62 $ 0.24 (1) Certain per share amounts may not appear to reconcile due to rounding. For the years ended December 31, 2015, 2014 and 2013, respectively, 78,500, 72,250 and 26,750 options were anti-dilutive and therefore excluded from the earnings per share calculation. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 4. Investment Securities Investment securities are summarized as follows: December 31, 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 $ 38,782 $ 83 $ (6 ) $ 38,859 $ - $ - $ 38,859 U.S. Government agency obligations 82,002 43 (240 ) 81,805 - - 81,805 Government sponsored residential mortgage-backed securities 4,958 195 - 5,153 - - 5,153 Corporate debt securities 1,000 48 - 1,048 - - 1,048 Preferred equity securities 2,000 - (368 ) 1,632 - - 1,632 Marketable equity securities 108 54 (2 ) 160 - - 160 Mutual funds 3,957 - (190 ) 3,767 - - 3,767 Total securities available-for-sale $ 132,807 $ 423 $ (806 ) $ 132,424 $ - $ - $ 132,424 Held-to-maturity U.S. Government agency obligations $ 24,000 $ - $ - $ 24,000 $ 28 $ (20 ) 24,008 Government sponsored residential mortgage-backed securities 8,246 - - 8,246 103 - 8,349 Total securities held-to-maturity $ 32,246 $ - $ - $ 32,246 $ 131 $ (20 ) $ 32,357 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 At December 31, 2015, the net unrealized loss on securities available for sale of $383,000, net of a tax benefit of $135,000 or $249,000, is included in accumulated other comprehensive income. At December 31, 2014, the net unrealized gain on securities available for sale of $1.6 million, net of a tax expense of $575,000 or $1.0 million, is included in accumulated other comprehensive income. The following tables summarize 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 December 31, 2015 and 2014: December 31, 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: U.S. Treasury obligations 4 $ 19,935 $ (6 ) $ - $ - $ 19,935 $ (6 ) U.S. Government agency obligations 7 56,762 (240 ) - - 56,762 (240 ) Preferred equity securities 1 - - 1,632 (368 ) 1,632 (368 ) Marketable equity securities 1 - - 5 (2 ) 5 (2 ) Mutual funds 1 - - 2,768 (190 ) 2,768 (190 ) 14 $ 76,697 $ (246 ) $ 4,405 $ (560 ) $ 81,102 $ (806 ) Held-to-maturity U.S. Government agency obligations 1 6,980 (20 ) - - 6,980 (20 ) 1 6,980 (20 ) - - 6,980 (20 ) Total investment securities in an unrealized loss position 15 $ 83,677 $ (266 ) $ 4,405 $ (560 ) $ 88,082 $ (826 ) 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 1 6,992 (8 ) - - 6,992 (8 ) Total investment securities in an unrealized loss position 1 6,992 (8 ) - - 6,992 (8 ) 10 $ 67,900 $ (26 ) $ 4,421 $ (544 ) $ 72,321 $ (570 ) Management believes that no individual unrealized loss as of December 31, 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 greater than twelve months as of December 31, 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 December 31, 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 December 31, 2015. The Company recorded no other-than-temporary impairment charges to the investment securities portfolios for the years ended December 31, 2015, 2014 and 2013. There were gross realized gains on sales of securities available-for-sale totaling $1.5 million, $-0- and $340,000 for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015 and 2014, U.S. Treasury, U.S. Government agency obligations and Government sponsored residential mortgage-backed securities with a fair value of $112.4 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 December 31, 2015 and 2014 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: December 31, 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 $ 54,499 $ 54,511 $ - $ - Due after one year through five years 67,285 67,201 24,000 24,008 Due after five years through ten years - - - - Due after ten years - - - - Government sponsored residential mortgage-backed securities 4,958 5,153 8,246 8,349 $ 126,742 $ 126,865 $ 32,246 $ 32,357 December 31, 2014 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 $ 107,010 $ 107,008 $ - $ - Due after one year through five years 59,920 60,099 7,000 6,992 Due after five years through ten years 6,822 6,903 - - Due after ten years - 1,557 - - Government sponsored residential mortgage-backed securities 6,624 6,907 9,224 9,424 $ 180,376 $ 182,474 $ 16,224 $ 16,416 Federal Home Loan Bank of Boston (“FHLBB”) Stock The Company, as a member of the FHLBB, owned $21.7 million and $19.8 million of FHLBB capital stock at December 31, 2015 and 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 December 31, 2015. Capital adequacy, credit ratings, the value of the stock, overall financial condition of 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 at December 31, 2015. Alternative Investments Alternative investments, which totaled $2.5 million and $2.7 million at December 31, 2015 and 2014, respectively, are included in other assets in the accompanying Consolidated Statements of Financial Condition. The Company’s alternative investments include investments in certain non-public funds, which include limited partnerships, an equity fund and membership stocks. These investments are held at cost and were evaluated for potential other-than-temporary impairment at December 31, 2015. The Company recognized a $144,000, $51,000 and $-0- other-than-temporary impairment charge on its limited partnerships for the years ended December 31, 2015, 2014 and 2013, respectively, included in other noninterest income in the accompanying Consolidated Statements of Income. The Company recognized profit distributions in its limited partnerships of $26,000, $75,000 and $91,000 for the years ended December 31, 2015, 2014 and 2013, respectively. See a further discussion of fair value in Note 18 - Fair Value Measurements. The Company has $637,000 in unfunded commitments remaining for its alternative investments as of December 31, 2015. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 5. Loans and Allowance for Loan Losses Loans consisted of the following: December 31, December 31, 2015 2014 (Dollars in thousands) Real estate: Residential $ 849,722 $ 827,005 Commercial 887,431 765,066 Construction 30,895 57,371 Installment 2,970 3,356 Commercial 409,550 309,708 Collateral 1,668 1,733 Home equity line of credit 174,701 169,768 Revolving credit 91 99 Resort 784 929 Total loans 2,357,812 2,135,035 Net deferred loan costs 3,984 3,842 Loans 2,361,796 2,138,877 Allowance for loan losses (20,198 ) (18,960 ) Loans, net $ 2,341,598 $ 2,119,917 Changes in the allowance for loan losses by segments are as follows: For the Year Ended December 31, 2015 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,382 $ (295 ) $ 112 $ (115 ) $ 4,084 Commercial 8,949 (213 ) - 1,519 10,255 Construction 478 - - (247 ) 231 Installment 41 (39 ) - 37 39 Commercial 3,250 (318 ) 6 1,181 4,119 Collateral - - - - - Home equity line of credit 1,859 (238 ) - (151 ) 1,470 Revolving credit - (246 ) 29 217 - Resort 1 - - (1 ) - $ 18,960 $ (1,349 ) $ 147 $ 2,440 $ 20,198 For the Year Ended December 31, 2014 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 3,647 $ (701 ) $ 58 $ 1,378 $ 4,382 Commercial 8,253 (93 ) 1 788 8,949 Construction 1,152 - - (674 ) 478 Installment 48 (4 ) - (3 ) 41 Commercial 3,746 (1,066 ) 84 486 3,250 Collateral - - - - - Home equity line of credit 1,465 (106 ) - 500 1,859 Revolving credit - (133 ) 18 115 - Resort 3 - - (2 ) 1 $ 18,314 $ (2,103 ) $ 161 $ 2,588 $ 18,960 For the Year Ended December 31, 2013 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 3,778 $ (430 ) $ 6 $ 293 $ 3,647 Commercial 8,105 - - 148 8,253 Construction 760 - - 392 1,152 Installment 77 - - (29 ) 48 Commercial 2,654 (31 ) 52 1,071 3,746 Collateral - - - - - Home equity line of credit 1,377 - - 88 1,465 Revolving credit - (62 ) 20 42 - Resort 456 - - (453 ) 3 Unallocated 22 - - (22 ) - $ 17,229 $ (523 ) $ 78 $ 1,530 $ 18,314 The following table lists the allocation of the allowance by impairment methodology and by loan segment at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Reserve Reserve (Dollars in thousands) Total Allocation Total Allocation Loans individually evaluated for impairment: Real estate: Residential $ 12,377 $ 139 $ 11,791 $ 285 Commercial 16,152 26 19,051 233 Construction 4,719 - 4,719 - Installment 259 8 251 8 Commercial 6,023 361 5,680 225 Collateral - - - - Home equity line of credit 703 - 1,031 - Revolving credit - - - - Resort 784 - 929 1 41,017 534 43,452 752 Loans collectively evaluated for impairment: Real estate: Residential $ 841,921 $ 3,945 $ 819,630 $ 4,097 Commercial 870,757 10,229 745,501 8,716 Construction 26,176 231 52,652 478 Installment 2,695 31 3,093 33 Commercial 403,473 3,758 303,980 3,025 Collateral 1,668 - 1,733 - Home equity line of credit 173,998 1,470 168,737 1,859 Revolving credit 91 - 99 - Resort - - - - 2,320,779 19,664 2,095,425 18,208 Total $ 2,361,796 $ 20,198 $ 2,138,877 $ 18,960 The following is a summary of loan delinquencies at recorded investment values at December 31, 2015 and 2014: December 31, 2015 30-59 Days 60-89 Days > 90 Days Past Due 90 (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 18 $ 3,379 5 $ 863 15 $ 6,304 38 $ 10,546 $ - Commercial 2 318 - - 1 994 3 1,312 - Construction - - - - 1 187 1 187 - Installment 3 38 - - - - 3 38 - Commercial 4 153 - - 2 1,752 6 1,905 - Collateral 7 68 - - 1 10 8 78 - Home equity line of credit 3 280 2 360 2 210 7 850 - Demand 1 29 - - - - 1 29 - Revolving credit - - - - - - - - - Resort - - - - - - - - - Total 38 $ 4,265 7 $ 1,223 22 $ 9,457 67 $ 14,945 $ - December 31, 2014 30-59 Days 60-89 Days > 90 Days Past Due 90 (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: December 31, December 31, (Dollars in thousands) 2015 2014 Nonaccrual loans: Real estate: Residential $ 9,773 $ 9,706 Commercial 1,106 2,112 Construction 187 187 Installment 32 155 Commercial 3,232 2,268 Collateral 10 - Home equity line of credit 573 1,040 Revolving credit - - Resort - - Total nonaccruing loans 14,913 15,468 Loans 90 days past due and still accruing - - Other real estate owned 279 400 Total nonperforming assets $ 15,192 $ 15,868 The following is a summary of information pertaining to impaired loans at December 31, 2015 and 2014: December 31, 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 $ 11,530 $ 12,878 $ - $ 5,862 $ 6,286 $ - Commercial 13,233 13,303 - 13,804 13,828 - Construction 4,719 4,965 - 4,719 4,965 - Installment 202 202 - 220 232 - Commercial 3,921 4,066 - 3,527 3,584 - Collateral - - - - - - Home equity line of credit 703 719 - 1,031 1,264 - Revolving credit - - - - - - Resort 784 784 - - - - Total 35,092 36,917 - 29,163 30,159 - Impaired loans with a valuation allowance: Real estate: Residential 847 881 139 5,929 6,848 285 Commercial 2,919 2,919 26 5,247 5,523 233 Construction - - - - - - Installment 57 72 8 31 31 8 Commercial 2,102 2,457 361 2,153 2,266 225 Collateral - - - - - - Home equity line of credit - - - - - - Revolving credit - - - - - - Resort - - - 929 929 1 Total 5,925 6,329 534 14,289 15,597 752 Total impaired loans $ 41,017 $ 43,246 $ 534 $ 43,452 $ 45,756 $ 752 The following table summarizes average recorded investment and interest income recognized on impaired loans: For the Year Ended December 31, 2015 2014 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 10,621 $ 112 $ 6,727 $ 88 $ 5,683 $ 28 Commercial 13,674 575 15,159 705 10,695 814 Construction 4,719 138 1,320 138 237 - Installment 238 14 198 13 52 13 Commercial 4,182 110 3,791 140 3,059 28 Collateral - - - - - - Home equity line of credit 928 4 684 2 491 - Demand - - - - - - Revolving credit - - - - - - Resort 827 26 - - - - Total 35,189 979 27,879 1,086 20,217 883 Impaired loans with a valuation allowance: Real estate: Residential 1,037 35 5,592 41 5,872 52 Commercial 3,504 158 4,765 137 8,594 147 Construction - - - - 198 - Installment 35 1 29 1 27 1 Commercial 1,682 15 2,378 74 3,854 66 Collateral - - - - - - Home equity line of credit - - - - - - Demand - - - - - - Revolving credit - - - - - - Resort - - 1,035 35 995 47 Total 6,258 209 13,799 288 19,540 313 Total impaired loans $ 41,447 $ 1,188 $ 41,678 $ 1,374 $ 39,757 $ 1,196 There was no interest income recognized on a cash basis method of accounting for the years ended December 31, 2015, 2014 and 2013. The following tables present information on loans whose terms had been modified in a troubled debt restructuring at December 31, 2015 and 2014: December 31, 2015 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 14 $ 2,242 11 $ 5,557 25 $ 7,799 Commercial 4 6,664 - - 4 6,664 Construction 1 4,532 1 187 2 4,719 Installment 4 227 2 32 6 259 Commercial 6 2,350 8 1,482 14 3,832 Collateral - - - - - - Home equity line of credit 3 153 - - 3 153 Revolving credit - - - - - - Resort 1 784 - - 1 784 Total 33 $ 16,952 22 $ 7,258 55 $ 24,210 December 31, 2014 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 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 Revolving credit - - - - - - Resort 1 929 - - 1 929 Total 32 $ 18,664 19 $ 7,581 51 $ 26,245 The recorded investment balance of TDRs approximated $24.2 million and $26.2 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, the majority of the Company’s TDRs are on accrual status. TDRs on accrual status were $17.0 million and $18.7 million while TDRs on nonaccrual status were $7.3 million and $7.6 million at December 31, 2015 and 2014, respectively. At December 31, 2015, 100% of the accruing TDRs have been performing in accordance with the restructured terms. At December 31, 2015 and 2014, the allowance for loan losses included specific reserves of $340,000 and $592,000 related to TDRs, respectively. For the years ended December 31, 2015 and 2014, the Bank had charge-offs totaling $296,000 and $1.3 million, 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 $272,000 and $206,000 at December 31, 2015 and 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 years ended December 31, 2015, 2014 and 2013: For the Year Ended December 31, 2015 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate Residential 8 $ 1,549 $ 1,520 Commercial 1 493 483 Installment 1 44 40 Commercial 3 133 128 Home equity line of credit 3 153 153 Total 16 $ 2,372 $ 2,324 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate: Residential 10 $ 1,814 $ 1,744 Construction 1 4,532 4,532 Installment 2 56 55 Commercial 4 3,763 3,130 Total 17 $ 10,165 $ 9,461 For the Year Ended December 31, 2013 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate: Residential 7 $ 1,640 $ 1,617 Commercial 4 2,242 2,231 Construction 1 187 187 Installment 3 216 215 Commercial 6 2,076 2,101 Home equity line of credit 3 353 307 Total 24 $ 6,714 $ 6,658 (1) The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. TDRs fully paid off, charged-off or foreclosed upon by period end are not included. The following tables provide TDR loans that were modified by means of extended maturity, below market adjusted interest rates, a combination of rate and maturity, or by other means including covenant modifications, forbearance and/or the concessions and borrowers discharged in bankruptcy for the years ended December 31, 2015, 2014 and 2013: For the Year Ended December 31, 2015 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 8 $ - $ - $ - $ 1,520 $ 1,520 Commercial 1 - - - 483 483 Installment 1 - - - 40 40 Commercial 3 - - 33 95 128 Home equity line of credit 3 - - - 153 153 Total 16 $ - $ - $ 33 $ 2,291 $ 2,324 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 10 $ - $ - $ 224 $ 1,520 $ 1,744 Construction 1 4,532 - - - 4,532 Installment 2 39 - - 16 55 Commercial 4 2,009 - - 1,121 3,130 Total 17 $ 6,580 $ - $ 224 $ 2,657 $ 9,461 For the Year Ended December 31, 2013 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 7 $ - $ - $ 225 $ 1,392 $ 1,617 Commercial 4 2,095 - - 136 2,231 Construction 1 - - - 187 187 Installment 3 - - 34 181 215 Commercial 6 1,951 - - 150 2,101 Home equity line of credit 3 - - 14 293 307 Total 24 $ 4,046 $ - $ 273 $ 2,339 $ 6,658 A TDR is considered to be in re-default once it is more than 30 days past due following a modification. The following loans defaulted and had been modified as a TDR during the twelve month period preceding the default date during the years ended December 31, 2015, 2014 and 2013. For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 1 $ 314 2 $ 662 - $ - Commercial - - - - 2 1,758 Installment 1 31 - - - - Commercial - - 2 69 2 100 Home equity line of credit - - - - 1 183 Total 2 $ 345 4 $ 731 5 $ 2,041 (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 December 31, 2015 and 2014: December 31, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 838,314 $ 1,154 $ 10,254 $ - $ 849,722 Commercial 867,531 10,861 9,039 - 887,431 Construction 26,176 - 4,719 - 30,895 Installment 2,886 52 32 - 2,970 Commercial 390,719 10,354 8,311 166 409,550 Collateral 1,647 - 21 - 1,668 Home equity line of credit 173,879 229 593 - 174,701 Revolving credit 91 - - - 91 Resort 784 - - - 784 Total Loans $ 2,302,027 $ 22,650 $ 32,969 $ 166 $ 2,357,812 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 | 12 Months Ended |
Dec. 31, 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 $4.4 million and $3.3 million at December 31, 2015 and 2014, respectively, and the balance is included in prepaid expenses and other assets in the accompanying Consolidated Statements of Financial Condition. The fair value of mortgage servicing rights approximated $5.0 million and $3.6 million at December 31, 2015 and 2014, respectively. Total loans sold with servicing rights retained were $165.5 million, $67.3 million and $158.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. The net gain on loans sold totaled $2.5 million, $1.4 million and $4.8 million for the years ended December 31, 2015, 2014 and 2013, respectively, and is included in the accompanying Consolidated Statements of Income. The principal balance of loans serviced for others, which are not included in the accompanying Consolidated Statements of Financial Condition, totaled $457.5 million, $335.2 million and $299.0 million at December 31, 2015, 2014 and 2013, respectively. Loan servicing fees for others totaling $932,000, $781,000 and $608,000 for the years ended December 31, 2015, 2014 and 2013, respectively, are included as a component of other noninterest income in the accompanying Consolidated Statements of Income. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 7. Premises and Equipment The following is a summary of the premises and equipment accounts: As of December 31, 2015 2014 (Dollars in thousands) Land $ 1,326 $ 1,326 Premises and leasehold improvements 19,314 18,767 Furniture and equipment 15,280 14,215 Software 4,846 4,605 40,766 38,913 Less: accumulated depreciation and amortization (22,201 ) (20,040 ) $ 18,565 $ 18,873 For the years ended December 31, 2015, 2014 and 2013 depreciation and amortization expense was $2.6 million, $3.1 million and $3.1 million, respectively. |
Credit Arrangements
Credit Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements | 8. Credit Arrangements The Company has access to a pre-approved line of credit with the Federal Home Loan Bank of Boston (“FHLBB”) for $8.8 million, which was undrawn at December 31, 2015 and 2014. The Company has access to pre-approved unsecured lines of credit with financial institutions totaling $45.0 million and $20.0 million, which were undrawn at December 31, 2015 and 2014, respectively. The Company has access to a $3.5 million unsecured line of credit agreement with a bank which expires on August 31, 2016. The line was undrawn at December 31, 2015 and 2014. The Company maintains a cash balance of $512,500 with certain financial institutions to avoid fees associated with the lines. In accordance with an agreement with the FHLBB, the Company is required to maintain qualified collateral, as defined in the FHLBB Statement of Credit Policy, free and clear of liens, pledges and encumbrances, as collateral for the advances, if any, and the preapproved line of credit. The Company is in compliance with these collateral requirements. FHLBB advances totaled $377.6 million and $401.7 million at December 31, 2015 and 2014, respectively. Advances from the FHLBB are collateralized by first residential and commercial mortgages and home equity lines of credit with an estimated eligible collateral value of $1.3 billion and $812.8 million at December 31, 2015 and 2014, respectively. The Company had available borrowings of $407.8 million and $122.5 million at December 31, 2015 and 2014, respectively, subject to collateral requirements of the FHLBB. The Company also had letters of credit of $63.0 million and $22.0 million at December 31, 2015 and 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. FHLBB advances and the weighted average interest rates at December 31, 2015 and 2014 consist of the following: December 31, 2015 2014 Amount Weighted Amount Weighted (Dollars in thousands) 2015 $ - - % $ 290,000 0.41 % 2016 157,000 0.46 - - 2017 35,000 1.23 35,000 1.23 2018 50,000 1.53 20,000 1.83 2019 81,600 1.74 56,700 1.82 2020 40,000 1.75 - - Thereafter 14,000 1.90 - - $ 377,600 1.14 % $ 401,700 0.75 % The Company participates in the Federal Reserve Bank’s discount window loan collateral program that enables the Company to borrow up to $63.2 million and $71.0 million on an overnight basis at December 31, 2015 and 2014, respectively, and was undrawn as of December 31, 2015 and 2014. The funding arrangement was collateralized by $136.6 million and $141.6 million in pledged commercial real estate loans as of December 31, 2015 and 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 $11.3 million and $23.0 million at December 31, 2015 and 2014, respectively. Outstanding borrowings totaled $10.5 million and $21.0 million at December 31, 2015 and 2014, respectively. Outstanding borrowings are as follows: (Dollars in thousands) December 31, Advance Date Interest Rate Maturity Date 2015 2014 March 13, 2008 3.34 % 3/13/2018 $ 6,000 $ 6,000 March 13, 2008 3.93 % 3/13/2018 4,500 4,500 March 13, 2008 3.16 % 3/13/2015 - 10,500 $ 10,500 $ 21,000 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 $35.8 million and $49.0 million at December 31, 2015 and 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 $40.4 million and $74.4 million as of December 31, 2015 and 2014, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Deposits | 9. Deposits Deposit balances and weighted average interest rates at December 31, 2015 and 2014 are as follows: As of December 31, 2015 2014 Amount Rate Amount Rate (Dollars in thousands) Noninterest-bearing demand deposits $ 401,388 $ 330,524 Interest-bearing NOW accounts 468,054 0.29 % 355,412 0.26 % Money market 460,737 0.79 % 470,991 0.74 % Savings accounts 220,389 0.11 % 210,892 0.10 % Time deposits 440,790 1.03 % 365,222 0.91 % Total interest-bearing deposits 1,589,970 0.61 % 1,402,517 0.55 % Total deposits $ 1,991,358 $ 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 $44.3 million and $-0- at December 31, 2015 and 2014, respectively. Time certificates of deposit in denominations of $250,000 or more approximated $89.6 million and $83.4 million at December 31, 2015 and 2014, respectively. Contractual maturities of time deposits are as follows: As of December 31, 2015 2014 (Dollars in thousands) Less than one year $ 267,748 $ 239,627 One to two years 106,002 61,338 Two to three years 28,245 32,961 Three to four years 23,228 7,668 Four to five years 15,567 23,628 $ 440,790 $ 365,222 Interest expense on deposits are as follows: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) NOW accounts $ 1,351 $ 976 $ 638 Money market 3,592 3,112 2,878 Savings accounts 226 205 206 Time deposits 4,203 3,076 3,460 Total interest expense $ 9,372 $ 7,369 $ 7,182 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | 10. Pension and Other Postretirement Benefit Plans The Company maintains a non-contributory defined-benefit pension plan covering eligible employees hired prior to January 1, 2007. The Company also maintains a supplemental retirement plan (“supplemental plan”) to provide benefits to certain employees whose calculated benefit under the qualified plan exceeds the Internal Revenue Service limitation. The Company sponsors two defined benefit postretirement plans that cover eligible employees. One plan provides health (medical and dental) benefits, and the other provides life insurance benefits. The accounting for the health care plan anticipates no future cost-sharing changes. The Company does not advance fund its postretirement plans. On December 27, 2012, the Company announced it would freeze the non-contributory defined-benefit pension plan and certain defined benefit postretirement plans as of February 28, 2013. All benefits under these plans were frozen as of that date and no additional benefits will accrue. The measurement date for each plan is the Company’s year end. The amounts related to the qualified plan and the supplemental plan is reflected in the tables that follow as “Pension Plans.” Both of these plans have projected and accumulated benefit obligations in excess of plan assets. The following table sets forth the change in benefit obligation, plan assets and the funded status of the pension plans and other postretirement benefits: Pension Plans Other Postretirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (Dollars in thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 26,923 $ 21,909 $ 3,224 $ 3,156 Service cost - - 75 60 Interest cost 1,036 1,022 127 146 Actuarial (gain) loss (1,689 ) 5,009 (442 ) (45 ) Benefits paid (1,095 ) (1,017 ) (85 ) (92 ) Benefit obligation at end of year 25,175 26,923 2,899 3,225 Change in plan assets: Fair value of plan assets at beginning of year 19,271 17,896 - - Actual return on plan assets (379 ) 666 - - Employer contributions 1,226 1,726 85 92 Benefits paid (1,095 ) (1,017 ) (85 ) (92 ) Fair value of plan assets at end of year 19,023 19,271 - - Funded status recognized in the statements of condition $ (6,152 ) $ (7,652 ) $ (2,899 ) $ (3,225 ) Accumulated benefit obligation $ (25,175 ) $ (26,923 ) The following table presents the amounts recognized in accumulated other comprehensive income that have not yet been recognized as a component of net period benefit cost as of December 31, 2015 and 2014: Pension Plans Other Postretirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (Dollars in thousands) Prior service cost $ - $ - $ 155 $ 189 Actuarial loss (7,044 ) (7,419 ) (24 ) (326 ) Unrecognized components of net periodic benefit cost in accumulated other comprehensive loss, net of tax $ (7,044 ) $ (7,419 ) $ 131 $ (137 ) The following tables set forth the components of net periodic pension and benefit costs for the pension plans and other postretirement plans and other amounts recognized in accumulated other comprehensive loss for the retirement plans and post retirement plans for the years ended December 31, 2015, 2014, and 2013: Pension Plans Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Components of net periodic pension cost: Service cost $ - $ - $ - Interest cost 1,036 1,022 951 Expected return on plan assets (1,448 ) (1,339 ) (1,135 ) Amortization of unrecognized prior service cost - - - Recognized net actuarial loss 709 306 573 Curtailment charge - - - Net periodic pension cost 297 (11 ) 389 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) (1) 138 5,683 (2,907 ) Amortization of net loss (709 ) (306 ) (573 ) Amortization of prior service cost - - - Curtailment charge - - - Total recognized in other comprehensive income (571 ) 5,377 (3,480 ) Total recognized in net periodic pension cost and other comprehensive income $ (274 ) $ 5,366 $ (3,091 ) (1) For the year ended December 31, 2014, the increase in loss was primarily due to the mortality tables being updated from IRS 2013 Combined Static Mortality to SOA RP-2014 Total Dataset Mortality with Scale MP-2014, which better reflected the overall mortality trend in private pension plans in the U.S. and a change in the discount rate. Other Postretirement Benefits Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Components of net periodic pension cost: Service cost $ 75 $ 60 $ 101 Interest cost 127 146 128 Recognized net loss 21 18 42 Amortization of unrecognized prior service cost (50 ) (50 ) (50 ) Curtailment charge - - - Net periodic pension cost 173 174 221 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net gain (442 ) (45 ) (310 ) Amortization of prior service cost - - - Amortization of net loss (21 ) (18 ) (42 ) Change in prior service costs 50 50 50 Total recognized in other comprehensive income (413 ) (13 ) (302 ) Total recognized in net periodic pension cost and other comprehensive income $ (240 ) $ 161 $ (81 ) The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are as follows: (Dollars in thousands) Pension Plans Other Post Prior service cost (credit) $ - $ (50 ) Actuarial loss 671 - Assumptions The following table presents the significant actuarial assumptions used in preparing the required disclosures: Pension Benefits Other Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Weighted-average assumptions used to determine funding status: Discount rate (1) 4.35 % 3.95 % 4.20 % 3.85 % Rate of compensation increase * (2) n/a n/a n/a n/a Weighted-average assumptions used to determine net periodic pension costs: Discount rate 3.95 % 4.85 % 3.85 % 4.75 % Expected return on plan assets (2) 6.00 % 7.50 % n/a n/a Rate of compensation increase * (2) n/a n/a n/a n/a (1) Weighted average discount rate for the supplemental retirement plan was 3.80 % and 3.55% for the years ended December 31, 2015 and 2014, respectively. (2) Rates not applicable to the supplemental retirement plan. * The compensation rate increase is not applicable after the Pension Plan freeze on February 28, 2013. Health Care Trend Assumptions At December 31, 2015 2014 Health care cost trend rate assumed for next year 9.50 % 9.