Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EBSB | ||
Entity Registrant Name | Meridian Bancorp, Inc. | ||
Entity Central Index Key | 1,600,125 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 54,059,992 | ||
Entity Public Float | $ 906,684,087 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 402,687 | $ 236,423 |
Certificates of deposit | 69,326 | 80,323 |
Securities available for sale, at fair value | 38,364 | 67,663 |
Federal Home Loan Bank stock, at cost | 24,947 | 18,175 |
Loans held for sale | 3,772 | 3,944 |
Loans, net of fees and costs | 4,667,983 | 3,938,817 |
Less: allowance for loan losses | (45,185) | (40,149) |
Loans, net | 4,622,798 | 3,898,668 |
Bank-owned life insurance | 40,336 | 40,745 |
Premises and equipment, net | 40,967 | 41,427 |
Accrued interest receivable | 12,902 | 10,381 |
Deferred tax asset, net | 15,244 | 21,461 |
Goodwill | 19,638 | 13,687 |
Core deposit intangible | 3,243 | |
Other assets | 5,231 | 3,105 |
Total assets | 5,299,455 | 4,436,002 |
Deposits: | ||
Non interest-bearing | 477,428 | 431,222 |
Interest-bearing | 3,630,433 | 3,044,615 |
Total deposits | 4,107,861 | 3,475,837 |
Long-term debt | 513,444 | 322,512 |
Accrued expenses and other liabilities | 31,751 | 30,356 |
Total liabilities | 4,653,056 | 3,828,705 |
Commitments and contingencies (Notes 4, 5 and 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued | ||
Common stock, $0.01 par value, 100,000,000 shares authorized; 54,039,316 and 53,596,105 shares issued and outstanding at December 31, 2017 and 2016, respectively | 540 | 536 |
Additional paid-in capital | 395,716 | 390,065 |
Retained earnings | 268,533 | 234,290 |
Accumulated other comprehensive income | 128 | 1,806 |
Unearned compensation - ESOP, 2,557,036 and 2,678,800 shares at December 31, 2017 and 2016, respectively | (18,518) | (19,400) |
Total stockholders' equity | 646,399 | 607,297 |
Total liabilities and stockholders' equity | $ 5,299,455 | $ 4,436,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 54,039,316 | 53,596,105 |
Common stock, shares outstanding | 54,039,316 | 53,596,105 |
Unearned compensation, ESOP | 2,557,036 | 2,678,800 |
Consolidated Statements of Net
Consolidated Statements of Net Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 179,425 | $ 145,541 | $ 118,586 |
Interest on debt securities: | |||
Taxable | 302 | 866 | 1,608 |
Tax-exempt | 32 | 114 | 162 |
Dividends on equity securities | 1,066 | 1,529 | 1,638 |
Interest on certificates of deposit | 814 | 495 | 624 |
Other interest and dividend income | 3,465 | 1,147 | 724 |
Total interest and dividend income | 185,104 | 149,692 | 123,342 |
Interest expense: | |||
Interest on deposits | 33,982 | 24,124 | 18,479 |
Interest on short-term borrowings | 4 | 6 | 5 |
Interest on long-term debt | 4,926 | 3,007 | 1,967 |
Total interest expense | 38,912 | 27,137 | 20,451 |
Net interest income | 146,192 | 122,555 | 102,891 |
Provision for loan losses | 4,859 | 7,180 | 6,667 |
Net interest income, after provision for loan losses | 141,333 | 115,375 | 96,224 |
Non-interest income: | |||
Customer service fees | 8,517 | 8,491 | 7,931 |
Loan fees | 1,970 | 918 | 917 |
Mortgage banking gains, net | 457 | 573 | 535 |
Gain on sales of securities, net | 9,305 | 3,020 | 2,432 |
Income from bank-owned life insurance | 1,158 | 1,188 | 1,225 |
Gain on life insurance distribution | 1,657 | ||
Total non-interest income | 23,064 | 14,190 | 13,040 |
Non-interest expenses: | |||
Salaries and employee benefits | 53,161 | 48,828 | 44,737 |
Occupancy and equipment | 11,533 | 10,809 | 9,876 |
Data processing | 5,912 | 5,135 | 5,204 |
Marketing and advertising | 3,653 | 3,217 | 3,715 |
Professional services | 3,669 | 2,965 | 2,633 |
Deposit insurance | 2,988 | 2,037 | 1,989 |
Merger and acquisition | 2,055 | ||
Other general and administrative | 4,994 | 4,503 | 4,537 |
Total non-interest expenses | 87,965 | 77,494 | 72,691 |
Income before income taxes | 76,432 | 52,071 | 36,573 |
Provision for income taxes | 33,487 | 17,881 | 11,966 |
Net income | $ 42,945 | $ 34,190 | $ 24,607 |
Earnings per share: | |||
Basic | $ 0.84 | $ 0.67 | $ 0.47 |
Diluted | $ 0.82 | $ 0.65 | $ 0.46 |
Weighted average shares: | |||
Basic | 51,153,665 | 51,128,914 | 51,965,036 |
Diluted | 52,663,597 | 52,248,308 | 53,071,932 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 42,945 | $ 34,190 | $ 24,607 | |
Securities available for sale: | ||||
Unrealized holding gain (loss) | 6,599 | 9,464 | (5,982) | |
Reclassification adjustment for gains realized in income | [1] | (9,305) | (3,020) | (2,432) |
Net unrealized gain (loss) | (2,706) | 6,444 | (8,414) | |
Tax effect | 1,152 | (2,582) | 3,327 | |
Net-of-tax amount | (1,554) | 3,862 | (5,087) | |
Defined benefit plans: | ||||
Amortization of prior service cost | [2] | 17 | 24 | 45 |
Amortization of unrecognized cost | [2] | 38 | 32 | 105 |
Actuarial net loss arising during the year | (210) | (57) | (1) | |
Settlement costs | 38 | 56 | ||
Net unrealized gain (loss) | (117) | 55 | 149 | |
Tax effect | (7) | (19) | (52) | |
Net-of-tax amount | (124) | 36 | 97 | |
Total other comprehensive income (loss) | (1,678) | 3,898 | (4,990) | |
Comprehensive income | $ 41,267 | $ 38,088 | $ 19,617 | |
[1] | Amounts are included in gain on sales of securities, net in the Consolidated Statements of Net Income. Provision for income tax associated with the reclassification adjustments for the years ended December 31, 2017, 2016 and 2015 was $4.0 million, $1.2 million and $962,000, respectively. | |||
[2] | Amounts are included in salaries and employee benefits in the Consolidated Statements of Net Income. Benefit for income tax associated with the reclassification adjustments for the years ended December 31, 2017, 2016 and 2015 was $12,000, $19,000 and $52,000, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax associated with reclassification adjustments | $ 4,000 | $ 1,200 | $ 962 |
Benefit for income tax associated with the reclassification adjustments on salaries and employee benefits | $ 12 | $ 19 | $ 52 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Compensation - ESOP [Member] |
Beginning Balance at Dec. 31, 2014 | $ 577,710 | $ 547 | $ 410,714 | $ 184,715 | $ 2,898 | $ (21,164) |
Beginning balance, shares at Dec. 31, 2014 | 54,708,066 | |||||
Comprehensive income | 19,617 | 24,607 | (4,990) | |||
Dividends declared | (3,108) | (3,108) | ||||
Repurchased stock related to buyback program | (9,428) | $ (7) | (9,421) | |||
Repurchased stock related to buyback program, shares | (722,104) | |||||
ESOP shares earned | 1,595 | 713 | 882 | |||
Share-based compensation expense - restricted stock, net of awards forfeited | 731 | $ 7 | 724 | |||
Share-based compensation expense - restricted stock, net of awards forfeited, shares | 685,480 | |||||
Share-based compensation expense - stock options, net of awards forfeited | 357 | 357 | ||||
Excess tax benefits in connection with share-based compensation | 420 | 420 | ||||
Stock options exercised | 232 | $ 2 | 230 | |||
Stock options exercised, shares | 203,795 | |||||
Ending Balance at Dec. 31, 2015 | 588,126 | $ 549 | 403,737 | 206,214 | (2,092) | (20,282) |
Ending balance, shares at Dec. 31, 2015 | 54,875,237 | |||||
Comprehensive income | 38,088 | 34,190 | 3,898 | |||
Dividends declared | (6,114) | (6,114) | ||||
Repurchased stock related to buyback program | (18,799) | $ (13) | (18,786) | |||
Repurchased stock related to buyback program, shares | (1,337,507) | |||||
ESOP shares earned | 1,842 | 960 | 882 | |||
Share-based compensation expense - restricted stock, net of awards forfeited | 2,104 | 2,104 | ||||
Share-based compensation expense - restricted stock, net of awards forfeited, shares | (21,538) | |||||
Share-based compensation expense - stock options, net of awards forfeited | 1,231 | 1,231 | ||||
Excess tax benefits in connection with share-based compensation | 614 | 614 | ||||
Stock options exercised | 205 | 205 | ||||
Stock options exercised, shares | 79,913 | |||||
Ending Balance at Dec. 31, 2016 | $ 607,297 | $ 536 | 390,065 | 234,290 | 1,806 | (19,400) |
Ending balance, shares at Dec. 31, 2016 | 53,596,105 | 53,596,105 | ||||
Comprehensive income | $ 41,267 | 42,945 | (1,678) | |||
Dividends declared | $ (8,702) | (8,702) | ||||
Repurchased stock related to buyback program, shares | (2,059,611) | |||||
ESOP shares earned | $ 2,232 | 1,350 | 882 | |||
Share-based compensation expense - restricted stock, net of awards forfeited | 2,395 | $ 2 | 2,393 | |||
Share-based compensation expense - restricted stock, net of awards forfeited, shares | 259,661 | |||||
Share-based compensation expense - stock options, net of awards forfeited | 1,409 | 1,409 | ||||
Stock options exercised | $ 501 | $ 2 | 499 | |||
Stock options exercised, shares | 107,960 | 183,550 | ||||
Ending Balance at Dec. 31, 2017 | $ 646,399 | $ 540 | $ 395,716 | $ 268,533 | $ 128 | $ (18,518) |
Ending balance, shares at Dec. 31, 2017 | 54,039,316 | 54,039,316 |
Consolidated Statements of Cha8
Consolidated Statements of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Common Stock [Member] | |||
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Additional Paid-in Capital [Member] | |||
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Retained Earnings [Member] | |||
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Unearned Compensation - ESOP [Member] | |||
Dividends declared per share | $ 0.17 | $ 0.12 | $ 0.06 |
ESOP shares earned | 121,764 | 121,764 | 121,764 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 42,945 | $ 34,190 | $ 24,607 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of acquisition fair value adjustments | (168) | (145) | (133) |
ESOP shares earned expense | 2,232 | 1,842 | 1,595 |
Provision for loan losses | 4,859 | 7,180 | 6,667 |
Accretion of net deferred loan origination fees | (1,738) | (1,273) | (1,011) |
Net amortization (accretion) of securities available for sale | 8 | (47) | (64) |
Depreciation and amortization expense | 3,069 | 3,004 | 2,524 |
Gain on sales of securities, net | (9,305) | (3,020) | (2,432) |
Net loss and provision for foreclosed real estate | 8 | 214 | |
Deferred income tax provision (benefit) | 6,823 | (2,816) | (2,361) |
Income from bank-owned life insurance | (1,158) | (1,188) | (1,225) |
Gain on life insurance distribution | (1,657) | ||
Share-based compensation expense | 3,804 | 3,335 | 1,088 |
Excess tax benefits in connection with share-based compensation | (614) | (420) | |
Net changes in: | |||
Loans held for sale | 2,288 | 725 | (3,698) |
Accrued interest receivable | (2,245) | (1,807) | (826) |
Other assets | 471 | 179 | 3,172 |
Accrued expenses and other liabilities | 198 | 4,458 | 80 |
Net cash provided (used) by operating activities | 50,426 | 44,011 | 27,777 |
Cash flows from investing activities: | |||
Cash paid for business combination, net of acquired cash | (2,005) | ||
Purchases of certificates of deposit | (22,650) | (80,423) | (26,562) |
Maturities of certificates of deposit | 35,130 | 99,162 | 12,500 |
Activity in securities available for sale: | |||
Proceeds from maturities, calls and principal payments | 16,759 | 56,353 | 44,470 |
(Purchase) redemption of mutual funds, net | (8) | 1,191 | 19,867 |
Proceeds from sales | 40,864 | 38,429 | 27,120 |
Purchases | (8,395) | (12,035) | (35,507) |
Proceeds from distribution of bank-owned life insurance | 3,224 | 279 | |
Loans originated, net of principal payments received | (655,291) | (860,088) | (401,953) |
Purchases of premises and equipment | (1,213) | (4,100) | (4,177) |
(Purchase) redemption of Federal Home Loan Bank stock | (6,049) | (7,244) | 1,794 |
Proceeds from sales of foreclosed real estate | 1,690 | 808 | 832 |
Net cash provided (used) by investing activities | (597,944) | (767,947) | (361,337) |
Cash flows from financing activities: | |||
Net increase in deposits | 538,198 | 732,838 | 239,102 |
Net change in borrowings with maturities less than three months | (20,000) | 20,000 | |
Proceeds from Federal Home Loan Bank advances with maturities of three months or more | 320,625 | 220,000 | 18,000 |
Repayment of Federal Home Loan Bank advances with maturities of three months or more | (137,886) | (44,714) | (42,673) |
Cash dividends paid on common stock | (7,656) | (6,148) | (1,462) |
Stock options exercised | 501 | 205 | 232 |
Repurchase of common stock | (18,799) | (9,428) | |
Excess tax benefits in connection with share-based compensation | 614 | 420 | |
Net cash (used) provided by financing activities | 713,782 | 863,996 | 224,191 |
Net change in cash and cash equivalents | 166,264 | 140,060 | (109,369) |
Cash and cash equivalents at beginning of year | 236,423 | 96,363 | 205,732 |
Cash and cash equivalents at end of year | 402,687 | 236,423 | 96,363 |
Supplemental cash flow information: | |||
Interest paid on deposits | 33,665 | 23,762 | 18,477 |
Interest paid on borrowings | 4,683 | 2,900 | 1,994 |
Income taxes paid, net of refunds | 27,165 | 19,151 | $ 13,905 |
Non-cash investing and financing activities: | |||
Transfers from loans to foreclosed real estate | 1,690 | 816 | |
Net amounts due from (to) broker on security transactions | 970 | $ (462) | |
In conjunction with the purchase acquisition detailed in Note 14 to the Consolidated Financial Statements, assets were acquired and liabilities were assumed as follows: | |||
Fair value of assets acquired, net of cash acquired | 104,616 | ||
Fair value of liabilities assumed | $ 102,611 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Meridian Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated on March 6, 2014 to be the successor to Meridian Interstate Bancorp, Inc. (“Old Meridian”) upon completion of the second-step mutual-to-stock mid-tier The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. The Company owns the Bank. The Bank’s subsidiaries include Prospect, Inc., which engages in securities transactions on its own behalf, and EBOSCO, LLC which can hold foreclosed real estate, and East Boston Investment Services, Inc., which is authorized for third-party investment sales and is currently inactive. All significant intercompany balances and transactions have been eliminated in consolidation. Business and Operating Segments The Company provides loan and deposit services to its customers through its local banking offices in the greater Boston metropolitan area. The Company is subject to competition from other financial institutions including commercial banks, other savings banks, credit unions, mortgage banking companies and other financial service providers. Generally, financial information is to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Management evaluates the Company’s performance and allocates resources based on a single segment concept. Accordingly, there is no separately identified material operating segment for which discrete financial information is available. The Company does not derive revenues from, or have assets located in foreign countries, nor does it derive revenues from any single customer that represents 10% or more of the Company’s total revenues. Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of securities for other-than-temporary impairment. Significant Concentrations of Credit Risk Most of the Company’s activities are with customers located within Massachusetts. Note 2 includes the types of securities in which the Company invests and Note 3 includes the types of lending in which the Company engages. The Company believes that it does not have any significant loan concentrations or security in any one industry or with any customer. Reclassification Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the 2017 presentation. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include amounts due from banks and federal funds sold on a daily basis, which mature overnight or on demand. The Company may from time to time have deposits in financial institutions which exceed the federally insured limits. At December 31, 2017, the Company had a concentration of cash on deposit at the Federal Reserve Bank amounting to $353.0 million. Certificates of Deposit Certificates of deposit are purchased from FDIC-insured depository institutions, have an original maturity greater than 90 days and up to 24 months and are carried at cost. At December 31, 2017, all certificates of deposit invested in by the Company exceeded the FDIC insurance limit of $250,000 but were insured up to the full amount under the Massachusetts Depositors Insurance Fund, Massachusetts Credit Union Share Insurance Corporation or Massachusetts Cooperative Bank Share Insurance Fund. Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 — Valuation is based on quoted prices in active markets for identical assets or liabilities. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 — Valuation is based on 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 for substantially the full term of the assets or liabilities. Level 3 — Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. Securities Available for Sale Securities are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component in other comprehensive income, net of tax effects. Purchase premiums and discounts are recognized in interest income using the effective interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Each reporting period, the Company evaluates all securities with a decline in fair value below the amortized cost of the investment to determine whether or not other-than-temporary impairment (“OTTI”) exists. OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis on the FHLB stock. As of December 31, 2017 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 cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans The Company grants mortgage, commercial and consumer loans to customers. The Company’s loan portfolio includes one- A substantial portion of the loan portfolio is represented by mortgage loans throughout eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off The accrual of interest on all loans is discontinued at the time the loan is 90 days past due, unless the credit is well secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual charged-off non-accrual Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable losses inherent in the loan portfolio and 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 adequacy of the allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and allocated components and may include an unallocated component, as further described below. General Component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segments and classes. 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 delinquent and non-accrual The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan segment are as follows: One- loan-to-value loan-to-value loan-to-value Multi-family and commercial real estate loans Construction loans rent-up Commercial and industrial loans Consumer loans Allocated Component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for multi-family residential, commercial real estate, construction and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual one- 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 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 initially classified as impaired. Unallocated Component An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. An unallocated component of the allowance would reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general components of the allowance for loan losses. Bank-Owned Life Insurance The Bank has purchased insurance policies on the lives of certain directors, executive officers and employees. Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in net cash surrender value of the policies, as well as excess insurance proceeds received, are reflected in non-interest Premises and Equipment Land is carried at cost. Buildings, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization, computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. It is general practice to charge the cost of maintenance and repairs to earnings when incurred; major expenditures for improvements are capitalized and depreciated. Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value, if material. Loan Level Interest Rate Swaps The Company enters into interest rate swaps with commercial loan customers to synthetically convert the customer’s loan from a variable rate to a fixed rate. These swaps are matched in offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets and other liabilities. The Company’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest Derivative Loan Commitments Residential real estate loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in mortgage-banking gains, net, if material. Such amounts were immaterial at December 31, 2017 and 2016. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery forward sale commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in mortgage-banking gains, net if material. Such amounts were immaterial at December 31, 2017 and 2016. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. The excess, if any, of the loan balance over the fair value of the asset at the time of transfer from loans to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other general and administrative expenses. Valuation of Goodwill and Core Deposit Intangible and Analysis for Impairment The Company’s goodwill resulted from the acquisitions of other financial institutions accounted for under the acquisition method of accounting. The amount of goodwill recorded at acquisition was impacted by the recorded fair value of the assets acquired and liabilities assumed, which is an estimate determined by the use of internal or other valuation techniques. Goodwill is subject to an annual review by management that first assesses qualitative factors to determine whether it is necessary to perform the two-step two-step The fair value of the core deposit intangible associated with the acquired non-maturity Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or 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. Marketing and Advertising Marketing and advertising costs are expensed as incurred. Supplemental Director and Executive Retirement and Long-Term Health Care Plans The Company accounts for certain supplemental director and executive retirement and long-term health care benefits on the net periodic cost method using an actuarial model that allocates costs over the service period of participants in the plans. The Company accounts for the over-funded or under-funded status of these defined benefit plans as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss. Share-Based Compensation Plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide service for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted quarterly based on actual forfeiture experience. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. Employee Stock Ownership Plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP, multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholder’s equity in the consolidated balance sheets. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in Income Taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment. Accordingly, changes resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 have been recognized in the consolidated financial statements as of and for the year ended December 31, 2017. See Note 8. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company does not have any uncertain tax positions at December 31, 2017 or 2016 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2017, 2016 and 2015. The Company records excess tax benefits or deficiencies in income tax expense or benefit in the income statement as part of the provision for income taxes beginning in 2017. Previously, such amounts were recorded to additional paid in capital. For interim reporting purposes the excess tax benefits or deficiencies are recorded as discrete items in the period in which they occur. The presentation of the excess tax benefits is presented as an operating activity in the statement of cash flows. In addition, when calculating incremental shares for earnings per share, the Company excludes from assumed proceeds excess tax benefits that previously would have been recorded in additional paid-in Earnings Per Share Basic earnings per share excludes dilution and is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Rights to dividends on unvested stock awards are non-forfeitable, Basic and diluted earnings per share have been computed based on the following: Years Ended December 31, 2017 2016 2015 (Dollars in thousands, except per share amounts) Net income available to common stockholders $ 42,945 $ 34,190 $ 24,607 Basic weighted average shares outstanding 51,153,665 51,128,914 51,965,036 Effect of dilutive stock options 1,509,932 1,119,394 1,106,896 Diluted weighted average shares outstanding $ 52,663,597 $ 52,248,308 $ 53,071,932 Earnings per share: Basic $ 0.84 $ 0.67 $ 0.47 Diluted $ 0.82 $ 0.65 $ 0.46 For the years ended December 31, 2017, 2016 and 2015, options for the exercise of 67,554, 9,440 and 366,002 shares, respectively, were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized gain on securities available for sale $ 931 $ 3,637 Tax effect (292 ) (1,444 ) Net-of-tax 639 2,193 Defined benefit plans: Unrecognized prior service cost (180 ) (197 ) Unrecognized net actuarial loss (533 ) (399 ) Total (713 ) (596 ) Tax effect 202 209 Net-of-tax (511 ) (387 ) $ 128 $ 1,806 Unrecognized prior service costs amounting to $17,000 and unrecognized net actuarial losses amounting to $214,000, included in accumulated other comprehensive income at December 31, 2017, are expected to be recognized as a component of net periodic cost for the year ending December 31, 2018. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall, (Subtopic 825-10). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) right-to-use In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) held-to-maturity available-for-sale In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350) In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220). |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | 2. SECURITIES AVAILABLE FOR SALE The amortized cost and fair values of securities available for sale, with gross unrealized gains and losses, follows: Amortized Gross Gross Fair (In thousands) December 31, 2017 Debt securities: Government-sponsored enterprises $ 1,942 $ — $ — $ 1,942 Municipal bonds 2,424 2 — 2,426 Residential mortgage-backed securities: Government-sponsored enterprises 15,916 231 (2 ) 16,145 Private label 70 6 — 76 Total debt securities 20,352 239 (2 ) 20,589 Marketable equity securities: Common stocks: Basic materials 3,498 207 (250 ) 3,455 Consumer products and services 5,832 377 (415 ) 5,794 Financial services 1,241 294 — 1,535 Healthcare 1,933 111 (137 ) 1,907 Industrials 2,939 469 — 3,408 Technology 1,628 194 (156 ) 1,666 Total common stocks 17,071 1,652 (958 ) 17,765 Money market mutual funds 10 — — 10 Total marketable equity securities 17,081 1,652 (958 ) 17,775 Total securities available for sale $ 37,433 $ 1,891 $ (960 ) $ 38,364 December 31, 2016 Debt securities: Corporate bonds: Financial services $ 12,989 $ 16 $ (3 ) $ 13,002 Industrials 1,000 3 — 1,003 Total corporate bonds 13,989 19 (3 ) 14,005 Municipal bonds 1,202 17 — 1,219 Residential mortgage-backed securities: Government-sponsored enterprises 5,284 325 (3 ) 5,606 Private label 779 22 — 801 Total debt securities 21,254 383 (6 ) 21,631 Marketable equity securities: Common stocks: Basic materials 6,763 901 (232 ) 7,432 Consumer products and services 13,567 1,093 (382 ) 14,278 Financial services 5,953 970 — 6,923 Healthcare 8,225 533 (456 ) 8,302 Industrials 4,181 624 (11 ) 4,794 Technology 4,081 440 (220 ) 4,301 Total common stocks 42,770 4,561 (1,301 ) 46,030 Money market mutual funds 2 — — 2 Total marketable equity securities 42,772 4,561 (1,301 ) 46,032 Total securities available for sale $ 64,026 $ 4,944 $ (1,307 ) $ 67,663 At December 31, 2017, securities with a fair value of $3.3 million and $472,000 were pledged as collateral for Federal Home Loan Bank of Boston borrowings and for the Federal Reserve Bank discount window borrowings, respectively. See Note 7. The amortized cost and fair value of debt securities by contractual maturity at December 31, 2017 are as follows. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. One Year or Less After One Year After Five Years Total Amortized Fair Amortized Fair Amortized Fair Amortized Fair (In thousands) Government-sponsored enterprises $ — $ — $ — $ — $ 1,942 $ 1,942 $ 1,942 $ 1,942 Municipal bonds 325 328 — — 2,099 2,098 2,424 2,426 Residential mortgage-backed securities: Government-sponsored enterprises — — 109 109 15,807 16,036 15,916 16,145 Private label — — — — 70 76 70 76 Total $ 325 $ 328 $ 109 $ 109 $ 19,918 $ 20,152 $ 20,352 $ 20,589 For the years ended December 31, 2017, 2016 and 2015, proceeds from sales of securities available for sale amounted to $40.9 million, $38.4 million and $27.1 million, respectively. Gross gains of $9.5 million, $7.2 million and $4.2 million and gross losses of $164,000, $4.2 million and $1.8 million, respectively, were realized on those sales. Information pertaining to securities available for sale as of December 31, 2017 and 2016, with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Twelve Months or Longer Gross Fair Gross Fair (In thousands) December 31, 2017 Debt securities: Residential mortgage-backed securities: Government-sponsored enterprises $ — $ — $ 2 $ 171 Total debt securities — — 2 171 Marketable equity securities: Common stocks: Basic materials 87 791 163 641 Consumer products and services 24 1,196 391 1,273 Healthcare 137 1,102 — — Technology 100 408 56 426 Total marketable equity securities 348 3,497 610 2,340 Total temporarily impaired securities $ 348 $ 3,497 $ 612 $ 2,511 Less Than Twelve Months Twelve Months or Longer Gross Fair Gross Fair (In thousands) December 31, 2016 Debt securities: Corporate bonds-financial services $ 3 $ 5,000 $ — $ — Residential mortgage-backed securities: Government-sponsored enterprises — — 3 205 Total debt securities 3 5,000 3 205 Marketable equity securities: Common stocks: Basic materials — — 232 1,568 Consumer products and services 237 3,496 145 1,618 Healthcare 259 2,039 197 1,377 Industrials 11 450 — — Technology — — 220 1,681 Total marketable equity securities 507 5,985 794 6,244 Total temporarily impaired securities $ 510 $ 10,985 $ 797 $ 6,449 The Company determined no securities were other-than-temporarily impaired for the years ended December 31, 2017, 2016 and 2015. Management evaluates securities for other-than-temporary impairment on a quarterly basis, with more frequent evaluation for selected issuers or when economic or market concerns warrant such evaluations. At December 31, 2017, 12 marketable equity securities with a fair value of $5.8 million had gross unrealized losses totaling $958,000, or an aggregate depreciation of 14.2% from the Company’s cost basis. These marketable equity securities consisted of six securities with a fair value of $3.5 million and a gross unrealized loss of $348,000 for less than 12 months and six securities with a fair value of $2.3 million and a gross unrealized loss of $610,000 for 12 months or longer. The marketable equity securities in a gross unrealized loss position for 12 months or longer were comprised of one security in the basic materials sector with a fair value of $641,000 and a gross unrealized loss of $163,000, three marketable equity securities in the consumer products and services sector with a fair value of $1.3 million and a gross unrealized loss of $391,000, and two securities in the technology sector with a fair value of $426,000 and a gross unrealized loss of $56,000. In analyzing an equity issuer’s financial condition, management considers industry analysts’ reports, financial performance and projected target prices of investment analysts within a one-year Although issuers within the marketable equity securities portfolio had price declines resulting in unrealized losses, management does not believe these declines in market value are other than temporary and the Company currently has the ability and intent to hold these investments until a recovery of fair value. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | 3. LOANS A summary of loans follows: December 31, 2017 2016 (In thousands) Real estate loans: Residential real estate: One- $ 603,680 $ 532,450 Multi-family 779,637 562,948 Home equity lines of credit 48,393 42,913 Commercial real estate 2,063,781 1,776,601 Construction 641,306 502,753 Total real estate loans 4,136,797 3,417,665 Commercial and industrial 525,604 515,430 Consumer 10,761 9,712 Total loans 4,673,162 3,942,807 Allowance for loan losses (45,185 ) (40,149 ) Net deferred loan origination fees (5,179 ) (3,990 ) Loans, net $ 4,622,798 $ 3,898,668 The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying balance sheets. The Company and participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At December 31, 2017 and 2016, the Company was servicing loans for participants aggregating $247.8 million and $210.5 million, respectively. At December 31, 2017, multi-family and commercial real estate loans with carrying values totaling $116.7 million and $695.3 million, respectively, were pledged as collateral for Federal Home Loan Bank of Boston borrowings. In addition, there is a blanket lien on one- An analysis of the allowance for loan losses and related information follows: One- Multi- Home Commercial Construction Commercial Consumer Total (In thousands) Balance at December 31, 2014 $ 1,849 $ 3,635 $ 100 $ 13,000 $ 5,155 $ 4,633 $ 97 $ 28,469 Provision (credit) for loan losses (446 ) (250 ) 104 1,479 4,564 1,022 194 6,667 Charge-offs (165 ) — (60 ) — (2,287 ) (36 ) (306 ) (2,854 ) Recoveries 116 — — 18 881 1 107 1,123 Balance at December 31, 2015 1,354 3,385 144 14,497 8,313 5,620 92 33,405 Provision (credit) for loan losses 13 1,129 (71 ) 4,228 874 821 186 7,180 Charge-offs — — — — (486 ) (49 ) (302 ) (837 ) Recoveries — — — — 230 60 111 401 Balance at December 31, 2016 1,367 4,514 73 18,725 8,931 6,452 87 40,149 Provision (credit) for loan losses (372 ) 1,748 (12 ) 2,478 1,187 (398 ) 228 4,859 Charge-offs (98 ) — — — (3 ) — (340 ) (441 ) Recoveries 104 1 1 310 51 30 121 618 Balance at December 31, 2017 $ 1,001 $ 6,263 $ 62 $ 21,513 $ 10,166 $ 6,084 $ 96 $ 45,185 December 31, 2017 Amount of allowance for loan losses for loans deemed to be impaired $ 51 $ 133 $ — $ — $ — $ — $ — $ 184 Amount of allowance for loan losses for loans not deemed to be impaired 950 6,130 62 21,513 10,166 6,084 96 45,001 $ 1,001 $ 6,263 $ 62 $ 21,513 $ 10,166 $ 6,084 $ 96 $ 45,185 Loans deemed to be impaired $ 1,245 $ 1,315 $ — $ 846 $ — $ 1,539 $ — $ 4,945 Loans not deemed to be impaired 602,435 778,322 48,393 2,062,935 641,306 524,065 10,761 4,668,217 $ 603,680 $ 779,637 $ 48,393 $ 2,063,781 $ 641,306 $ 525,604 $ 10,761 $ 4,673,162 December 31, 2016 Amount of allowance for loan losses for loans deemed to be impaired $ 49 $ 137 $ — $ — $ — $ — $ — $ 186 Amount of allowance for loan losses for loans not deemed to be impaired 1,318 4,377 73 18,725 8,931 6,452 87 39,963 $ 1,367 $ 4,514 $ 73 $ 18,725 $ 8,931 $ 6,452 $ 87 $ 40,149 Loans deemed to be impaired $ 1,422 $ 1,359 $ — $ 2,807 $ 988 $ 1,808 $ — $ 8,384 Loans not deemed to be impaired 531,028 561,589 42,913 1,773,794 501,765 513,622 9,712 3,934,423 $ 532,450 $ 562,948 $ 42,913 $ 1,776,601 $ 502,753 $ 515,430 $ 9,712 $ 3,942,807 The following table provides information about the Company’s past due and non-accrual 30-59 60-89 90 Days Total Loans on Non-accrual (In thousands) December 31, 2017 Real estate loans: Residential real estate: One- $ 1,537 $ 664 $ 1,532 $ 3,733 $ 6,890 Home equity lines of credit 195 42 521 758 562 Commercial real estate 98 — — 98 388 Total real estate loans 1,830 706 2,053 4,589 7,840 Commercial and industrial 5 — 523 528 523 Consumer 887 568 — 1,455 — Total $ 2,722 $ 1,274 $ 2,576 $ 6,572 $ 8,363 December 31, 2016 Real estate loans: Residential real estate: One- $ 641 $ 834 $ 2,902 $ 4,377 $ 8,487 Home equity lines of credit 707 131 672 1,510 674 Commercial real estate 105 — 1,904 2,009 2,807 Construction — — 815 815 815 Total real estate loans 1,453 965 6,293 8,711 12,783 Commercial and industrial — — 653 653 653 Consumer 679 392 — 1,071 — Total $ 2,132 $ 1,357 $ 6,946 $ 10,435 $ 13,436 At December 31, 2017 and 2016, the Company did not have any accruing loans past due 90 days or more. The following tables provide information with respect to the Company’s impaired loans: December 31, 2017 2016 Recorded Unpaid Related Recorded Unpaid Related (In thousands) Impaired loans without a valuation allowance: One- $ 693 $ 1,007 $ 841 $ 1,281 Multi-family 59 59 74 74 Commercial real estate 846 846 2,807 3,102 Construction — — 988 1,083 Commercial and industrial 1,539 1,870 1,808 2,138 Total 3,137 3,782 6,518 7,678 Impaired loans with a valuation allowance: One- 552 552 $ 51 581 581 $ 49 Multi-family 1,256 1,256 133 1,285 1,285 137 Total 1,808 1,808 184 1,866 1,866 186 Total impaired loans $ 4,945 $ 5,590 $ 184 $ 8,384 $ 9,544 $ 186 Years Ended December 31, 2017 2016 2015 Average Interest Interest Average Interest Interest Average Interest Interest (In thousands) One- $ 1,522 $ 89 $ 71 $ 1,788 $ 68 $ 47 $ 2,625 $ 120 $ 72 Multi-family 1,336 53 — 1,379 55 — 1,421 55 — Commercial real estate 2,236 53 31 3,281 80 80 7,425 284 81 Construction 250 6 6 11,076 31 17 16,273 315 295 Commercial and industrial 1,647 63 — 1,635 84 13 930 5 5 Total impaired loans $ 6,991 $ 264 $ 108 $ 19,159 $ 318 $ 157 $ 28,674 $ 779 $ 453 At December 31, 2017, additional funds committed to be advanced in connection with impaired construction loans were immaterial. The following table summarizes the TDRs at the dates indicated: December 31, 2017 2016 (In thousands) TDRs on accrual status: One- $ 2,125 $ 2,219 Multi-family 1,315 1,359 Home equity lines of credit — 18 Commercial real estate 9,200 9,460 Construction — 174 Commercial and industrial 20 27 Total TDRs on accrual status 12,660 13,257 TDRs on non-accrual One- 1,046 1,123 Total TDRs on non-accrual 1,046 1,123 Total TDRs $ 13,706 $ 14,380 The Company generally places loans modified as TDRs on non-accrual TDRs that defaulted and became 90 days past due in the first twelve months after restructure were immaterial for the years ended December 31, 2017, 2016 and 2015. The Company utilizes a ten-grade • Loans rated 1, 2, 3, 4, 5 and 6: • Loans rated 7: • Loans rated 8: • Loans rated 9: • Loans rated 10: On an annual basis, or more often if needed, the Company formally reviews the ratings on all multi-family, commercial real estate, construction, and commercial and industrial loans. The Company also engages an independent third-party to review a significant portion of loans within these segments on at least an annual basis. Management uses the results of these reviews as part of its annual review process. The following tables provide the Company’s risk-rated loans by class: December 31, 2017 2016 Multi-family Commercial Construction Commercial Multi-family Commercial Construction Commercial (In thousands) Loans rated 1 — 6 $ 774,919 $ 2,045,905 $ 641,306 $ 471,793 $ 556,892 $ 1,771,671 $ 500,565 $ 465,979 Loans rated 7 275 17,030 — 6,380 841 2,123 — 22,820 Loans rated 8 4,443 846 — 47,431 5,215 2,807 2,188 26,631 Loans rated 9 — — — — — — — — Loans rated 10 — — — — — — — — Total $ 779,637 $ 2,063,781 $ 641,306 $ 525,604 $ 562,948 $ 1,776,601 $ 502,753 $ 515,430 For one- |
Servicing
Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Servicing | 4. SERVICING Residential real estate loans serviced for others by the Company are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans amounted to $133.9 million, $107.8 million and $129.8 million at December 31, 2017, 2016 and 2015, respectively. Included in these loans serviced for others at December 31, 2017, 2016 and 2015 is $43.0 million, $47.2 million and $56.0 million, respectively, of loans serviced for the Federal Home Loan Bank of Boston with a recourse provision whereby the Company may be obligated to participate in potential losses on a limited basis when a realized loss on a foreclosure occurs. Losses are borne in priority order by the borrower, PMI insurance, the Federal Home Loan Bank and the Company. At December 31, 2017, 2016 and 2015, the maximum contingent liability associated with loans sold with recourse is $1.0 million, $3.0 million and $2.8 million, respectively, which is not recorded in the consolidated financial statements. The Company has never repurchased any loans or incurred any losses under these recourse provisions. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. Mortgage servicing rights were immaterial for the years ended December 31, 2017, 2016 and 2015. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 5. PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of premises and equipment follows: December 31, Estimated Lives 2017 2016 (In thousands) Land and land improvements $ 8,472 $ 8,243 N/A Buildings 35,777 34,421 40 Years Leasehold improvements 9,031 8,629 5-20 Years Equipment 21,338 20,799 3-7 74,618 72,092 Less accumulated depreciation and amortization (33,651 ) (30,665 ) $ 40,967 $ 41,427 Depreciation and amortization expense for the years ended December 31, 2017, 2016 and 2015 amounted to $3.1 million, $3.0 million and $2.5 million, respectively. Lease Commitments The Company is obligated under non-cancelable Years Ending December 31, Amount (In thousands) 2018 $ 1,902 2019 1,688 2020 1,612 2021 1,556 2022 1,471 Thereafter 7,280 $ 15,509 Total rent expense for all operating leases amounted to $1.9 million, $1.7 million and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | 6. DEPOSITS A summary of deposit balances, by type, follows: December 31, 2017 2016 (In thousands) Non interest-bearing demand deposits $ 477,428 $ 431,222 Interest-bearing demand deposits 1,004,155 630,413 Money market deposits 921,895 980,344 Regular savings and other deposits 333,774 305,632 Total non-certificate 2,737,252 2,347,611 Term certificates less than $250,000 999,531 850,565 Term certificates $250,000 and greater 371,078 277,661 Total certificate accounts 1,370,609 1,128,226 Total deposits $ 4,107,861 $ 3,475,837 A summary of term certificates, by maturity, follows: December 31, 2017 2016 Maturing Amount Weighted Amount Weighted (Dollars in thousands) Within 1 year $ 600,012 1.23 % $ 539,903 1.16 % Over 1 year to 2 years 356,203 1.60 306,120 1.29 Over 2 years to 3 years 290,909 2.05 122,952 1.69 Over 3 years to 4 years 78,461 1.88 133,256 2.02 Over 4 years to 5 years 44,798 2.34 22,483 1.61 Greater than 5 years 226 2.13 3,512 5.50 $ 1,370,609 1.57 % $ 1,128,226 1.38 % The Company had brokered certificates of deposit, which are included in term certificates in the tables above, totaling $232.7 million with a weighted average rate of 1.73% and $158.5 million with a weighted average rate of 1.33% at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, the Company also had brokered interest-bearing demand deposits totaling $569.4 million and $296.3 million, respectively, representing reciprocal deposits received from other financial institutions through Authorized Bank Deposit Placement Network Sponsor to facilitate full federal deposit insurance coverage for certain Bank customers. In addition, the Company had $100.0 million in non-reciprocal non-reciprocal |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | 7. BORROWINGS The Company had no short-term borrowings at December 31, 2017 or December 31, 2016. The Company has an available line of credit of $9.4 million with the FHLB at an interest rate that adjusts daily and $472,000 of borrowing capacity at the Federal Reserve Bank discount window. No amounts were drawn on the line of credit and no borrowings were outstanding with the Federal Reserve Bank discount window as of December 31, 2017 or December 31, 2016. Long-term debt consists of FHLB advances as follows: December 31, 2017 2016 Amount Weighted Amount Weighted (Dollars in thousands) Fixed rate advances maturing: 2017 $ — — % $ 89,632 1.32 % 2018 48,000 1.26 43,000 1.25 2019 6,268 1.66 4,891 1.23 2020 53,551 1.80 4,989 1.22 2021 45,000 1.46 45,000 1.46 2022 105,625 1.79 — — Thereafter 100,000 1.21 50,000 1.01 358,444 1.51 237,512 1.26 Variable rate advances maturing: 2020 — — 25,000 0.27 2021 35,000 0.82 60,000 0.31 2022 100,000 0.43 — — Thereafter 20,000 0.49 — — 155,000 0.53 85,000 0.29 Total advances $ 513,444 1.22 % $ 322,512 1.01 % At December 31, 2017, advances amounting to $380.0 million are callable by the FHLB prior to maturity, including advances totaling $35.0 million with variable rates based on the 3-Month 3-month 3-Month 3-Month 3-month All borrowings from the FHLB are secured by investment securities (see Note 2) and qualified collateral, consisting of a blanket lien on one- |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Current tax provision: Federal $ 20,575 $ 15,989 $ 11,109 State 6,089 4,708 3,218 Total current provision 26,664 20,697 14,327 Deferred tax provision (benefit): Federal (16 ) (2,176 ) (1,841 ) State (219 ) (640 ) (520 ) Effect of tax rate change 7,058 — — Total deferred provision (benefit) 6,823 (2,816 ) (2,361 ) Total tax provision $ 33,487 $ 17,881 $ 11,966 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended 2017 2016 2015 Statutory federal tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State taxes, net of federal tax benefit 5.0 5.1 4.8 Dividends received deduction (0.3 ) (0.7 ) (1.1 ) Bank-owned life insurance (1.3 ) (0.8 ) (1.2 ) Tax exempt income (4.2 ) (5.9 ) (6.0 ) Effect of tax rate change 9.2 — — Other, net 0.4 1.6 1.2 Effective tax rates 43.8 % 34.3 % 32.7 % The components of the net deferred tax asset are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Federal $ 12,353 $ 19,275 State 5,795 5,482 18,148 24,757 Deferred tax liabilities Federal (2,329 ) (2,625 ) State (575 ) (671 ) (2,904 ) (3,296 ) Net deferred tax asset $ 15,244 $ 21,461 The tax effects of each item that give rise to deferred tax assets and deferred tax liabilities are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Allowance for loan losses $ 12,701 $ 16,401 Employee benefit and retirement plans 3,720 5,011 Acquisition accounting 1,378 2,135 Non-accrual 82 1,091 Other 259 208 18,140 24,846 Deferred tax liabilities Net unrealized gain on securities available for sale (292 ) (1,444 ) Depreciation and amortization (945 ) (1,289 ) Other (1,659 ) (652 ) (2,896 ) (3,385 ) Net deferred tax asset $ 15,244 $ 21,461 The Company reduces deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is not “more likely than not” that some portion or all of the deferred tax assets will be realized. The Company assesses the realizability of its deferred tax assets by assessing the likelihood of the Company generating federal and state tax income, as applicable, in future periods in amounts sufficient to offset the deferred tax charges in the periods they are expected to reverse. Based on this assessment, management concluded that a valuation allowance was not required as of December 31, 2017, 2016 and 2015. The federal income tax reserve for loan losses at the Company’s base year is $9.8 million. If any portion of the reserve is used for purposes other than to absorb loan losses, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve to absorb only loan losses, a deferred tax liability of $2.8 million has not been provided. The Company’s income tax returns are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations by the Internal Revenue Service for the years ended December 31, 2014 through 2017. The years open to examination by state taxing authorities vary by jurisdiction; no years prior to 2014 are open. On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act (the “Act”). The Act includes a number of changes in existing law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21%, effective on January 1, 2018. As a result of this rate reduction, the Company revalued its net deferred tax asset as of December 22, 2017 resulting in a reduction in the value of the net deferred tax assets of $7.1 million, which was recorded as additional income tax expense in the Company’s consolidated statement of net income in 2017. The Company believes it has developed a reasonable estimate of other provisions of the Act in determining the current year income tax provision. |
Other Commitments and Contingen
Other Commitments and Contingencies and Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies and Derivatives | 9. OTHER COMMITMENTS AND CONTINGENCIES AND DERIVATIVES In the normal course of business, there are outstanding commitments and contingencies which are not reflected in the accompanying consolidated financial statements. Loan Commitments The Company is party to financial instruments with off-balance The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance A summary of outstanding loan commitments whose contract amounts represent credit risk is as follows: December 31, 2017 2016 (In thousands) Unadvanced portion of existing loans: Construction $ 603,557 $ 503,586 Home equity lines of credit 46,352 36,722 Other lines and letters of credit 301,285 314,225 Commitments to originate: One- 25,432 18,272 Commercial real estate 116,314 42,141 Construction 81,937 231,274 Commercial and industrial 30,589 31,463 Other loans — 350 Total loan commitments outstanding $ 1,205,466 $ 1,178,033 Commitments to originate loans are agreements to lend to a customer provided 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 a portion of the commitments are expected to expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case by case basis. The amount of collateral obtained, if deemed necessary by the Company for the extension of credit, is based upon management’s credit evaluation of the borrower. Collateral held includes, but is not limited to, residential real estate and deposit accounts. Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized if deemed necessary and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Interest Rate Swaps The Company is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that the Company enters into with commercial business customers to synthetically convert their loans from a variable rate to a fixed rate. The Company pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. Concurrently, the Company enters into an offsetting interest rate swap with a third party financial institution. In the offsetting swap, the Company pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating and probability of default. At December 31, 2017 and 2016, the Company had $1.3 million and $1.8 million, respectively, in cash pledged for collateral on its interest rate swaps with the third party financial institution. Summary information regarding these derivatives is presented below: December 31, 2017 2016 Maturity Interest Rate Paid Interest Rate Received Notional Fair Notional Fair (Dollars in thousands) Customer interest rate swap 06/07/32 1 Mo. Libor + 200bp Fixed (4.40%) $ 65,514 $ 486 $ — $ — Third-party interest rate swap 06/07/32 Fixed (4.40%) 1 Mo. Libor + 200bp 65,514 (486 ) — — Customer interest rate swap 10/17/33 1 Mo. Libor + 175bp Fixed (4.1052%) $ 10,709 $ 720 $ 10,922 $ 839 Third-party interest rate swap 10/17/33 Fixed (4.1052%) 1 Mo. Libor + 175bp 10,709 (720 ) 10,922 (839 ) Customer interest rate swap 12/13/26 1 Mo. Libor + 205bp Fixed (3.82%) $ 2,884 $ (78 ) $ 3,036 $ (60 ) Third-party interest rate swap 12/13/26 Fixed (3.82%) 1 Mo. Libor + 205bp 2,884 78 3,036 60 Other Commitments As of December 31, 2017, the Company has an outstanding commitment of $17.3 million with its core data processing provider through December 2021. Employment and Change in Control Agreements The Company has entered into employment agreements with certain senior executives which provide for a minimum annual salary, subject to increase at the discretion of the Board of Directors, and other benefits, including a severance payment in the event employment is terminated in conjunction with a defined change in control. The agreements may be terminated for cause by the Company without further liability on the part of the Company, or by the executives with prior written notice to the Board of Directors. The Company also has change in control agreements with several officers which provide a severance payment in the event employment is terminated in conjunction with a defined change in control. Legal Claims Various legal claims may arise from time to time in the normal course of business, but in the opinion of management, these claims are not expected to have a material effect on the Company’s consolidated financial statements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 10. EMPLOYEE BENEFIT PLANS 401(k) Plan The Company has a 401(k) plan to provide retirement benefits for eligible employees. Under this plan, each employee reaching the age of eighteen and having completed at least three months of service in any one twelve-month period, beginning with such employee’s date of employment, can elect to be a participant in the retirement plan. All participants are fully vested upon entering the plan. The Company contributes an amount equal to three percent of an employee’s compensation regardless of the employee’s contributions and makes matching contributions equal to fifty percent of the first eight percent of an employee’s compensation contributed to the Plan. For the years ended December 31, 2017, 2016 and 2015, expense attributable to the plan amounted to $2.0 million, $1.6 million and $1.6 million, respectively. Supplemental Executive Retirement Benefits — Officers and Directors The Company has supplemental retirement benefit agreements with certain officers. The present value of the estimated future benefits is accrued over the required service periods. At December 31, 2017 and 2016, the accrued liability for these agreements amounted to $6.7 million and $6.4 million, respectively. The Company also has an unfunded Supplemental Executive Retirement Plan for certain directors which provides for a defined benefit obligation, based on the director’s final average compensation. At both December 31, 2017 and 2016, the accrued liability for the plan amounted to $1.3 million. Both contributions and benefit payments amounted to $259,000 and $411,000 for the years ended December 31, 2017 and 2016, respectively. No amounts were contributed or paid in the form of benefits for the years ended December 31, 2015. Supplemental executive retirement benefits expense for officers and directors amounted to $497,000, $421,000 and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively. Share-Based Compensation Plan On September 17, 2015, stockholders of the Company approved the 2015 Equity Incentive Plan (the “2015 EIP”). The 2015 EIP provides for the award of up to 4,550,000 shares of common stock pursuant to grants of restricted stock awards, incentive stock options and non-qualified The Company also maintains the 2008 Equity Incentive Plan (the “2008 EIP”). The 2008 EIP provides for the award of up to 3,547,732 shares of common stock pursuant to grants of restricted stock awards, incentive stock options, non-qualified The fair value of each option award for the 2015 EIP and 2008 EIP is estimated on the date of grant using the Black-Scholes Option-Pricing Model. The expected volatility is based on historical volatility of the stock price. The dividend yield assumption is based on the Company’s expectation of dividend payouts. The Company uses historical employee turnover data to determine the expected forfeiture rate in the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the date of grant. The Company utilized historical experience when determining the expected term of the options granted in 2017 for the 2015 EIP. The simplified method of calculating the expected term was used for the options granted in 2015 for the 2015 EIP and 2008 EIP because limited historical data specific to the shares existed at that time. The weighted-average assumptions used and fair value for options granted during the years ended December 31, 2017 and 2015 respectively are as follows: 2017 2015 Expected term (years) 5.61 6.50 Expected dividend yield 0.94 % 0.83 % Expected volatility 24.65 % 26.02 % Risk-free interest rate 1.93 % 1.77 % Weighted average fair value of options granted $ 4.25 $ 3.78 Expected forfeiture rate for expense recognition 6.02 % 6.02 % The aggregate grant date fair value of options granted in 2017 and 2015 was $3.0 million and $5.9 million, respectively. There were no options granted during the years ended December 31, 2016. A summary of options and SARs under the plans as of December 31, 2017, and activity during the year then ended, is presented below: Number Weighted - Average Weighted - Average Options outstanding at beginning of year 3,383,089 $ 8.60 5.39 Options granted 709,654 17.73 Options exercised (107,960 ) 4.38 SARs exercised (98,108 ) 4.32 Forfeited (56,988 ) 13.67 Options outstanding at end of year 3,829,687 10.43 5.45 Options exercisable at end of year 2,226,800 6.73 3.22 The aggregate intrinsic value, which fluctuates based on changes in the fair market value of the Company’s stock, is $38.9 million and $30.9 million for all outstanding and exercisable options, respectively, at December 31, 2017, based on a closing stock price of $20.60. The aggregate intrinsic value represents the total pre-tax pre-tax pre-tax The following table summarizes the Company’s non-vested Number of Weighted - Grant-Date Non-vested 583,503 $ 13.50 Granted 282,500 17.72 Vested (156,351 ) 12.92 Forfeited (22,839 ) 14.44 Non-vested 686,813 15.34 The total fair value of restricted shares vested in 2017 was $3.1 million. For the years ended December 31, 2017, 2016 and 2015, share-based compensation expense under the plans and the related tax benefit totaled $3.8 million and $926,000, $3.3 million and $1.1 million, and $1.1 million and $289,000, respectively. As of December 31, 2017, there was $15.5 million of total unrecognized compensation expense related to non-vested Employee Stock Ownership Plan The Company established an Employee Stock Ownership Plan (the “ESOP”) for its eligible employees effective January 1, 2008 to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified At December 31, 2017, the remaining principal balance on the ESOP debt is payable as follows: Year Ending December 31, Amount (In thousands) 2018 $ 689 2019 711 2020 734 2021 758 2022 783 Thereafter 16,612 $ 20,287 Shares held by the ESOP include the following: December 31, 2017 2016 (In thousands) Allocated 973 851 Committed to be allocated 122 122 Unallocated 2,557 2,679 3,652 3,652 The fair value of the unallocated shares was $52.7 million and $50.6 million at December 31, 2017 and 2016, respectively. Total compensation expense recognized in connection with the ESOP for the years ended December 31, 2017, 2016 and 2015 was $2.2 million, $1.8 million and $1.6 million, respectively. Bank-Owned Life Insurance The Company is the sole owner of life insurance policies pertaining to certain employees. The Company has entered into agreements with these employees whereby the Company will pay to the employees’ estate or beneficiaries a portion of the death benefit that the Company will receive