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2023 2023 Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects: Effect of a Change in the Health Care Cost Trend Rates 2015 2014 One One One One (Dollars in thousands) Effect on total of service and interest components $ 11 $ (10 ) $ 12 $ (10 ) Effect on postretirement benefit obligation 233 (198 ) 294 (247 ) Discount Rate The plan’s projected benefit obligation cash flows were discounted to December 31, 2015 based on the spot rates from the “Above the Median” Citigroup Pension Discount Curve. The discount rate model produced a single weighted average discount rate of 4.35% that when used to discount the same plan benefit cash flows, resulted in the same aggregate present value. Plan Assets 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, 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). Basis of Fair Value Measurement Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following is a description of the valuation methodologies used for the pension plan assets measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Mutual funds: Pooled Separate Accounts (PSA): The fair value of the Company’s pension plan assets at December 31, 2015 and 2014 by asset category are listed in the tables below: December 31, 2015 Investments at Fair Value (Dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds: Fixed income $ 6,659 $ - $ - $ 6,659 Equity 5,522 - - 5,522 Pooled separate accounts: Equity separate account - 6,136 - 6,136 Money market separate account - 3 - 3 High yield separate account - 703 - 703 $ 12,181 $ 6,842 $ - $ 19,023 December 31, 2014 Investments at Fair Value (Dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds: Fixed income $ 6,680 $ - $ - $ 6,680 Equity 5,307 - - 5,307 Pooled separate accounts: Equity separate account - 5,926 - 5,926 Money market separate account - 619 - 619 High yield separate account - 739 - 739 $ 11,987 $ 7,284 $ - $ 19,271 Investment Strategy and Asset Allocations Plan assets are to be managed within an ERISA framework so as to provide the greatest probability that the following long-term objectives for the qualified pension plan are met in a prudent manner. The Company recognizes that, for any given time period, the attainment of these objectives is in large part dictated by the returns available from the capital markets in which plan assets are invested. The asset allocation of plan assets reflects the Company’s long-term return expectations and risk tolerance in meeting the financial objectives of the plan. Plan assets should be adequately diversified by asset class, sector and industry to reduce the downside risk to total plan results over short-term time periods, while providing opportunities for long-term appreciation. The Company’s Human Resource Committee reserves the right to rebalance the assets at any time it deems it to be prudent. The Company’s qualified defined benefit pension plan’s weighted-average asset allocations and the Plan’s long-term allocation structure by asset category are as follows: Actual Percentage of Fair Value At December 31, Target 2015 2014 Allocation High yield and money market funds 4 % 7 % 5-15 % Equity funds 61 % 58 % 30-70 % Fixed income funds 35 % 35 % 30-70 % Total 100 % 100 % Expected Contributions The Company makes contributions to its funded qualified defined benefit plan as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected return on such assets and the present value of the benefit obligation of the plan. The Company does not expect to make a contribution to the qualified defined benefit plan for the year ended December 31, 2016. Since the supplemental plan and the postretirement benefit plans are unfunded, the expected employer contributions for the year ending December 31, 2016 is equal to the Company’s estimated future benefit payment liabilities less any participant contributions. Expected Benefit Payments The following is a summary of benefit payments expected to be paid by the non-contributory defined benefit pension plans (dollars in thousands): 2016 $ 1,181 2017 1,202 2018 1,197 2019 1,263 2020 1,302 Years 2021 - 2025 6,947 $ 13,092 The following is a summary of benefit payments expected to be paid by the medical, dental and life insurance plan (dollars in thousands): 2016 $ 150 2017 156 2018 153 2019 159 2020 163 Years 2021 - 2025 804 $ 1,585 401(k) Plan Employees who have completed six months of service and have attained the age of 21 are eligible to participate in the Company’s defined contribution savings plan (“401(k) plan”). Eligible employees may contribute an unlimited amount (not to exceed IRS limits) of their compensation. The Company may make matching contributions of 100% of the participant’s deferral not to exceed 4% of the participant’s compensation. Contributions by the Company for the years ended December 31, 2015 and 2014 were $814,000 and $763,000, respectively. For the years ended December 31, 2015 and 2014, no discretionary employer contribution was made, which would range from 0% to 11% based on profits and determined by the Board of Directors and management. Supplemental Plans The Company has entered into agreements with certain current and retired executives to provide supplemental retirement benefits. The present values of these future payments, not included in the previous table, are included in accrued expenses and other liabilities in the Statements of Financial Condition. As of December 31 2015 and 2014, the accrued supplemental retirement liability was $3.9 million and $3.3 million, respectively. For the years ended December 31, 2015, 2014 and 2013 net expense for these supplemental retirement benefits were $712,000, $703,000 and $720,000, respectively. 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 December 31, 2015, the loan had an outstanding balance of $12.0 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 $1.5 million, $1.5 million and $1.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Shares held by the ESOP include the following as of December 31, 2015: Allocated 381,444 Committed to be released 95,361 Unallocated 953,611 1,430,416 The fair value of unallocated ESOP shares was $16.6 million at December 31, 2015. |
Stock Incentive Plan
Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock Incentive Plan | 11. 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 years ended December 31, 2015, 2014 and 2013, the Company recorded $3.1 million, $2.9 million and $3.6 million of share-based compensation expense, respectively, comprised of $1.3 million, $1.2 million and $1.4 million of stock option expense, respectively and $1.8 million, $1.7 million and $2.2 million of restricted stock expense, respectively. Expected future compensation expense relating to the 359,620 non-vested options outstanding at December 31, 2015, is $855,000 over the remaining weighted-average period of 1.15 years. Expected future compensation expense relating to the 126,290 non-vested restricted shares at December 31, 2015, is $1.0 million over the remaining weighted-average period of 0.68 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 years ended December 31, 2015 and 2014: 2015 2014 Weighted per share average fair value of options granted $ 3.33 $ 3.77 Weighted-average assumptions: Risk-free interest rate 1.61 % 1.93 % Expected volatility 24.97 % 28.20 % Expected dividend yield 1.99 % 1.89 % Weighted-average dividend yield 1.50% - 2.35 % 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 year ended December 31, 2015. Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2014 1,671,157 $ 13.04 Granted 38,000 16.26 Exercised (31,600 ) 13.04 Forfeited (20,200 ) 13.49 Expired (1,200 ) 12.95 Outstanding at December 31, 2015 1,656,157 $ 13.11 6.48 $ 7,095 Exercisable at December 31, 2015 1,296,537 $ 13.02 6.32 $ 5,689 The total intrinsic value of options exercised during the year ended December 31, 2015 was $81,000. The following is a summary of the status of the Company’s restricted stock for the year ended December 31, 2015. Number of Weighted-Average Unvested at December 31, 2014 266,884 $ 12.95 Granted - - Vested (140,594 ) 12.95 Forfeited - - Unvested at December 31, 2015 126,290 $ 12.95 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. 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 December 31, 2015, the Company maintained a cash balance of $12.6 million with a correspondent bank to collateralize its position. As of December 31, 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 December 31, 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: December 31, 2015 December 31, 2014 (Dollars in thousands) Consolidated # of Notional Estimated # of Notional Estimated Commercial loan customer interest rate swap position Other Assets 60 $ 257,693 $ 10,564 43 $ 174,884 $ 7,167 Commercial loan customer interest rate swap position Other Liabilities 6 23,411 (78 ) 8 27,988 (431 ) Counterparty interest rate swap position Other Liabilities 66 281,104 (10,599 ) 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 consolidated statements of income as follows: Years Ended December 31, 2015 2014 2013 Interest Income MTM Gain Net Impact Interest Income MTM Gain Net Impact Interest Income MTM (Loss) Gain Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (5,301 ) $ 3,397 $ (1,904 ) $ (3,704 ) $ 3,929 $ 225 $ 3,078 $ (4,990 ) $ (1,912 ) Counterparty interest rate swap position 5,301 (3,397 ) 1,904 3,704 (3,929 ) (225 ) (3,078 ) 4,990 1,912 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 December 31, 2015, the notional amount of outstanding rate locks totaled approximately $16.3 million. The notional amount of outstanding commitments to sell residential mortgage loans totaled approximately $17.6 million, which included mandatory forward commitments totaling approximately $13.3 million at December 31 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 | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | 13. 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 December 31, 2015, disaggregated by the class of collateral pledged. December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to One One Year to Total Repurchase agreement borrowings U.S. Government agency obligations $ - $ - $ 6,000 $ 6,000 Government sponsored residential mortgage-backed securities - - 4,500 4,500 Total repurchase agreement borrowings - - 10,500 10,500 Repurchase liabilities U.S. Government agency obligations 35,769 - - 35,769 Total repurchase liabilities 35,769 - - 35,769 Total $ 35,769 $ - $ 10,500 $ 46,269 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 December 31, 2015 and 2014: December 31, 2015 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,564 $ - $ 10,564 $ - $ - $ 10,564 $ - Total $ 10,564 $ - $ 10,564 $ - $ - $ 10,564 $ - December 31, 2015 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,677 $ - $ 10,677 $ - $ - $ 10,677 $ - Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 21,177 $ - $ 21,177 $ - $ 10,500 $ 10,677 $ - December 31, 2014 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 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 Amount Gross Amounts Net Amounts of Financial Securities Cash Net (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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The components of the income tax provision are as follows: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current provision Federal $ 3,864 $ 3,470 $ 1,480 State 100 44 2 3,964 3,514 1,482 Deferred provision (benefit) Federal 1,780 (555 ) (313 ) State (17 ) (132 ) - 1,763 (687 ) (313 ) Total provision for income taxes $ 5,727 $ 2,827 $ 1,169 The following is a reconciliation of the expected federal statutory tax to the income tax provision as reported in the statements of income: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income tax expense at statutory federal tax rate $ 6,407 $ 4,257 $ 1,657 ESOP 138 123 94 Death benefits (133 ) - (37 ) Dividends received deduction (54 ) (54 ) (52 ) State income taxes 54 (57 ) 1 Other - net 90 39 30 Changes in cash surrender value of life insurance (453 ) (396 ) (410 ) Impact of tax rate changes - (537 ) - Valuation allowance 764 - - Municipal income - net (1,086 ) (548 ) (114 ) Income tax provision as reported $ 5,727 $ 2,827 $ 1,169 The components of the Company’s net deferred tax assets are as follows: At December 31, 2015 2014 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 7,130 $ 6,680 Minimum pension liability and postretirement benefits 4,832 5,139 Deferred compensation 2,871 2,830 Charitable contribution carryforward 1,508 1,923 Stock compensation 1,933 1,542 Accrued bonus 1,487 1,366 Other 1,255 1,245 Other than temporary impairment on securities available-for-sale 17 1,026 Allowance for off-balance sheet provision 177 155 Net unrealized loss on securities available-for-sale 135 - Gross deferred tax assets 21,345 21,906 Valuation reserve (771 ) - Net deferred tax assets 20,574 21,906 Deferred tax liabilities Net origination fees 2,982 2,686 Other 1,561 1,187 Fixed assets 211 409 Accrued pension 249 127 Bond discount accretion 128 85 Net unrealized gain on securities available-for-sale - 571 Gross deferred tax liabilities 5,131 5,065 Net deferred tax assets 15,443 16,841 The allocation of deferred tax expense (benefit) involving items charged to current year income and items charged directly to capital are as follows: At December 31, 2015 2014 (Dollars in thousands) Deferred tax benefit allocated to capital $ (365 ) $ (1,270 ) Deferred tax expense (benefit) allocated to income 1,763 (687 ) Total change in deferred taxes $ 1,398 $ (1,957 ) The Company will only recognize a deferred tax asset when, based upon available evidence, realization is more likely than not. At December 31, 2015, the Company recorded a $771,000 valuation allowance against the deferred tax assets. At December 31, 2014, there was no valuation allowance recorded against the deferred tax assets. As part of the Plan of Conversion and Reorganization completed on June 29, 2011, the Company contributed shares of Company common stock to the Farmington Bank Community Foundation, Inc. This contribution resulted in a charitable contribution deduction for federal income tax purposes. Use of that charitable contribution deduction is limited under Federal tax law to 10% of federal taxable income without regard to charitable contributions, net operating losses, and dividend received deductions. Annually, a corporation is permitted to carry over to the five succeeding tax years, contributions that exceeded the 10% limitation, but also subject to the maximum annual limitation. As a result, approximately $4.3 million of charitable contribution carryforward remains at December 31, 2015 resulting in a deferred tax asset of approximately $1.5 million. The Company believes it is more likely than not that this carryforward will not be fully utilized before expiration in 2016. Therefore, a $771,000 valuation allowance has been recorded against this deferred tax asset. Some of this charitable contribution carryforward would likely expire unutilized if the Company does not generate sufficient taxable income over the next year. The Company monitors the need for a valuation allowance on a quarterly basis. During 1999, the Bank formed a subsidiary, Farmington Savings Loan Servicing Inc., which qualifies and operates as a Connecticut passive investment company pursuant to legislation enacted in May 1998. Income earned by a passive investment company is exempt from Connecticut corporation business tax. In addition, dividends paid by Farmington Savings Loan Servicing, Inc. to its parent, Farmington Bank are also exempt from corporation business tax. The Bank expects the passive investment company to earn sufficient income to eliminate Connecticut income taxes in future years. As such, no Connecticut related deferred tax assets or liabilities have been recorded. The Company has not provided deferred taxes for the tax reserve for bad debts, of approximately $3.4 million, that arose in tax years beginning before 1987 because it is expected that the requirements of Internal Revenue Code Section 593 will be met in the foreseeable future. There was no interest expense related to uncertain tax positions recognized in income tax for the years ended December 31, 2015, 2014 and 2013. The Company had no uncertain tax positions as of December 31, 2015. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through 2015. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | 15. Lease Commitments The Company’s headquarters and certain of the Company’s branch offices are leased under non-cancelable operating leases, which expire at various dates through the year 2033. Various leases have renewal options of up to an additional thirty years. Payments on majority of the leases are subject to an escalating payment schedule. The future minimum rental commitments as of December 31, 2015 for these leases are as follows: (Dollars in thousands) 2016 $ 2,624 2017 2,711 2018 2,728 2019 2,384 2020 1,092 Thereafter 8,285 $ 19,824 Total rental expense for all leases amounted to $3.1 million, $3.0 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Financial Instruments with off-balance sheet risk | 16. 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: December 31, December 31, 2015 2014 (Dollars in thousands) Approved loan commitments $ 46,144 $ 33,737 Unadvanced portion of construction loans 44,457 41,604 Unused lines for home equity loans 204,983 173,493 Unused revolving lines of credit 365 367 Unused commercial letters of credit 3,558 4,028 Unused commercial lines of credit 187,819 190,247 $ 487,326 $ 443,476 Financial instruments with off-balance sheet risk had a valuation allowance of $501,000 and $440,000 as of December 31, 2015 and 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 December 31, 2015 and 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 | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Significant Group Concentrations of Credit Risk | 17. Significant Group Concentrations of Credit Risk The Company primarily grants commercial, residential and consumer loans to customers located within its primary market area in the state of Connecticut and western Massachusetts. The majority of the Company’s loan portfolio is comprised of commercial and residential mortgages. The Company has no negative amortization or option adjustable rate mortgage loans. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. 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 years ended December 31, 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 tables detail the financial instruments carried at fair value on a recurring basis as of December 31, 2015 and 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: December 31, 2015 Quoted Prices in Significant Significant (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 38,859 $ 21,996 $ 16,863 $ - U.S. Government agency obligations 81,805 - 81,805 - Government sponsored residential mortgage-backed securities 5,153 - 5,153 - Corporate debt securities 1,048 - 1,048 - Preferred equity securities 1,632 1,632 - - Marketable equity securities 160 160 - - Mutual funds 3,767 - 3,767 - Securities available-for-sale 132,424 23,788 108,636 - Interest rate swap derivative 10,564 - 10,564 - Derivative loan commitments 207 - - 207 Total $ 143,195 $ 23,788 $ 119,200 $ 207 Liabilities Interest rate swap derivative $ 10,677 $ - $ 10,677 $ - Forward loan sales commitments 70 - - 70 Total $ 10,747 $ - $ 10,677 $ 70 December 31, 2014 Quoted Prices in Significant Significant (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 Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance, at beginning of year $ 14 $ 47 $ 488 Total realized gain (loss): Included in earnings 123 (33 ) (441 ) Balance, at the end of year $ 137 $ 14 $ 47 The following tables present the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis at December 31, 2015 and 2014: December 31, 2015 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 137 Adjusted quoted prices in active markets Embedded servicing value 1.28 % 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 December 31, 2015 and 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: December 31, 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 $ - $ - $ 4,225 $ - $ - $ 1,647 Other real estate owned - - 279 - - - 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 December 31, 2015 and 2014: December 31, 2015 (Dollars in thousands) Fair Value Valuation Methodology Significant Range of Inputs Weighted Impaired loans $ 4,225 Appraisals Discount for dated appraisal 5% - 20% 12.5 % Discount for costs to sell 8% - 15% 11.5 % Other real estate owned $ 279 Appraisals Discount for costs to sell 8% - 15% 11.5 % Discount for condition 10% - 30% 20.0 % December 31, 2014 (Dollars in thousands) Fair Value Valuation Methodology Significant Range of Inputs Weighted 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 December 31, 2015 and 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. December 31, 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 $ 32,246 $ 32,357 $ 16,224 $ 16,416 Securities available-for-sale See previous table 132,424 132,424 188,041 188,041 Loans Level 3 2,361,796 2,336,293 2,135,035 2,130,994 Loans held-for-sale Level 2 9,637 9,686 2,417 2,469 Mortgage servicing rights Level 3 4,406 5,029 3,336 3,572 Federal Home Loan Bank of Boston stock Level 2 21,729 21,729 19,785 19,785 Alternative investments Level 3 2,508 2,409 2,694 2,695 Interest rate swap derivatives Level 2 10,564 10,564 7,167 7,167 Derivative loan commitments Level 3 207 207 40 40 Financial liabilities Deposits other than time deposits Level 1 1,550,568 1,550,568 1,367,819 1,367,819 Time deposits Level 2 440,790 444,803 365,222 368,974 Federal Home Loan Bank of Boston advances Level 2 377,600 376,626 401,700 400,226 Repurchase agreement borrowings Level 2 10,500 10,539 21,000 21,669 Repurchase liabilities Level 2 35,769 35,765 48,987 48,986 Interest rate swap derivatives Level 2 10,677 10,677 7,252 7,252 Forward loan sales commitments Level 3 70 70 26 26 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | 19. 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 December 31, 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 December 31, 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: Actual Minimum Required To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At December 31, 2015 Total Capital (to Risk Weighted Assets) $ 236,486 11.16 % $ 169,524 8.00 % $ 211,905 10.00 % Tier I Capital (to Risk Weighted Assets) 215,787 10.18 127,183 6.00 169,577 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 215,787 10.18 95,387 4.50 137,781 6.50 Tier I Leverage Capital (to Average Assets) 215,787 8.03 107,490 4.00 134,363 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 December 31, 2015 Total Capital (to Risk Weighted Assets) $ 273,255 12.88 % $ 169,724 8.00 % $ 212,155 10.00 % Tier I Capital (to Risk Weighted Assets) 252,556 11.91 127,232 6.00 169,643 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 252,556 11.91 95,424 4.50 137,835 6.50 Tier I Leverage Capital (to Average Assets) 252,556 9.39 107,585 4.00 134,481 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 | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income | 20. Other Comprehensive Income The following table presents the changes in accumulated other comprehensive loss, net of tax by component: Investment Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2012 $ 465 $ (6,577 ) $ (6,112 ) Other comprehensive (loss) income during 2013 (833 ) - (833 ) Amount reclassified from accumulated other comprehensive loss, net of tax 224 2,497 2,721 Net change (609 ) 2,497 1,888 Balance at December 31, 2013 (144 ) (4,080 ) (4,224 ) Other comprehensive income (loss) during 2014 1,190 (3,477 ) (2,287 ) Balance at December 31, 2014 1,046 (7,557 ) (6,511 ) Other comprehensive (loss) income during 2015 (2,281 ) - (2,281 ) Amount reclassified from accumulated other comprehensive loss, net of tax 986 644 1,630 Balance at December 31, 2015 $ (249 ) $ (6,913 ) $ (7,162 ) The following table presents a reconciliation of the changes in components of other comprehensive (loss) income for years indicated, including the amount of income tax expense allocated to each component of other comprehensive (loss) income: For the Year Ended December 31, 2015 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale securities $ (3,525 ) $ 1,244 $ (2,281 ) Less: net security gains reclassified into other noninterest income 1,523 (537 ) 986 Net change in fair value of securities available-for-sale (2,002 ) 707 (1,295 ) Reclassification adjustment for prior service costs and net loss included in net periodic pension costs (1) 986 (342 ) 644 Total other comprehensive loss $ (1,016 ) $ 365 $ (651 ) For the Year Ended December 31, 2014 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,831 $ (641 ) $ 1,190 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 1,831 (641 ) 1,190 Reclassification adjustment for prior service costs and net loss included in net periodic pension costs (1) (5,388 ) 1,911 (3,477 ) Total other comprehensive loss $ (3,557 ) $ 1,270 $ (2,287 ) For the Year Ended December 31, 2013 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale securities $ (1,263 ) $ 430 $ (833 ) Less: net security gains reclassified into other noninterest income 340 (116 ) 224 Net change in fair value of securities available-for-sale (923 ) 314 (609 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 3,783 (1,286 ) 2,497 Total other comprehensive income $ 2,860 $ (972 ) $ 1,888 (1) Amounts are included in salaries and employee benefits in the Consolidated Statements of Income. |
Parent Company Statements
Parent Company Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Statements | 21. Parent Company Statements The following represents the Parent Company’s Condensed Statements of Financial Condition as of December 31, 2015 and 2014, and Condensed Statements of Operations, Condensed Statements of Comprehensive Income and Condensed Cash Flows for the years ended December 31, 2015, 2014 and 2013: Condensed Statements of Financial Condition At December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 33,164 $ 27,875 Deferred income taxes 929 2,068 Due from Farmington Bank 58 8,010 Investment in Farmington Bank 208,952 195,022 Prepaid expenses and other assets 2,669 1,644 Total assets $ 245,772 $ 234,619 Liabilities $ 51 $ 56 Stockholders' equity 245,721 234,563 Total liabilities and stockholders’ equity $ 245,772 $ 234,619 Condensed Statements of Operations For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Interest income $ 53 $ 79 $ 157 Noninterest expense (1,752 ) (1,683 ) (1,627 ) Income tax (expense) benefit (303 ) 503 364 Loss before equity in undistributed earnings of Farmington Bank (2,002 ) (1,101 ) (1,106 ) Equity in undistributed earnings of Farmington Bank 14,581 10,436 4,810 Net income $ 12,579 $ 9,335 $ 3,704 Condensed Statements of Comprehensive Income For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Net income $ 12,579 $ 9,335 $ 3,704 Other comprehensive (loss) income, before tax Unrealized (losses) gains on securities: Unrealized holding (losses) gains arising during the period (3,525 ) 1,831 (1,263 ) Less: reclassification adjustment for gains included in net income 1,523 - 340 Net change in unrealized (losses) gains (2,002 ) 1,831 (923 ) Change related to pension and other postretirement benefit plans 986 (5,388 ) 3,783 Other comprehensive (loss) income, before tax (1,016 ) (3,557 ) 2,860 Income tax (benefit) expense (365 ) (1,270 ) 972 Other comprehensive (loss) income, net of tax (651 ) (2,287 ) 1,888 Comprehensive income $ 11,928 $ 7,048 $ 5,592 Condensed Statements of Cash Flows For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Cash flows from operating activities: Net income $ 12,579 $ 9,335 $ 3,704 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of ESOP expense 1,522 1,480 1,404 Share based compensation expense 3,118 2,923 3,576 Equity in undistributed net income of Farmington Bank (14,581 ) (10,436 ) (4,810 ) Deferred income tax 1,139 253 286 Due from Farmington Bank 7,952 (1,892 ) (2,635 ) Increase in prepaid expenses and other assets (1,025 ) (839 ) (778 ) Decrease in accrued expenses and other liabilities (5 ) (3 ) (283 ) Net cash provided by operating activities 10,699 821 464 Cash flows from financing activities: Cancelation of shares for tax withholding (498 ) (440 ) (576 ) Repurchase of common stock (2,200 ) (6,257 ) (18,910 ) Excess tax benefits from stock-based compensation 152 110 35 Exercise of stock options 412 27 1,171 Cash dividend paid (3,276 ) (2,537 ) (1,878 ) Net cash used in financing activities (5,410 ) (9,097 ) (20,158 ) Net increase (decrease) in cash and cash equivalents 5,289 (8,276 ) (19,694 ) Cash and cash equivalents at beginning of year 27,875 36,151 55,845 Cash and cash equivalents at end of year $ 33,164 $ 27,875 $ 36,151 |
Selected Quarterly Consolidated
Selected Quarterly Consolidated Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Consolidated Financial Information (Unaudited) | 22. Selected Quarterly Consolidated Financial Information (Unaudited) The following is selected quarterly consolidated financial information for the years ended December 31, 2015 and 2014. Year Ended December 31, 2015 First Second Third Fourth quarter quarter quarter quarter (Dollars in thousands, except Per Share data) Interest income $ 19,532 $ 20,164 $ 21,094 $ 21,094 Interest expense 3,157 3,065 3,422 3,731 Net interest income 16,375 17,099 17,672 17,363 Provision for loan losses 615 663 386 776 Net interest income after provision for loan losses 15,760 16,436 17,286 16,587 Noninterest income 2,664 4,074 3,241 3,468 Noninterest expense 14,937 15,597 14,718 15,958 Income before income taxes 3,487 4,913 5,809 4,097 Income tax expense 976 1,441 1,594 1,716 Net income $ 2,511 $ 3,472 $ 4,215 $ 2,381 Net earnings per share: Basic $ 0.17 $ 0.23 $ 0.28 $ 0.16 Diluted $ 0.17 $ 0.23 $ 0.28 $ 0.16 Year Ended December 31, 2014 First Second Third Fourth quarter quarter quarter quarter (Dollars in thousands, except Per Share data) Interest income $ 16,980 $ 17,854 $ 18,528 $ 19,412 Interest expense 2,230 2,290 2,543 3,017 Net interest income 14,750 15,564 15,985 16,395 Provision for loan losses 505 410 1,041 632 Net interest income after provision for loan losses 14,245 15,154 14,944 15,763 Noninterest income 1,762 2,066 2,778 2,498 Noninterest expense 13,960 14,254 14,219 14,615 Income before income taxes 2,047 2,966 3,503 3,646 Income tax expense 555 776 997 499 Net income $ 1,492 $ 2,190 $ 2,506 $ 3,147 Net earnings per share: Basic $ 0.10 $ 0.15 $ 0.17 $ 0.21 Diluted $ 0.10 $ 0.14 $ 0.17 $ 0.21 |
Legal Actions
Legal Actions | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Legal Actions | 23. Legal Actions The Company and its subsidiary are involved in various legal proceedings which have arisen in the normal course of business. The Company believes the resolution of these legal actions is not expected to have a material adverse effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Business | 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 23 branch locations throughout central Connecticut and western Massachusetts, offering commercial and residential lending as well as wealth management services. Farmington Bank's primary source of income is interest accrued on loans to customers, which include small and middle market businesses and individuals residing primarily in Connecticut and western Massachusetts. However, the Bank will selectively lend to borrowers in other northeastern states. Wholly-owned subsidiaries of Farmington Bank are Farmington Savings Loan Servicing, Inc., a passive investment company that was established to service and hold loans collateralized by real property; Village Investments, Inc.; the Village Corp., Limited, and Village Square Holdings, Inc.; 28 Main Street Corp., is a subsidiary that was formed to hold residential other real estate owned and Village Management Corp., is a subsidiary that was formed to hold commercial other real estate owned, are presently inactive. On June 21, 2013, the Company received regulatory approval to repurchase up to 1,676,452 shares, or 10% of its current outstanding common stock. During the year ended December 31, 2015, the Company had repurchased 147,020 of these shares at a cost of $2.2 million. Repurchased shares are held as treasury stock and are available for general corporate purposes. The Company has 757,745 shares remaining available to be repurchased at December 31, 2015. |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The consolidated financial statements include the accounts of First Connecticut Bancorp, Inc. and its wholly-owned subsidiary, Farmington Bank. All significant intercompany transactions and balances have been eliminated in consolidation. 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 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. |
Out of Period Adjustments | Out of Period Adjustments In the fourth quarter of 2014, the Company recorded a correction of an error to reflect the estimated fair value of two trust preferred debt securities which increased securities available-for-sale by $1.6 million, decreased deferred income taxes by $600,000 and increased comprehensive income by $1.0 million due to the unrealized gains on the securities, net of tax. The majority of the increase in estimated fair value relates to prior periods. After evaluating the quantitative and qualitative aspects of the adjustments, the Company concluded that its prior period financial statements were not materially misstated and, therefore, no restatement was required. There were no out-of-period adjustments for the year ended December 31, 2015. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash and cash equivalents for consolidated cash flow purposes as cash due from banks, federal funds sold and money market funds. Cash flows from loans and deposits are reported net. The balances of cash and due from banks, federal funds sold and money market funds, at times, may exceed federally insured limits. The Company has not experienced any losses from such concentrations. |
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 December 31, 2015 and 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. |
Federal Home Loan Bank of Boston Stock | Federal Home Loan Bank of Boston Stock The Company, which is a member of the Federal Home Loan Bank system, is required to maintain an investment in capital stock of the Federal Home Loan Bank of Boston (“FHLBB”). Based on redemption provisions of the FHLBB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Bank reviews for impairment based on the ultimate recoverability of the cost basis in the FHLBB stock. As of December 31, 2015 and 2014, no impairment has been recognized. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of amortized cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to other noninterest income in the accompanying Consolidated Statements of Income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold on the trade date to net gain on loans sold in the accompanying Consolidated Statements of Income. |
Loans | Loans The Company’s loan portfolio segments include residential real estate, commercial real estate, construction, 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 quarterly basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. All reserves are available to cover any losses regardless of how they are allocated. General component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction, 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 year ended December 31, 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 December 31, 2015 and 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. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company capitalizes mortgage servicing rights for loans originated and then sold with servicing retained based on the fair market value on the origination date. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income and such amortization is included in the consolidated statements of income as a reduction of mortgage servicing fee income. Mortgage servicing rights are evaluated for impairment by comparing their aggregate carrying amount to their fair value. An independent appraisal of the fair value of the Company’s mortgage servicing rights is obtained quarterly and is used by management to evaluate the reasonableness of the fair value estimates. Management reviews the independent appraisal and performs procedures to determine appropriateness. Impairment is recognized as an adjustment to mortgage servicing rights and mortgage servicing income. |
Foreclosed Real Estate | Foreclosed Real Estate Real estate acquired through foreclosure comprises properties acquired in partial or total satisfaction of problem loans. The properties are acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. At the time these properties are foreclosed, the properties are initially recorded at the fair value at the date of foreclosure less estimated selling costs. Losses arising at the time of acquisition of such properties are charged against the allowance for loan losses. Subsequent loss provisions are charged to the foreclosed real estate valuation allowance and expenses incurred to maintain the properties are charged to noninterest expense. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and a charge to operations is recorded as necessary to reduce the carrying amount to fair value less estimated costs to dispose. Revenue and expense from the operation of other real estate owned and the provision to establish and adjust valuation allowances are included in noninterest expenses. Costs relating to the development and improvement of the property are capitalized, subject to the limit of fair value of the collateral. In the Consolidated Statements of Financial Condition, total prepaid expenses and other assets include foreclosed real estate of $279,000 and $400,000 as of December 31, 2015 and 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 $4.5 million at December 31, 2015. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance ("'BOLI") represents life insurance on certain employees who have consented to allow the Company to be the beneficiary of those policies. BOLI is recorded as an asset at cash surrender value. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other non-interest income and are not subject to income tax. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from three to ten years for furniture and equipment and five to forty years for premises. Leasehold improvements are amortized on a straight-line basis over the term of the respective leases, including renewal options, or the estimated useful lives of the improvements, whichever is shorter. Maintenance and repairs are charged to non-interest expense as incurred, while significant improvements are capitalized. |
Derivative Financial Instruments | Derivative Financial Instruments 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 and do not meet the hedge accounting parameters under FASB ASC 815 “Derivatives and Hedging”. Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. Changes in the fair value of derivatives not designated in hedging relationships are recognized directly in earnings. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company’s non-contributory defined-benefit pension plan and certain defined benefit postretirement plans were frozen as of February 28, 2013 and no additional benefits will accrue. The Company has a non-contributory defined benefit pension plan that provides benefits for substantially all employees hired before January 1, 2007 who meet certain requirements as to age and length of service. The benefits are based on years of service and average compensation, as defined in the Plan Document. The Company’s funding practice is to meet the minimum funding standards established by the Employee Retirement Income Security Act of 1974. In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees. Participants or eligible employees hired before January 1, 1993 become eligible for the benefits if they retire after reaching age 62 with fifteen or more years of service. A fixed percent of annual costs are paid depending on length of service at retirement. The Company accrues for the estimated costs of these other post-retirement benefits through charges to expense during the years that employees render service. The Company makes contributions to cover the current benefits paid under this plan. The Company believes the policy for determining pension and other post-retirement benefit expenses is critical because judgments are required with respect to the appropriate discount rate, rate of return on assets and other items. The Company reviews and updates the assumptions annually. If the Company’s estimate of pension and post-retirement expense is too low it may experience higher expenses in the future, reducing its net income. If the Company’s estimate is too high, it may experience lower expenses in the future, increasing its net income. |
Repurchase Liabilities | Repurchase Liabilities Repurchase agreements are accounted for as secured borrowings since the Company maintains effective control over the transferred securities and the transfer meets the other criteria for such accounting. Securities are sold to a counterparty with an agreement to repurchase the same or substantially the same security at a specified price and date. The Company has repurchase agreements with commercial or municipal customers that are offered as a commercial banking service. Customer repurchase agreements are for a term of one day and are backed by the purchasers’ interest in certain U.S. Treasury Bills or other U.S. Government securities. Obligations to repurchase securities sold are reflected as a liability in the Consolidated Statements of Financial Condition. The Company does not record transactions of repurchase agreements as sales. The securities underlying the repurchase agreements remain in the available-for-sale investment securities portfolio. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. |
Fee Income | Fee Income Fee income for customer services which are not deferred are recorded on an accrual basis when earned. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
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. |
Employee Stock Ownership Plan ("ESOP") | Employee Stock Ownership Plan (“ESOP”) The Company accounts for its ESOP in accordance with FASB ASC 718-40, “Compensation – Stock Compensation”. Under this guidance, unearned ESOP shares are not considered outstanding and are shown as a reduction of stockholders' equity as unearned compensation. The Company will recognize compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company's ESOP shares differs from the cost of such shares, this difference will be credited or debited to equity. The Company will receive a tax deduction equal to the cost of the shares released to the extent of the principal pay down on the loan by the ESOP. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company's consolidated financial statements. |
Stock Incentive Plan | Stock Incentive Plan During August 2012, the Company implemented the First Connecticut Bancorp, Inc. 2012 Stock Incentive Plan to provide for issuance or granting of shares of common stock for stock options or restricted stock. The Company applies ASC 718, Compensation – “Stock Compensation”, and has recorded stock-based employee compensation cost using the fair value method. Management estimated the fair values of all option grants using the Black-Scholes option-pricing model. Management estimated the expected life of the options using the simplified method allowed under SAB No. 107. The risk-free rate was determined utilizing the treasury yield for the expected life of the option contract. |
Earnings Per Share | Earnings Per Share Earnings per common share is computed under the two-class method. Basic earnings per common share is computed by dividing net earnings allocated to common stockholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Non-vested restricted stock awards are participating securities as they have non-forfeitable rights to dividends or dividend equivalents. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock options for common stock using the treasury stock method. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating both basic and diluted earnings per common share. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted-average common shares used in calculating diluted earnings per common share is provided in Note 3 - Earnings Per Share. |
Segment Reporting | Segment Reporting The Company’s only business segment is Community Banking. For the years ended December 31, 2015, 2014 and 2013, this segment represented all the revenues and income of the consolidated group and therefore is the only reported segment as defined by FASB ASC 820, “Segment Reporting”. |
Reclassifications | Reclassifications Amounts in prior period consolidated financial statements are reclassified whenever necessary to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. In July 2015, the FASB issued ASU No. 2015-12 “Plan Accounting-Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965)” - "(Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (consensuses of the Emerging Issues Task Force)." This ASU has been issued to (I) designate contract value as the only required measure for fully benefit-responsive investment contracts; (II) simplify and make more effective the investment disclosure requirements under Topic 820 and Topics 960, 962, and 965 for employee benefit plans; and (III) provide a similar measurement date practical expedient for employee benefit plans. 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. The Company does not expect ASU 2015-12 to have a significant impact on its financial statements. In August 2015, the FASB issued ASU No. 2015-14 "Revenue from Contracts with Customers (Topic 606)." In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. ASU 2015-14 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. Early application is not permitted. The Company is assessing the impact of ASU 2015-14 on its accounting and disclosures. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Topic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends the guidance on the classification and measurement of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; among others. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is assessing the impact of ASU 2016-01 on its accounting and disclosures. In February 2016, the FASB issued ASU No. 2016-02 "Leases (Topic 842)." ASU 2016-02 supersedes Topic 840, Leases. This ASU is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Some of the provisions in ASU 2016-02 include the following: 1) requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease), 2) requires lessor accounting to be updated to align with certain changes to the lessee model and the new revenue recognition standard, 3) an arrangement contains an embedded lease if property, plant, or equipment is explicitly or implicitly identified and its use is controlled by the customer, 4) in certain circumstances, the lessee is required to remeasure the lease payments, and 5) requires extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is assessing the impact of ASU 2016-02 on its accounting and disclosures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted earnings per common share | For the Years Ended December 31, 2015 2014 2013 (Dollars in thousands, except per share data): Net income $ 12,579 $ 9,335 $ 3,704 Less: Dividends to participating shares (41 ) (55 ) (56 ) Income allocated to participating shares (135 ) (161 ) (55 ) Net income allocated to common stockholders $ 12,403 $ 9,119 $ 3,593 Weighted-average shares issued 17,996,918 18,025,893 18,059,089 Less: Average unallocated ESOP shares (1,005,011 ) (1,100,393 ) (1,195,730 ) Average treasury stock (2,048,101 ) (1,886,168 ) (1,118,785 ) Average unvested restricted stock (217,199 ) (357,185 ) (491,153 ) Weighted-average basic shares outstanding 14,726,607 14,682,147 15,253,421 Plus: Average dilutive shares 223,047 111,199 16,791 Weighted-average diluted shares outstanding 14,949,654 14,793,346 15,270,212 Net earnings per share (1) Basic $ 0.84 $ 0.62 $ 0.24 Diluted $ 0.83 $ 0.62 $ 0.24 (1) Certain per share amounts may not appear to reconcile due to rounding. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities | December 31, 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 $ 38,782 $ 83 $ (6 ) $ 38,859 $ - $ - $ 38,859 U.S. Government agency obligations 82,002 43 (240 ) 81,805 - - 81,805 Government sponsored residential mortgage-backed securities 4,958 195 - 5,153 - - 5,153 Corporate debt securities 1,000 48 - 1,048 - - 1,048 Preferred equity securities 2,000 - (368 ) 1,632 - - 1,632 Marketable equity securities 108 54 (2 ) 160 - - 160 Mutual funds 3,957 - (190 ) 3,767 - - 3,767 Total securities available-for-sale $ 132,807 $ 423 $ (806 ) $ 132,424 $ - $ - $ 132,424 Held-to-maturity U.S. Government agency obligations $ 24,000 $ - $ - $ 24,000 $ 28 $ (20 ) 24,008 Government sponsored residential mortgage-backed securities 8,246 - - 8,246 103 - 8,349 Total securities held-to-maturity $ 32,246 $ - $ - $ 32,246 $ 131 $ (20 ) $ 32,357 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 | December 31, 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: U.S. Treasury obligations 4 $ 19,935 $ (6 ) $ - $ - $ 19,935 $ (6 ) U.S. Government agency obligations 7 56,762 (240 ) - - 56,762 (240 ) Preferred equity securities 1 - - 1,632 (368 ) 1,632 (368 ) Marketable equity securities 1 - - 5 (2 ) 5 (2 ) Mutual funds 1 - - 2,768 (190 ) 2,768 (190 ) 14 $ 76,697 $ (246 ) $ 4,405 $ (560 ) $ 81,102 $ (806 ) Held-to-maturity U.S. Government agency obligations 1 6,980 (20 ) - - 6,980 (20 ) 1 6,980 (20 ) - - 6,980 (20 ) Total investment securities in an unrealized loss position 15 $ 83,677 $ (266 ) $ 4,405 $ (560 ) $ 88,082 $ (826 ) 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 1 6,992 (8 ) - - 6,992 (8 ) Total investment securities in an unrealized loss position 1 6,992 (8 ) - - 6,992 (8 ) 10 $ 67,900 $ (26 ) $ 4,421 $ (544 ) $ 72,321 $ (570 ) |
Schedule of amortized cost and estimated market value of debt securities by contractual maturity | December 31, 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 $ 54,499 $ 54,511 $ - $ - Due after one year through five years 67,285 67,201 24,000 24,008 Due after five years through ten years - - - - Due after ten years - - - - Government sponsored residential mortgage-backed securities 4,958 5,153 8,246 8,349 $ 126,742 $ 126,865 $ 32,246 $ 32,357 December 31, 2014 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 $ 107,010 $ 107,008 $ - $ - Due after one year through five years 59,920 60,099 7,000 6,992 Due after five years through ten years 6,822 6,903 - - Due after ten years - 1,557 - - Government sponsored residential mortgage-backed securities 6,624 6,907 9,224 9,424 $ 180,376 $ 182,474 $ 16,224 $ 16,416 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of loans | December 31, December 31, 2015 2014 (Dollars in thousands) Real estate: Residential $ 849,722 $ 827,005 Commercial 887,431 765,066 Construction 30,895 57,371 Installment 2,970 3,356 Commercial 409,550 309,708 Collateral 1,668 1,733 Home equity line of credit 174,701 169,768 Revolving credit 91 99 Resort 784 929 Total loans 2,357,812 2,135,035 Net deferred loan costs 3,984 3,842 Loans 2,361,796 2,138,877 Allowance for loan losses (20,198 ) (18,960 ) Loans, net $ 2,341,598 $ 2,119,917 |