as beneficiary of such policies. These post-retirement benefits are accrued over the expected service period of the employees. Expense associated with this post-retirement benefit for the years ended December 31, 2017, 2016 and 2015 amounted to $400,000, $543,000 and $410,000, respectively. Incentive Compensation Plan Eligible officers and employees of the Company participate in an incentive compensation plan which is based on various factors as set forth by the Executive Committee. Incentive compensation plan expense for the years ended December 31, 2017, 2016 and 2015 amounted to $5.6 million, $4.9 million and $4.2 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Minimum Regulatory Capital Requirements Both the Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve Board and the Federal Deposit Insurance Corporation, respectively, including a risk-based capital measure. The risk-based capital guidelines include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance off-balance-sheet Federal banking regulations include minimum capital requirements as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total to risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. The capital conservation buffer is being phased in over three years, beginning on January 1, 2016. The required minimum conservation buffer is 1.25% as of December 31, 2017, increased to 1.875% on January 1, 2018 and will increase to 2.5% on January 1, 2019. Also, certain new deductions from and adjustments to regulatory capital are being phased in over several years. Management believes that the Company’s capital levels will remain characterized as “well-capitalized” throughout the phase in periods. The Company’s and the Bank’s actual capital amounts and ratios follow: Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total Capital (to Risk Weighted Assets): Company $ 669,536 13.6 % $ 393,875 8.0 % $ 492,343 10.0 % Bank 555,737 11.3 392,729 8.0 490,911 10.0 Tier 1 Capital (to Risk Weighted Assets): Company 624,039 12.7 295,406 6.0 393,875 8.0 Bank 510,240 10.4 294,546 6.0 392,729 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets): Company 624,039 12.7 221,554 4.5 320,023 6.5 Bank 510,240 10.4 220,910 4.5 319,092 6.5 Tier 1 Capital (to Average Assets): Company 624,039 12.1 206,293 4.0 257,867 5.0 Bank 510,240 10.1 202,224 4.0 252,780 5.0 December 31, 2016 Total Capital (to Risk Weighted Assets): Company $ 633,420 15.0 % $ 338,878 8.0 % $ 423,597 10.0 % Bank 493,944 11.7 337,058 8.0 421,323 10.0 Tier 1 Capital (to Risk Weighted Assets): Company 591,804 14.0 254,158 6.0 338,878 8.0 Bank 452,328 10.7 252,794 6.0 337,058 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets): Company 591,804 14.0 190,619 4.5 275,338 6.5 Bank 452,328 10.7 189,595 4.5 273,860 6.5 Tier 1 Capital (to Average Assets): Company 591,804 13.8 171,854 4.0 214,817 5.0 Bank 452,328 10.7 168,518 4.0 210,648 5.0 A reconciliation of the Company’s and Bank’s stockholders’ equity to total regulatory capital follows: December 31, 2017 2016 Consolidated Bank Consolidated Bank (In thousands) Total stockholders’ equity per financial statements $ 646,399 $ 532,600 $ 607,297 $ 467,821 Adjustments to Tier 1 and Common Equity Tier 1 capital: Accumulated other comprehensive income (128 ) (128 ) (1,806 ) (1,806 ) Goodwill disallowed (19,638 ) (19,638 ) (13,687 ) (13,687 ) Core deposit intangible, net of deferred tax liability disallowed (2,594 ) (2,594 ) — — Total Tier 1 and Common Equity Tier 1 capital 624,039 510,240 591,804 452,328 Adjustments to total capital: Allowance for loan losses 45,185 45,185 40,149 40,149 45% of net unrealized gains on marketable equity securities 312 312 1,467 1,467 Total regulatory capital $ 669,536 $ 555,737 $ 633,420 $ 493,944 Liquidation Account At the time of the minority stock offering, which was completed on January 22, 2008, the Company established a liquidation account totaling $114.2 million. The liquidation account is equal to the net worth of the Company as of the date of the latest consolidated balance sheet appearing in the final prospectus distributed in connection with the minority stock offering. In addition, the Company also established a secondary liquidation account totaling $150.2 million in connection with the second-step offering that was completed on July 28, 2014. This liquidation account is equal to Meridian Financial Services, Incorporated’s ownership interest in Old Meridian’s total stockholders’ equity as of the date of the latest consolidated balance sheet appearing in the final prospectus distributed in connection second-step stock offering plus the value of the net assets of Meridian Financial Services, Incorporated as of the date of the latest statement of financial condition of Meridian Financial Services, Incorporated prior to the consummation of the conversion (excluding its ownership of Old Meridian). The liquidation accounts are maintained for the benefit of the eligible account holders and supplemental eligible account holders who maintain their accounts at the Bank after the offerings. The liquidation accounts are reduced annually to the extent that such account holders have reduced their qualifying deposits as of each anniversary date. Subsequent increases will not restore an account holder’s interest in the liquidation account. In the event of a complete liquidation, each eligible account holder will be entitled to receive balances for accounts held then. At December 31, 2017, the minority stock offering and second-step offering liquidation accounts amounted to $14.3 million and $65.3 million, respectively. Other Capital Restrictions Federal and state banking regulations place certain restrictions on dividends paid and loans or advances made by the Bank to the Company. The total amount for dividends which may be paid in any calendar year cannot exceed the Bank’s net income for the current year, plus the Bank’s net income retained for the two previous years, without regulatory approval. At December 31, 2017, the Bank’s retained earnings available for the payment of dividends was $77.0 million. Loans or advances are limited to 10% of the Bank’s capital stock and surplus on a secured basis. Funds available for loans or advances by the Bank to the Company amounted to $53.3 million. In addition, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. Stock Repurchases and Dividends The Company may use capital management tools such as cash dividends and common share repurchases. Massachusetts regulations restrict repurchases for the first three years following the second-step conversion (July 2014) except where compelling and valid business reasons are established to the satisfaction of the Massachusetts Commissioner of Banks. The Company is also subject to the Federal Reserve Board’s notice provisions for stock repurchases. In August 2015, the Company received regulatory approval from the Massachusetts Commissioner of Banks and a non-objection |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | 12. FAIR VALUES OF ASSETS AND LIABILITIES Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of assets and liabilities is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash and cash equivalents Certificates of deposit Securities available for sale Federal Home Loan Bank stock Loans held for sale Loans non-accrual Deposits non-certificate Borrowings Accrued interest Loan level interest rate swaps Off-balance off-balance-sheet, Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis are summarized as follows. There were no liabilities measured at fair value on a recurring basis. December 31, 2017 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Assets: Debt securities $ — $ 20,589 $ — $ 20,589 Marketable equity securities 17,775 — — 17,775 Loan level interest rate swaps — — 1,284 1,284 Total assets $ 17,775 $ 20,589 $ 1,284 $ 39,648 Liabilities: Loan level interest rate swaps — — 1,284 1,284 Total liabilities $ — $ — $ 1,284 $ 1,284 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Assets: Debt securities $ — $ 21,631 $ — $ 21,631 Marketable equity securities 46,032 — — 46,032 Loan level interest rate swaps — — 899 899 Total assets $ 46,032 $ 21,631 $ 899 $ 68,562 Liabilities: Loan level interest rate swaps — — 899 899 Total liabilities $ — $ — $ 899 $ 899 Assets Measured at Fair Value on a Non-recurring The Company may also be required, from time to time, to measure certain other assets on a non-recurring lower-of-cost-or Certain impaired loans were adjusted to fair value, less cost to sell, of the underlying collateral securing these loans resulting in losses. The loss is not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. Fair value was measured using appraised values of collateral and adjusted as necessary by management based on unobservable inputs for specific properties. Impaired loans measured at fair value at December 31, 2017 and December 31, 2016 were $1.9 million and $4.9 million, respectively. The related gains and losses were immaterial for the years ended December 31, 2017 and 2016. Summary of Fair Values of Financial Instruments The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and due from banks $ 402,687 $ 402,687 $ — $ — $ 402,687 Certificates of deposit 69,326 — 69,615 — 69,615 Securities available for sale 38,364 17,775 20,589 — 38,364 Federal Home Loan Bank stock 24,947 — — 24,947 24,947 Loans and loans held for sale, net 4,626,570 — — 4,590,543 4,590,543 Accrued interest receivable 12,902 — — 12,902 12,902 Financial liabilities: Deposits 4,107,861 — — 3,995,215 3,995,215 Borrowings 513,444 — 508,411 — 508,411 Accrued interest payable 2,025 — — 2,025 2,025 On-balance Assets: Loan level interest rate swaps 1,284 — — 1,284 1,284 Liabilities: Loan level interest rate swaps 1,284 — — 1,284 1,284 December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and due from banks $ 236,423 $ 236,423 $ — $ — $ 236,423 Certificates of deposit 80,323 — 80,710 — 80,710 Securities available for sale 67,663 46,032 21,631 — 67,663 Federal Home Loan Bank stock 18,175 — — 18,175 18,175 Loans and loans held for sale, net 3,902,612 — — 3,970,896 3,970,896 Accrued interest receivable 10,381 — — 10,381 10,381 Financial liabilities: Deposits 3,475,837 — — 3,485,618 3,485,618 Borrowings 322,523 — 322,928 — 322,928 Accrued interest payable 1,384 — — 1,384 1,384 On-balance Assets: Loan level interest rate swaps 899 — — 899 899 Liabilities: Loan level interest rate swaps 899 — — 899 899 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 13. CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY Financial information pertaining only to Meridian Bancorp, Inc. is as follows: December 31, 2017 2016 (In thousands) BALANCE SHEETS Assets Cash and cash equivalents from bank subsidiary $ 23,072 $ 34,613 Certificates of deposit 67,843 80,323 Securities available for sale, at fair value 10 5,003 Investment in bank subsidiary 532,600 467,821 ESOP loan receivable 20,287 20,954 Other assets 3,316 2,735 Total assets $ 647,128 $ 611,449 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 729 $ 4,152 Stockholders’ equity 646,399 607,297 Total liabilities and stockholders’ equity $ 647,128 $ 611,449 Years Ended December 31, 2017 2016 2015 (In thousands) STATEMENTS OF INCOME Income: Interest on ESOP loan $ 681 $ 702 $ 722 Interest on certificates of deposit 814 495 624 Interest and dividend income on securities 46 184 151 Other interest and dividend income — 4 82 Gain on sale of securities, net 1 182 — Total income 1,542 1,567 1,579 Expenses: Merger and acquisition 484 — — Other general and administrative 1,144 1,174 993 Total operating expenses 1,628 1,174 993 Income (loss) before income taxes and equity in undistributed earnings of subsidiaries (86 ) 393 586 Applicable income tax provision (benefit) (35 ) 160 240 (51 ) 233 346 Equity in undistributed earnings of subsidiary 42,996 33,957 24,261 Net income $ 42,945 $ 34,190 $ 24,607 Years Ended December 31, 2017 2016 2015 (In thousands) STATEMENTS OF CASH FLOWS Cash flows from operating activities: Net income $ 42,945 $ 34,190 $ 24,607 Adjustments to reconcile net income to net cash provided (used) by operating activities: Equity in undistributed earnings of subsidiaries (42,996 ) (33,957 ) (24,261 ) Net accretion of securities available for sale 4 — (3 ) Gain on sales of securities, net (1 ) (182 ) — Share-based compensation expense 379 319 97 Decrease (increase) in other assets (582 ) 232 828 Increase in other liabilities (4,460 ) 550 211 Net cash provided (used) by operating activities (4,711 ) 1,152 1,479 Cash flows from investing activities: Purchases of certificates of deposit (22,650 ) (80,423 ) (26,562 ) Maturities of certificates of deposit 35,130 99,162 12,500 Activity in securities available for sale: Redemption (purchase) of mutual funds, net (8 ) 123 19,882 Proceeds from sales — 782 — Proceeds from maturities 5,000 25,000 — Purchases — (600 ) (5,009 ) Cash paid as purchase price of acquisition (17,805 ) — — Principal payments on ESOP loan receivable 667 646 626 Net cash provided by investing activities 334 44,690 1,437 Cash flows from financing activities: Cash dividends paid on common stock (7,665 ) (6,148 ) (1,462 ) Repurchase of common stock — (18,799 ) (9,428 ) Stock options exercised 501 205 232 Net cash used by financing activities (7,164 ) (24,742 ) (10,658 ) Net change in cash and cash equivalents (11,541 ) 21,100 (7,742 ) Cash and cash equivalents at beginning of year 34,613 13,513 21,255 Cash and cash equivalents at end of year $ 23,072 $ 34,613 $ 13,513 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | 14. ACQUISITION To enable the expansion of its core banking franchise in the Boston market area, the Company completed the acquisition of Meetinghouse Bancorp, Inc. (“Meetinghouse”), the holding company for Meetinghouse Bank, a Massachusetts stock co-operative The Company accounted for the acquisition using the acquisition method. Accordingly, the Company recorded merger and acquisition expenses of $2.1 million for the year ended December 31, 2017. The acquisition method also requires an acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. Goodwill of $6.0 million arising from the Meetinghouse acquisition consisted largely of synergies and cost savings resulting from combining the operations of the Company and Meetinghouse. The core deposit intangible of $3.2 million represents the fair value associated with the acquired non-maturity The following is a summary of the estimated fair value of assets acquired and liabilities assumed as of the date of the acquisition: Amount (In thousands) Cash and due from banks $ 15,800 Securities available for sale, at fair value 15,775 Loans and loans held for sale, net 75,708 Premises and equipment, net 1,314 Goodwill 5,951 Core deposit intangible 3,243 Other assets 2,625 Total assets acquired $ 120,416 Deposits $ 93,845 Long-term debt 8,193 Accrued expenses and other liabilities 573 Total liabilities assumed $ 102,611 Purchase price $ 17,805 The loans acquired were recorded at fair value without a carryover of the allowance for loan losses. The fair value of the loans was determined by applying a market-based discount rate in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments. An overall discount on the loans acquired in this transaction was due to estimated credit risk, as well as considerations for liquidity and market interest rates. In addition, the acquired loans were reviewed to determine if the loan had evidence of deterioration of credit quality at the date of the acquisition and if it was probable that all contractually required payments will not be collected. The fair value of the core deposit intangible was derived by comparing the interest rate and functional costs that Meetinghouse paid on its non-maturity non-maturity non-maturity The fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. Loans acquired with deteriorated credit quality and related non-accretable |
Selected Quarterly Consolidated
Selected Quarterly Consolidated Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Consolidated Financial Information (Unaudited) | 15. SELECTED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (Unaudited) The selected quarterly financial data presented below should be read in conjunction with the Consolidated Financial Statements and related notes. Years Ended December 31, 2017 2016 Fourth Third Second First Fourth Third Second First (Dollars in thousands, except per share amounts) Interest and dividend income $ 50,873 $ 47,970 $ 44,509 $ 41,752 $ 41,249 $ 38,420 $ 35,839 $ 34,184 Interest expense 11,544 9,916 9,053 8,399 7,830 7,118 6,384 5,805 Net interest income 39,329 38,054 35,456 33,353 33,419 31,302 29,455 28,379 Provision for loan losses (1) (715 ) 2,458 1,497 1,619 1,304 858 3,952 1,066 Net interest income, after provision for loan losses 40,044 35,596 33,959 31,734 32,115 30,444 25,503 27,313 Non-interest 8,709 5,253 5,030 4,072 5,614 3,301 2,583 2,692 Non-interest 23,869 20,814 21,405 21,877 19,778 19,164 19,322 19,230 Income before income taxes 24,884 20,035 17,584 13,929 17,951 14,581 8,764 10,775 Provision for income taxes (3) 15,863 6,702 6,237 4,685 6,642 5,084 2,857 3,298 Net income $ 9,021 $ 13,333 $ 11,347 $ 9,244 $ 11,309 $ 9,497 $ 5,907 $ 7,477 Earnings per share: Basic $ 0.18 $ 0.26 $ 0.22 $ 0.18 $ 0.22 $ 0.19 $ 0.12 $ 0.14 Diluted $ 0.17 $ 0.25 $ 0.22 $ 0.18 $ 0.22 $ 0.18 $ 0.11 $ 0.14 Weighted average shares: Basic 51,425,793 51,229,203 51,003,967 50,949,634 50,940,037 50,982,633 51,026,985 51,569,683 Diluted 53,026,141 52,672,962 52,422,486 52,526,737 52,102,511 52,093,009 52,137,475 52,663,921 (1) The provision for loan losses for the fourth quarter of 2017 reflected lower expense primarily due to improvements in several asset quality factors and reduced levels of loan portfolio growth in the commercial loan categories during the quarter. For the second quarter of 2016, the provision for loan losses reflected higher expense primarily due to loan portfolio growth in the commercial loan categories during the quarter. (2) Non-interest (3) The provision for income taxes for the fourth quarter of 2017 reflects the revaluation of the Company’s net deferred tax asset as a result of the enactment of the Tax Cuts and Jobs Act. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Meridian Bancorp, Inc. (the “Company”) is a Maryland corporation incorporated on March 6, 2014 to be the successor to Meridian Interstate Bancorp, Inc. (“Old Meridian”) upon completion of the second-step mutual-to-stock mid-tier The consolidated financial statements include the accounts of the Company and all other entities in which it has a controlling financial interest. The Company owns the Bank. The Bank’s subsidiaries include Prospect, Inc., which engages in securities transactions on its own behalf, and EBOSCO, LLC which can hold foreclosed real estate, and East Boston Investment Services, Inc., which is authorized for third-party investment sales and is currently inactive. All significant intercompany balances and transactions have been eliminated in consolidation. |