Schedule of changes in the allowance for loan losses by segments | For the Year Ended December 31, 2015 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 4,382 $ (295 ) $ 112 $ (115 ) $ 4,084 Commercial 8,949 (213 ) - 1,519 10,255 Construction 478 - - (247 ) 231 Installment 41 (39 ) - 37 39 Commercial 3,250 (318 ) 6 1,181 4,119 Collateral - - - - - Home equity line of credit 1,859 (238 ) - (151 ) 1,470 Revolving credit - (246 ) 29 217 - Resort 1 - - (1 ) - $ 18,960 $ (1,349 ) $ 147 $ 2,440 $ 20,198 For the Year Ended December 31, 2014 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 3,647 $ (701 ) $ 58 $ 1,378 $ 4,382 Commercial 8,253 (93 ) 1 788 8,949 Construction 1,152 - - (674 ) 478 Installment 48 (4 ) - (3 ) 41 Commercial 3,746 (1,066 ) 84 486 3,250 Collateral - - - - - Home equity line of credit 1,465 (106 ) - 500 1,859 Revolving credit - (133 ) 18 115 - Resort 3 - - (2 ) 1 $ 18,314 $ (2,103 ) $ 161 $ 2,588 $ 18,960 For the Year Ended December 31, 2013 Balance at Charge-offs Recoveries Provision for Balance at (Dollars in thousands) Real estate: Residential $ 3,778 $ (430 ) $ 6 $ 293 $ 3,647 Commercial 8,105 - - 148 8,253 Construction 760 - - 392 1,152 Installment 77 - - (29 ) 48 Commercial 2,654 (31 ) 52 1,071 3,746 Collateral - - - - - Home equity line of credit 1,377 - - 88 1,465 Revolving credit - (62 ) 20 42 - Resort 456 - - (453 ) 3 Unallocated 22 - - (22 ) - $ 17,229 $ (523 ) $ 78 $ 1,530 $ 18,314 |
Schedule of the allowance by impairment methodology and by loan segment | December 31, 2015 December 31, 2014 Reserve Reserve (Dollars in thousands) Total Allocation Total Allocation Loans individually evaluated for impairment: Real estate: Residential $ 12,377 $ 139 $ 11,791 $ 285 Commercial 16,152 26 19,051 233 Construction 4,719 - 4,719 - Installment 259 8 251 8 Commercial 6,023 361 5,680 225 Collateral - - - - Home equity line of credit 703 - 1,031 - Revolving credit - - - - Resort 784 - 929 1 41,017 534 43,452 752 Loans collectively evaluated for impairment: Real estate: Residential $ 841,921 $ 3,945 $ 819,630 $ 4,097 Commercial 870,757 10,229 745,501 8,716 Construction 26,176 231 52,652 478 Installment 2,695 31 3,093 33 Commercial 403,473 3,758 303,980 3,025 Collateral 1,668 - 1,733 - Home equity line of credit 173,998 1,470 168,737 1,859 Revolving credit 91 - 99 - Resort - - - - 2,320,779 19,664 2,095,425 18,208 Total $ 2,361,796 $ 20,198 $ 2,138,877 $ 18,960 |
Schedule of loan delinquencies at recorded investment values | December 31, 2015 30-59 Days 60-89 Days > 90 Days Past Due 90 (Dollars in thousands) Past Due Past Due Past Due Total and Still Number Amount Number Amount Number Amount Number Amount Accruing Real estate: Residential 18 $ 3,379 5 $ 863 15 $ 6,304 38 $ 10,546 $ - Commercial 2 318 - - 1 994 3 1,312 - Construction - - - - 1 187 1 187 - Installment 3 38 - - - - 3 38 - Commercial 4 153 - - 2 1,752 6 1,905 - Collateral 7 68 - - 1 10 8 78 - Home equity line of credit 3 280 2 360 2 210 7 850 - Demand 1 29 - - - - 1 29 - Revolving credit - - - - - - - - - Resort - - - - - - - - - Total 38 $ 4,265 7 $ 1,223 22 $ 9,457 67 $ 14,945 $ - December 31, 2014 30-59 Days 60-89 Days > 90 Days Past Due 90 (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 | December 31, December 31, (Dollars in thousands) 2015 2014 Nonaccrual loans: Real estate: Residential $ 9,773 $ 9,706 Commercial 1,106 2,112 Construction 187 187 Installment 32 155 Commercial 3,232 2,268 Collateral 10 - Home equity line of credit 573 1,040 Revolving credit - - Resort - - Total nonaccruing loans 14,913 15,468 Loans 90 days past due and still accruing - - Other real estate owned 279 400 Total nonperforming assets $ 15,192 $ 15,868 |
Schedule of summary of information pertaining to impaired loans | December 31, 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 $ 11,530 $ 12,878 $ - $ 5,862 $ 6,286 $ - Commercial 13,233 13,303 - 13,804 13,828 - Construction 4,719 4,965 - 4,719 4,965 - Installment 202 202 - 220 232 - Commercial 3,921 4,066 - 3,527 3,584 - Collateral - - - - - - Home equity line of credit 703 719 - 1,031 1,264 - Revolving credit - - - - - - Resort 784 784 - - - - Total 35,092 36,917 - 29,163 30,159 - Impaired loans with a valuation allowance: Real estate: Residential 847 881 139 5,929 6,848 285 Commercial 2,919 2,919 26 5,247 5,523 233 Construction - - - - - - Installment 57 72 8 31 31 8 Commercial 2,102 2,457 361 2,153 2,266 225 Collateral - - - - - - Home equity line of credit - - - - - - Revolving credit - - - - - - Resort - - - 929 929 1 Total 5,925 6,329 534 14,289 15,597 752 Total impaired loans $ 41,017 $ 43,246 $ 534 $ 43,452 $ 45,756 $ 752 |
Schedule of average recorded investment and interest income recognized on impaired loans | For the Year Ended December 31, 2015 2014 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Real estate: Residential $ 10,621 $ 112 $ 6,727 $ 88 $ 5,683 $ 28 Commercial 13,674 575 15,159 705 10,695 814 Construction 4,719 138 1,320 138 237 - Installment 238 14 198 13 52 13 Commercial 4,182 110 3,791 140 3,059 28 Collateral - - - - - - Home equity line of credit 928 4 684 2 491 - Demand - - - - - - Revolving credit - - - - - - Resort 827 26 - - - - Total 35,189 979 27,879 1,086 20,217 883 Impaired loans with a valuation allowance: Real estate: Residential 1,037 35 5,592 41 5,872 52 Commercial 3,504 158 4,765 137 8,594 147 Construction - - - - 198 - Installment 35 1 29 1 27 1 Commercial 1,682 15 2,378 74 3,854 66 Collateral - - - - - - Home equity line of credit - - - - - - Demand - - - - - - Revolving credit - - - - - - Resort - - 1,035 35 995 47 Total 6,258 209 13,799 288 19,540 313 Total impaired loans $ 41,447 $ 1,188 $ 41,678 $ 1,374 $ 39,757 $ 1,196 |
Schedule of loans terms modified in a troubled debt restructuring | December 31, 2015 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 14 $ 2,242 11 $ 5,557 25 $ 7,799 Commercial 4 6,664 - - 4 6,664 Construction 1 4,532 1 187 2 4,719 Installment 4 227 2 32 6 259 Commercial 6 2,350 8 1,482 14 3,832 Collateral - - - - - - Home equity line of credit 3 153 - - 3 153 Revolving credit - - - - - - Resort 1 784 - - 1 784 Total 33 $ 16,952 22 $ 7,258 55 $ 24,210 December 31, 2014 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 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 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 Year Ended December 31, 2015 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate Residential 8 $ 1,549 $ 1,520 Commercial 1 493 483 Installment 1 44 40 Commercial 3 133 128 Home equity line of credit 3 153 153 Total 16 $ 2,372 $ 2,324 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate: Residential 10 $ 1,814 $ 1,744 Construction 1 4,532 4,532 Installment 2 56 55 Commercial 4 3,763 3,130 Total 17 $ 10,165 $ 9,461 For the Year Ended December 31, 2013 (Dollars in thousands) Number of Recorded Recorded Troubled debt restructurings: Real estate: Residential 7 $ 1,640 $ 1,617 Commercial 4 2,242 2,231 Construction 1 187 187 Installment 3 216 215 Commercial 6 2,076 2,101 Home equity line of credit 3 353 307 Total 24 $ 6,714 $ 6,658 (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 Year Ended December 31, 2015 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 8 $ - $ - $ - $ 1,520 $ 1,520 Commercial 1 - - - 483 483 Installment 1 - - - 40 40 Commercial 3 - - 33 95 128 Home equity line of credit 3 - - - 153 153 Total 16 $ - $ - $ 33 $ 2,291 $ 2,324 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 10 $ - $ - $ 224 $ 1,520 $ 1,744 Construction 1 4,532 - - - 4,532 Installment 2 39 - - 16 55 Commercial 4 2,009 - - 1,121 3,130 Total 17 $ 6,580 $ - $ 224 $ 2,657 $ 9,461 For the Year Ended December 31, 2013 (Dollars in thousands) Number of Extended Adjusted Combination Other Total Real estate: Residential 7 $ - $ - $ 225 $ 1,392 $ 1,617 Commercial 4 2,095 - - 136 2,231 Construction 1 - - - 187 187 Installment 3 - - 34 181 215 Commercial 6 1,951 - - 150 2,101 Home equity line of credit 3 - - 14 293 307 Total 24 $ 4,046 $ - $ 273 $ 2,339 $ 6,658 |
Schedule of loans modified as a TDR | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Number of Recorded Number of Recorded Number of Recorded Real estate: Residential 1 $ 314 2 $ 662 - $ - Commercial - - - - 2 1,758 Installment 1 31 - - - - Commercial - - 2 69 2 100 Home equity line of credit - - - - 1 183 Total 2 $ 345 4 $ 731 5 $ 2,041 (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 | December 31, 2015 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total Real estate: Residential $ 838,314 $ 1,154 $ 10,254 $ - $ 849,722 Commercial 867,531 10,861 9,039 - 887,431 Construction 26,176 - 4,719 - 30,895 Installment 2,886 52 32 - 2,970 Commercial 390,719 10,354 8,311 166 409,550 Collateral 1,647 - 21 - 1,668 Home equity line of credit 173,879 229 593 - 174,701 Revolving credit 91 - - - 91 Resort 784 - - - 784 Total Loans $ 2,302,027 $ 22,650 $ 32,969 $ 166 $ 2,357,812 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 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment accounts | As of December 31, 2015 2014 (Dollars in thousands) Land $ 1,326 $ 1,326 Premises and leasehold improvements 19,314 18,767 Furniture and equipment 15,280 14,215 Software 4,846 4,605 40,766 38,913 Less: accumulated depreciation and amortization (22,201 ) (20,040 ) $ 18,565 $ 18,873 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of FHLBB advances | December 31, 2015 2014 Amount Weighted Amount Weighted (Dollars in thousands) 2015 $ - - % $ 290,000 0.41 % 2016 157,000 0.46 - - 2017 35,000 1.23 35,000 1.23 2018 50,000 1.53 20,000 1.83 2019 81,600 1.74 56,700 1.82 2020 40,000 1.75 - - Thereafter 14,000 1.90 - - $ 377,600 1.14 % $ 401,700 0.75 % |
Schedule of outstanding borrowings | (Dollars in thousands) December 31, Advance Date Interest Rate Maturity Date 2015 2014 March 13, 2008 3.34 % 3/13/2018 $ 6,000 $ 6,000 March 13, 2008 3.93 % 3/13/2018 4,500 4,500 March 13, 2008 3.16 % 3/13/2015 - 10,500 $ 10,500 $ 21,000 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of deposit balances and weighted average interest rates | As of December 31, 2015 2014 Amount Rate Amount Rate (Dollars in thousands) Noninterest-bearing demand deposits $ 401,388 $ 330,524 Interest-bearing NOW accounts 468,054 0.29 % 355,412 0.26 % Money market 460,737 0.79 % 470,991 0.74 % Savings accounts 220,389 0.11 % 210,892 0.10 % Time deposits 440,790 1.03 % 365,222 0.91 % Total interest-bearing deposits 1,589,970 0.61 % 1,402,517 0.55 % Total deposits $ 1,991,358 $ 1,733,041 |
Schedule of contractual maturities of time deposits | As of December 31, 2015 2014 (Dollars in thousands) Less than one year $ 267,748 $ 239,627 One to two years 106,002 61,338 Two to three years 28,245 32,961 Three to four years 23,228 7,668 Four to five years 15,567 23,628 $ 440,790 $ 365,222 |
Schedule of interest expense on deposits | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) NOW accounts $ 1,351 $ 976 $ 638 Money market 3,592 3,112 2,878 Savings accounts 226 205 206 Time deposits 4,203 3,076 3,460 Total interest expense $ 9,372 $ 7,369 $ 7,182 |
Pension and Other Postretirem39
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of change in benefit obligation, plan assets and the funded status of the pension plans and other postretirement benefits | Pension Plans Other Postretirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (Dollars in thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 26,923 $ 21,909 $ 3,224 $ 3,156 Service cost - - 75 60 Interest cost 1,036 1,022 127 146 Actuarial (gain) loss (1,689 ) 5,009 (442 ) (45 ) Benefits paid (1,095 ) (1,017 ) (85 ) (92 ) Benefit obligation at end of year 25,175 26,923 2,899 3,225 Change in plan assets: Fair value of plan assets at beginning of year 19,271 17,896 - - Actual return on plan assets (379 ) 666 - - Employer contributions 1,226 1,726 85 92 Benefits paid (1,095 ) (1,017 ) (85 ) (92 ) Fair value of plan assets at end of year 19,023 19,271 - - Funded status recognized in the statements of condition $ (6,152 ) $ (7,652 ) $ (2,899 ) $ (3,225 ) Accumulated benefit obligation $ (25,175 ) $ (26,923 ) |
Schedule of amounts recognized in accumulated other comprehensive income that have not yet been recognized as a component of net period benefit cost | Pension Plans Other Postretirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (Dollars in thousands) Prior service cost $ - $ - $ 155 $ 189 Actuarial loss (7,044 ) (7,419 ) (24 ) (326 ) Unrecognized components of net periodic benefit cost in accumulated other comprehensive loss, net of tax $ (7,044 ) $ (7,419 ) $ 131 $ (137 ) |
Schedule of components of net periodic pension and benefit costs | Pension Plans Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Components of net periodic pension cost: Service cost $ - $ - $ - Interest cost 1,036 1,022 951 Expected return on plan assets (1,448 ) (1,339 ) (1,135 ) Amortization of unrecognized prior service cost - - - Recognized net actuarial loss 709 306 573 Curtailment charge - - - Net periodic pension cost 297 (11 ) 389 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net loss (gain) (1) 138 5,683 (2,907 ) Amortization of net loss (709 ) (306 ) (573 ) Amortization of prior service cost - - - Curtailment charge - - - Total recognized in other comprehensive income (571 ) 5,377 (3,480 ) Total recognized in net periodic pension cost and other comprehensive income $ (274 ) $ 5,366 $ (3,091 ) (1) For the year ended December 31, 2014, the increase in loss was primarily due to the mortality tables being updated from IRS 2013 Combined Static Mortality to SOA RP-2014 Total Dataset Mortality with Scale MP-2014, which better reflected the overall mortality trend in private pension plans in the U.S. and a change in the discount rate. Other Postretirement Benefits Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Components of net periodic pension cost: Service cost $ 75 $ 60 $ 101 Interest cost 127 146 128 Recognized net loss 21 18 42 Amortization of unrecognized prior service cost (50 ) (50 ) (50 ) Curtailment charge - - - Net periodic pension cost 173 174 221 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net gain (442 ) (45 ) (310 ) Amortization of prior service cost - - - Amortization of net loss (21 ) (18 ) (42 ) Change in prior service costs 50 50 50 Total recognized in other comprehensive income (413 ) (13 ) (302 ) Total recognized in net periodic pension cost and other comprehensive income $ (240 ) $ 161 $ (81 ) |
Schedule of estimated amounts amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | (Dollars in thousands) Pension Plans Other Post Prior service cost (credit) $ - $ (50 ) Actuarial loss 671 - |
Schedule of significant actuarial assumptions | Pension Benefits Other Postretirement Benefits December 31, December 31, 2015 2014 2015 2014 Weighted-average assumptions used to determine funding status: Discount rate (1) 4.35 % 3.95 % 4.20 % 3.85 % Rate of compensation increase * (2) n/a n/a n/a n/a Weighted-average assumptions used to determine net periodic pension costs: Discount rate 3.95 % 4.85 % 3.85 % 4.75 % Expected return on plan assets (2) 6.00 % 7.50 % n/a n/a Rate of compensation increase * (2) n/a n/a n/a n/a (1) Weighted average discount rate for the supplemental retirement plan was 3.80 % and 3.55% for the years ended December 31, 2015 and 2014, respectively. (2) Rates not applicable to the supplemental retirement plan. * The compensation rate increase is not applicable after the Pension Plan freeze on February 28, 2013. |
Schedule of percentage of health care trend assumptions | At December 31, 2015 2014 Health care cost trend rate assumed for next year 9.50 % 9.50 % Rate that the cost trend rate gradually declines to 5.00 % 5.00 % Year that the rate reaches the rate it is assumed to remain at 2023 2023 |
Schedule of one-percentage point change in assumed health care cost trend rates | Effect of a Change in the Health Care Cost Trend Rates 2015 2014 One One One One (Dollars in thousands) Effect on total of service and interest components $ 11 $ (10 ) $ 12 $ (10 ) Effect on postretirement benefit obligation 233 (198 ) 294 (247 ) |
Schedule of fair value of the company's pension plan assets by asset category | December 31, 2015 Investments at Fair Value (Dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds: Fixed income $ 6,659 $ - $ - $ 6,659 Equity 5,522 - - 5,522 Pooled separate accounts: Equity separate account - 6,136 - 6,136 Money market separate account - 3 - 3 High yield separate account - 703 - 703 $ 12,181 $ 6,842 $ - $ 19,023 December 31, 2014 Investments at Fair Value (Dollars in thousands) Level 1 Level 2 Level 3 Total Mutual funds: Fixed income $ 6,680 $ - $ - $ 6,680 Equity 5,307 - - 5,307 Pooled separate accounts: Equity separate account - 5,926 - 5,926 Money market separate account - 619 - 619 High yield separate account - 739 - 739 $ 11,987 $ 7,284 $ - $ 19,271 |
Schedule of benefit pension plan's weighted-average asset allocations and the Plan's long-term allocation structure by asset category | Actual Percentage of Fair Value At December 31, Target 2015 2014 Allocation High yield and money market funds 4 % 7 % 5-15 % Equity funds 61 % 58 % 30-70 % Fixed income funds 35 % 35 % 30-70 % Total 100 % 100 % |
Schedule of summary of benefit payments expected to be paid by the non-contributory defined benefit pension plans | 2016 $ 1,181 2017 1,202 2018 1,197 2019 1,263 2020 1,302 Years 2021 - 2025 6,947 $ 13,092 |
Schedule of summary of benefit payments expected to be paid by the medical, dental and life insurance plan | 2016 $ 150 2017 156 2018 153 2019 159 2020 163 Years 2021 - 2025 804 $ 1,585 |
Schedule of shares held by the ESOP | Allocated 381,444 Committed to be released 95,361 Unallocated 953,611 1,430,416 |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of weighted-average assumptions | 2015 2014 Weighted per share average fair value of options granted $ 3.33 $ 3.77 Weighted-average assumptions: Risk-free interest rate 1.61 % 1.93 % Expected volatility 24.97 % 28.20 % Expected dividend yield 1.99 % 1.89 % Weighted-average dividend yield 1.50% - 2.35 % 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 | Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2014 1,671,157 $ 13.04 Granted 38,000 16.26 Exercised (31,600 ) 13.04 Forfeited (20,200 ) 13.49 Expired (1,200 ) 12.95 Outstanding at December 31, 2015 1,656,157 $ 13.11 6.48 $ 7,095 Exercisable at December 31, 2015 1,296,537 $ 13.02 6.32 $ 5,689 |
Schedule of summary of the status of the Company's restricted stock | Number of Weighted-Average Unvested at December 31, 2014 266,884 $ 12.95 Granted - - Vested (140,594 ) 12.95 Forfeited - - Unvested at December 31, 2015 126,290 $ 12.95 |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swaps that were not designated for hedge accounting | December 31, 2015 December 31, 2014 (Dollars in thousands) Consolidated # of Notional Estimated # of Notional Estimated Commercial loan customer interest rate swap position Other Assets 60 $ 257,693 $ 10,564 43 $ 174,884 $ 7,167 Commercial loan customer interest rate swap position Other Liabilities 6 23,411 (78 ) 8 27,988 (431 ) Counterparty interest rate swap position Other Liabilities 66 281,104 (10,599 ) 51 202,872 (6,821 ) |
Schedule of changes in the fair value of non-hedge accounting derivatives | Years Ended December 31, 2015 2014 2013 Interest Income MTM Gain Net Impact Interest Income MTM Gain Net Impact Interest Income MTM (Loss) Gain Net Impact (Dollars in thousands) Commercial loan customer interest rate swap position $ (5,301 ) $ 3,397 $ (1,904 ) $ (3,704 ) $ 3,929 $ 225 $ 3,078 $ (4,990 ) $ (1,912 ) Counterparty interest rate swap position 5,301 (3,397 ) 1,904 3,704 (3,929 ) (225 ) (3,078 ) 4,990 1,912 Total $ - $ - $ - $ - $ - $ - $ - $ - $ - |
Offsetting of Financial Asset42
Offsetting of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Schedule of contractual maturities of repurchase agreement borrowings and repurchase liabilities | December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to One One Year to Total Repurchase agreement borrowings U.S. Government agency obligations $ - $ - $ 6,000 $ 6,000 Government sponsored residential mortgage-backed securities - - 4,500 4,500 Total repurchase agreement borrowings - - 10,500 10,500 Repurchase liabilities U.S. Government agency obligations 35,769 - - 35,769 Total repurchase liabilities 35,769 - - 35,769 Total $ 35,769 $ - $ 10,500 $ 46,269 |
Schedule of potential effect of rights of setoff associated with recognized financial assets and liabilities | December 31, 2015 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,564 $ - $ 10,564 $ - $ - $ 10,564 $ - Total $ 10,564 $ - $ 10,564 $ - $ - $ 10,564 $ - December 31, 2015 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 10,677 $ - $ 10,677 $ - $ - $ 10,677 $ - Repurchase agreement borrowings 10,500 - 10,500 - 10,500 - - Total $ 21,177 $ - $ 21,177 $ - $ 10,500 $ 10,677 $ - December 31, 2014 Gross Amounts Not Offset in the Statement of Gross Amount Gross Amounts Net Amounts of Financial Securities Cash Net (Dollars in thousands) Interest rate swap derivatives $ 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 Amount Gross Amounts Net Amounts of Financial Securities Cash Net (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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the income tax provision | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current provision Federal $ 3,864 $ 3,470 $ 1,480 State 100 44 2 3,964 3,514 1,482 Deferred provision (benefit) Federal 1,780 (555 ) (313 ) State (17 ) (132 ) - 1,763 (687 ) (313 ) Total provision for income taxes $ 5,727 $ 2,827 $ 1,169 |
Schedule of reconciliation of the expected federal statutory tax to the income tax provision | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income tax expense at statutory federal tax rate $ 6,407 $ 4,257 $ 1,657 ESOP 138 123 94 Death benefits (133 ) - (37 ) Dividends received deduction (54 ) (54 ) (52 ) State income taxes 54 (57 ) 1 Other - net 90 39 30 Changes in cash surrender value of life insurance (453 ) (396 ) (410 ) Impact of tax rate changes - (537 ) - Valuation allowance 764 - - Municipal income - net (1,086 ) (548 ) (114 ) Income tax provision as reported $ 5,727 $ 2,827 $ 1,169 |
Schedule of components of net deferred tax assets | At December 31, 2015 2014 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 7,130 $ 6,680 Minimum pension liability and postretirement benefits 4,832 5,139 Deferred compensation 2,871 2,830 Charitable contribution carryforward 1,508 1,923 Stock compensation 1,933 1,542 Accrued bonus 1,487 1,366 Other 1,255 1,245 Other than temporary impairment on securities available-for-sale 17 1,026 Allowance for off-balance sheet provision 177 155 Net unrealized loss on securities available-for-sale 135 - Gross deferred tax assets 21,345 21,906 Valuation reserve (771 ) - Net deferred tax assets 20,574 21,906 Deferred tax liabilities Net origination fees 2,982 2,686 Other 1,561 1,187 Fixed assets 211 409 Accrued pension 249 127 Bond discount accretion 128 85 Net unrealized gain on securities available-for-sale - 571 Gross deferred tax liabilities 5,131 5,065 Net deferred tax assets 15,443 16,841 |
Schedule of allocation of deferred tax expense (benefit) | At December 31, 2015 2014 (Dollars in thousands) Deferred tax benefit allocated to capital $ (365 ) $ (1,270 ) Deferred tax expense (benefit) allocated to income 1,763 (687 ) Total change in deferred taxes $ 1,398 $ (1,957 ) |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental commitments | (Dollars in thousands) 2016 $ 2,624 2017 2,711 2018 2,728 2019 2,384 2020 1,092 Thereafter 8,285 $ 19,824 |
Financial Instruments with Of45
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | |
Schedule of financial instruments whose contract amounts represent credit risk | December 31, December 31, 2015 2014 (Dollars in thousands) Approved loan commitments $ 46,144 $ 33,737 Unadvanced portion of construction loans 44,457 41,604 Unused lines for home equity loans 204,983 173,493 Unused revolving lines of credit 365 367 Unused commercial letters of credit 3,558 4,028 Unused commercial lines of credit 187,819 190,247 $ 487,326 $ 443,476 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | December 31, 2015 Quoted Prices in Significant Significant (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Assets U.S. Treasury obligations $ 38,859 $ 21,996 $ 16,863 $ - U.S. Government agency obligations 81,805 - 81,805 - Government sponsored residential mortgage-backed securities 5,153 - 5,153 - Corporate debt securities 1,048 - 1,048 - Preferred equity securities 1,632 1,632 - - Marketable equity securities 160 160 - - Mutual funds 3,767 - 3,767 - Securities available-for-sale 132,424 23,788 108,636 - Interest rate swap derivative 10,564 - 10,564 - Derivative loan commitments 207 - - 207 Total $ 143,195 $ 23,788 $ 119,200 $ 207 Liabilities Interest rate swap derivative $ 10,677 $ - $ 10,677 $ - Forward loan sales commitments 70 - - 70 Total $ 10,747 $ - $ 10,677 $ 70 December 31, 2014 Quoted Prices in Significant Significant (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 Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance, at beginning of year $ 14 $ 47 $ 488 Total realized gain (loss): Included in earnings 123 (33 ) (441 ) Balance, at the end of year $ 137 $ 14 $ 47 |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis | December 31, 2015 Significant (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Input Derivative and forward loan sales commitments, net $ 137 Adjusted quoted prices in active markets Embedded servicing value 1.28 % 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 | December 31, 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 $ - $ - $ 4,225 $ - $ - $ 1,647 Other real estate owned - - 279 - - - |
Schedule of valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis | December 31, 2015 (Dollars in thousands) Fair Value Valuation Methodology Significant Range of Inputs Weighted Impaired loans $ 4,225 Appraisals Discount for dated appraisal 5% - 20% 12.5 % Discount for costs to sell 8% - 15% 11.5 % Other real estate owned $ 279 Appraisals Discount for costs to sell 8% - 15% 11.5 % Discount for condition 10% - 30% 20.0 % December 31, 2014 (Dollars in thousands) Fair Value Valuation Methodology Significant Range of Inputs Weighted 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 | December 31, 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 $ 32,246 $ 32,357 $ 16,224 $ 16,416 Securities available-for-sale See previous table 132,424 132,424 188,041 188,041 Loans Level 3 2,361,796 2,336,293 2,135,035 2,130,994 Loans held-for-sale Level 2 9,637 9,686 2,417 2,469 Mortgage servicing rights Level 3 4,406 5,029 3,336 3,572 Federal Home Loan Bank of Boston stock Level 2 21,729 21,729 19,785 19,785 Alternative investments Level 3 2,508 2,409 2,694 2,695 Interest rate swap derivatives Level 2 10,564 10,564 7,167 7,167 Derivative loan commitments Level 3 207 207 40 40 Financial liabilities Deposits other than time deposits Level 1 1,550,568 1,550,568 1,367,819 1,367,819 Time deposits Level 2 440,790 444,803 365,222 368,974 Federal Home Loan Bank of Boston advances Level 2 377,600 376,626 401,700 400,226 Repurchase agreement borrowings Level 2 10,500 10,539 21,000 21,669 Repurchase liabilities Level 2 35,769 35,765 48,987 48,986 Interest rate swap derivatives Level 2 10,677 10,677 7,252 7,252 Forward loan sales commitments Level 3 70 70 26 26 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters Disclosure [Abstract] | |
Schedule of actual capital amounts and ratios for the Company and the Bank | Actual Minimum Required To Be Well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Farmington Bank: At December 31, 2015 Total Capital (to Risk Weighted Assets) $ 236,486 11.16 % $ 169,524 8.00 % $ 211,905 10.00 % Tier I Capital (to Risk Weighted Assets) 215,787 10.18 127,183 6.00 169,577 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 215,787 10.18 95,387 4.50 137,781 6.50 Tier I Leverage Capital (to Average Assets) 215,787 8.03 107,490 4.00 134,363 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 December 31, 2015 Total Capital (to Risk Weighted Assets) $ 273,255 12.88 % $ 169,724 8.00 % $ 212,155 10.00 % Tier I Capital (to Risk Weighted Assets) 252,556 11.91 127,232 6.00 169,643 8.00 Common Equity Tier I Capital (to Risk Weighted Assets) 252,556 11.91 95,424 4.50 137,835 6.50 Tier I Leverage Capital (to Average Assets) 252,556 9.39 107,585 4.00 134,481 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) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive loss by component | Investment Employee Benefit Accumulated (Dollars in thousands) Balance at December 31, 2012 $ 465 $ (6,577 ) $ (6,112 ) Other comprehensive (loss) income during 2013 (833 ) - (833 ) Amount reclassified from accumulated other comprehensive loss, net of tax 224 2,497 2,721 Net change (609 ) 2,497 1,888 Balance at December 31, 2013 (144 ) (4,080 ) (4,224 ) Other comprehensive income (loss) during 2014 1,190 (3,477 ) (2,287 ) Balance at December 31, 2014 1,046 (7,557 ) (6,511 ) Other comprehensive (loss) income during 2015 (2,281 ) - (2,281 ) Amount reclassified from accumulated other comprehensive loss, net of tax 986 644 1,630 Balance at December 31, 2015 $ (249 ) $ (6,913 ) $ (7,162 ) |
Schedule of reconciliation of the changes in components of other comprehensive income | For the Year Ended December 31, 2015 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale securities $ (3,525 ) $ 1,244 $ (2,281 ) Less: net security gains reclassified into other noninterest income 1,523 (537 ) 986 Net change in fair value of securities available-for-sale (2,002 ) 707 (1,295 ) Reclassification adjustment for prior service costs and net loss included in net periodic pension costs (1) 986 (342 ) 644 Total other comprehensive loss $ (1,016 ) $ 365 $ (651 ) For the Year Ended December 31, 2014 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,831 $ (641 ) $ 1,190 Less: net security gains reclassified into other noninterest income - - - Net change in fair value of securities available-for-sale 1,831 (641 ) 1,190 Reclassification adjustment for prior service costs and net loss included in net periodic pension costs (1) (5,388 ) 1,911 (3,477 ) Total other comprehensive loss $ (3,557 ) $ 1,270 $ (2,287 ) For the Year Ended December 31, 2013 Pre Tax Tax Benefit After Tax (Dollars in thousands) Unrealized losses on available-for-sale securities $ (1,263 ) $ 430 $ (833 ) Less: net security gains reclassified into other noninterest income 340 (116 ) 224 Net change in fair value of securities available-for-sale (923 ) 314 (609 ) Reclassification adjustment for prior service costs and net gain included in net periodic pension costs (1) 3,783 (1,286 ) 2,497 Total other comprehensive income $ 2,860 $ (972 ) $ 1,888 (1) Amounts are included in salaries and employee benefits in the Consolidated Statements of Income. |
Parent Company Statements (Tabl
Parent Company Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed statements of condition | At December 31, 2015 2014 (Dollars in thousands) Assets Cash and cash equivalents $ 33,164 $ 27,875 Deferred income taxes 929 2,068 Due from Farmington Bank 58 8,010 Investment in Farmington Bank 208,952 195,022 Prepaid expenses and other assets 2,669 1,644 Total assets $ 245,772 $ 234,619 Liabilities $ 51 $ 56 Stockholders' equity 245,721 234,563 Total liabilities and stockholders’ equity $ 245,772 $ 234,619 |
Schedule of condensed statements of operations | For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Interest income $ 53 $ 79 $ 157 Noninterest expense (1,752 ) (1,683 ) (1,627 ) Income tax (expense) benefit (303 ) 503 364 Loss before equity in undistributed earnings of Farmington Bank (2,002 ) (1,101 ) (1,106 ) Equity in undistributed earnings of Farmington Bank 14,581 10,436 4,810 Net income $ 12,579 $ 9,335 $ 3,704 |
Schedule of condensed statements of comprehensive income (loss) | For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Net income $ 12,579 $ 9,335 $ 3,704 Other comprehensive (loss) income, before tax Unrealized (losses) gains on securities: Unrealized holding (losses) gains arising during the period (3,525 ) 1,831 (1,263 ) Less: reclassification adjustment for gains included in net income 1,523 - 340 Net change in unrealized (losses) gains (2,002 ) 1,831 (923 ) Change related to pension and other postretirement benefit plans 986 (5,388 ) 3,783 Other comprehensive (loss) income, before tax (1,016 ) (3,557 ) 2,860 Income tax (benefit) expense (365 ) (1,270 ) 972 Other comprehensive (loss) income, net of tax (651 ) (2,287 ) 1,888 Comprehensive income $ 11,928 $ 7,048 $ 5,592 |
Schedule of condensed statements of cash flows | For The Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Cash flows from operating activities: Net income $ 12,579 $ 9,335 $ 3,704 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of ESOP expense 1,522 1,480 1,404 Share based compensation expense 3,118 2,923 3,576 Equity in undistributed net income of Farmington Bank (14,581 ) (10,436 ) (4,810 ) Deferred income tax 1,139 253 286 Due from Farmington Bank 7,952 (1,892 ) (2,635 ) Increase in prepaid expenses and other assets (1,025 ) (839 ) (778 ) Decrease in accrued expenses and other liabilities (5 ) (3 ) (283 ) Net cash provided by operating activities 10,699 821 464 Cash flows from financing activities: Cancelation of shares for tax withholding (498 ) (440 ) (576 ) Repurchase of common stock (2,200 ) (6,257 ) (18,910 ) Excess tax benefits from stock-based compensation 152 110 35 Exercise of stock options 412 27 1,171 Cash dividend paid (3,276 ) (2,537 ) (1,878 ) Net cash used in financing activities (5,410 ) (9,097 ) (20,158 ) Net increase (decrease) in cash and cash equivalents 5,289 (8,276 ) (19,694 ) Cash and cash equivalents at beginning of year 27,875 36,151 55,845 Cash and cash equivalents at end of year $ 33,164 $ 27,875 $ 36,151 |
Selected Quarterly Consolidat50
Selected Quarterly Consolidated Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of summary of quarterly results of operations | Year Ended December 31, 2015 First Second Third Fourth quarter quarter quarter quarter (Dollars in thousands, except Per Share data) Interest income $ 19,532 $ 20,164 $ 21,094 $ 21,094 Interest expense 3,157 3,065 3,422 3,731 Net interest income 16,375 17,099 17,672 17,363 Provision for loan losses 615 663 386 776 Net interest income after provision for loan losses 15,760 16,436 17,286 16,587 Noninterest income 2,664 4,074 3,241 3,468 Noninterest expense 14,937 15,597 14,718 15,958 Income before income taxes 3,487 4,913 5,809 4,097 Income tax expense 976 1,441 1,594 1,716 Net income $ 2,511 $ 3,472 $ 4,215 $ 2,381 Net earnings per share: Basic $ 0.17 $ 0.23 $ 0.28 $ 0.16 Diluted $ 0.17 $ 0.23 $ 0.28 $ 0.16 Year Ended December 31, 2014 First Second Third Fourth quarter quarter quarter quarter (Dollars in thousands, except Per Share data) Interest income $ 16,980 $ 17,854 $ 18,528 $ 19,412 Interest expense 2,230 2,290 2,543 3,017 Net interest income 14,750 15,564 15,985 16,395 Provision for loan losses 505 410 1,041 632 Net interest income after provision for loan losses 14,245 15,154 14,944 15,763 Noninterest income 1,762 2,066 2,778 2,498 Noninterest expense 13,960 14,254 14,219 14,615 Income before income taxes 2,047 2,966 3,503 3,646 Income tax expense 555 776 997 499 Net income $ 1,492 $ 2,190 $ 2,506 $ 3,147 Net earnings per share: Basic $ 0.10 $ 0.15 $ 0.17 $ 0.21 Diluted $ 0.10 $ 0.14 $ 0.17 $ 0.21 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Detail Textuals) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)Officeshares | Jun. 21, 2013shares | |
Accounting Policies [Abstract] | ||
Number of branch offices | Office | 23 | |
Number of shares approved for repurchase | 1,676,452 | |
Shares to be repurchased in percentage | 10.00% | |
Number of shares repurchased | 147,020 | |
Value of shares repurchased | $ | $ 2.2 | |
Number of shares remaining to repurchase | 757,745 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Details Textuals 1) - Adjustments for error correction | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Increase in securities available for sale | $ 1,600,000 |
Decreased in deferred income taxes | 600,000 |
Increased in comprehensive income | $ 1,000,000 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Detail Textuals 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Minimum limit of nonaccrual loans outstanding | $ 100,000 | |
Foreclosed real estate included in prepaid expenses and other assets | $ 279,000 | $ 400,000 |
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. | |
Recorded investment | $ 4,500 | |
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% | |
Residential real estate | ||
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 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Detail Textuals 3) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | three to ten years |
Premises | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | five to forty years |
Restrictions on Cash and Due 55
Restrictions on Cash and Due from Banks (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Restrictions On Cash and Due From Banks [Abstract] | ||
Cash and liquid assets required | $ 17.7 | $ 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 | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Earnings Per Share [Abstract] | ||||||||||||||
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | $ 12,579 | $ 9,335 | $ 3,704 | |||
Less: Dividends to participating shares | (41) | (55) | (56) | |||||||||||
Income allocated to participating shares | (135) | (161) | (55) | |||||||||||
Net income allocated to common stockholders | $ 12,403 | $ 9,119 | $ 3,593 | |||||||||||
Weighted-average shares issued (in shares) | 17,996,918 | 18,025,893 | 18,059,089 | |||||||||||
Less: Average unallocated ESOP shares | (1,005,011) | (1,100,393) | (1,195,730) | |||||||||||
Average treasury stock | (2,048,101) | (1,886,168) | (1,118,785) | |||||||||||
Average unvested restricted stock | (217,199) | (357,185) | (491,153) | |||||||||||
Weighted-average basic shares outstanding (in shares) | 14,726,607 | 14,682,147 | 15,253,421 | |||||||||||
Plus: Average dilutive shares | 223,047 | 111,199 | 16,791 | |||||||||||
Weighted-average diluted shares outstanding (in shares) | 14,949,654 | 14,793,346 | 15,270,212 | |||||||||||
Net earnings per share: | ||||||||||||||
Basic (in dollars per share) | $ 0.16 | $ 0.28 | $ 0.23 | $ 0.17 | $ 0.21 | $ 0.17 | $ 0.15 | $ 0.10 | $ 0.84 | [1] | $ 0.62 | [1] | $ 0.24 | [1] |
Diluted (in dollars per share) | $ 0.16 | $ 0.28 | $ 0.23 | $ 0.17 | $ 0.21 | $ 0.17 | $ 0.14 | $ 0.10 | $ 0.83 | [1] | $ 0.62 | [1] | $ 0.24 | [1] |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of antidilutive securities excluded from earnings per share calculation | 78,500 | 72,250 | 26,750 |
Investment Securities - Summary
Investment Securities - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Amortized Cost | $ 132,807 | $ 186,422 |
Gross Unrealized Gains - Recognized in OCI | 423 | 2,181 |
Gross Unrealized Losses - Recognized in OCI | (806) | (562) |
Carrying Value | $ 132,424 | $ 188,041 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 132,424 | $ 188,041 |
Held-to-maturity | ||
Held-to-Maturity, Amortized Cost | $ 32,246 | $ 16,224 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross Unrealized losses - Recognized in OCI | ||
Carrying Value | $ 32,246 | $ 16,224 |
Gross Unrealized Gains - Not Recognized in OCI | 131 | 200 |
Gross Unrealized Losses - Not Recognized in OCI | (20) | (8) |
Fair Value | 32,357 | 16,416 |
U.S. Treasury obligations | ||
Available-for-sale | ||
Amortized Cost | 38,782 | 123,739 |
Gross Unrealized Gains - Recognized in OCI | 83 | 81 |
Gross Unrealized Losses - Recognized in OCI | (6) | (4) |
Carrying Value | $ 38,859 | $ 123,816 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 38,859 | $ 123,816 |
U.S. Government agency obligations | ||
Available-for-sale | ||
Amortized Cost | 82,002 | 49,013 |
Gross Unrealized Gains - Recognized in OCI | 43 | 110 |
Gross Unrealized Losses - Recognized in OCI | (240) | (14) |
Carrying Value | $ 81,805 | $ 49,109 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 81,805 | $ 49,109 |
Held-to-maturity | ||
Held-to-Maturity, Amortized Cost | $ 24,000 | $ 7,000 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross Unrealized losses - Recognized in OCI | ||
Carrying Value | $ 24,000 | $ 7,000 |
Gross Unrealized Gains - Not Recognized in OCI | 28 | |
Gross Unrealized Losses - Not Recognized in OCI | (20) | $ (8) |
Fair Value | 24,008 | 6,992 |
Government sponsored residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 4,958 | 6,624 |
Gross Unrealized Gains - Recognized in OCI | $ 195 | $ 283 |
Gross Unrealized Losses - Recognized in OCI | ||
Carrying Value | $ 5,153 | $ 6,907 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 5,153 | $ 6,907 |
Held-to-maturity | ||
Held-to-Maturity, Amortized Cost | $ 8,246 | $ 9,224 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross Unrealized losses - Recognized in OCI | ||
Carrying Value | $ 8,246 | $ 9,224 |
Gross Unrealized Gains - Not Recognized in OCI | 103 | $ 200 |
Gross Unrealized Losses - Not Recognized in OCI | ||
Fair Value | 8,349 | $ 9,424 |
Corporate debt securities | ||
Available-for-sale | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains - Recognized in OCI | $ 48 | $ 85 |
Gross Unrealized Losses - Recognized in OCI | ||
Carrying Value | $ 1,048 | $ 1,085 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 1,048 | $ 1,085 |
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 | $ (368) | (426) |
Carrying Value | $ 1,632 | $ 1,676 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 1,632 | $ 1,676 |
Marketable equity securities | ||
Available-for-sale | ||
Amortized Cost | 108 | 108 |
Gross Unrealized Gains - Recognized in OCI | 54 | 63 |
Gross Unrealized Losses - Recognized in OCI | (2) | (1) |
Carrying Value | $ 160 | $ 170 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 160 | $ 170 |
Mutual funds | ||
Available-for-sale | ||
Amortized Cost | $ 3,957 | $ 3,838 |
Gross Unrealized Gains - Recognized in OCI | ||
Gross Unrealized Losses - Recognized in OCI | $ (190) | $ (117) |
Carrying Value | $ 3,767 | $ 3,721 |
Gross Unrealized Gains - Not Recognized in OCI | ||
Gross Unrealized Losses -Not Recognized in OCI | ||
Fair Value | $ 3,767 | $ 3,721 |
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 |
Investment Securities - Gross u
Investment Securities - Gross unrealized losses and fair value (Details 1) $ in Thousands | Dec. 31, 2015USD ($)SecuritiesSecurity | Dec. 31, 2014USD ($)SecuritiesSecurity |
Available-for-sale Debt securities: | ||
Number of Securities | Security | 14 | 9 |
Less than 12 Months Fair Value | $ 76,697 | $ 60,908 |
Less than 12 months Gross Unrealized Loss | (246) | (18) |
12 months or more Fair Value | 4,405 | 4,421 |
12 months or more Gross Unrealized Loss | (560) | (544) |
Total Fair Value | 81,102 | 65,329 |
Total Gross Unrealized Loss | $ (806) | $ (562) |
Held-to-maturity | ||
Number of Securities | Securities | 1 | 1 |
Less than 12 months Fair Value | $ 6,980 | $ 6,992 |
Less than 12 Months Gross Unrealized Loss | $ (20) | $ (8) |
12 months or more Fair Value | ||
12 months or more Gross Unrealized Loss | ||
Total Fair Value | $ 6,980 | $ 6,992 |
Total Gross Unrealized Loss | $ (20) | $ (8) |
Total number of securities | Security | 15 | 10 |
Total investment securities in an unrealized loss position less than 12 months fair value | $ 83,677 | $ 67,900 |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (266) | (26) |
Total investment securities in an unrealized loss position 12 months or more fair value | 4,405 | 4,421 |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (560) | (544) |
Total investment securities in an unrealized loss position fair value | 88,082 | 72,321 |
Total investment securities in an unrealized loss position gross unrealized loss | $ (826) | $ (570) |
U.S. Treasury obligations | ||
Available-for-sale Debt securities: | ||
Number of Securities | Security | 4 | 4 |
Less than 12 Months Fair Value | $ 19,935 | $ 43,919 |
Less than 12 months Gross Unrealized Loss | $ (6) | $ (4) |
12 months or more Fair Value | ||
12 months or more Gross Unrealized Loss | ||
Total Fair Value | $ 19,935 | $ 43,919 |
Total Gross Unrealized Loss | $ (6) | $ (4) |
U.S. Government agency obligations | ||
Available-for-sale Debt securities: | ||
Number of Securities | Security | 7 | 2 |
Less than 12 Months Fair Value | $ 56,762 | $ 16,989 |
Less than 12 months Gross Unrealized Loss | $ (240) | $ (14) |
12 months or more Fair Value | ||
12 months or more Gross Unrealized Loss | ||
Total Fair Value | $ 56,762 | $ 16,989 |
Total Gross Unrealized Loss | $ (240) | $ (14) |
Held-to-maturity | ||
Number of Securities | Securities | 1 | 1 |
Less than 12 months Fair Value | $ 6,980 | $ 6,992 |
Less than 12 Months Gross Unrealized Loss | $ (20) | $ (8) |
12 months or more Fair Value | ||
12 months or more Gross Unrealized Loss | ||
Total Fair Value | $ 6,980 | $ 6,992 |
Total Gross Unrealized Loss | $ (20) | $ (8) |
Preferred equity securities | ||
Available-for-sale Debt securities: | ||
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 | $ 1,632 | $ 1,574 |
12 months or more Gross Unrealized Loss | (368) | (426) |
Total Fair Value | 1,632 | 1,574 |
Total Gross Unrealized Loss | $ (368) | $ (426) |
Marketable equity securities | ||
Available-for-sale Debt securities: | ||
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 | $ 5 | $ 5 |
12 months or more Gross Unrealized Loss | (2) | (1) |
Total Fair Value | 5 | 5 |
Total Gross Unrealized Loss | $ (2) | $ (1) |
Mutual funds | ||
Available-for-sale Debt securities: | ||
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 | $ 2,768 | $ 2,842 |
12 months or more Gross Unrealized Loss | (190) | (117) |
Total Fair Value | 2,768 | 2,842 |
Total Gross Unrealized Loss | $ (190) | $ (117) |
Investment Securities - Amortiz
Investment Securities - Amortized cost and estimated market value of debt securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-Sale - Amortized Cost | ||
Due in one year or less | $ 54,499 | $ 107,010 |
Due after one year through five years | $ 67,285 | 59,920 |
Due after five years through ten years | $ 6,822 | |
Due after ten years | ||
Government sponsored residential mortgage-backed securities, available-for-sale, amortized cost | $ 4,958 | $ 6,624 |
Available-for-sale, Amortized Cost | 126,742 | 180,376 |
Available-for-Sale - Estimated Fair Value | ||
Due in one year or less | 54,511 | 107,008 |
Due after one year through five years | $ 67,201 | 60,099 |
Due after five years through ten years | 6,903 | |
Due after ten years | 1,557 | |
Government sponsored residential mortgage-backed securities, available-for-sale, fair value | $ 5,153 | 6,907 |
Available-for-Sale, Estimated Fair Value | $ 126,865 | $ 182,474 |
Held-to-Maturity - Amortized Cost | ||
Due in one year or less | ||
Due after one year through five years | $ 24,000 | $ 7,000 |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities | $ 8,246 | $ 9,224 |
Held-to-Maturity, Amortized Cost | $ 32,246 | $ 16,224 |
Held-to-Maturity - Estimated Fair Value | ||
Due in one year or less | ||
Due after one year through five years | $ 24,008 | $ 6,992 |
Due after five years through ten years | ||
Due after ten years | ||
Government sponsored residential mortgage-backed securities, held-to-maturity, fair value | $ 8,349 | $ 9,424 |
Held-to-Maturity, Estimated Fair Value | $ 32,357 | $ 16,416 |
Investment Securities (Detail T
Investment Securities (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net unrealized gain (loss) on securities available for sale | $ (383,000) | $ 1,600,000 | |
Income tax expense (benefit) on net unrealized gain (loss) on securities available for sale | (135,000) | 575,000 | |
Net unrealized gain (loss) on securities available for sale included in accumulated other comprehensive income | (249,000) | 1,000,000 | |
Gross realized gains on sales of securities available for sale | $ 1,500,000 | $ 0 | $ 340,000 |
Investment Securities (Detail62
Investment Securities (Detail Textuals 1) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. Treasury, U.S. Government agency obligations and Government sponsored residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of securities pledged as collateral for loan derivatives, public funds, repurchase liabilities and repurchase agreement borrowings | $ 112.4 | $ 127.4 |
Investment Securities (Detail63
Investment Securities (Detail Textuals 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 21,729 | $ 19,785 |
Federal Home Loan Bank Of Boston | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB Stock | $ 21,700 | $ 19,800 |
Investment Securities (Detail64
Investment Securities (Detail Textuals 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Alternative investments | $ 2,500,000 | $ 2,700,000 | |
Recognized profit distributions in its limited partnerships | 26,000 | 75,000 | $ 91,000 |
Unfunded commitments for alternative investments | 637,000 | ||
Other noninterest income | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Other-than-temporary impairment charge | 144,000 | 51,000 | $ 0 |
Other assets | |||
Schedule Of Available For Sale Securities and Held To Maturity [Line Items] | |||
Alternative investments | 2,500,000 | $ 2,700,000 | |
Unfunded commitments for alternative investments | $ 637,000 |
Loans and Allowance for Loan 65
Loans and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ (20,198) | $ (18,960) | ||
Loans, net | 2,341,598 | 2,119,917 | ||
Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 2,357,812 | 2,135,035 | ||
Net deferred loan costs | 3,984 | 3,842 | ||
Loans | 2,361,796 | 2,138,877 | ||
Allowance for loan losses | (20,198) | (18,960) | $ (18,314) | $ (17,229) |
Loans, net | 2,341,598 | 2,119,917 | ||
Loans receivable | Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 849,722 | 827,005 | ||
Allowance for loan losses | (4,084) | (4,382) | (3,647) | (3,778) |
Loans receivable | Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 887,431 | 765,066 | ||
Allowance for loan losses | (10,255) | (8,949) | (8,253) | (8,105) |
Loans receivable | Real estate Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 30,895 | 57,371 | ||
Allowance for loan losses | (231) | (478) | (1,152) | (760) |
Loans receivable | Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 2,970 | 3,356 | ||
Allowance for loan losses | (39) | (41) | (48) | (77) |
Loans receivable | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 409,550 | 309,708 | ||
Allowance for loan losses | (4,119) | (3,250) | $ (3,746) | $ (2,654) |
Loans receivable | Collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,668 | $ 1,733 | ||
Allowance for loan losses | ||||
Loans receivable | Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 174,701 | $ 169,768 | ||
Allowance for loan losses | (1,470) | (1,859) | $ (1,465) | $ (1,377) |
Loans receivable | Revolving credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 91 | $ 99 | ||
Allowance for loan losses | ||||
Loans receivable | Resort | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 784 | $ 929 | ||
Allowance for loan losses | $ (1) | $ (3) | $ (456) |
Loans and Allowance for Loan 66
Loans and Allowance for Loan Losses - Changes in allowance for loan losses by segments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 18,960 | ||
Provision for (Reduction) loan losses | 2,440 | $ 2,588 | $ 1,530 |
Balance at end of year | 20,198 | 18,960 | |
Loans receivable | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 18,960 | 18,314 | 17,229 |
Charge-offs | (1,349) | (2,103) | (523) |
Recoveries | 147 | 161 | 78 |
Provision for (Reduction) loan losses | 2,440 | 2,588 | 1,530 |
Balance at end of year | 20,198 | 18,960 | 18,314 |
Loans receivable | Real estate Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 4,382 | 3,647 | 3,778 |
Charge-offs | (295) | (701) | (430) |
Recoveries | 112 | 58 | 6 |
Provision for (Reduction) loan losses | (115) | 1,378 | 293 |
Balance at end of year | 4,084 | 4,382 | 3,647 |
Loans receivable | Real estate Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 8,949 | 8,253 | $ 8,105 |
Charge-offs | $ (213) | (93) | |
Recoveries | 1 | ||
Provision for (Reduction) loan losses | $ 1,519 | 788 | $ 148 |
Balance at end of year | 10,255 | 8,949 | 8,253 |
Loans receivable | Real estate Construction | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 478 | $ 1,152 | $ 760 |
Charge-offs | |||
Recoveries | |||
Provision for (Reduction) loan losses | $ (247) | $ (674) | $ 392 |
Balance at end of year | 231 | 478 | 1,152 |
Loans receivable | Installment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 41 | 48 | $ 77 |
Charge-offs | $ (39) | $ (4) | |
Recoveries | |||
Provision for (Reduction) loan losses | $ 37 | $ (3) | $ (29) |
Balance at end of year | 39 | 41 | 48 |
Loans receivable | Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 3,250 | 3,746 | 2,654 |
Charge-offs | (318) | (1,066) | (31) |
Recoveries | 6 | 84 | 52 |
Provision for (Reduction) loan losses | 1,181 | 486 | 1,071 |
Balance at end of year | $ 4,119 | $ 3,250 | $ 3,746 |
Loans receivable | Collateral | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | |||
Charge-offs | |||
Recoveries | |||
Provision for (Reduction) loan losses | |||
Balance at end of year | |||
Loans receivable | Home equity line of credit | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 1,859 | $ 1,465 | $ 1,377 |
Charge-offs | $ (238) | $ (106) | |
Recoveries | |||
Provision for (Reduction) loan losses | $ (151) | $ 500 | $ 88 |
Balance at end of year | $ 1,470 | $ 1,859 | $ 1,465 |
Loans receivable | Revolving credit | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | |||
Charge-offs | $ (246) | $ (133) | $ (62) |
Recoveries | 29 | 18 | 20 |
Provision for (Reduction) loan losses | $ 217 | $ 115 | $ 42 |
Balance at end of year | |||
Loans receivable | Resort | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 1 | $ 3 | $ 456 |
Charge-offs | |||
Recoveries | |||
Provision for (Reduction) loan losses | $ (1) | $ (2) | $ (453) |
Balance at end of year | $ 1 | 3 | |
Loans receivable | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 22 | ||
Charge-offs | |||
Recoveries | |||
Provision for (Reduction) loan losses | $ (22) | ||
Balance at end of year |
Loans and Allowance for Loan 67
Loans and Allowance for Loan Losses - Allocation of the allowance by impairment methodology and by loan segment (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Reserve Allocation | $ 20,198 | $ 18,960 | ||
Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total - Loans individually evaluated for impairment | 41,017 | 43,452 | ||
Reserve Allocation - Loans individually evaluated for impairment | 534 | 752 | ||
Total -Loans collectively evaluated for impairment | 2,320,779 | 2,095,425 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 19,664 | 18,208 | ||
Total loans | 2,361,796 | 2,138,877 | ||
Total Reserve Allocation | 20,198 | 18,960 | $ 18,314 | $ 17,229 |
Loans receivable | Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total - Loans individually evaluated for impairment | 12,377 | 11,791 | ||