Business and Operating Segments | Business and Operating Segments The Company provides loan and deposit services to its customers through its local banking offices in the greater Boston metropolitan area. The Company is subject to competition from other financial institutions including commercial banks, other savings banks, credit unions, mortgage banking companies and other financial service providers. Generally, financial information is to be reported on the basis that it is used internally for evaluating segment performance and deciding how to allocate resources to segments. Management evaluates the Company’s performance and allocates resources based on a single segment concept. Accordingly, there is no separately identified material operating segment for which discrete financial information is available. The Company does not derive revenues from, or have assets located in foreign countries, nor does it derive revenues from any single customer that represents 10% or more of the Company’s total revenues. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of securities for other-than-temporary impairment. |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Most of the Company’s activities are with customers located within Massachusetts. Note 2 includes the types of securities in which the Company invests and Note 3 includes the types of lending in which the Company engages. The Company believes that it does not have any significant loan concentrations or security in any one industry or with any customer. |
Reclassification | Reclassification Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the 2017 presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include amounts due from banks and federal funds sold on a daily basis, which mature overnight or on demand. The Company may from time to time have deposits in financial institutions which exceed the federally insured limits. At December 31, 2017, the Company had a concentration of cash on deposit at the Federal Reserve Bank amounting to $353.0 million. |
Certificates of Deposit | Certificates of Deposit Certificates of deposit are purchased from FDIC-insured depository institutions, have an original maturity greater than 90 days and up to 24 months and are carried at cost. At December 31, 2017, all certificates of deposit invested in by the Company exceeded the FDIC insurance limit of $250,000 but were insured up to the full amount under the Massachusetts Depositors Insurance Fund, Massachusetts Credit Union Share Insurance Corporation or Massachusetts Cooperative Bank Share Insurance Fund. |
Fair Value Hierarchy | Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 — Valuation is based on quoted prices in active markets for identical assets or liabilities. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 — Valuation is based on 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 for substantially the full term of the assets or liabilities. Level 3 — Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of a reporting period, if applicable. |
Securities Available for Sale | Securities Available for Sale Securities are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component in other comprehensive income, net of tax effects. Purchase premiums and discounts are recognized in interest income using the effective interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Each reporting period, the Company evaluates all securities with a decline in fair value below the amortized cost of the investment to determine whether or not other-than-temporary impairment (“OTTI”) exists. OTTI is required to be recognized if (1) the Company intends to sell the security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) for debt securities, the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. Marketable equity securities are evaluated for OTTI based on the severity and duration of the impairment and, if deemed to be other than temporary, the declines in fair value are reflected in earnings as realized losses. For impaired debt securities that the Company intends to sell, or more likely than not will be required to sell, the full amount of the depreciation is recognized as OTTI through earnings. For all other impaired debt securities, credit-related OTTI is recognized through earnings and non-credit |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank, as a member of the Federal Home Loan Bank (“FHLB”) system, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. At its discretion, the FHLB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis on the FHLB stock. As of December 31, 2017 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 cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. |
Loans | Loans The Company grants mortgage, commercial and consumer loans to customers. The Company’s loan portfolio includes one- A substantial portion of the loan portfolio is represented by mortgage loans throughout eastern Massachusetts. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off The accrual of interest on all loans is discontinued at the time the loan is 90 days past due, unless the credit is well secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual charged-off non-accrual |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable losses inherent in the loan portfolio and 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 adequacy of the allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and allocated components and may include an unallocated component, as further described below. General Component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segments and classes. 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 delinquent and non-accrual The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each loan segment are as follows: One- loan-to-value loan-to-value loan-to-value Multi-family and commercial real estate loans Construction loans rent-up Commercial and industrial loans Consumer loans Allocated Component The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for multi-family residential, commercial real estate, construction and commercial and industrial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual one- 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 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 initially classified as impaired. Unallocated Component An unallocated component may be maintained to cover uncertainties that could affect management’s estimate of probable losses. An unallocated component of the allowance would reflect the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general components of the allowance for loan losses. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Bank has purchased insurance policies on the lives of certain directors, executive officers and employees. Bank-owned life insurance policies are reflected on the consolidated balance sheets at cash surrender value. Changes in net cash surrender value of the policies, as well as excess insurance proceeds received, are reflected in non-interest |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization, computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. It is general practice to charge the cost of maintenance and repairs to earnings when incurred; major expenditures for improvements are capitalized and depreciated. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value, if material. Loan Level Interest Rate Swaps The Company enters into interest rate swaps with commercial loan customers to synthetically convert the customer’s loan from a variable rate to a fixed rate. These swaps are matched in offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets and other liabilities. The Company’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest Derivative Loan Commitments Residential real estate loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in mortgage-banking gains, net, if material. Such amounts were immaterial at December 31, 2017 and 2016. Forward Loan Sale Commitments To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery forward sale commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded in mortgage-banking gains, net if material. Such amounts were immaterial at December 31, 2017 and 2016. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. The excess, if any, of the loan balance over the fair value of the asset at the time of transfer from loans to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations, changes in the valuation allowance, any direct write-downs and gains or losses on sales are included in other general and administrative expenses. |
Valuation of Goodwill and Core Deposit Intangible and Analysis for Impairment | Valuation of Goodwill and Core Deposit Intangible and Analysis for Impairment The Company’s goodwill resulted from the acquisitions of other financial institutions accounted for under the acquisition method of accounting. The amount of goodwill recorded at acquisition was impacted by the recorded fair value of the assets acquired and liabilities assumed, which is an estimate determined by the use of internal or other valuation techniques. Goodwill is subject to an annual review by management that first assesses qualitative factors to determine whether it is necessary to perform the two-step two-step The fair value of the core deposit intangible associated with the acquired non-maturity |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or 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. |
Marketing and Advertising | Marketing and Advertising Marketing and advertising costs are expensed as incurred. |
Supplemental Director and Executive Retirement and Long-Term Health Care Plans | Supplemental Director and Executive Retirement and Long-Term Health Care Plans The Company accounts for certain supplemental director and executive retirement and long-term health care benefits on the net periodic cost method using an actuarial model that allocates costs over the service period of participants in the plans. The Company accounts for the over-funded or under-funded status of these defined benefit plans as an asset or liability in its consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income or loss. |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company measures and recognizes compensation cost relating to share-based payment transactions based on the grant-date fair value of the equity instruments issued. Share-based compensation is recognized over the period the employee is required to provide service for the award. Reductions in compensation expense associated with forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted quarterly based on actual forfeiture experience. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Compensation expense for the Employee Stock Ownership Plan (“ESOP”) is recorded at an amount equal to the shares allocated by the ESOP, multiplied by the average fair market value of the shares during the period. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares expected to be allocated by the ESOP. Unearned compensation applicable to the ESOP is reflected as a reduction of stockholder’s equity in the consolidated balance sheets. The difference between the average fair market value and the cost of the shares allocated by the ESOP is recorded as an adjustment to additional paid-in |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws in the period of enactment. Accordingly, changes resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 have been recognized in the consolidated financial statements as of and for the year ended December 31, 2017. See Note 8. A valuation allowance is established against deferred tax assets when, based upon the available evidence including historical and projected taxable income, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company does not have any uncertain tax positions at December 31, 2017 or 2016 which require accrual or disclosure. The Company records interest and penalties as part of income tax expense. No interest or penalties were recorded for the years ended December 31, 2017, 2016 and 2015. The Company records excess tax benefits or deficiencies in income tax expense or benefit in the income statement as part of the provision for income taxes beginning in 2017. Previously, such amounts were recorded to additional paid in capital. For interim reporting purposes the excess tax benefits or deficiencies are recorded as discrete items in the period in which they occur. The presentation of the excess tax benefits is presented as an operating activity in the statement of cash flows. In addition, when calculating incremental shares for earnings per share, the Company excludes from assumed proceeds excess tax benefits that previously would have been recorded in additional paid-in |
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. Rights to dividends on unvested stock awards are non-forfeitable, Basic and diluted earnings per share have been computed based on the following: Years Ended December 31, 2017 2016 2015 (Dollars in thousands, except per share amounts) Net income available to common stockholders $ 42,945 $ 34,190 $ 24,607 Basic weighted average shares outstanding 51,153,665 51,128,914 51,965,036 Effect of dilutive stock options 1,509,932 1,119,394 1,106,896 Diluted weighted average shares outstanding $ 52,663,597 $ 52,248,308 $ 53,071,932 Earnings per share: Basic $ 0.84 $ 0.67 $ 0.47 Diluted $ 0.82 $ 0.65 $ 0.46 For the years ended December 31, 2017, 2016 and 2015, options for the exercise of 67,554, 9,440 and 366,002 shares, respectively, were not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized gain on securities available for sale $ 931 $ 3,637 Tax effect (292 ) (1,444 ) Net-of-tax 639 2,193 Defined benefit plans: Unrecognized prior service cost (180 ) (197 ) Unrecognized net actuarial loss (533 ) (399 ) Total (713 ) (596 ) Tax effect 202 209 Net-of-tax (511 ) (387 ) $ 128 $ 1,806 Unrecognized prior service costs amounting to $17,000 and unrecognized net actuarial losses amounting to $214,000, included in accumulated other comprehensive income at December 31, 2017, are expected to be recognized as a component of net periodic cost for the year ending December 31, 2018. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall, (Subtopic 825-10). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) right-to-use In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) held-to-maturity available-for-sale In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350) In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220). |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share have been computed based on the following: Years Ended December 31, 2017 2016 2015 (Dollars in thousands, except per share amounts) Net income available to common stockholders $ 42,945 $ 34,190 $ 24,607 Basic weighted average shares outstanding 51,153,665 51,128,914 51,965,036 Effect of dilutive stock options 1,509,932 1,119,394 1,106,896 Diluted weighted average shares outstanding $ 52,663,597 $ 52,248,308 $ 53,071,932 Earnings per share: Basic $ 0.84 $ 0.67 $ 0.47 Diluted $ 0.82 $ 0.65 $ 0.46 |
Components of Accumulated Other Comprehensive Income (loss), Included in Stockholders' Equity | The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: December 31, 2017 2016 (In thousands) Securities available for sale: Net unrealized gain on securities available for sale $ 931 $ 3,637 Tax effect (292 ) (1,444 ) Net-of-tax 639 2,193 Defined benefit plans: Unrecognized prior service cost (180 ) (197 ) Unrecognized net actuarial loss (533 ) (399 ) Total (713 ) (596 ) Tax effect 202 209 Net-of-tax (511 ) (387 ) $ 128 $ 1,806 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Securities Available for Sale | The amortized cost and fair values of securities available for sale, with gross unrealized gains and losses, follows: Amortized Gross Gross Fair (In thousands) December 31,2017 Debt securities: Government-sponsored enterprises $ 1,942 $ — $ — $ 1,942 Municipal bonds 2,424 2 — 2,426 Residential mortgage-backed securities: Government-sponsored enterprises 15,916 231 (2 ) 16,145 Private label 70 6 — 76 Total debt securities 20,352 239 (2 ) 20,589 Marketable equity securities: Common stocks: Basic materials 3,498 207 (250 ) 3,455 Consumer products and services 5,832 377 (415 ) 5,794 Financial services 1,241 294 — 1,535 Healthcare 1,933 111 (137 ) 1,907 Industrials 2,939 469 — 3,408 Technology 1,628 194 (156 ) 1,666 Total common stocks 17,071 1,652 (958 ) 17,765 Money market mutual funds 10 — — 10 Total marketable equity securities 17,081 1,652 (958 ) 17,775 Total securities available for sale $ 37,433 $ 1,891 $ (960 ) $ 38,364 December 31, 2016 Debt securities: Corporate bonds: Financial services $ 12,989 $ 16 $ (3 ) $ 13,002 Industrials 1,000 3 — 1,003 Total corporate bonds 13,989 19 (3 ) 14,005 Municipal bonds 1,202 17 — 1,219 Residential mortgage-backed securities: Government-sponsored enterprises 5,284 325 (3 ) 5,606 Private label 779 22 — 801 Total debt securities 21,254 383 (6 ) 21,631 Marketable equity securities: Common stocks: Basic materials 6,763 901 (232 ) 7,432 Consumer products and services 13,567 1,093 (382 ) 14,278 Financial services 5,953 970 — 6,923 Healthcare 8,225 533 (456 ) 8,302 Industrials 4,181 624 (11 ) 4,794 Technology 4,081 440 (220 ) 4,301 Total common stocks 42,770 4,561 (1,301 ) 46,030 Money market mutual funds 2 — — 2 Total marketable equity securities 42,772 4,561 (1,301 ) 46,032 Total securities available for sale $ 64,026 $ 4,944 $ (1,307 ) $ 67,663 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities by contractual maturity at December 31, 2017 are as follows. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. One Year or Less After One Year After Five Years Total Amortized Fair Amortized Fair Amortized Fair Amortized Fair (In thousands) Government-sponsored enterprises $ — $ — $ — $ — $ 1,942 $ 1,942 $ 1,942 $ 1,942 Municipal bonds 325 328 — — 2,099 2,098 2,424 2,426 Residential mortgage-backed securities: Government-sponsored enterprises — — 109 109 15,807 16,036 15,916 16,145 Private label — — — — 70 76 70 76 Total $ 325 $ 328 $ 109 $ 109 $ 19,918 $ 20,152 $ 20,352 $ 20,589 |
Schedule of Information Pertaining to Securities Available for Sale | Information pertaining to securities available for sale as of December 31, 2017 and 2016, with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than Twelve Months Twelve Months or Longer Gross Fair Gross Fair (In thousands) December 31, 2017 Debt securities: Residential mortgage-backed securities: Government-sponsored enterprises $ — $ — $ 2 $ 171 Total debt securities — — 2 171 Marketable equity securities: Common stocks: Basic materials 87 791 163 641 Consumer products and services 24 1,196 391 1,273 Healthcare 137 1,102 — — Technology 100 408 56 426 Total marketable equity securities 348 3,497 610 2,340 Total temporarily impaired securities $ 348 $ 3,497 $ 612 $ 2,511 Less Than Twelve Months Twelve Months or Longer Gross Fair Gross Fair (In thousands) December 31, 2016 Debt securities: Corporate bonds-financial services $ 3 $ 5,000 $ — $ — Residential mortgage-backed securities: Government-sponsored enterprises — — 3 205 Total debt securities 3 5,000 3 205 Marketable equity securities: Common stocks: Basic materials — — 232 1,568 Consumer products and services 237 3,496 145 1,618 Healthcare 259 2,039 197 1,377 Industrials 11 450 — — Technology — — 220 1,681 Total marketable equity securities 507 5,985 794 6,244 Total temporarily impaired securities $ 510 $ 10,985 $ 797 $ 6,449 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loans | A summary of loans follows: December 31, 2017 2016 (In thousands) Real estate loans: Residential real estate: One- $ 603,680 $ 532,450 Multi-family 779,637 562,948 Home equity lines of credit 48,393 42,913 Commercial real estate 2,063,781 1,776,601 Construction 641,306 502,753 Total real estate loans 4,136,797 3,417,665 Commercial and industrial 525,604 515,430 Consumer 10,761 9,712 Total loans 4,673,162 3,942,807 Allowance for loan losses (45,185 ) (40,149 ) Net deferred loan origination fees (5,179 ) (3,990 ) Loans, net $ 4,622,798 $ 3,898,668 |