Reserve Allocation - Loans individually evaluated for impairment | 139 | 285 | ||
Total -Loans collectively evaluated for impairment | 841,921 | 819,630 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 3,945 | 4,097 | ||
Total Reserve Allocation | 4,084 | 4,382 | 3,647 | 3,778 |
Loans receivable | Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total - Loans individually evaluated for impairment | 16,152 | 19,051 | ||
Reserve Allocation - Loans individually evaluated for impairment | 26 | 233 | ||
Total -Loans collectively evaluated for impairment | 870,757 | 745,501 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 10,229 | 8,716 | ||
Total Reserve Allocation | 10,255 | 8,949 | 8,253 | 8,105 |
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 | $ 26,176 | $ 52,652 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 231 | 478 | ||
Total Reserve Allocation | 231 | 478 | 1,152 | 760 |
Loans receivable | Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total - Loans individually evaluated for impairment | 259 | 251 | ||
Reserve Allocation - Loans individually evaluated for impairment | 8 | 8 | ||
Total -Loans collectively evaluated for impairment | 2,695 | 3,093 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 31 | 33 | ||
Total Reserve Allocation | 39 | 41 | 48 | 77 |
Loans receivable | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total - Loans individually evaluated for impairment | 6,023 | 5,680 | ||
Reserve Allocation - Loans individually evaluated for impairment | 361 | 225 | ||
Total -Loans collectively evaluated for impairment | 403,473 | 303,980 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 3,758 | 3,025 | ||
Total Reserve Allocation | $ 4,119 | $ 3,250 | $ 3,746 | $ 2,654 |
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 | $ 1,668 | $ 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 | $ 703 | $ 1,031 | ||
Reserve Allocation - Loans individually evaluated for impairment | ||||
Total -Loans collectively evaluated for impairment | $ 173,998 | $ 168,737 | ||
Reserve Allocation - Loans collectively evaluated for impairment | 1,470 | 1,859 | ||
Total Reserve Allocation | $ 1,470 | $ 1,859 | $ 1,465 | $ 1,377 |
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 | $ 91 | $ 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 | $ 784 | $ 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 | $ 3 | $ 456 |
Loans and Allowance for Loan 68
Loans and Allowance for Loan Losses - Summary of loan delinquencies at recorded investment (Details 3) - Loans receivable $ in Thousands | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 67 | 79 |
Loan receivable, recorded investment | $ 14,945 | $ 16,079 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 38 | 35 |
Loan receivable, recorded investment | $ 4,265 | $ 4,424 |
60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 7 | 10 |
Loan receivable, recorded investment | $ 1,223 | $ 1,698 |
> 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 22 | 34 |
Loan receivable, recorded investment | $ 9,457 | $ 9,957 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 38 | 38 |
Loan receivable, recorded investment | $ 10,546 | $ 11,681 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Real estate Residential | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 18 | 16 |
Loan receivable, recorded investment | $ 3,379 | $ 3,599 |
Real estate Residential | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 5 | 6 |
Loan receivable, recorded investment | $ 863 | $ 1,263 |
Real estate Residential | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 15 | 16 |
Loan receivable, recorded investment | $ 6,304 | $ 6,819 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 5 |
Loan receivable, recorded investment | $ 1,312 | $ 2,327 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Real estate Commercial | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 2 |
Loan receivable, recorded investment | $ 318 | $ 348 |
Real estate Commercial | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Real estate Commercial | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 3 |
Loan receivable, recorded investment | $ 994 | $ 1,979 |
Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 187 | $ 187 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Real estate Construction | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Real estate Construction | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Real estate Construction | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 187 | $ 187 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 7 |
Loan receivable, recorded investment | $ 38 | $ 184 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Installment | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 3 |
Loan receivable, recorded investment | $ 38 | $ 69 |
Installment | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | |
Loan receivable, recorded investment | $ 82 | |
Installment | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | |
Loan receivable, recorded investment | $ 33 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 6 | 9 |
Loan receivable, recorded investment | $ 1,905 | $ 594 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Commercial | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 4 | 1 |
Loan receivable, recorded investment | $ 153 | $ 40 |
Commercial | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | |
Loan receivable, recorded investment | $ 4 | |
Commercial | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 7 |
Loan receivable, recorded investment | $ 1,752 | $ 550 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 8 | 9 |
Loan receivable, recorded investment | $ 78 | $ 99 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Collateral | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 7 | 9 |
Loan receivable, recorded investment | $ 68 | $ 99 |
Collateral | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Collateral | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | |
Loan receivable, recorded investment | $ 10 | |
Home equity line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 7 | 9 |
Loan receivable, recorded investment | $ 850 | $ 940 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Home equity line of credit | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 3 | 3 |
Loan receivable, recorded investment | $ 280 | $ 202 |
Home equity line of credit | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 1 |
Loan receivable, recorded investment | $ 360 | $ 349 |
Home equity line of credit | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 2 | 5 |
Loan receivable, recorded investment | $ 210 | $ 389 |
Demand | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 29 | $ 67 |
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Demand | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | 1 | 1 |
Loan receivable, recorded investment | $ 29 | $ 67 |
Demand | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Demand | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Revolving credit | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Revolving credit | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Revolving credit | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Loan receivable, recorded investment, 90 days past due and still accruing | ||
Resort | 30-59 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Resort | 60-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment | ||
Resort | > 90 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of financing receivable recorded investment past due | Loan | ||
Loan receivable, recorded investment |
Loans and Allowance for Loan 69
Loans and Allowance for Loan Losses - Nonperforming assets (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other real estate owned | $ 279,000 | $ 400,000 |
Loans receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 14,913 | $ 15,468 |
Loans 90 days past due and still accruing | ||
Other real estate owned | $ 279 | $ 400 |
Total nonperforming assets | 15,192 | 15,868 |
Loans receivable | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 9,773 | $ 9,706 |
Loans 90 days past due and still accruing | ||
Loans receivable | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 1,106 | $ 2,112 |
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 | $ 187 |
Loans 90 days past due and still accruing | ||
Loans receivable | Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 32 | $ 155 |
Loans 90 days past due and still accruing | ||
Loans receivable | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 3,232 | $ 2,268 |
Loans 90 days past due and still accruing | ||
Loans receivable | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccruing loans | $ 10 | |
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 | $ 573 | $ 1,040 |
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 70
Loans and Allowance for Loan Losses - Summary of impaired loans (Details 5) - Loans receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 35,092 | $ 29,163 |
Unpaid Principal Balance | 36,917 | 30,159 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 5,925 | 14,289 |
Unpaid Principal Balance | 6,329 | 15,597 |
Related Allowance | 534 | 752 |
Total Recorded Investment | 41,017 | 43,452 |
Total Unpaid Principal Balance | 43,246 | 45,756 |
Total Related Allowance | 534 | 752 |
Real estate Residential | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 11,530 | 5,862 |
Unpaid Principal Balance | 12,878 | 6,286 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 847 | 5,929 |
Unpaid Principal Balance | 881 | 6,848 |
Related Allowance | 139 | 285 |
Real estate Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 13,233 | 13,804 |
Unpaid Principal Balance | 13,303 | 13,828 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 2,919 | 5,247 |
Unpaid Principal Balance | 2,919 | 5,523 |
Related Allowance | 26 | 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 | $ 202 | $ 220 |
Unpaid Principal Balance | 202 | 232 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 57 | 31 |
Unpaid Principal Balance | 72 | 31 |
Related Allowance | 8 | 8 |
Commercial | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 3,921 | 3,527 |
Unpaid Principal Balance | 4,066 | 3,584 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 2,102 | 2,153 |
Unpaid Principal Balance | 2,457 | 2,266 |
Related Allowance | $ 361 | $ 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 | $ 703 | $ 1,031 |
Unpaid Principal Balance | $ 719 | $ 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 | $ 784 | |
Unpaid Principal Balance | $ 784 | |
Impaired loans with a valuation allowance | ||
Recorded Investment | $ 929 | |
Unpaid Principal Balance | 929 | |
Related Allowance | $ 1 |
Loans and Allowance for Loan 71
Loans and Allowance for Loan Losses - Summary of information pertaining to impaired loans (Details 6) - Loans receivable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired loans without a valuation allowance | |||
Average Recorded Investment | $ 35,189 | $ 27,879 | $ 20,217 |
Interest Income Recognized | 979 | 1,086 | 883 |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | 6,258 | 13,799 | 19,540 |
Interest Income Recognized | 209 | 288 | 313 |
Total Average Recorded Investment | 41,447 | 41,678 | 39,757 |
Total Interest Income Recognized | 1,188 | 1,374 | 1,196 |
Real Estate Residential | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | 10,621 | 6,727 | 5,683 |
Interest Income Recognized | 112 | 88 | 28 |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | 1,037 | 5,592 | 5,872 |
Interest Income Recognized | 35 | 41 | 52 |
Real Estate Commercial | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | 13,674 | 15,159 | 10,695 |
Interest Income Recognized | 575 | 705 | 814 |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | 3,504 | 4,765 | 8,594 |
Interest Income Recognized | 158 | 137 | 147 |
Real estate Construction | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | 4,719 | 1,320 | $ 237 |
Interest Income Recognized | $ 138 | $ 138 | |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | $ 198 | ||
Interest Income Recognized | |||
Installment | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | $ 238 | $ 198 | $ 52 |
Interest Income Recognized | 14 | 13 | 13 |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | 35 | 29 | 27 |
Interest Income Recognized | 1 | 1 | 1 |
Commercial | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | 4,182 | 3,791 | 3,059 |
Interest Income Recognized | 110 | 140 | 28 |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | 1,682 | 2,378 | 3,854 |
Interest Income Recognized | $ 15 | $ 74 | $ 66 |
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 | $ 928 | $ 684 | $ 491 |
Interest Income Recognized | $ 4 | $ 2 | |
Impaired loans with a valuation allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Demand | |||
Impaired loans without a valuation allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
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 | $ 827 | ||
Interest Income Recognized | $ 26 | ||
Impaired loans with a valuation allowance | |||
Average Recorded Investment | $ 1,035 | $ 995 | |
Interest Income Recognized | $ 35 | $ 47 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan Losses - Information modified in a troubled debt restructuring (Details 7) - Loans receivable $ in Thousands | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 33 | 32 |
TDRs on Accrual Status of Recorded Investment | $ | $ 16,952 | $ 18,664 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 22 | 19 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 7,258 | $ 7,581 |
Number of Total TDRs of Loans | Loan | 55 | 51 |
Total TDRs of Recorded Investment | $ | $ 24,210 | $ 26,245 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 14 | 11 |
TDRs on Accrual Status of Recorded Investment | $ | $ 2,242 | $ 1,849 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 11 | 10 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 5,557 | $ 5,608 |
Number of Total TDRs of Loans | Loan | 25 | 21 |
Total TDRs of Recorded Investment | $ | $ 7,799 | $ 7,457 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 4 | 7 |
TDRs on Accrual Status of Recorded Investment | $ | $ 6,664 | $ 8,359 |
Number of TDRs on Nonaccrual Status of Loans | Loan | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | Loan | 4 | 7 |
Total TDRs of Recorded Investment | $ | $ 6,664 | $ 8,359 |
Real estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 1 | 1 |
TDRs on Accrual Status of Recorded Investment | $ | $ 4,532 | $ 4,532 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 1 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 187 | $ 187 |
Number of Total TDRs of Loans | Loan | 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 | Loan | 4 | 4 |
TDRs on Accrual Status of Recorded Investment | $ | $ 227 | $ 212 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 2 | 1 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 32 | $ 39 |
Number of Total TDRs of Loans | Loan | 6 | 5 |
Total TDRs of Recorded Investment | $ | $ 259 | $ 251 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 6 | 8 |
TDRs on Accrual Status of Recorded Investment | $ | $ 2,350 | $ 2,783 |
Number of TDRs on Nonaccrual Status of Loans | Loan | 8 | 5 |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 1,482 | $ 1,621 |
Number of Total TDRs of Loans | Loan | 14 | 13 |
Total TDRs of Recorded Investment | $ | $ 3,832 | $ 4,404 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | ||
TDRs on Accrual Status of Recorded Investment | $ | ||
Number of TDRs on Nonaccrual Status of Loans | Loan | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | Loan | ||
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 | Loan | 3 | |
TDRs on Accrual Status of Recorded Investment | $ | $ 153 | |
Number of TDRs on Nonaccrual Status of Loans | Loan | 2 | |
TDRs on Nonaccrual Status of Recorded Investment | $ | $ 126 | |
Number of Total TDRs of Loans | Loan | 3 | 2 |
Total TDRs of Recorded Investment | $ | $ 153 | $ 126 |
Revolving credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | ||
TDRs on Accrual Status of Recorded Investment | $ | ||
Number of TDRs on Nonaccrual Status of Loans | Loan | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | Loan | ||
Total TDRs of Recorded Investment | $ | ||
Resort | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDRs on Accrual Status of Loans | Loan | 1 | 1 |
TDRs on Accrual Status of Recorded Investment | $ | $ 784 | $ 929 |
Number of TDRs on Nonaccrual Status of Loans | Loan | ||
TDRs on Nonaccrual Status of Recorded Investment | $ | ||
Number of Total TDRs of Loans | Loan | 1 | 1 |
Total TDRs of Recorded Investment | $ | $ 784 | $ 929 |
Loans and Allowance for Loan 73
Loans and Allowance for Loan Losses - Recorded investment and number of modifications for modified loans (Details 8) - Loans receivable $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 16 | 17 | 24 | |
Recorded Investment Prior to Modification | $ 2,372 | $ 10,165 | $ 6,714 | |
Recorded Investment After Modification | [1] | $ 2,324 | $ 9,461 | $ 6,658 |
Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 8 | 10 | 7 | |
Recorded Investment Prior to Modification | $ 1,549 | $ 1,814 | $ 1,640 | |
Recorded Investment After Modification | [1] | $ 1,520 | $ 1,744 | $ 1,617 |
Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 4 | ||
Recorded Investment Prior to Modification | $ 493 | $ 2,242 | ||
Recorded Investment After Modification | [1] | $ 483 | $ 2,231 | |
Real estate Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 1 | ||
Recorded Investment Prior to Modification | $ 4,532 | $ 187 | ||
Recorded Investment After Modification | [1] | $ 4,532 | $ 187 | |
Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 2 | 3 | |
Recorded Investment Prior to Modification | $ 44 | $ 56 | $ 216 | |
Recorded Investment After Modification | [1] | $ 40 | $ 55 | $ 215 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 3 | 4 | 6 | |
Recorded Investment Prior to Modification | $ 133 | $ 3,763 | $ 2,076 | |
Recorded Investment After Modification | [1] | $ 128 | $ 3,130 | $ 2,101 |
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 3 | 3 | ||
Recorded Investment Prior to Modification | $ 153 | $ 353 | ||
Recorded Investment After Modification | [1] | $ 153 | $ 307 | |
[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 74
Loans and Allowance for Loan Losses - TDR loans (Details 9) - Loans receivable $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 16 | 17 | 24 | |
Extended Maturity | $ 6,580 | $ 4,046 | ||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 33 | $ 224 | $ 273 | |
Other | 2,291 | 2,657 | 2,339 | |
Total | [1] | $ 2,324 | $ 9,461 | $ 6,658 |
Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 8 | 10 | 7 | |
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 224 | $ 225 | ||
Other | $ 1,520 | 1,520 | 1,392 | |
Total | [1] | $ 1,520 | $ 1,744 | $ 1,617 |
Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 4 | ||
Extended Maturity | $ 2,095 | |||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 483 | $ 136 | ||
Total | [1] | $ 483 | $ 2,231 | |
Real estate Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 1 | ||
Extended Maturity | $ 4,532 | |||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | ||||
Other | $ 187 | |||
Total | [1] | $ 4,532 | $ 187 | |
Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 1 | 2 | 3 | |
Extended Maturity | $ 39 | |||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 34 | |||
Other | $ 40 | $ 16 | 181 | |
Total | [1] | $ 40 | $ 55 | $ 215 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 3 | 4 | 6 | |
Extended Maturity | $ 2,009 | $ 1,951 | ||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 33 | |||
Other | 95 | $ 1,121 | $ 150 | |
Total | [1] | $ 128 | $ 3,130 | $ 2,101 |
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | Loan | 3 | 3 | ||
Extended Maturity | ||||
Adjusted Interest Rates | ||||
Combination of Rate and Maturity | $ 14 | |||
Other | $ 153 | 293 | ||
Total | [1] | $ 153 | $ 307 | |
[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 75
Loans and Allowance for Loan Losses - Loans modified as a TDR (Details 10) - Loans receivable $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 2 | 4 | 5 | |
Recorded Investment | $ | [1] | $ 345 | $ 731 | $ 2,041 |
Real estate Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 1 | 2 | ||
Recorded Investment | $ | [1] | $ 314 | $ 662 | |
Real estate Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 2 | |||
Recorded Investment | $ | [1] | $ 1,758 | ||
Installment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 1 | |||
Recorded Investment | $ | [1] | $ 31 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 2 | 2 | ||
Recorded Investment | $ | [1] | $ 69 | $ 100 | |
Home equity line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 1 | |||
Recorded Investment | $ | [1] | $ 183 | ||
[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 76
Loans and Allowance for Loan Losses - Risk rating (Details 11) - Loans receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,357,812 | $ 2,135,035 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,302,027 | 2,067,731 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 22,650 | 28,840 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 32,969 | 38,252 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 166 | 212 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 849,722 | 827,005 |
Real estate Residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 838,314 | 815,209 |
Real estate Residential | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,154 | 488 |
Real estate Residential | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 10,254 | $ 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 | $ 887,431 | $ 765,066 |
Real estate Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 867,531 | 741,278 |
Real estate Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,861 | 12,550 |
Real estate Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 9,039 | $ 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 | $ 30,895 | $ 57,371 |
Real estate Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 26,176 | 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 | $ 2,970 | $ 3,356 |
Installment | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,886 | 3,113 |
Installment | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 52 | 41 |
Installment | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 32 | $ 202 |
Installment | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | ||
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 409,550 | $ 309,708 |
Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 390,719 | 285,185 |
Commercial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,354 | 14,754 |
Commercial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 8,311 | 9,557 |
Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 166 | 212 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,668 | 1,733 |
Collateral | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,647 | $ 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 | $ 21 | |
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 | $ 174,701 | $ 169,768 |
Home equity line of credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 173,879 | 168,238 |
Home equity line of credit | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 229 | 302 |
Home equity line of credit | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 593 | $ 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 | $ 91 | $ 99 |
Revolving credit | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 91 | $ 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 | $ 784 | $ 929 |
Resort | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 784 | $ 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 77
Loans and Allowance for Loan Losses (Detail Textuals) - Loans receivable | 12 Months Ended | |
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded investment balance of TDRs approximated | $ 24,210,000 | $ 26,245,000 |
TDRs on accrual status | 16,952,000 | 18,664,000 |
TDRs on nonaccrual status | $ 7,258,000 | 7,581,000 |
Percentage of accruing TDRs | 100.00% | |
Allowance for loan losses included specific reserves | $ 340,000 | 592,000 |
Bank charge-offs | 296,000 | 1,300,000 |
Additional funds available to borrowers in TDR status | $ 272,000 | $ 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 ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets At Amortized Value [Line Items] | |||
Net gain on loans sold | $ 2,492,000 | $ 1,419,000 | $ 4,825,000 |
Mortgage servicing rights | |||
Servicing Assets At Amortized Value [Line Items] | |||
Carrying value of mortgage servicing rights | 4,400,000 | 3,300,000 | |
Fair value of mortgage servicing rights | 5,000,000 | 3,600,000 | |
Loans sold with servicing rights retained | 165,500,000 | 67,300,000 | 158,500,000 |
Net gain on loans sold | 2,500,000 | 1,400,000 | 4,800,000 |
Principal balance of loans serviced for others | 457,500,000 | 335,200,000 | 299,000,000 |
Mortgage servicing rights | Other noninterest income | |||
Servicing Assets At Amortized Value [Line Items] | |||
Loan servicing fees | $ 932,000 | $ 781,000 | $ 608,000 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 40,766 | $ 38,913 |
Less: accumulated depreciation and amortization | (22,201) | (20,040) |
Premises and equipment, net | 18,565 | 18,873 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,326 | 1,326 |
Premises and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 19,314 | 18,767 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 15,280 | 14,215 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,846 | $ 4,605 |
Premises and Equipment (Detail
Premises and Equipment (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2,640 | $ 3,100 | $ 3,079 |
Credit Arrangements - FHLBB adv
Credit Arrangements - FHLBB advances (Details) - Federal Home Loan Bank Of Boston - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FHLBB advances Amount | ||
2,015 | $ 290,000 | |
2,016 | $ 157,000 | |
2,017 | 35,000 | $ 35,000 |
2,018 | 50,000 | 20,000 |
2,019 | 81,600 | $ 56,700 |
2,020 | 40,000 | |
Thereafter | 14,000 | |
FHLBB advances | $ 377,600 | $ 401,700 |
FHLBB advances Weighted Average Rate | ||
2,014 | 0.41% | |
2,015 | 0.46% | |
2,016 | 1.23% | 1.23% |
2,017 | 1.53% | 1.83% |
2,018 | 1.74% | 1.82% |
2,019 | 1.75% | |
Thereafter | 1.90% | |
Weighted Average Rate | 1.14% | 0.75% |
Credit Arrangements - Borrowing
Credit Arrangements - Borrowings under the Master Repurchase Agreement (Details 1) - Master Repurchase Agreement Borrowing Facility - Broker - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Outstanding borrowings | $ 10,500 | $ 21,000 |
Maturity date 3/13/2018 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advance Date | Mar. 13, 2008 | |
Interest Rate | 3.34% | |
Maturity Date | Mar. 13, 2018 | |
Outstanding borrowings | $ 6,000 | 6,000 |
Maturity date 3/13/2018 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advance Date | Mar. 13, 2008 | |
Interest Rate | 3.93% | |
Maturity Date | Mar. 13, 2018 | |
Outstanding borrowings | $ 4,500 | 4,500 |
Maturity date 3/13/2015 | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advance Date | Mar. 13, 2008 | |
Interest Rate | 3.16% | |
Maturity Date | Mar. 13, 2015 | |
Outstanding borrowings | $ 10,500 |
Credit Arrangements (Detail Tex
Credit Arrangements (Detail Textuals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Balance with the bank | $ 17,700,000 | $ 10,100,000 |
Federal Home Loan Bank Of Boston | Unsecured line of credit with bank | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | 45,000,000 | 20,000,000 |
Amount under unsecured line of credit agreement | 3,500,000 | |
Balance with the bank | 512,500 | |
Federal Home Loan Bank Of Boston | Line of credit | ||
Line of Credit Facility [Line Items] | ||
Pre-approved line of credit | $ 8,800,000 | $ 8,800,000 |
Credit Arrangements (Detail T84
Credit Arrangements (Detail Textuals 1) - Federal Home Loan Bank Of Boston - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank of Boston advances | $ 377,600 | $ 401,700 |
Collateral value first mortgage loans | 1,300,000 | 812,800 |
Line of credit facility, remaining borrowing capacity | 407,800 | 122,500 |
Letter of credit | $ 63,000 | $ 22,000 |
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 T85
Credit Arrangements (Detail Textuals 2) - Discount Window Loan Collateral Program - Federal Reserve Bank Advances - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Amount borrowed under discount window loan collateral program | $ 63.2 | $ 71 |
Collateralized amount of funding arrangement in pledged commercial real estate loans | $ 136.6 | $ 141.6 |
Credit Arrangements (Detail T86
Credit Arrangements (Detail Textuals 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Investments in certain securities | $ 40,400 | $ 74,400 |
Repurchase liabilities | 35,769 | 48,987 |
Master Repurchase Agreement Borrowing Facility | Broker | ||
Line of Credit Facility [Line Items] | ||
Investments in certain securities | 11,300 | 23,000 |
Outstanding borrowings | 10,500 | 21,000 |
Repurchase liabilities | $ 35,800 | $ 49,000 |
Deposits - Deposit balances and
Deposits - Deposit balances and weighted average interest rates (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand deposits | $ 401,388 | $ 330,524 |
Interest-bearing | ||
NOW accounts | 468,054 | 355,412 |
Money market | 460,737 | 470,991 |
Savings accounts | 220,389 | 210,892 |
Time deposits | 440,790 | 365,222 |
Total interest-bearing deposits | 1,589,970 | 1,402,517 |
Total Deposits | $ 1,991,358 | $ 1,733,041 |
Rate | ||
NOW accounts | 0.29% | 0.26% |
Money market | 0.79% | 0.74% |
Savings accounts | 0.11% | 0.10% |
Time deposits | 1.03% | 0.91% |
Total interest-bearing deposits | 0.61% | 0.55% |
Deposits - Contractual maturiti
Deposits - Contractual maturities of time deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Less than one year | $ 267,748 | $ 239,627 |
One to two years | 106,002 | 61,338 |
Two to three years | 28,245 | 32,961 |
Three to four years | 23,228 | 7,668 |
Four to five years | 15,567 | 23,628 |
Time Deposits | $ 440,790 | $ 365,222 |
Deposits - Interest expense on
Deposits - Interest expense on deposits (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Banking and Thrift [Abstract] | |||
NOW accounts | $ 1,351 | $ 976 | $ 638 |
Money market | 3,592 | 3,112 | 2,878 |
Savings accounts | 226 | 205 | 206 |
Time deposits | 4,203 | 3,076 | 3,460 |
Total interest expense | $ 9,372 | $ 7,369 | $ 7,182 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Brokered deposit | $ 44.3 | $ 0 |
Time certificates of deposit in denominations of $250,000 or more | $ 89.6 | $ 83.4 |
Pension and Other Postretirem91
Pension and Other Postretirement Benefit Plans - Plan assets and funded status of pension plans and other postretirement benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 26,923 | $ 21,909 | |
Service cost | |||
Interest cost | $ 1,036 | $ 1,022 | $ 951 |
Actuarial loss (gain) | (1,689) | 5,009 | |
Benefits paid | (1,095) | (1,017) | |
Benefit obligation at end of year | 25,175 | 26,923 | 21,909 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 19,271 | 17,896 | |
Actual return on plan assets | (379) | 666 | |
Employer contributions | 1,226 | 1,726 | |
Benefits paid | (1,095) | (1,017) | |
Fair value of plan assets at end of year | 19,023 | 19,271 | 17,896 |
Funded status recognized in the statements of condition | (6,152) | (7,652) | |
Accumulated benefit obligation | (25,175) | (26,923) | |
Other Postretirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 3,224 | 3,156 | |
Service cost | 75 | 60 | 101 |
Interest cost | 127 | 146 | 128 |
Actuarial loss (gain) | (442) | (45) | |
Benefits paid | (85) | (92) | |
Benefit obligation at end of year | $ 2,899 | $ 3,224 | $ 3,156 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | |||
Actual return on plan assets | |||
Employer contributions | $ 85 | $ 92 | |
Benefits paid | $ (85) | $ (92) | |
Fair value of plan assets at end of year | |||
Funded status recognized in the statements of condition | $ (2,899) | $ (3,225) |
Pension and Other Postretirem92
Pension and Other Postretirement Benefit Plans - Accumulated other comprehensive income (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior Service Cost | ||
Actuarial loss | $ (7,044) | $ (7,419) |
Unrecognized components of net periodic benefit cost in accumulated other comprehensive income, net of tax | (7,044) | (7,419) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior Service Cost | 155 | 189 |
Actuarial loss | (24) | (326) |
Unrecognized components of net periodic benefit cost in accumulated other comprehensive income, net of tax | $ 131 | $ (137) |
Pension and Other Postretirem93
Pension and Other Postretirement Benefit Plans - Components of net periodic pension and benefit costs (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Amortization of prior service cost (credit) | [1] | $ 644 | $ (3,477) | $ 2,497 |
Pension Benefits | ||||
Components of net periodic pension cost | ||||
Service cost | ||||
Interest cost | $ 1,036 | $ 1,022 | $ 951 | |
Expected return on plan assets | $ (1,448) | $ (1,339) | $ (1,135) | |
Amortization of unrecognized prior service cost | ||||
Recognized net actuarial loss | $ 709 | $ 306 | $ 573 | |
Curtailment charge | ||||
Net periodic pension cost | $ 297 | $ (11) | $ 389 | |
Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Net (gain) loss | [2] | 138 | 5,683 | (2,907) |
Amortization of net loss | $ (709) | $ (306) | $ (573) | |
Amortization of prior service cost (credit) | ||||
Curtailment charge | ||||
Total recognized in other comprehensive income | $ (571) | $ 5,377 | $ (3,480) | |
Total recognized in net periodic pension cost and other comprehensive income | (274) | 5,366 | (3,091) | |
Other Postretirement Benefits | ||||
Components of net periodic pension cost | ||||
Service cost | 75 | 60 | 101 | |
Interest cost | 127 | 146 | 128 | |
Recognized net loss | 21 | 18 | 42 | |
Amortization of unrecognized prior service cost | $ (50) | $ (50) | $ (50) | |
Curtailment charge | ||||
Net periodic pension cost | $ 173 | $ 174 | $ 221 | |
Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||
Net (gain) loss | (442) | (45) | (310) | |
Amortization of net loss | $ (21) | $ (18) | $ (42) | |
Amortization of prior service cost (credit) | ||||
Change in prior service costs | $ 50 | $ 50 | $ 50 | |
Total recognized in other comprehensive income | (413) | (13) | (302) | |
Total recognized in net periodic pension cost and other comprehensive income | $ (240) | $ 161 | $ (81) | |
[1] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Income. | |||
[2] | For the year ended December 31, 2014, the increase in loss was primarily due to the mortality tables being updated from IRS 2013 Combined Static Mortality to SOA RP-2014 Total Dataset Mortality with Scale MP-2014, which better reflected the overall mortality trend in private pension plans in the U.S. and a change in the discount rate. |
Pension and Other Postretirem94
Pension and Other Postretirement Benefit Plans - Estimated amounts that will be amortized from accumulated other comprehensive income (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) | |
Actuarial loss | $ 671 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost (credit) | $ (50) |
Actuarial loss |
Pension and Other Postretirem95
Pension and Other Postretirement Benefit Plans - Significant actuarial assumptions (Details 4) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Weighted-average assumptions used to determine net periodic pension costs: | |||
Discount rate | 4.35% | ||
Pension Benefits | |||
Weighted-average assumptions used to determine funding status: | |||
Discount rate | [1] | 4.35% | 3.95% |
Rate of compensation increase | [2],[3] | ||
Weighted-average assumptions used to determine net periodic pension costs: | |||
Discount rate | 3.95% | 4.85% | |
Expected return on plan assets | [2] | 6.00% | 7.50% |
Rate of compensation increase | [2],[3] | ||
Other Postretirement Benefits | |||
Weighted-average assumptions used to determine funding status: | |||
Discount rate | [1] | 4.20% | 3.85% |
Rate of compensation increase | [2],[3] | ||
Weighted-average assumptions used to determine net periodic pension costs: | |||
Discount rate | 3.85% | 4.75% | |
Expected return on plan assets | [2] | ||
Rate of compensation increase | [2],[3] | ||
[1] | Weighted average discount rate for the supplemental retirement plan was 3.80 % and 3.55% for the years ended December 31, 2015 and 2014, respectively. | ||
[2] | Rates not applicable to the supplemental retirement plan. | ||
[3] | The compensation rate increase is not applicable after the Pension Plan freeze on February 28, 2013. |
Pension and Other Postretirem96
Pension and Other Postretirement Benefit Plans - Health Care Trend Assumptions (Details 5) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for next year | 9.50% | 9.50% |
Rate that the cost trend rate gradually declines to | 5.00% | 5.00% |
Year that the rate reaches the rate it is assumed to remain at | 2,023 | 2,023 |
Pension and Other Postretirem97
Pension and Other Postretirement Benefit Plans - One percentage point change in assumed health care cost trend rates (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Effect on total of service and interest components, One Percentage Point Increase | $ 11 | $ 12 |
Effect on total of service and interest components, One Percentage Point Decrease | (10) | (10) |
Effect on postretirement benefit obligation, One Percentage Point Increase | 233 | 294 |
Effect on postretirement benefit obligation, One Percentage Point Decrease | $ (198) | $ (247) |
Pension and Other Postretirem98
Pension and Other Postretirement Benefit Plans - Fair value of pension plan assets (Details 7) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 19,023 | $ 19,271 | $ 17,896 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 12,181 | 11,987 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,842 | 7,284 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Mutual funds - fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,659 | 6,680 | |
Mutual funds - fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,659 | $ 6,680 | |
Mutual funds - fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Mutual funds - fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Mutual funds - equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 5,522 | $ 5,307 | |
Mutual funds - equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 5,522 | $ 5,307 | |
Mutual funds - equity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Mutual funds - equity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - Equity separate account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,136 | $ 5,926 | |
Pooled separate accounts - Equity separate account | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - Equity separate account | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,136 | $ 5,926 | |
Pooled separate accounts - Equity separate account | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - Money market separate account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 3 | $ 619 | |
Pooled separate accounts - Money market separate account | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - Money market separate account | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 3 | $ 619 | |
Pooled separate accounts - Money market separate account | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - High yield separate account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 703 | $ 739 | |
Pooled separate accounts - High yield separate account | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pooled separate accounts - High yield separate account | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 703 | $ 739 | |
Pooled separate accounts - High yield separate account | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets |
Pension and Other Postretirem99
Pension and Other Postretirement Benefit Plans - Qualified defined benefit pension plan's weighted-average asset allocations (Details 8) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Percentage of Fair Value | 100.00% | 100.00% |
High yield and money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Percentage of Fair Value | 4.00% | 7.00% |
Target Allocation, Minimum | 5.00% | |
Target Allocation, Maximum | 15.00% | |
Equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Percentage of Fair Value | 61.00% | 58.00% |
Target Allocation, Minimum | 30.00% | |
Target Allocation, Maximum | 70.00% | |
Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Percentage of Fair Value | 35.00% | 35.00% |
Target Allocation, Minimum | 30.00% | |
Target Allocation, Maximum | 70.00% |
Pension and Other Postretire100
Pension and Other Postretirement Benefit Plans - Summary of benefit payments expected to be paid by non contributory defined benefit pension plans (Details 9) - Pension Plans $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 1,181 |
2,017 | 1,202 |
2,018 | 1,197 |
2,019 | 1,263 |
2,020 | 1,302 |
Years 2021 - 2025 | 6,947 |
Defined benefit plan, expected future benefit payments, Total | $ 13,092 |
Pension and Other Postretire101
Pension and Other Postretirement Benefit Plans - Benefit payments expected to be paid by medical, dental and life insurance plan (Details 10) - Medical, dental and life insurance plan $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 150 |
2,017 | 156 |
2,018 | 153 |
2,019 | 159 |
2,020 | 163 |
Years 2021 - 2025 | 804 |
Defined benefit plan, expected future benefit payments, Total | $ 1,585 |
Pension and Other Postretire102
Pension and Other Postretirement Benefit Plans - Shares held by ESOP (Details 11) - Farmington Bank Employee Stock Ownership Plan Member | Dec. 31, 2015shares |
Employee Stock Ownership Plan (Esop) Disclosures [Line Items] | |
Allocated | 381,444 |
Committed to be released | 95,361 |
Unallocated | 953,611 |
Total shares held by the ESOP | 1,430,416 |
Pension and Other Postretire103
Pension and Other Postretirement Benefit Plans (Detail Textuals) - plan | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of defined benefit postretirement plans | 2 | |
Single weighted average discount rate | 4.35% | |
Supplemental Employee Retirement Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Single weighted average discount rate | 3.80% | 3.55% |
Pension and Other Postretire104
Pension and Other Postretirement Benefit Plans (Detail Textuals 1) - Defined Contribution Savings Plan - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Minimum service period required of employees to participate in plan | 6 months | |
Minimum required age of employees to participate in plan | 21 years | |
Percentage of vesting of participant | 100.00% | |
Contributions to participants annual compensation | 4.00% | |
Contributions by company | $ 814,000 | $ 763,000 |
Minimum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of discretionary employer contribution | 0.00% | |
Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of discretionary employer contribution | 11.00% |
Pension and Other Postretire105
Pension and Other Postretirement Benefit Plans (Detail Textuals 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued expenses and other liabilities | $ 47,598,000 | $ 46,069,000 | |
Supplemental Employee Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued expenses and other liabilities | 3,900,000 | 3,300,000 | |
Net expense for supplemental retirement benefits | $ 712,000 | $ 703,000 | $ 720,000 |
Pension and Other Postretire106
Pension and Other Postretirement Benefit Plans (Detail Textuals 3) - Farmington Bank Employee Stock Ownership Plan (ESOP) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Loan provided by the company to purchase common stock (in shares) | 1,430,416 | ||
Term of loan for annual payments of interest and principal | 15 years | ||
Debt structure direct loan description of variable rate basis | Wall Street Journal Prime Rate | ||
Debt structure direct loan basis spread on variable rate | 1.00% | ||
Outstanding balance of loan provided by the company to purchase common stock | $ 12 | ||
Interest rate of outstanding balance of Loan provided by the company to purchase common stock | 4.25% | ||
ESOP compensation expense | $ 1.5 | $ 1.5 | $ 1.4 |
Fair value of unallocated ESOP shares | $ 16.6 |
Stock Incentive Plan - Weighte
Stock Incentive Plan - Weighted-average estimated fair values of stock option grants (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted per share average fair value of options granted | $ 3.33 | $ 3.77 |
Weighted-average assumptions: | ||
Risk-free interest rate | 1.61% | 1.93% |
Expected volatility | 24.97% | 28.20% |
Expected dividend yield | 1.99% | 1.89% |
Expected life of options granted | 6 years | 6 years |
Maximum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 2.35% | 2.51% |
Minimum | ||
Weighted-average assumptions: | ||
Weighted-average dividend yield | 1.50% | 1.09% |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Company's stock option activity (Details 1) - Stock options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Stock Options | |
Outstanding at December 31, 2014 | shares | 1,671,157 |
Granted | shares | 38,000 |
Exercised | shares | (31,600) |
Forfeited | shares | (20,200) |
Expired | shares | (1,200) |
Outstanding at December 31, 2015 | shares | 1,656,157 |
Exercisable at December 31, 2015 | shares | 1,296,537 |
Weighted-Average Exercise Price | |
Outstanding at December 31, 2014 | $ / shares | $ 13.04 |
Granted | $ / shares | 16.26 |
Exercised | $ / shares | 13.04 |
Forfeited | $ / shares | 13.49 |
Expired | $ / shares | 12.95 |
Outstanding at December 31, 2015 | $ / shares | 13.11 |
Exercisable at December 31, 2015 | $ / shares | $ 13.02 |
Weighted-average remaining contractual term (in years) | 6 years 5 months 23 days |
Aggregate intrinsic value of options outstanding | $ | $ 7,095 |
Weighted-average remaining contractual term Exercisable at December 31, 2015 (in years) | 6 years 3 months 26 days |
Aggregate intrinsic value Exercisable at December 31, 2015 | $ | $ 5,689 |
Stock Incentive Plan - Summa109
Stock Incentive Plan - Summary of status of Company's restricted stock (Details 2) - Restricted Stock | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Restricted Stock | |
Unvested at December 31, 2014 | shares | 266,884 |
Granted | shares | |
Vested | shares | (140,594) |
Forfeited | shares | |
Unvested at December 31, 2015 | shares | 126,290 |
Weighted-Average Grant Date Fair Value | |
Unvested at December 31, 2014 | $ / shares | $ 12.95 |
Granted | $ / shares | |
Vested | $ / shares | $ 12.95 |
Forfeited | $ / shares | |
Unvested at December 31, 2015 | $ / shares | $ 12.95 |
Stock Incentive Plan (Detail Te
Stock Incentive Plan (Detail Textuals) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of non-vested restricted shares | 126,290 | 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 | |||
Expiry term of stock options | 10 years | |||
Share-based compensation expense | $ 3,100,000 | $ 2,900,000 | $ 3,600,000 | |
2012 Stock Incentive Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,300,000 | 1,200,000 | 1,400,000 | |
Number of non-vested options outstanding | 359,620 | |||
Expected future compensation expense | $ 855,000 | |||
Remaining weighted-average period | 1 year 1 month 24 days | |||
Total intrinsic value of options exercised | $ 81,000 | |||
Method used | Black-Scholes option pricing model | |||
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 | $ 1,800,000 | $ 1,700,000 | $ 2,200,000 | |
Number of non-vested restricted shares | 126,290 | |||
Expected future compensation expense | $ 1,000,000 | |||
Remaining weighted-average period | 8 months 5 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 Instrum111
Derivative Financial Instruments - Not designated outstanding interest rate swaps (Details) - Not Designated as Hedging Instrument $ in Thousands | Dec. 31, 2015USD ($)Derivative | Dec. 31, 2014USD ($)Derivative |
Other Assets | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivative | 60 | 43 |
Notional Amount | $ 257,693 | $ 174,884 |
Estimated Fair Values | $ 10,564 | $ 7,167 |
Other Liabilities | Commercial loan customer interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivative | 6 | 8 |
Notional Amount | $ 23,411 | $ 27,988 |
Estimated Fair Values | $ (78) | $ (431) |
Other Liabilities | Counterparty interest rate swap position | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | Derivative | 66 | 51 |
Notional Amount | $ 281,104 | $ 202,872 |
Estimated Fair Values | $ (10,599) | $ (6,821) |
Derivative Financial Instrum112
Derivative Financial Instruments - Changes in the fair value of non-hedge accounting derivatives (Details 1) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | |||
Interest Income Recorded in Interest Income | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | |||
MTM Gain (Loss) Recorded in Noninterest Income | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | |||
Commercial loan customer interest rate swap position | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | $ (1,904) | $ 225 | $ (1,912) |
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 | (5,301) | (3,704) | 3,078 |
Commercial loan customer interest rate swap position | MTM Gain (Loss) Recorded in Noninterest Income | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | 3,397 | 3,929 | (4,990) |
Counterparty interest rate swap position | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | 1,904 | (225) | 1,912 |
Counterparty interest rate swap position | Interest Income Recorded in Interest Income | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | 5,301 | 3,704 | (3,078) |
Counterparty interest rate swap position | MTM Gain (Loss) Recorded in Noninterest Income | |||
Derivative [Line Items] | |||
Changes in fair value of non-hedge accounting derivatives | $ (3,397) | $ (3,929) | $ 4,990 |
Derivative Financial Instrum113
Derivative Financial Instruments (Detail Textuals) $ in Millions | Dec. 31, 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 | 12.6 |
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 | 16.3 |
Forward Contracts | Outstanding commitments to sell residential mortgage loans | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Mortgage banking derivatives, notional amount | 17.6 |
Forward Contracts | Mandatory forward commitments | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Mortgage banking derivatives, notional amount | $ 13.3 |
Offsetting of Financial Asse114
Offsetting of Financial Assets and Liabilities - Summary of repurchase agreement borrowings and repurchase liabilities (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 10,500 |
Total repurchase liabilities | 35,769 |
Total | 46,269 |
U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | 6,000 |
Total repurchase liabilities | 35,769 |
Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | $ 4,500 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | $ 35,769 |
Total | $ 35,769 |
Overnight and Continuous | U.S. Government agency obligations | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
Total repurchase liabilities | $ 35,769 |
Overnight and Continuous | Government sponsored residential mortgage-backed securities | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Total repurchase agreement borrowings | |
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 | |
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 |
Offsetting of Financial Asse115
Offsetting of Financial Assets and Liabilities - Potential effect of rights of setoff associated with recognized financial assets and liabilities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap derivatives, gross amount of recognized assets | $ 10,564 | $ 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 | $ 10,564 | $ 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 | $ 10,564 | $ 6,750 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition, Net amount | 417 | |
Gross amount of recognized assets | $ 10,564 | $ 7,167 |
Gross amounts offset in statement of financial condition | ||
Net amounts of assets presented in statement of financial condition | $ 10,564 | $ 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 | $ 10,564 | $ 6,750 |
Gross amounts not offset in statement of financial condition, Net amount | 417 | |
Interest rate swap derivatives, Gross amount of recognized liabilities | $ 10,677 | $ 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 | $ 10,677 | $ 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 | $ 10,677 | $ 6,750 |
Interest rate swap derivatives, Gross amounts not offset in statement of financial condition liabilities, Net amount | 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 amount | ||
Gross amount of recognized liabilities | $ 21,177 | $ 28,252 |
Gross amounts offset in statement of financial condition | ||
Net Amounts of Liabilities Presented in the Statement of Financial Condition | $ 21,177 | $ 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 | $ 10,677 | 6,750 |
Gross amounts not offset in statement of financial condition liabilities, Net amount | $ 502 |
Income Taxes - Components of in
Income Taxes - Components of income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current provision | |||||||||||
Federal | $ 3,864 | $ 3,470 | $ 1,480 | ||||||||
State | 100 | 44 | 2 | ||||||||
Total current provision | 3,964 | 3,514 | 1,482 | ||||||||
Deferred provision (benefit) | |||||||||||
Federal | 1,780 | (555) | $ (313) | ||||||||
State | (17) | (132) | |||||||||
Total deferred provision (benefit) | 1,763 | (687) | $ (313) | ||||||||
Total provision for income taxes | $ 1,716 | $ 1,594 | $ 1,441 | $ 976 | $ 499 | $ 997 | $ 776 | $ 555 | $ 5,727 | $ 2,827 | $ 1,169 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of expected federal statutory tax to income tax provision (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at statutory federal tax rate | $ 6,407 | $ 4,257 | $ 1,657 | ||||||||
ESOP | 138 | $ 123 | 94 | ||||||||
Death benefits | (133) | (37) | |||||||||
Dividends received deduction | (54) | $ (54) | (52) | ||||||||
State income taxes | 54 | (57) | 1 | ||||||||
Other - net | 90 | 39 | 30 | ||||||||
Changes in cash surrender value of life insurance | $ (453) | (396) | $ (410) | ||||||||
Impact of tax rate changes | $ (537) | ||||||||||
Valuation allowance | $ 764 | ||||||||||
Municipal income - net | (1,086) | $ (548) | $ (114) | ||||||||