Allowance for Loan Losses | An analysis of the allowance for loan losses and related information follows: One- Multi- Home Commercial Construction Commercial Consumer Total (In thousands) Balance at December 31, 2014 $ 1,849 $ 3,635 $ 100 $ 13,000 $ 5,155 $ 4,633 $ 97 $ 28,469 Provision (credit) for loan losses (446 ) (250 ) 104 1,479 4,564 1,022 194 6,667 Charge-offs (165 ) — (60 ) — (2,287 ) (36 ) (306 ) (2,854 ) Recoveries 116 — — 18 881 1 107 1,123 Balance at December 31, 2015 1,354 3,385 144 14,497 8,313 5,620 92 33,405 Provision (credit) for loan losses 13 1,129 (71 ) 4,228 874 821 186 7,180 Charge-offs — — — — (486 ) (49 ) (302 ) (837 ) Recoveries — — — — 230 60 111 401 Balance at December 31, 2016 1,367 4,514 73 18,725 8,931 6,452 87 40,149 Provision (credit) for loan losses (372 ) 1,748 (12 ) 2,478 1,187 (398 ) 228 4,859 Charge-offs (98 ) — — — (3 ) — (340 ) (441 ) Recoveries 104 1 1 310 51 30 121 618 Balance at December 31, 2017 $ 1,001 $ 6,263 $ 62 $ 21,513 $ 10,166 $ 6,084 $ 96 $ 45,185 December 31, 2017 Amount of allowance for loan losses for loans deemed to be impaired $ 51 $ 133 $ — $ — $ — $ — $ — $ 184 Amount of allowance for loan losses for loans not deemed to be impaired 950 6,130 62 21,513 10,166 6,084 96 45,001 $ 1,001 $ 6,263 $ 62 $ 21,513 $ 10,166 $ 6,084 $ 96 $ 45,185 Loans deemed to be impaired $ 1,245 $ 1,315 $ — $ 846 $ — $ 1,539 $ — $ 4,945 Loans not deemed to be impaired 602,435 778,322 48,393 2,062,935 641,306 524,065 10,761 4,668,217 $ 603,680 $ 779,637 $ 48,393 $ 2,063,781 $ 641,306 $ 525,604 $ 10,761 $ 4,673,162 December 31, 2016 Amount of allowance for loan losses for loans deemed to be impaired $ 49 $ 137 $ — $ — $ — $ — $ — $ 186 Amount of allowance for loan losses for loans not deemed to be impaired 1,318 4,377 73 18,725 8,931 6,452 87 39,963 $ 1,367 $ 4,514 $ 73 $ 18,725 $ 8,931 $ 6,452 $ 87 $ 40,149 Loans deemed to be impaired $ 1,422 $ 1,359 $ — $ 2,807 $ 988 $ 1,808 $ — $ 8,384 Loans not deemed to be impaired 531,028 561,589 42,913 1,773,794 501,765 513,622 9,712 3,934,423 $ 532,450 $ 562,948 $ 42,913 $ 1,776,601 $ 502,753 $ 515,430 $ 9,712 $ 3,942,807 |
Past Due and Non Accrual | The following table provides information about the Company’s past due and non-accrual 30-59 60-89 90 Days Total Loans on Non-accrual (In thousands) December 31, 2017 Real estate loans: Residential real estate: One- $ 1,537 $ 664 $ 1,532 $ 3,733 $ 6,890 Home equity lines of credit 195 42 521 758 562 Commercial real estate 98 — — 98 388 Total real estate loans 1,830 706 2,053 4,589 7,840 Commercial and industrial 5 — 523 528 523 Consumer 887 568 — 1,455 — Total $ 2,722 $ 1,274 $ 2,576 $ 6,572 $ 8,363 December 31, 2016 Real estate loans: Residential real estate: One- $ 641 $ 834 $ 2,902 $ 4,377 $ 8,487 Home equity lines of credit 707 131 672 1,510 674 Commercial real estate 105 — 1,904 2,009 2,807 Construction — — 815 815 815 Total real estate loans 1,453 965 6,293 8,711 12,783 Commercial and industrial — — 653 653 653 Consumer 679 392 — 1,071 — Total $ 2,132 $ 1,357 $ 6,946 $ 10,435 $ 13,436 |
Impaired Loans of Company | The following tables provide information with respect to the Company’s impaired loans: December 31, 2017 2016 Recorded Unpaid Related Recorded Unpaid Related (In thousands) Impaired loans without a valuation allowance: One- $ 693 $ 1,007 $ 841 $ 1,281 Multi-family 59 59 74 74 Commercial real estate 846 846 2,807 3,102 Construction — — 988 1,083 Commercial and industrial 1,539 1,870 1,808 2,138 Total 3,137 3,782 6,518 7,678 Impaired loans with a valuation allowance: One- 552 552 $ 51 581 581 $ 49 Multi-family 1,256 1,256 133 1,285 1,285 137 Total 1,808 1,808 184 1,866 1,866 186 Total impaired loans $ 4,945 $ 5,590 $ 184 $ 8,384 $ 9,544 $ 186 Years Ended December 31, 2017 2016 2015 Average Interest Interest Average Interest Interest Average Interest Interest (In thousands) One- $ 1,522 $ 89 $ 71 $ 1,788 $ 68 $ 47 $ 2,625 $ 120 $ 72 Multi-family 1,336 53 — 1,379 55 — 1,421 55 — Commercial real estate 2,236 53 31 3,281 80 80 7,425 284 81 Construction 250 6 6 11,076 31 17 16,273 315 295 Commercial and industrial 1,647 63 — 1,635 84 13 930 5 5 Total impaired loans $ 6,991 $ 264 $ 108 $ 19,159 $ 318 $ 157 $ 28,674 $ 779 $ 453 |
Summary of Troubled Debt Restructurings | The following table summarizes the TDRs at the dates indicated: December 31, 2017 2016 (In thousands) TDRs on accrual status: One- $ 2,125 $ 2,219 Multi-family 1,315 1,359 Home equity lines of credit — 18 Commercial real estate 9,200 9,460 Construction — 174 Commercial and industrial 20 27 Total TDRs on accrual status 12,660 13,257 TDRs on non-accrual One- 1,046 1,123 Total TDRs on non-accrual 1,046 1,123 Total TDRs $ 13,706 $ 14,380 |
Risk Rated Loans by Class | The following tables provide the Company’s risk-rated loans by class: December 31, 2017 2016 Multi-family Commercial Construction Commercial Multi-family Commercial Construction Commercial (In thousands) Loans rated 1 — 6 $ 774,919 $ 2,045,905 $ 641,306 $ 471,793 $ 556,892 $ 1,771,671 $ 500,565 $ 465,979 Loans rated 7 275 17,030 — 6,380 841 2,123 — 22,820 Loans rated 8 4,443 846 — 47,431 5,215 2,807 2,188 26,631 Loans rated 9 — — — — — — — — Loans rated 10 — — — — — — — — Total $ 779,637 $ 2,063,781 $ 641,306 $ 525,604 $ 562,948 $ 1,776,601 $ 502,753 $ 515,430 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation and Amortization of Premises and Equipment | A summary of the cost and accumulated depreciation and amortization of premises and equipment follows: December 31, Estimated Lives 2017 2016 (In thousands) Land and land improvements $ 8,472 $ 8,243 N/A Buildings 35,777 34,421 40 Years Leasehold improvements 9,031 8,629 5-20 Years Equipment 21,338 20,799 3-7 74,618 72,092 Less accumulated depreciation and amortization (33,651 ) (30,665 ) $ 40,967 $ 41,427 |
Future Minimum Lease Payments | At December 31, 2017, future minimum lease payments are as follows: Years Ending December 31, Amount (In thousands) 2018 $ 1,902 2019 1,688 2020 1,612 2021 1,556 2022 1,471 Thereafter 7,280 $ 15,509 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Summary of Deposit Balances, by Type | A summary of deposit balances, by type, follows: December 31, 2017 2016 (In thousands) Non interest-bearing demand deposits $ 477,428 $ 431,222 Interest-bearing demand deposits 1,004,155 630,413 Money market deposits 921,895 980,344 Regular savings and other deposits 333,774 305,632 Total non-certificate 2,737,252 2,347,611 Term certificates less than $250,000 999,531 850,565 Term certificates $250,000 and greater 371,078 277,661 Total certificate accounts 1,370,609 1,128,226 Total deposits $ 4,107,861 $ 3,475,837 |
Summary of Term Certificates, by Maturity | A summary of term certificates, by maturity, follows: December 31, 2017 2016 Maturing Amount Weighted Amount Weighted (Dollars in thousands) Within 1 year $ 600,012 1.23 % $ 539,903 1.16 % Over 1 year to 2 years 356,203 1.60 306,120 1.29 Over 2 years to 3 years 290,909 2.05 122,952 1.69 Over 3 years to 4 years 78,461 1.88 133,256 2.02 Over 4 years to 5 years 44,798 2.34 22,483 1.61 Greater than 5 years 226 2.13 3,512 5.50 $ 1,370,609 1.57 % $ 1,128,226 1.38 % |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt, FHLB Advances | Long-term debt consists of FHLB advances as follows: December 31, 2017 2016 Amount Weighted Amount Weighted (Dollars in thousands) Fixed rate advances maturing: 2017 $ — — % $ 89,632 1.32 % 2018 48,000 1.26 43,000 1.25 2019 6,268 1.66 4,891 1.23 2020 53,551 1.80 4,989 1.22 2021 45,000 1.46 45,000 1.46 2022 105,625 1.79 — — Thereafter 100,000 1.21 50,000 1.01 358,444 1.51 237,512 1.26 Variable rate advances maturing: 2020 — — 25,000 0.27 2021 35,000 0.82 60,000 0.31 2022 100,000 0.43 — — Thereafter 20,000 0.49 — — 155,000 0.53 85,000 0.29 Total advances $ 513,444 1.22 % $ 322,512 1.01 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Allocation of Federal and State Income Taxes Between Current and Deferred Portions | Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Current tax provision: Federal $ 20,575 $ 15,989 $ 11,109 State 6,089 4,708 3,218 Total current provision 26,664 20,697 14,327 Deferred tax provision (benefit): Federal (16 ) (2,176 ) (1,841 ) State (219 ) (640 ) (520 ) Effect of tax rate change 7,058 — — Total deferred provision (benefit) 6,823 (2,816 ) (2,361 ) Total tax provision $ 33,487 $ 17,881 $ 11,966 |
Summary of Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rates | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended 2017 2016 2015 Statutory federal tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State taxes, net of federal tax benefit 5.0 5.1 4.8 Dividends received deduction (0.3 ) (0.7 ) (1.1 ) Bank-owned life insurance (1.3 ) (0.8 ) (1.2 ) Tax exempt income (4.2 ) (5.9 ) (6.0 ) Effect of tax rate change 9.2 — — Other, net 0.4 1.6 1.2 Effective tax rates 43.8 % 34.3 % 32.7 % |
Components of the Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Federal $ 12,353 $ 19,275 State 5,795 5,482 18,148 24,757 Deferred tax liabilities Federal (2,329 ) (2,625 ) State (575 ) (671 ) (2,904 ) (3,296 ) Net deferred tax asset $ 15,244 $ 21,461 |
Summary of Tax Effects of Each Item that Give Rise to Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of each item that give rise to deferred tax assets and deferred tax liabilities are as follows: December 31, 2017 2016 (In thousands) Deferred tax assets: Allowance for loan losses $ 12,701 $ 16,401 Employee benefit and retirement plans 3,720 5,011 Acquisition accounting 1,378 2,135 Non-accrual 82 1,091 Other 259 208 18,140 24,846 Deferred tax liabilities Net unrealized gain on securities available for sale (292 ) (1,444 ) Depreciation and amortization (945 ) (1,289 ) Other (1,659 ) (652 ) (2,896 ) (3,385 ) Net deferred tax asset $ 15,244 $ 21,461 |
Other Commitments and Conting33
Other Commitments and Contingencies and Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loan Commitments Outstanding | A summary of outstanding loan commitments whose contract amounts represent credit risk is as follows: December 31, 2017 2016 (In thousands) Unadvanced portion of existing loans: Construction $ 603,557 $ 503,586 Home equity lines of credit 46,352 36,722 Other lines and letters of credit 301,285 314,225 Commitments to originate: One- 25,432 18,272 Commercial real estate 116,314 42,141 Construction 81,937 231,274 Commercial and industrial 30,589 31,463 Other loans — 350 Total loan commitments outstanding $ 1,205,466 $ 1,178,033 |
Summary Information Regarding the Derivatives | Summary information regarding these derivatives is presented below: December 31, 2017 2016 Maturity Interest Rate Paid Interest Rate Received Notional Fair Notional Fair (Dollars in thousands) Customer interest rate swap 06/07/32 1 Mo. Libor + 200bp Fixed (4.40%) $ 65,514 $ 486 $ — $ — Third-party interest rate swap 06/07/32 Fixed (4.40%) 1 Mo. Libor + 200bp 65,514 (486 ) — — Customer interest rate swap 10/17/33 1 Mo. Libor + 175bp Fixed (4.1052%) $ 10,709 $ 720 $ 10,922 $ 839 Third-party interest rate swap 10/17/33 Fixed (4.1052%) 1 Mo. Libor + 175bp 10,709 (720 ) 10,922 (839 ) Customer interest rate swap 12/13/26 1 Mo. Libor + 205bp Fixed (3.82%) $ 2,884 $ (78 ) $ 3,036 $ (60 ) Third-party interest rate swap 12/13/26 Fixed (3.82%) 1 Mo. Libor + 205bp 2,884 78 3,036 60 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Weighted-Average Assumptions Used And Fair Value For Options Granted | The weighted-average assumptions used and fair value for options granted during the years ended December 31, 2017 and 2015 respectively are as follows: 2017 2015 Expected term (years) 5.61 6.50 Expected dividend yield 0.94 % 0.83 % Expected volatility 24.65 % 26.02 % Risk-free interest rate 1.93 % 1.77 % Weighted average fair value of options granted $ 4.25 $ 3.78 Expected forfeiture rate for expense recognition 6.02 % 6.02 % |
Summary of Options and SARs Under Share-based Compensation Plans | A summary of options and SARs under the plans as of December 31, 2017, and activity during the year then ended, is presented below: Number Weighted - Average Weighted - Average Options outstanding at beginning of year 3,383,089 $ 8.60 5.39 Options granted 709,654 17.73 Options exercised (107,960 ) 4.38 SARs exercised (98,108 ) 4.32 Forfeited (56,988 ) 13.67 Options outstanding at end of year 3,829,687 10.43 5.45 Options exercisable at end of year 2,226,800 6.73 3.22 |
Non-vested Restricted Stock Activity | The following table summarizes the Company’s non-vested Number of Weighted - Grant-Date Non-vested 583,503 $ 13.50 Granted 282,500 17.72 Vested (156,351 ) 12.92 Forfeited (22,839 ) 14.44 Non-vested 686,813 15.34 |
Remaining Principal Balance Payable on ESOP Debt | At December 31, 2017, the remaining principal balance on the ESOP debt is payable as follows: Year Ending December 31, Amount (In thousands) 2018 $ 689 2019 711 2020 734 2021 758 2022 783 Thereafter 16,612 $ 20,287 |
Shares Held by ESOP | Shares held by the ESOP include the following: December 31, 2017 2016 (In thousands) Allocated 973 851 Committed to be allocated 122 122 Unallocated 2,557 2,679 3,652 3,652 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
The Company's and the Bank's Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios follow: Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Total Capital (to Risk Weighted Assets): Company $ 669,536 13.6 % $ 393,875 8.0 % $ 492,343 10.0 % Bank 555,737 11.3 392,729 8.0 490,911 10.0 Tier 1 Capital (to Risk Weighted Assets): Company 624,039 12.7 295,406 6.0 393,875 8.0 Bank 510,240 10.4 294,546 6.0 392,729 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets): Company 624,039 12.7 221,554 4.5 320,023 6.5 Bank 510,240 10.4 220,910 4.5 319,092 6.5 Tier 1 Capital (to Average Assets): Company 624,039 12.1 206,293 4.0 257,867 5.0 Bank 510,240 10.1 202,224 4.0 252,780 5.0 December 31, 2016 Total Capital (to Risk Weighted Assets): Company $ 633,420 15.0 % $ 338,878 8.0 % $ 423,597 10.0 % Bank 493,944 11.7 337,058 8.0 421,323 10.0 Tier 1 Capital (to Risk Weighted Assets): Company 591,804 14.0 254,158 6.0 338,878 8.0 Bank 452,328 10.7 252,794 6.0 337,058 8.0 Common Equity Tier 1 Capital (to Risk Weighted Assets): Company 591,804 14.0 190,619 4.5 275,338 6.5 Bank 452,328 10.7 189,595 4.5 273,860 6.5 Tier 1 Capital (to Average Assets): Company 591,804 13.8 171,854 4.0 214,817 5.0 Bank 452,328 10.7 168,518 4.0 210,648 5.0 |
Reconciliation of the Company's and Banks Stockholders Equity to Total Regulatory Capital | A reconciliation of the Company’s and Bank’s stockholders’ equity to total regulatory capital follows: December 31, 2017 2016 Consolidated Bank Consolidated Bank (In thousands) Total stockholders’ equity per financial statements $ 646,399 $ 532,600 $ 607,297 $ 467,821 Adjustments to Tier 1 and Common Equity Tier 1 capital: Accumulated other comprehensive income (128 ) (128 ) (1,806 ) (1,806 ) Goodwill disallowed (19,638 ) (19,638 ) (13,687 ) (13,687 ) Core deposit intangible, net of deferred tax liability disallowed (2,594 ) (2,594 ) — — Total Tier 1 and Common Equity Tier 1 capital 624,039 510,240 591,804 452,328 Adjustments to total capital: Allowance for loan losses 45,185 45,185 40,149 40,149 45% of net unrealized gains on marketable equity securities 312 312 1,467 1,467 Total regulatory capital $ 669,536 $ 555,737 $ 633,420 $ 493,944 |
Fair Values of Assets and Lia36
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis are summarized as follows. There were no liabilities measured at fair value on a recurring basis. December 31, 2017 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Assets: Debt securities $ — $ 20,589 $ — $ 20,589 Marketable equity securities 17,775 — — 17,775 Loan level interest rate swaps — — 1,284 1,284 Total assets $ 17,775 $ 20,589 $ 1,284 $ 39,648 Liabilities: Loan level interest rate swaps — — 1,284 1,284 Total liabilities $ — $ — $ 1,284 $ 1,284 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Assets: Debt securities $ — $ 21,631 $ — $ 21,631 Marketable equity securities 46,032 — — 46,032 Loan level interest rate swaps — — 899 899 Total assets $ 46,032 $ 21,631 $ 899 $ 68,562 Liabilities: Loan level interest rate swaps — — 899 899 Total liabilities $ — $ — $ 899 $ 899 |
Summary of Fair Values of Financial Instruments | Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and due from banks $ 402,687 $ 402,687 $ — $ — $ 402,687 Certificates of deposit 69,326 — 69,615 — 69,615 Securities available for sale 38,364 17,775 20,589 — 38,364 Federal Home Loan Bank stock 24,947 — — 24,947 24,947 Loans and loans held for sale, net 4,626,570 — — 4,590,543 4,590,543 Accrued interest receivable 12,902 — — 12,902 12,902 Financial liabilities: Deposits 4,107,861 — — 3,995,215 3,995,215 Borrowings 513,444 — 508,411 — 508,411 Accrued interest payable 2,025 — — 2,025 2,025 On-balance Assets: Loan level interest rate swaps 1,284 — — 1,284 1,284 Liabilities: Loan level interest rate swaps 1,284 — — 1,284 1,284 December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Total (In thousands) Financial assets: Cash and due from banks $ 236,423 $ 236,423 $ — $ — $ 236,423 Certificates of deposit 80,323 — 80,710 — 80,710 Securities available for sale 67,663 46,032 21,631 — 67,663 Federal Home Loan Bank stock 18,175 — — 18,175 18,175 Loans and loans held for sale, net 3,902,612 — — 3,970,896 3,970,896 Accrued interest receivable 10,381 — — 10,381 10,381 Financial liabilities: Deposits 3,475,837 — — 3,485,618 3,485,618 Borrowings 322,523 — 322,928 — 322,928 Accrued interest payable 1,384 — — 1,384 1,384 On-balance Assets: Loan level interest rate swaps 899 — — 899 899 Liabilities: Loan level interest rate swaps 899 — — 899 899 |
Condensed Financial Statement37
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets Pertaining Only to Meridian Bancorp | Financial information pertaining only to Meridian Bancorp, Inc. is as follows: December 31, 2017 2016 (In thousands) BALANCE SHEETS Assets Cash and cash equivalents from bank subsidiary $ 23,072 $ 34,613 Certificates of deposit 67,843 80,323 Securities available for sale, at fair value 10 5,003 Investment in bank subsidiary 532,600 467,821 ESOP loan receivable 20,287 20,954 Other assets 3,316 2,735 Total assets $ 647,128 $ 611,449 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 729 $ 4,152 Stockholders’ equity 646,399 607,297 Total liabilities and stockholders’ equity $ 647,128 $ 611,449 |
Statements of Income Pertaining Only to Meridian Bancorp | Years Ended December 31, 2017 2016 2015 (In thousands) STATEMENTS OF INCOME Income: Interest on ESOP loan $ 681 $ 702 $ 722 Interest on certificates of deposit 814 495 624 Interest and dividend income on securities 46 184 151 Other interest and dividend income — 4 82 Gain on sale of securities, net 1 182 — Total income 1,542 1,567 1,579 Expenses: Merger and acquisition 484 — — Other general and administrative 1,144 1,174 993 Total operating expenses 1,628 1,174 993 Income (loss) before income taxes and equity in undistributed earnings of subsidiaries (86 ) 393 586 Applicable income tax provision (benefit) (35 ) 160 240 (51 ) 233 346 Equity in undistributed earnings of subsidiary 42,996 33,957 24,261 Net income $ 42,945 $ 34,190 $ 24,607 |