Total provision for income taxes | $ 1,716 | $ 1,594 | $ 1,441 | $ 976 | $ 499 | $ 997 | $ 776 | $ 555 | $ 5,727 | $ 2,827 | $ 1,169 |
Income Taxes - Components of ne
Income Taxes - Components of net deferred tax assets (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Allowance for loan losses | $ 7,130 | $ 6,680 |
Minimum pension liability and postretirement benefits | 4,832 | 5,139 |
Deferred compensation | 2,871 | 2,830 |
Charitable contribution carryforward | 1,508 | 1,923 |
Stock compensation | 1,933 | 1,542 |
Accrued bonus | 1,487 | 1,366 |
Other | 1,255 | 1,245 |
Other than temporary impairment on securities available-for-sale | 17 | 1,026 |
Allowance for off-balance sheet provision | 177 | 155 |
Net unrealized loss on securities available-for-sale | 135 | |
Gross deferred tax assets | 21,345 | 21,906 |
Valuation reserve | (771) | |
Net deferred tax assets | 20,574 | 21,906 |
Deferred tax liabilities | ||
Net origination fees | 2,982 | 2,686 |
Other | 1,561 | 1,187 |
Fixed assets | 211 | 409 |
Accrued pension | 249 | 127 |
Bond discount accretion | $ 128 | 85 |
Net unrealized gain on securities available-for-sale | 571 | |
Gross deferred tax liabilities | $ 5,131 | 5,065 |
Net deferred tax assets | $ 15,443 | $ 16,841 |
Income Taxes - Allocation of de
Income Taxes - Allocation of deferred tax expense (benefit) involving items charged to current year income and items charged directly to capital (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax benefit allocated to capital | $ (365) | $ (1,270) | |
Deferred tax expense (benefit) allocated to income | 1,763 | (687) | $ (313) |
Total change in deferred taxes | $ 1,398 | $ (1,957) |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | ||
Valuation allowance | $ 771 | |
Deferred tax asset | 1,508 | $ 1,923 |
Amount of deferred taxes for tax reserve for bad debts | $ 3,400 | |
Charitable Contribution Deduction Carryforward | ||
Tax Credit Carryforward [Line Items] | ||
Charitable contribution deduction limit description | Annually, a corporation is permitted to carry over to the five succeeding tax years, contributions that exceeded the 10% limitation, but also subject to the maximum annual limitation. | |
Tax credit carryforward limitation percent | 10.00% | |
Tax credit carryforward period | 5 years | |
Amount of charitable contribution carryforward | $ 4,300 | |
Deferred tax asset | $ 1,500 |
Lease Commitments - Future mini
Lease Commitments - Future minimum rental commitments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 2,624 |
2,017 | 2,711 |
2,018 | 2,728 |
2,019 | 2,384 |
2,020 | 1,092 |
Thereafter | 8,285 |
Total, future minimum rental | $ 19,824 |
Lease Commitments (Detail Textu
Lease Commitments (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rental expenses for all leases | $ 3.1 | $ 3 | $ 2.8 |
Financial Instruments with O123
Financial Instruments with Off-Balance Sheet Risk - Financial instruments whose contract amounts represent credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | $ 487,326 | $ 443,476 |
Approved loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 46,144 | 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 | 44,457 | 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 | 204,983 | 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 | 365 | 367 |
Unused commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value, off-balance sheet risks, amount, liability | 3,558 | 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 | $ 187,819 | $ 190,247 |
Financial Instruments with O124
Financial Instruments with Off-Balance Sheet Risk (Details Textuals) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract] | ||
Financial instruments with off-balance sheet risk, valuation allowance | $ 501,000 | $ 440,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Securities available-for-sale | $ 132,424 | $ 188,041 |
Fair Value Measurements Recurring | Total | ||
Assets | ||
Securities available-for-sale | 132,424 | 188,041 |
Total Assets | 143,195 | 195,248 |
Liabilities | ||
Total Liabilities | 10,747 | 7,278 |
Fair Value Measurements Recurring | Total | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 38,859 | 123,816 |
Fair Value Measurements Recurring | Total | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 81,805 | 49,109 |
Fair Value Measurements Recurring | Total | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 5,153 | 6,907 |
Fair Value Measurements Recurring | Total | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | 1,048 | 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 | 1,632 | 1,676 |
Fair Value Measurements Recurring | Total | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | 160 | 170 |
Fair Value Measurements Recurring | Total | Mutual funds | ||
Assets | ||
Securities available-for-sale | 3,767 | 3,721 |
Fair Value Measurements Recurring | Total | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | 10,564 | 7,167 |
Liabilities | ||
Derivative Liabilities | 10,677 | 7,252 |
Fair Value Measurements Recurring | Total | Forward loan sales commitments | ||
Liabilities | ||
Derivative Liabilities | 70 | 26 |
Fair Value Measurements Recurring | Total | Derivative loan commitments | ||
Assets | ||
Derivative Assets | 207 | 40 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Securities available-for-sale | 23,788 | 173,095 |
Total Assets | 23,788 | $ 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 | $ 21,996 | $ 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 | $ 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 | $ 1,632 | |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Assets | ||
Securities available-for-sale | $ 160 | $ 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) | Forward loan sales commitments | ||
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 | Significant Observable Inputs (Level 2) | ||
Assets | ||
Securities available-for-sale | $ 108,636 | $ 14,946 |
Total Assets | 119,200 | 22,113 |
Liabilities | ||
Total Liabilities | 10,677 | $ 7,252 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Treasury obligations | ||
Assets | ||
Securities available-for-sale | 16,863 | |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | U.S. Government agency obligations | ||
Assets | ||
Securities available-for-sale | 81,805 | |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Government sponsored residential mortgage-backed securities | ||
Assets | ||
Securities available-for-sale | 5,153 | $ 6,907 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Corporate debt securities | ||
Assets | ||
Securities available-for-sale | $ 1,048 | 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 | $ 1,676 | |
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 | $ 3,767 | $ 3,721 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Interest rate swap derivative | ||
Assets | ||
Derivative Assets | 10,564 | 7,167 |
Liabilities | ||
Derivative Liabilities | $ 10,677 | $ 7,252 |
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Forward loan sales commitments | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Observable Inputs (Level 2) | Derivative loan commitments | ||
Assets | ||
Derivative Assets | ||
Liabilities | ||
Derivative Liabilities | ||
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Securities available-for-sale | ||
Total Assets | $ 207 | $ 40 |
Liabilities | ||
Total Liabilities | $ 70 | $ 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) | Forward loan sales commitments | ||
Liabilities | ||
Derivative Liabilities | $ 70 | $ 26 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Derivative loan commitments | ||
Assets | ||
Derivative Assets | $ 207 | $ 40 |
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, at beginning of year | $ 14 | $ 47 | $ 488 |
Total realized gain (loss): | |||
Included in earnings | 123 | (33) | (441) |
Balance, at the end of year | $ 137 | $ 14 | $ 47 |
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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 207 | $ 40 |
Derivative and forward loan sales commitments, net | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 137 | $ 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 | 1.28% | 1.07% |
Fair Value Measurements - As128
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details 3) - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Dec. 31, 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 | $ 4,225 | $ 1,647 |
Other real estate owned | $ 279 |
Fair Value Measurements - Va129
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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired loans | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 4,225 | $ 1,647 |
Valuation Methodology | Appraisals | Appraisals |
Impaired loans | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 5.00% | 20.00% |
Discount for costs to sell | 8.00% | 15.00% |
Impaired loans | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 20.00% | 0.00% |
Discount for costs to sell | 15.00% | 8.00% |
Impaired loans | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for dated appraisal | 12.50% | 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 | $ 279 | |
Valuation Methodology | Appraisals | |
Other real estate owned | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for condition | 30.00% | |
Discount for costs to sell | 15.00% | |
Other real estate owned | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for condition | 10.00% | |
Discount for costs to sell | 8.00% | |
Other real estate owned | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount for condition | 20.00% | |
Discount for costs to sell | 11.50% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amount, fair value of financial instruments (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Financial assets | |||
Securities held-to-maturity | $ 32,246 | $ 16,224 | |
Securities available-for-sale | 132,424 | 188,041 | |
Loans | [1] | 2,361,796 | 2,138,877 |
Alternative investments | 2,500 | 2,700 | |
Financial liabilities | |||
Time deposits | 440,790 | 365,222 | |
Federal Home Loan Bank of Boston advances | 377,600 | 401,700 | |
Repurchase agreement borrowings | 10,500 | 21,000 | |
Repurchase liabilities | 35,769 | 48,987 | |
Carrying Amount | |||
Financial assets | |||
Securities held-to-maturity | [2] | 32,246 | 16,224 |
Securities available-for-sale | [3] | 132,424 | 188,041 |
Loans | [4] | 2,361,796 | 2,135,035 |
Loans held-for-sale | [2] | 9,637 | 2,417 |
Mortgage servicing rights | [4] | 4,406 | 3,336 |
Federal Home Loan Bank of Boston stock | [2] | 21,729 | 19,785 |
Alternative investments | [4] | 2,508 | 2,694 |
Interest rate swap derivatives | [2] | 10,564 | 7,167 |
Derivative loan commitments | [4] | 207 | 40 |
Financial liabilities | |||
Deposits other than time deposits | [5] | 1,550,568 | 1,367,819 |
Time deposits | [2] | 440,790 | 365,222 |
Federal Home Loan Bank of Boston advances | [2] | 377,600 | 401,700 |
Repurchase agreement borrowings | [2] | 10,500 | 21,000 |
Repurchase liabilities | [2] | 35,769 | 48,987 |
Interest rate swap derivatives | [2] | 10,677 | 7,252 |
Forward loan sales commitments | [4] | 70 | 26 |
Estimated Fair Value | |||
Financial assets | |||
Securities held-to-maturity | [2] | 32,357 | 16,416 |
Securities available-for-sale | [3] | 132,424 | 188,041 |
Loans | [4] | 2,336,293 | 2,130,994 |
Loans held-for-sale | [2] | 9,686 | 2,469 |
Mortgage servicing rights | [4] | 5,029 | 3,572 |
Federal Home Loan Bank of Boston stock | [2] | 21,729 | 19,785 |
Alternative investments | [4] | 2,409 | 2,695 |
Interest rate swap derivatives | [2] | 10,564 | 7,167 |
Derivative loan commitments | [4] | 207 | 40 |
Financial liabilities | |||
Deposits other than time deposits | [5] | 1,550,568 | 1,367,819 |
Time deposits | [2] | 444,803 | 368,974 |
Federal Home Loan Bank of Boston advances | [2] | 376,626 | 400,226 |
Repurchase agreement borrowings | [2] | 10,539 | 21,669 |
Repurchase liabilities | [2] | 35,765 | 48,986 |
Interest rate swap derivatives | [2] | 10,677 | 7,252 |
Forward loan sales commitments | [4] | $ 70 | $ 26 |
[1] | Loans include net deferred loan costs of $4.0 million and $3.8 million at December 31, 2015 and 2014, respectively. | ||
[2] | Level 2 | ||
[3] | See previous table | ||
[4] | Level 3 | ||
[5] | Level 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Alternative investments, total | $ 2,500,000 | $ 2,700,000 | |
Recognized profit distributions in its limited partnerships | 26,000 | 75,000 | $ 91,000 |
Unfunded commitments for alternative investments | 637,000 | ||
Other noninterest income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Recognized gain (loss) on forward loan sale commitments | 123,000 | (33,000) | (441,000) |
Loss on fair value adjustments in its limited partnerships | $ 144,000 | $ 51,000 | $ 0 |
Regulatory Matters - Actual cap
Regulatory Matters - Actual capital amounts and ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 273,255 | $ 260,157 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 12.88% | 13.73% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 169,724 | $ 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 | $ 212,155 | $ 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 | $ 252,556 | $ 240,757 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 11.91% | 12.70% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 127,232 | $ 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 | $ 169,643 | $ 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 | $ 252,556 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 11.91% | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 95,424 | |
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 | $ 137,835 | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | |
Tier I Leverage Capital (to Average Assets) Actual Amount | $ 252,556 | $ 240,757 |
Tier I Leverage Capital (to Average Assets) Actual Ratio | 9.39% | 9.86% |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 107,585 | $ 97,670 |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 134,481 | $ 122,088 |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 5.00% | 5.00% |
Farmington Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) Actual Amount | $ 236,486 | $ 220,616 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 11.16% | 11.65% |
Total Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 169,524 | $ 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 | $ 211,905 | $ 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 | $ 215,787 | $ 201,216 |
Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.18% | 10.63% |
Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 127,183 | $ 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 | $ 169,577 | $ 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 | $ 215,787 | |
Common Equity Tier I Capital (to Risk Weighted Assets) Actual Ratio | 10.18% | |
Common Equity Tier I Capital (to Risk Weighted Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 95,387 | |
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 | $ 137,781 | |
Common Equity Tier I Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 6.50% | |
Tier I Leverage Capital (to Average Assets) Actual Amount | $ 215,787 | $ 201,216 |
Tier I Leverage Capital (to Average Assets) Actual Ratio | 8.03% | 8.25% |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Amount | $ 107,490 | $ 97,559 |
Tier I Leverage Capital (to Average Assets) Minimum Required for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Amount | $ 134,363 | $ 121,949 |
Tier I Leverage Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Ratio | 5.00% | 5.00% |
Regulatory Matters (Detail Text
Regulatory Matters (Detail Textuals) | Dec. 31, 2015 |
Regulatory Matters Disclosure [Abstract] | |
Percentage of tier one capital greater than risk weighted assets | 2.50% |
Other Comprehensive Income - Ch
Other Comprehensive Income - Changes in accumulated other comprehensive loss, net of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income Loss Net [Roll Forward] | |||
Balance | $ (6,511) | ||
Balance | (7,162) | $ (6,511) | |
Investment Securities Available-for-Sale | |||
Accumulated Other Comprehensive Income Loss Net [Roll Forward] | |||
Balance | 1,046 | (144) | $ 465 |
Other comprehensive income (loss) | (2,281) | 1,190 | (833) |
Amount reclassified from accumulated other comprehensive loss, net of tax | 986 | 224 | |
Net change | (609) | ||
Balance | (249) | 1,046 | (144) |
Employee Benefit Plans | |||
Accumulated Other Comprehensive Income Loss Net [Roll Forward] | |||
Balance | $ (7,557) | (4,080) | $ (6,577) |
Other comprehensive income (loss) | (3,477) | ||
Amount reclassified from accumulated other comprehensive loss, net of tax | $ 644 | $ 2,497 | |
Net change | 2,497 | ||
Balance | (6,913) | (7,557) | (4,080) |
Accumulated Other Comprehensive (Loss) Income | |||
Accumulated Other Comprehensive Income Loss Net [Roll Forward] | |||
Balance | (6,511) | (4,224) | (6,112) |
Other comprehensive income (loss) | (2,281) | (2,287) | (833) |
Amount reclassified from accumulated other comprehensive loss, net of tax | 1,630 | 2,721 | |
Net change | 1,888 | ||
Balance | $ (7,162) | $ (6,511) | $ (4,224) |
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 | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Unrealized (losses) gains arising during the period, Pre Tax Amount | $ (3,525) | $ 1,831 | $ (1,263) | |
Unrealized gains (losses) on available-for-sale securities, Tax Benefit (Expense) | 1,244 | (641) | 430 | |
Unrealized gains (losses) on available-for-sale securities, After Tax Amount | (2,281) | $ (1,190) | (833) | |
Less: net security gains (losses) reclassified into other noninterest income, Pre Tax Amount | 1,523 | 340 | ||
Less: net security gains (losses) reclassified into other noninterest income, Tax Benefit (Expense) | (537) | (116) | ||
Less: net security gains (losses) reclassified into other noninterest income, After Tax Amount | 986 | 224 | ||
Net change in fair value of securities available-for-sale, Pre Tax Amount | (2,002) | $ 1,831 | (923) | |
Net change in fair value of securities available-for-sale, Tax Benefit (Expense) | 707 | (641) | 314 | |
Net change in fair value of securities available-for-sale, After Tax Amount | (1,295) | 1,190 | (609) | |
Reclassification adjustment for prior service costs and net gain (loss) included in net periodic pension costs, Pre Tax Amount | [1] | 986 | (5,388) | 3,783 |
Reclassification adjustment for prior service costs and net gain (loss) included in net periodic pension costs, Tax Benefit (Expense) | [1] | (342) | 1,911 | (1,286) |
Reclassification adjustment for prior service costs and net gain (loss) included in net periodic pension costs, After Tax Amount | [1] | 644 | (3,477) | 2,497 |
Total other comprehensive income (loss) , Pre Tax Amount | (1,016) | (3,557) | 2,860 | |
Total other comprehensive income (loss), Tax Benefit (Expense) | 365 | 1,270 | (972) | |
Total other comprehensive income (loss), After Tax Amount | $ (651) | $ (2,287) | $ 1,888 | |
[1] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Income. |
Parent Company Statements - Con
Parent Company Statements - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and Cash Equivalents | $ 59,139 | $ 42,863 | ||
Deferred income taxes | 15,443 | 16,841 | ||
Prepaid expenses and other assets | 20,400 | 14,936 | ||
Total assets | 2,708,546 | 2,485,360 | ||
Liabilities | 2,462,825 | 2,250,797 | ||
Stockholders' equity | 245,721 | 234,563 | $ 232,209 | $ 241,795 |
Total liabilities and shareholders' equity | 2,708,546 | 2,485,360 | ||
Parent Company | ||||
Assets | ||||
Cash and Cash Equivalents | 33,164 | 27,875 | ||
Deferred income taxes | 929 | 2,068 | ||
Due from Farmington Bank | 58 | 8,010 | ||
Investment in Farmington Bank | 208,952 | 195,022 | ||
Prepaid expenses and other assets | 2,669 | 1,644 | ||
Total assets | 245,772 | 234,619 | ||
Liabilities | 51 | 56 | ||
Stockholders' equity | 245,721 | 234,563 | ||
Total liabilities and shareholders' equity | $ 245,772 | $ 234,619 |
Parent Company Statements - 137
Parent Company Statements - Condensed Statements of Operations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | $ 21,094 | $ 21,094 | $ 20,164 | $ 19,532 | $ 19,412 | $ 18,528 | $ 17,854 | $ 16,980 | $ 81,884 | $ 72,774 | $ 62,886 |
Noninterest expense | (15,958) | (14,718) | (15,597) | (14,937) | (14,615) | (14,219) | (14,254) | (13,960) | (61,210) | (57,048) | (57,762) |
Income tax (expense) benefit | 1,716 | 1,594 | 1,441 | 976 | 499 | 997 | 776 | 555 | 5,727 | 2,827 | 1,169 |
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | 12,579 | 9,335 | 3,704 |
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | 53 | 79 | 157 | ||||||||
Noninterest expense | (1,752) | (1,683) | (1,627) | ||||||||
Income tax (expense) benefit | (303) | 503 | 364 | ||||||||
Loss before equity in undistributed earnings of Farmington Bank | (2,002) | (1,101) | (1,106) | ||||||||
Equity in undistributed earnings of Farmington Bank | 14,581 | 10,436 | 4,810 | ||||||||
Net income | $ 12,579 | $ 9,335 | $ 3,704 |
Parent Company Statements - 138
Parent Company Statements - Condensed Statements of Comprehensive Income (Loss) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | $ 12,579 | $ 9,335 | $ 3,704 |
Unrealized (losses) gains on securities: | |||||||||||
Unrealized holding (losses) gains arising during the period | (3,525) | $ 1,831 | (1,263) | ||||||||
Less: reclassification adjustment for gains included in net income | (1,523) | (340) | |||||||||
Net change in unrealized gains (losses) | (2,002) | $ 1,831 | (923) | ||||||||
Change related to pension and other postretirement benefit plans | 986 | (5,388) | 3,783 | ||||||||
Other comprehensive (loss) income, before tax | (1,016) | (3,557) | 2,860 | ||||||||
Income tax (benefit) expense | (365) | (1,270) | 972 | ||||||||
Other comprehensive (loss) income, net of tax | (651) | (2,287) | 1,888 | ||||||||
Comprehensive Income | 11,928 | 7,048 | 5,592 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 12,579 | 9,335 | 3,704 | ||||||||
Unrealized (losses) gains on securities: | |||||||||||
Unrealized holding (losses) gains arising during the period | (3,525) | $ 1,831 | (1,263) | ||||||||
Less: reclassification adjustment for gains included in net income | 1,523 | 340 | |||||||||
Net change in unrealized gains (losses) | (2,002) | $ 1,831 | (923) | ||||||||
Change related to pension and other postretirement benefit plans | 986 | (5,388) | 3,783 | ||||||||
Other comprehensive (loss) income, before tax | (1,016) | (3,557) | 2,860 | ||||||||
Income tax (benefit) expense | (365) | (1,270) | 972 | ||||||||
Other comprehensive (loss) income, net of tax | (651) | (2,287) | 1,888 | ||||||||
Comprehensive Income | $ 11,928 | $ 7,048 | $ 5,592 |
Parent Company Statements - 139
Parent Company Statements - Condensed Statements of Cash Flows (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | $ 12,579 | $ 9,335 | $ 3,704 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of ESOP expense | 1,522 | 1,480 | 1,404 | ||||||||
Share based compensation expense | 3,118 | 2,923 | 3,576 | ||||||||
Deferred income tax | 970 | 860 | 502 | ||||||||
Increase in prepaid expenses and other assets | 5,562 | 3,919 | (3,486) | ||||||||
Decrease in accrued expenses and other liabilities | 2,410 | 7,145 | (10,475) | ||||||||
Net cash provided by operating activities | 9,322 | 42,754 | 11,333 | ||||||||
Cash flows from financing activities: | |||||||||||
Cancellation of shares for tax withholding | (498) | (440) | (590) | ||||||||
Repurchase of common stock | (2,200) | (6,257) | (18,910) | ||||||||
Excess tax benefits from stock-based compensation | 152 | 110 | 35 | ||||||||
Exercise of stock options | 412 | 27 | 1,185 | ||||||||
Cash dividend paid | (3,276) | (2,537) | (1,878) | ||||||||
Net cash used in financing activities | 205,089 | 351,314 | 290,517 | ||||||||
Net increase (decrease) in cash and cash equivalents | 16,276 | 4,064 | (11,842) | ||||||||
Cash and cash equivalents at beginning of period | 42,863 | 38,799 | 42,863 | 38,799 | 50,641 | ||||||
Cash and cash equivalents at end of period | 59,139 | 42,863 | 59,139 | 42,863 | 38,799 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 12,579 | 9,335 | 3,704 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of ESOP expense | 1,522 | 1,480 | 1,404 | ||||||||
Share based compensation expense | 3,118 | 2,923 | 3,576 | ||||||||
Equity in undistributed net income of Farmington Bank | (14,581) | (10,436) | (4,810) | ||||||||
Deferred income tax | 1,139 | 253 | 286 | ||||||||
Due from Farmington Bank | 7,952 | (1,892) | (2,635) | ||||||||
Increase in prepaid expenses and other assets | (1,025) | (839) | (778) | ||||||||
Decrease in accrued expenses and other liabilities | (5) | (3) | (283) | ||||||||
Net cash provided by operating activities | 10,699 | 821 | 464 | ||||||||
Cash flows from financing activities: | |||||||||||
Cancellation of shares for tax withholding | (498) | (440) | (576) | ||||||||
Repurchase of common stock | (2,200) | (6,257) | (18,910) | ||||||||
Excess tax benefits from stock-based compensation | 152 | 110 | 35 | ||||||||
Exercise of stock options | 412 | 27 | 1,171 | ||||||||
Cash dividend paid | (3,276) | (2,537) | (1,878) | ||||||||
Net cash used in financing activities | (5,410) | (9,097) | (20,158) | ||||||||
Net increase (decrease) in cash and cash equivalents | 5,289 | (8,276) | (19,694) | ||||||||
Cash and cash equivalents at beginning of period | $ 27,875 | $ 36,151 | 27,875 | 36,151 | 55,845 | ||||||
Cash and cash equivalents at end of period | $ 33,164 | $ 27,875 | $ 33,164 | $ 27,875 | $ 36,151 |
Selected Quarterly Consolida140
Selected Quarterly Consolidated Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Interest income | $ 21,094 | $ 21,094 | $ 20,164 | $ 19,532 | $ 19,412 | $ 18,528 | $ 17,854 | $ 16,980 | $ 81,884 | $ 72,774 | $ 62,886 | |||
Interest expense | 3,731 | 3,422 | 3,065 | 3,157 | 3,017 | 2,543 | 2,290 | 2,230 | 13,375 | 10,080 | 9,733 | |||
Net interest income | 17,363 | 17,672 | 17,099 | 16,375 | 16,395 | 15,985 | 15,564 | 14,750 | 68,509 | 62,694 | 53,153 | |||
Provision for loan losses | 776 | 386 | 663 | 615 | 632 | 1,041 | 410 | 505 | 2,440 | 2,588 | 1,530 | |||
Net interest income after provision for loan losses | 16,587 | 17,286 | 16,436 | 15,760 | 15,763 | 14,944 | 15,154 | 14,245 | 66,069 | 60,106 | 51,623 | |||
Noninterest income | 3,468 | 3,241 | 4,074 | 2,664 | 2,498 | 2,778 | 2,066 | 1,762 | 13,447 | 9,104 | 11,012 | |||
Noninterest expense | 15,958 | 14,718 | 15,597 | 14,937 | 14,615 | 14,219 | 14,254 | 13,960 | 61,210 | 57,048 | 57,762 | |||
Income before income taxes | 4,097 | 5,809 | 4,913 | 3,487 | 3,646 | 3,503 | 2,966 | 2,047 | 18,306 | 12,162 | 4,873 | |||
Income tax expense | 1,716 | 1,594 | 1,441 | 976 | 499 | 997 | 776 | 555 | 5,727 | 2,827 | 1,169 | |||
Net income | $ 2,381 | $ 4,215 | $ 3,472 | $ 2,511 | $ 3,147 | $ 2,506 | $ 2,190 | $ 1,492 | $ 12,579 | $ 9,335 | $ 3,704 | |||
Net earnings per share: | ||||||||||||||
Basic (in dollars per share) | $ 0.16 | $ 0.28 | $ 0.23 | $ 0.17 | $ 0.21 | $ 0.17 | $ 0.15 | $ 0.10 | $ 0.84 | [1] | $ 0.62 | [1] | $ 0.24 | [1] |
Diluted (in dollars per share) | $ 0.16 | $ 0.28 | $ 0.23 | $ 0.17 | $ 0.21 | $ 0.17 | $ 0.14 | $ 0.10 | $ 0.83 | [1] | $ 0.62 | [1] | $ 0.24 | [1] |
[1] | Certain per share amounts may not appear to reconcile due to rounding. |