Statements of Cash Flows Pertaining Only to Meridian Bancorp | Years Ended December 31, 2017 2016 2015 (In thousands) STATEMENTS OF CASH FLOWS Cash flows from operating activities: Net income $ 42,945 $ 34,190 $ 24,607 Adjustments to reconcile net income to net cash provided (used) by operating activities: Equity in undistributed earnings of subsidiaries (42,996 ) (33,957 ) (24,261 ) Net accretion of securities available for sale 4 — (3 ) Gain on sales of securities, net (1 ) (182 ) — Share-based compensation expense 379 319 97 Decrease (increase) in other assets (582 ) 232 828 Increase in other liabilities (4,460 ) 550 211 Net cash provided (used) by operating activities (4,711 ) 1,152 1,479 Cash flows from investing activities: Purchases of certificates of deposit (22,650 ) (80,423 ) (26,562 ) Maturities of certificates of deposit 35,130 99,162 12,500 Activity in securities available for sale: Redemption (purchase) of mutual funds, net (8 ) 123 19,882 Proceeds from sales — 782 — Proceeds from maturities 5,000 25,000 — Purchases — (600 ) (5,009 ) Cash paid as purchase price of acquisition (17,805 ) — — Principal payments on ESOP loan receivable 667 646 626 Net cash provided by investing activities 334 44,690 1,437 Cash flows from financing activities: Cash dividends paid on common stock (7,665 ) (6,148 ) (1,462 ) Repurchase of common stock — (18,799 ) (9,428 ) Stock options exercised 501 205 232 Net cash used by financing activities (7,164 ) (24,742 ) (10,658 ) Net change in cash and cash equivalents (11,541 ) 21,100 (7,742 ) Cash and cash equivalents at beginning of year 34,613 13,513 21,255 Cash and cash equivalents at end of year $ 23,072 $ 34,613 $ 13,513 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following is a summary of the estimated fair value of assets acquired and liabilities assumed as of the date of the acquisition: Amount (In thousands) Cash and due from banks $ 15,800 Securities available for sale, at fair value 15,775 Loans and loans held for sale, net 75,708 Premises and equipment, net 1,314 Goodwill 5,951 Core deposit intangible 3,243 Other assets 2,625 Total assets acquired $ 120,416 Deposits $ 93,845 Long-term debt 8,193 Accrued expenses and other liabilities 573 Total liabilities assumed $ 102,611 Purchase price $ 17,805 |
Selected Quarterly Consolidat39
Selected Quarterly Consolidated Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data Consolidated Financial Statements (Unaudited) | The selected quarterly financial data presented below should be read in conjunction with the Consolidated Financial Statements and related notes. Years Ended December 31, 2017 2016 Fourth Third Second First Fourth Third Second First (Dollars in thousands, except per share amounts) Interest and dividend income $ 50,873 $ 47,970 $ 44,509 $ 41,752 $ 41,249 $ 38,420 $ 35,839 $ 34,184 Interest expense 11,544 9,916 9,053 8,399 7,830 7,118 6,384 5,805 Net interest income 39,329 38,054 35,456 33,353 33,419 31,302 29,455 28,379 Provision for loan losses (1) (715 ) 2,458 1,497 1,619 1,304 858 3,952 1,066 Net interest income, after provision for loan losses 40,044 35,596 33,959 31,734 32,115 30,444 25,503 27,313 Non-interest 8,709 5,253 5,030 4,072 5,614 3,301 2,583 2,692 Non-interest 23,869 20,814 21,405 21,877 19,778 19,164 19,322 19,230 Income before income taxes 24,884 20,035 17,584 13,929 17,951 14,581 8,764 10,775 Provision for income taxes (3) 15,863 6,702 6,237 4,685 6,642 5,084 2,857 3,298 Net income $ 9,021 $ 13,333 $ 11,347 $ 9,244 $ 11,309 $ 9,497 $ 5,907 $ 7,477 Earnings per share: Basic $ 0.18 $ 0.26 $ 0.22 $ 0.18 $ 0.22 $ 0.19 $ 0.12 $ 0.14 Diluted $ 0.17 $ 0.25 $ 0.22 $ 0.18 $ 0.22 $ 0.18 $ 0.11 $ 0.14 Weighted average shares: Basic 51,425,793 51,229,203 51,003,967 50,949,634 50,940,037 50,982,633 51,026,985 51,569,683 Diluted 53,026,141 52,672,962 52,422,486 52,526,737 52,102,511 52,093,009 52,137,475 52,663,921 (1) The provision for loan losses for the fourth quarter of 2017 reflected lower expense primarily due to improvements in several asset quality factors and reduced levels of loan portfolio growth in the commercial loan categories during the quarter. For the second quarter of 2016, the provision for loan losses reflected higher expense primarily due to loan portfolio growth in the commercial loan categories during the quarter. (2) Non-interest (3) The provision for income taxes for the fourth quarter of 2017 reflects the revaluation of the Company’s net deferred tax asset as a result of the enactment of the Tax Cuts and Jobs Act. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Mar. 06, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total revenue | 10.00% | |||
Cash on deposit | $ 353,000,000 | |||
Loans accrual of interest is discontinued at the time the loan | 90 days | |||
Maximum loan value ratio | 80.00% | |||
Originate loans with loan-to-value ratios | 95.00% | |||
First time home buyers, loans with loan-to-value ratios | 100.00% | |||
Estimated useful life of intangible assets | 10 years | |||
Uncertain tax positions | $ 0 | $ 0 | ||
Interest or penalties | 0 | 0 | $ 0 | |
Income tax benefit | 966,000 | |||
Unrecognized net actuarial losses | 214,000 | |||
Unrecognized prior service cost | 17,000 | |||
Deferred tax provision (benefit) | 6,823,000 | $ (2,816,000) | $ (2,361,000) | |
Future minimum lease payments under operating lease agreements | 15,509,000 | |||
FHLB Stock [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Impairment charges | 0 | |||
Change in Accounting Method Accounted for as Change in Estimate [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Unrealized loss on equity investment | 2,600,000 | |||
Deferred tax provision (benefit) | $ 900,000 | |||
Minimum [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Maturity period of certificate of deposit | 90 days | |||
FDIC insured amount | $ 250,000 | |||
Period of repayment of loan | 12 months | |||
Maximum [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Maturity period of certificate of deposit | 24 months | |||
Period of repayment of loan | 24 months | |||
Meridian Financial Services Incorporated [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Percentage of common stock owned before merger | 59.00% | |||
Stock Option [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Anti-dilutive Options | 67,554 | 9,440 | 366,002 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common stockholders | $ 9,021 | $ 13,333 | $ 11,347 | $ 9,244 | $ 11,309 | $ 9,497 | $ 5,907 | $ 7,477 | $ 42,945 | $ 34,190 | $ 24,607 |
Basic weighted average shares outstanding | 51,425,793 | 51,229,203 | 51,003,967 | 50,949,634 | 50,940,037 | 50,982,633 | 51,026,985 | 51,569,683 | 51,153,665 | 51,128,914 | 51,965,036 |
Effect of dilutive stock options | 1,509,932 | 1,119,394 | 1,106,896 | ||||||||
Diluted weighted average shares outstanding | 53,026,141 | 52,672,962 | 52,422,486 | 52,526,737 | 52,102,511 | 52,093,009 | 52,137,475 | 52,663,921 | 52,663,597 | 52,248,308 | 53,071,932 |
Earnings per share: | |||||||||||
Basic | $ 0.18 | $ 0.26 | $ 0.22 | $ 0.18 | $ 0.22 | $ 0.19 | $ 0.12 | $ 0.14 | $ 0.84 | $ 0.67 | $ 0.47 |
Diluted | $ 0.17 | $ 0.25 | $ 0.22 | $ 0.18 | $ 0.22 | $ 0.18 | $ 0.11 | $ 0.14 | $ 0.82 | $ 0.65 | $ 0.46 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Income (loss), Included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gain on securities available for sale | $ 931 | $ 3,637 | |
Comprehensive income | 41,267 | 38,088 | $ 19,617 |
Tax effect | (292) | (1,444) | |
Net-of-tax amount | 639 | 2,193 | |
Accumulated other comprehensive income | 128 | 1,806 | |
Defined Benefit Plans [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Unrecognized prior service cost | (180) | (197) | |
Unrecognized net actuarial loss | (533) | (399) | |
Comprehensive income | (713) | (596) | |
Tax effect | 202 | 209 | |
Net-of-tax amount | $ (511) | $ (387) |
Securities Available for Sale -
Securities Available for Sale - Amortized Cost and Fair Values of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | $ 20,352 | $ 21,254 |
Debt Securities, Gross Unrealized Gains | 239 | 383 |
Debt Securities, Gross Unrealized Losses | (2) | (6) |
Debt Securities, Fair Value | 20,589 | 21,631 |
Marketable Equity Securities, Amortized Cost | 17,081 | 42,772 |
Marketable Equity Securities, Gross Unrealized Gains | 1,652 | 4,561 |
Marketable Equity Securities, Gross Unrealized Losses | (958) | (1,301) |
Marketable Equity Securities, Fair Value | 17,775 | 46,032 |
Total Securities Available for Sale, Amortized Cost | 37,433 | 64,026 |
Total Securities Available for Sale, Gross Unrealized Gains | 1,891 | 4,944 |
Total Securities Available for Sale, Gross Unrealized Losses | (960) | (1,307) |
Total Securities Available for Sale, Fair Value | 38,364 | 67,663 |
Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 13,989 | |
Debt Securities, Gross Unrealized Gains | 19 | |
Debt Securities, Gross Unrealized Losses | (3) | |
Debt Securities, Fair Value | 14,005 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 2,424 | 1,202 |
Debt Securities, Gross Unrealized Gains | 2 | 17 |
Debt Securities, Fair Value | 2,426 | 1,219 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 10 | 2 |
Marketable Equity Securities, Fair Value | 10 | 2 |
Government-sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 1,942 | |
Debt Securities, Fair Value | 1,942 | |
Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 15,916 | 5,284 |
Debt Securities, Gross Unrealized Gains | 231 | 325 |
Debt Securities, Gross Unrealized Losses | (2) | (3) |
Debt Securities, Fair Value | 16,145 | 5,606 |
Residential Mortgage-backed Securities, Private Label [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 70 | 779 |
Debt Securities, Gross Unrealized Gains | 6 | 22 |
Debt Securities, Fair Value | 76 | 801 |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 17,071 | 42,770 |
Marketable Equity Securities, Gross Unrealized Gains | 1,652 | 4,561 |
Marketable Equity Securities, Gross Unrealized Losses | (958) | (1,301) |
Marketable Equity Securities, Fair Value | 17,765 | 46,030 |
Financial Services [Member] | Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 12,989 | |
Debt Securities, Gross Unrealized Gains | 16 | |
Debt Securities, Gross Unrealized Losses | (3) | |
Debt Securities, Fair Value | 13,002 | |
Financial Services [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 1,241 | 5,953 |
Marketable Equity Securities, Gross Unrealized Gains | 294 | 970 |
Marketable Equity Securities, Fair Value | 1,535 | 6,923 |
Industrials [Member] | Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Total | 1,000 | |
Debt Securities, Gross Unrealized Gains | 3 | |
Debt Securities, Fair Value | 1,003 | |
Industrials [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 2,939 | 4,181 |
Marketable Equity Securities, Gross Unrealized Gains | 469 | 624 |
Marketable Equity Securities, Gross Unrealized Losses | (11) | |
Marketable Equity Securities, Fair Value | 3,408 | 4,794 |
Basic Materials [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 3,498 | 6,763 |
Marketable Equity Securities, Gross Unrealized Gains | 207 | 901 |
Marketable Equity Securities, Gross Unrealized Losses | (250) | (232) |
Marketable Equity Securities, Fair Value | 3,455 | 7,432 |
Consumer Products and Services [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 5,832 | 13,567 |
Marketable Equity Securities, Gross Unrealized Gains | 377 | 1,093 |
Marketable Equity Securities, Gross Unrealized Losses | (415) | (382) |
Marketable Equity Securities, Fair Value | 5,794 | 14,278 |
Healthcare [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 1,933 | 8,225 |
Marketable Equity Securities, Gross Unrealized Gains | 111 | 533 |
Marketable Equity Securities, Gross Unrealized Losses | (137) | (456) |
Marketable Equity Securities, Fair Value | 1,907 | 8,302 |
Technology [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable Equity Securities, Amortized Cost | 1,628 | 4,081 |
Marketable Equity Securities, Gross Unrealized Gains | 194 | 440 |
Marketable Equity Securities, Gross Unrealized Losses | (156) | (220) |
Marketable Equity Securities, Fair Value | $ 1,666 | $ 4,301 |
Securities Available for Sale44
Securities Available for Sale - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)SecurityLoanSecurityshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from sales of securities available for sale | $ 40,864,000 | $ 38,429,000 | $ 27,120,000 |
Gross gains | 9,500,000 | 7,200,000 | 4,200,000 |
Gross losses | 164,000 | 4,200,000 | $ 1,800,000 |
Marketable equity securities in an unrealized loss position for less than 12 months, fair value | 3,497,000 | 10,985,000 | |
Marketable equity securities in an unrealized loss position for 12 months or longer, fair value | $ 2,511,000 | $ 6,449,000 | |
Declined percentage of equity securities unrealized losses | 10.00% | ||
Other-than-temporarily impaired securities | shares | 0 | ||
Unrealized losses on marketable equity securities, declined percentage | 25.00% | ||
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities, fair value | $ 5,800,000 | ||
Marketable equity securities, total unrealized losses | $ 958,000 | ||
Number of securities in unrealized loss position | SecurityLoan | 12 | ||
Unrealized losses with equity aggregate depreciation, percentage | 14.20% | ||
Marketable equity securities in an unrealized loss position for less than 12 months, fair value | $ 3,500,000 | ||
Marketable equity securities in an unrealized loss position for less than 12 months, unrealized losses | $ 348,000 | ||
Marketable equity securities in an unrealized loss position for less than 12 months, number of securities | Security | 6 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, fair value | $ 2,300,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, unrealized losses | $ 610,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, number of securities | Security | 6 | ||
Equity Securities [Member] | Basic Materials [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities in an unrealized loss position for 12 months or longer, fair value | $ 641,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, unrealized losses | $ 163,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, number of securities | Security | 1 | ||
Equity Securities [Member] | Consumer Products and Services [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities in an unrealized loss position for 12 months or longer, fair value | $ 1,300,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, unrealized losses | $ 391,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, number of securities | Security | 3 | ||
Equity Securities [Member] | Technology [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities in an unrealized loss position for 12 months or longer, fair value | $ 426,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, unrealized losses | $ 56,000 | ||
Marketable equity securities in an unrealized loss position for 12 months or longer, number of securities | Security | 2 | ||
Federal Reserve Bank Discount Window Borrowings [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities with fair value, pledged as collateral | $ 472,000 | ||
Federal Home Loan Bank of Boston Borrowings [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities with fair value, pledged as collateral | $ 3,300,000 |
Securities Available for Sale45
Securities Available for Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, within 1 year | $ 325 | |
Fair Value, within 1 year | 328 | |
Amortized Cost, over 1 year to 5 years | 109 | |
Fair Value, over 1 year to 5 years | 109 | |
Amortized Cost, over 5 years | 19,918 | |
Fair Value, over 5 years | 20,152 | |
Amortized Cost, Total | 20,352 | $ 21,254 |
Fair Value, Total | 20,589 | 21,631 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, within 1 year | 325 | |
Fair Value, within 1 year | 328 | |
Amortized Cost, over 5 years | 2,099 | |
Fair Value, over 5 years | 2,098 | |
Amortized Cost, Total | 2,424 | 1,202 |
Fair Value, Total | 2,426 | 1,219 |
Government-sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, over 5 years | 1,942 | |
Fair Value, over 5 years | 1,942 | |
Amortized Cost, Total | 1,942 | |
Fair Value, Total | 1,942 | |
Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, over 1 year to 5 years | 109 | |
Fair Value, over 1 year to 5 years | 109 | |
Amortized Cost, over 5 years | 15,807 | |
Fair Value, over 5 years | 16,036 | |
Amortized Cost, Total | 15,916 | 5,284 |
Fair Value, Total | 16,145 | 5,606 |
Residential Mortgage-backed Securities, Private Label [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, over 5 years | 70 | |
Fair Value, over 5 years | 76 | |
Amortized Cost, Total | 70 | 779 |
Fair Value, Total | $ 76 | $ 801 |
Securities Available for Sale46
Securities Available for Sale - Schedule of Information Pertaining to Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | $ 348 | $ 510 |
Fair value, less than twelve months | 3,497 | 10,985 |
Gross unrealized losses, over twelve months | 612 | 797 |
Fair value, over twelve months | 2,511 | 6,449 |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 3 | |
Fair value, less than twelve months | 5,000 | |
Gross unrealized losses, over twelve months | 2 | 3 |
Fair value, over twelve months | 171 | 205 |
Debt Securities [Member] | Residential Mortgage-backed Securities, Government - sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, over twelve months | 2 | 3 |
Fair value, over twelve months | 171 | 205 |
Marketable Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 348 | 507 |
Fair value, less than twelve months | 3,497 | 5,985 |
Gross unrealized losses, over twelve months | 610 | 794 |
Fair value, over twelve months | 2,340 | 6,244 |
Financial Services [Member] | Debt Securities [Member] | Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 3 | |
Fair value, less than twelve months | 5,000 | |
Basic Materials [Member] | Marketable Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 87 | |
Fair value, less than twelve months | 791 | |
Gross unrealized losses, over twelve months | 163 | 232 |
Fair value, over twelve months | 641 | 1,568 |
Consumer Products and Services [Member] | Marketable Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 24 | 237 |
Fair value, less than twelve months | 1,196 | 3,496 |
Gross unrealized losses, over twelve months | 391 | 145 |
Fair value, over twelve months | 1,273 | 1,618 |
Healthcare [Member] | Marketable Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 137 | 259 |
Fair value, less than twelve months | 1,102 | 2,039 |
Gross unrealized losses, over twelve months | 197 | |
Fair value, over twelve months | 1,377 | |
Industrials [Member] | Marketable Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 11 | |
Fair value, less than twelve months | 450 | |
Technology [Member] | Marketable Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized losses, less than twelve months | 100 | |
Fair value, less than twelve months | 408 | |
Gross unrealized losses, over twelve months | 56 | 220 |
Fair value, over twelve months | $ 426 | $ 1,681 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | $ 4,673,162 | $ 3,942,807 | ||
Allowance for loan losses | (45,185) | (40,149) | $ (33,405) | $ (28,469) |
Net deferred loan origination fees | (5,179) | (3,990) | ||
Loans, net | 4,622,798 | 3,898,668 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 525,604 | 515,430 | ||
Allowance for loan losses | (6,084) | (6,452) | (5,620) | (4,633) |
Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 641,306 | 502,753 | ||
Allowance for loan losses | (10,166) | (8,931) | (8,313) | (5,155) |
Total Real Estate Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 4,136,797 | 3,417,665 | ||
Residential Portfolio Segment [Member] | Multi-Family Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 779,637 | 562,948 | ||
Allowance for loan losses | (6,263) | (4,514) | (3,385) | (3,635) |
Residential Portfolio Segment [Member] | One-to Four-Family [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 603,680 | 532,450 | ||
Allowance for loan losses | (1,001) | (1,367) | (1,354) | (1,849) |
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 48,393 | 42,913 | ||
Allowance for loan losses | (62) | (73) | (144) | (100) |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 2,063,781 | 1,776,601 | ||
Allowance for loan losses | (21,513) | (18,725) | (14,497) | (13,000) |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans, Amount | 10,761 | 9,712 | ||
Allowance for loan losses | $ (96) | $ (87) | $ (92) | $ (97) |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)SecurityLoan | Dec. 31, 2016USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Servicing loans for participants | $ 247,800,000 | $ 210,500,000 |
Number of accruing loans | SecurityLoan | 0 | 0 |
Loans modified as TDRs on non-accrual status, minimum period | 6 months | |
Loans modified as TDRs qualify for return to accrual status if demonstrated performance with modified terms of loan agreement, minimum period | 6 months | |
Allocated component included in allowance for loan losses | $ 184,000 | $ 186,000 |
Charge-offs related to the TDRs modified | 0 | $ 0 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value of loan pledged | 695,300,000 | |
Multi-Family Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value of loan pledged | $ 116,700,000 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 40,149 | $ 33,405 | $ 28,469 | ||
Provision (credit) for loan losses | 4,859 | 7,180 | 6,667 | ||
Charge-offs | (441) | (837) | (2,854) | ||
Recoveries | 618 | 401 | 1,123 | ||
Ending balance | 45,185 | 40,149 | 33,405 | ||
Amount of allowance for loan losses for loans deemed to be impaired | $ 184 | $ 186 | |||
Amount of allowance for loan losses for loans not deemed to be impaired | 45,001 | 39,963 | |||
Total, Amount of allowance | 40,149 | 33,405 | 28,469 | 45,185 | 40,149 |
Loans deemed to be impaired | 4,945 | 8,384 | |||
Loans not deemed to be impaired | 4,668,217 | 3,934,423 | |||
Total, Amount of allowance impaired | 4,673,162 | 3,942,807 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 6,452 | 5,620 | 4,633 | ||
Provision (credit) for loan losses | (398) | 821 | 1,022 | ||
Charge-offs | (49) | (36) | |||
Recoveries | 30 | 60 | 1 | ||
Ending balance | 6,084 | 6,452 | 5,620 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 6,084 | 6,452 | |||
Total, Amount of allowance | 6,452 | 5,620 | 4,633 | 6,084 | 6,452 |
Loans deemed to be impaired | 1,539 | 1,808 | |||
Loans not deemed to be impaired | 524,065 | 513,622 | |||
Total, Amount of allowance impaired | 525,604 | 515,430 | |||
Multi-Family Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Amount of allowance for loan losses for loans deemed to be impaired | 133 | 137 | |||
One-to Four-Family [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Amount of allowance for loan losses for loans deemed to be impaired | 51 | 49 | |||
Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 8,931 | 8,313 | 5,155 | ||
Provision (credit) for loan losses | 1,187 | 874 | 4,564 | ||
Charge-offs | (3) | (486) | (2,287) | ||
Recoveries | 51 | 230 | 881 | ||
Ending balance | 10,166 | 8,931 | 8,313 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 10,166 | 8,931 | |||
Total, Amount of allowance | 8,931 | 8,313 | 5,155 | 10,166 | 8,931 |
Loans deemed to be impaired | 988 | ||||
Loans not deemed to be impaired | 641,306 | 501,765 | |||
Total, Amount of allowance impaired | 641,306 | 502,753 | |||
Residential Portfolio Segment [Member] | Multi-Family Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 4,514 | 3,385 | 3,635 | ||
Provision (credit) for loan losses | 1,748 | 1,129 | (250) | ||
Recoveries | 1 | ||||
Ending balance | 6,263 | 4,514 | 3,385 | ||
Amount of allowance for loan losses for loans deemed to be impaired | 133 | 137 | |||
Amount of allowance for loan losses for loans not deemed to be impaired | 6,130 | 4,377 | |||
Total, Amount of allowance | 4,514 | 3,385 | 3,635 | 6,263 | 4,514 |
Loans deemed to be impaired | 1,315 | 1,359 | |||
Loans not deemed to be impaired | 778,322 | 561,589 | |||
Total, Amount of allowance impaired | 779,637 | 562,948 | |||
Residential Portfolio Segment [Member] | One-to Four-Family [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 1,367 | 1,354 | 1,849 | ||
Provision (credit) for loan losses | (372) | 13 | (446) | ||
Charge-offs | (98) | (165) | |||
Recoveries | 104 | 116 | |||
Ending balance | 1,001 | 1,367 | 1,354 | ||
Amount of allowance for loan losses for loans deemed to be impaired | 51 | 49 | |||
Amount of allowance for loan losses for loans not deemed to be impaired | 950 | 1,318 | |||
Total, Amount of allowance | 1,367 | 1,354 | 1,849 | 1,001 | 1,367 |
Loans deemed to be impaired | 1,245 | 1,422 | |||
Loans not deemed to be impaired | 602,435 | 531,028 | |||
Total, Amount of allowance impaired | 603,680 | 532,450 | |||
Residential Portfolio Segment [Member] | Home Equity Lines of Credit [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 73 | 144 | 100 | ||
Provision (credit) for loan losses | (12) | (71) | 104 | ||
Charge-offs | (60) | ||||
Recoveries | 1 | ||||
Ending balance | 62 | 73 | 144 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 62 | 73 | |||
Total, Amount of allowance | 73 | 144 | 100 | 62 | 73 |
Loans not deemed to be impaired | 48,393 | 42,913 | |||
Total, Amount of allowance impaired | 48,393 | 42,913 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 18,725 | 14,497 | 13,000 | ||
Provision (credit) for loan losses | 2,478 | 4,228 | 1,479 | ||
Recoveries | 310 | 18 | |||
Ending balance | 21,513 | 18,725 | 14,497 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 21,513 | 18,725 | |||
Total, Amount of allowance | 18,725 | 14,497 | 13,000 | 21,513 | 18,725 |
Loans deemed to be impaired | 846 | 2,807 | |||
Loans not deemed to be impaired | 2,062,935 | 1,773,794 | |||
Total, Amount of allowance impaired | 2,063,781 | 1,776,601 | |||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 87 | 92 | 97 | ||
Provision (credit) for loan losses | 228 | 186 | 194 | ||
Charge-offs | (340) | (302) | (306) | ||
Recoveries | 121 | 111 | 107 | ||
Ending balance | 96 | 87 | 92 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 96 | 87 | |||
Total, Amount of allowance | $ 87 | $ 92 | $ 97 | 96 | 87 |
Loans not deemed to be impaired | 10,761 | 9,712 | |||
Total, Amount of allowance impaired | $ 10,761 | $ 9,712 |
Loans - Past Due and Non Accrua
Loans - Past Due and Non Accrual (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 6,572 | $ 10,435 |
Loans on Non-accrual | 8,363 | 13,436 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 528 | 653 |
Loans on Non-accrual | 523 | 653 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 4,589 | 8,711 |
Loans on Non-accrual | 7,840 | 12,783 |
One-to Four-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 3,733 | 4,377 |
Loans on Non-accrual | 6,890 | 8,487 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 758 | 1,510 |
Loans on Non-accrual | 562 | 674 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 98 | 2,009 |
Loans on Non-accrual | 388 | 2,807 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,455 | 1,071 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 815 | |
Loans on Non-accrual | 815 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,722 | 2,132 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 5 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,830 | 1,453 |
Financing Receivables, 30 to 59 Days Past Due [Member] | One-to Four-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,537 | 641 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Lines of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 195 | 707 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 98 | 105 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 887 | 679 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,274 | 1,357 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 706 | 965 |
Financing Receivables, 60 to 89 Days Past Due [Member] | One-to Four-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 664 | 834 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Lines of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 42 | 131 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 568 | 392 |
Financing Receivables, 90 Days or Greater Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,576 | 6,946 |
Financing Receivables, 90 Days or Greater Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 523 | 653 |
Financing Receivables, 90 Days or Greater Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,053 | 6,293 |
Financing Receivables, 90 Days or Greater Past Due [Member] | One-to Four-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,532 | 2,902 |
Financing Receivables, 90 Days or Greater Past Due [Member] | Home Equity Lines of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 521 | 672 |
Financing Receivables, 90 Days or Greater Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,904 | |
Financing Receivables, 90 Days or Greater Past Due [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 815 |
Loans - Impaired Loans of Compa
Loans - Impaired Loans of Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, Total | $ 4,945 | $ 8,384 | |
Impaired Loans Without Valuation Allowance, Recorded Investment | 3,137 | 6,518 | |
Impaired Loans With Valuation Allowance, Recorded Investment | 1,808 | 1,866 | |
Unpaid Principal Balance, Total | 5,590 | 9,544 | |
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 3,782 | 7,678 | |
Impaired Loans With Valuation Allowance, Unpaid Principal Balance | 1,808 | 1,866 | |
Impaired Loans With Valuation Allowance, Related Allowance | 184 | 186 | |
Average Recorded Investment | 6,991 | 19,159 | $ 28,674 |
Interest Income Recognized | 264 | 318 | 779 |
Interest Income Recognized on Cash Basis | 108 | 157 | 453 |
Multi-Family Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans Without Valuation Allowance, Recorded Investment | 59 | 74 | |
Impaired Loans With Valuation Allowance, Recorded Investment | 1,256 | 1,285 | |
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 59 | 74 | |
Impaired Loans With Valuation Allowance, Unpaid Principal Balance | 1,256 | 1,285 | |
Impaired Loans With Valuation Allowance, Related Allowance | 133 | 137 | |
Average Recorded Investment | 1,336 | 1,379 | 1,421 |
Interest Income Recognized | 53 | 55 | 55 |
One-to Four-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans Without Valuation Allowance, Recorded Investment | 693 | 841 | |
Impaired Loans With Valuation Allowance, Recorded Investment | 552 | 581 | |
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 1,007 | 1,281 | |
Impaired Loans With Valuation Allowance, Unpaid Principal Balance | 552 | 581 | |
Impaired Loans With Valuation Allowance, Related Allowance | 51 | 49 | |
Average Recorded Investment | 1,522 | 1,788 | 2,625 |
Interest Income Recognized | 89 | 68 | 120 |
Interest Income Recognized on Cash Basis | 71 | 47 | 72 |
Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, Total | 988 | ||
Impaired Loans Without Valuation Allowance, Recorded Investment | 988 | ||
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 1,083 | ||
Average Recorded Investment | 250 | 11,076 | 16,273 |
Interest Income Recognized | 6 | 31 | 315 |
Interest Income Recognized on Cash Basis | 6 | 17 | 295 |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, Total | 1,539 | 1,808 | |
Impaired Loans Without Valuation Allowance, Recorded Investment | 1,539 | 1,808 | |
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 1,870 | 2,138 | |
Average Recorded Investment | 1,647 | 1,635 | 930 |
Interest Income Recognized | 63 | 84 | 5 |
Interest Income Recognized on Cash Basis | 13 | 5 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment, Total | 846 | 2,807 | |
Impaired Loans Without Valuation Allowance, Recorded Investment | 846 | 2,807 | |
Impaired Loans Without Valuation Allowance, Unpaid Principal Balance | 846 | 3,102 | |
Average Recorded Investment | 2,236 | 3,281 | 7,425 |
Interest Income Recognized | 53 | 80 | 284 |
Interest Income Recognized on Cash Basis | $ 31 | $ 80 | $ 81 |
Loans - Summary of Troubled Deb
Loans - Summary of Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | $ 12,660 | $ 13,257 |
Total TDRs on non-accrual status | 1,046 | 1,123 |
Total TDRs | 13,706 | 14,380 |
Multi-Family Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | 1,315 | 1,359 |
One-to Four-Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | 2,125 | 2,219 |
Total TDRs on non-accrual status | 1,046 | 1,123 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | 18 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | 9,200 | 9,460 |
Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | 174 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDRs on accrual status | $ 20 | $ 27 |
Loans - Risk Rated Loans by Cla
Loans - Risk Rated Loans by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Multi-Family Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | $ 779,637 | $ 562,948 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 2,063,781 | 1,776,601 |
Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 641,306 | 502,753 |
Loans Rated 1 - 6 [Member] | Multi-Family Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 774,919 | 556,892 |
Loans Rated 1 - 6 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 2,045,905 | 1,771,671 |
Loans Rated 1 - 6 [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 641,306 | 500,565 |
Loans Rated 7 [Member] | Multi-Family Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 275 | 841 |
Loans Rated 7 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 17,030 | 2,123 |
Loans Rated 8 [Member] | Multi-Family Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 4,443 | 5,215 |
Loans Rated 8 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 846 | 2,807 |
Loans Rated 8 [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 2,188 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 525,604 | 515,430 |
Commercial and Industrial [Member] | Loans Rated 1 - 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 471,793 | 465,979 |
Commercial and Industrial [Member] | Loans Rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | 6,380 | 22,820 |
Commercial and Industrial [Member] | Loans Rated 8 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable Credit Quality Rating | $ 47,431 | $ 26,631 |
Servicing - Additional Informat
Servicing - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Servicing Asset At Amortized Value Additional Disclosures [Abstract] | |||
Unpaid principal balances of residential real estate loans serviced for others | $ 133.9 | $ 107.8 | $ 129.8 |
Loans serviced for others | 43 | 47.2 | 56 |
Contingent liability associated with loans | $ 1 | $ 3 | $ 2.8 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Cost and Accumulated Depreciation and Amortization of Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 74,618 | $ 72,092 |
Less accumulated depreciation and amortization | (33,651) | (30,665) |
Premises and equipment, net | 40,967 | 41,427 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 8,472 | 8,243 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 35,777 | 34,421 |
Estimated useful lives | 40 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 9,031 | 8,629 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 21,338 | $ 20,799 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 7 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation and amortization expense | $ 3,069 | $ 3,004 | $ 2,524 |
Total rent expense | $ 1,900 | $ 1,700 | $ 1,500 |
Premises and Equipment - Future
Premises and Equipment - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Property Plant and Equipment Useful Life and Values [Abstract] | |
2,018 | $ 1,902 |
2,019 | 1,688 |
2,020 | 1,612 |
2,021 | 1,556 |
2,022 | 1,471 |
Thereafter | 7,280 |
Operating Leases Total | $ 15,509 |
Deposits - Summary of Deposit B
Deposits - Summary of Deposit Balances, by Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Non interest-bearing demand deposits | $ 477,428 | $ 431,222 |
Interest-bearing demand deposits | 1,004,155 | 630,413 |
Money market deposits | 921,895 | 980,344 |
Regular savings and other deposits | 333,774 | 305,632 |
Total non-certificate accounts | 2,737,252 | 2,347,611 |
Term certificates less than $250,000 | 999,531 | 850,565 |
Term certificates $250,000 and greater | 371,078 | 277,661 |
Total certificate accounts | 1,370,609 | 1,128,226 |
Total deposits | $ 4,107,861 | $ 3,475,837 |
Deposits - Summary of Term Cert
Deposits - Summary of Term Certificates, by Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Within 1 year, Amount | $ 600,012 | $ 539,903 |
Over 1 year to 2 years, Amount | 356,203 | 306,120 |
Over 2 years to 3 years, Amount | 290,909 | 122,952 |
Over 3 years to 4 years, Amount | 78,461 | 133,256 |
Over 4 years to 5 years, Amount | 44,798 | 22,483 |
Greater than 5 years, Amount | 226 | 3,512 |
Total certificate accounts | $ 1,370,609 | $ 1,128,226 |
Within 1 year, Weighted Average Rate | 1.23% | 1.16% |
Over 1 year to 2 years, Weighted Average Rate | 1.60% | 1.29% |
Over 2 year to 3 years, Weighted Average Rate | 2.05% | 1.69% |
Over 3 year to 4 years, Weighted Average Rate | 1.88% | 2.02% |
Over 4 years to 5 years, Weighted Average Rate | 2.34% | 1.61% |
Greater than 5 Years, Weighted Average Rate | 2.13% | 5.50% |
Weighted average rate on term certificates | 1.57% | 1.38% |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Brokered certificate of deposit included in term certificates | $ 232,700,000 | $ 158,500,000 |
Weighted average rate of deposit included in term certificates | 1.73% | 1.33% |
Brokered interest-bearing demand deposits | $ 569,400,000 | $ 296,300,000 |
Non-reciprocal interest-bearing demand deposits | $ 100,000,000 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Line Items] | ||
Available line of credit with the FHLB | $ 9,400,000 | |
Short-term borrowings | 0 | $ 0 |
Amounts drawn on the line of credit | 0 | 0 |
Available borrowings under Federal Reserve Bank discount window | 472,000,000 | |
Outstanding borrowings under Federal Reserve Bank discount window | 0 | $ 0 |
Amount of advances callable by the FHLB prior to maturity | 380,000,000 | |
Available borrowing capacity with the FHLB | 299,400,000 | |
Multi-Family Residential Real Estate [Member] | ||
Debt Disclosure [Line Items] | ||
Carrying value of commercial real estate loans pledged | 116,700,000 | |
LIBOR Less 60 Basis Points [Member] | First Two Years [Member] | ||
Debt Disclosure [Line Items] | ||
FHLB advances | $ 35,000,000 | |
LIBOR, Basis points | 0.60% | |
Interest rate, Description | 3-Month London Interbank Offered Rate (LIBOR), less 60 basis points | |
Interest rate, Term | Variable | |
Period of LIBOR measurement | 3 months | |
LIBOR Less 130 Basis Points [Member] | First Year [Member] | ||
Debt Disclosure [Line Items] | ||
FHLB advances | $ 20,000,000 | |
LIBOR, Basis points | 1.30% | |
Interest rate, Description | 3-month LIBOR, less 130 basis points | |
Interest rate, Term | Variable | |
Period of LIBOR measurement | 3 months | |
LIBOR Less 100 Basis Points [Member] | First Year [Member] | ||
Debt Disclosure [Line Items] | ||
FHLB advances | $ 55,000,000 | |
LIBOR, Basis points | 1.00% | |
Interest rate, Description | 3-Month LIBOR, less 100 basis points | |
Interest rate, Term | Variable | |
Period of LIBOR measurement | 3 months | |
LIBOR Less 100 Basis Points [Member] | First Two Years [Member] | ||
Debt Disclosure [Line Items] | ||
FHLB advances | $ 20,000,000 | |
LIBOR, Basis points | 1.00% | |
Interest rate, Description | 3-Month LIBOR, less 100 basis points | |
Interest rate, Term | Variable | |
Period of LIBOR measurement | 3 months | |
LIBOR Less 75 Basis Points [Member] | First Year [Member] | ||
Debt Disclosure [Line Items] | ||
FHLB advances | $ 25,000,000 | |
LIBOR, Basis points | 0.75% | |
Interest rate, Description | 3-month LIBOR, less 75 basis points | |
Interest rate, Term | Variable | |
Period of LIBOR measurement | 3 months | |
Commercial Real Estate Portfolio Segment [Member] | ||
Debt Disclosure [Line Items] | ||
Carrying value of commercial real estate loans pledged | $ 695,300,000 |
Borrowings - Long-term Debt, FH
Borrowings - Long-term Debt, FHLB Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total advances | $ 513,444 | $ 322,512 |
Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 1.22% | 1.01% |
Fixed Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
2,017 | $ 89,632 | |
2,018 | $ 48,000 | 43,000 |
2,019 | 6,268 | 4,891 |
2,020 | 53,551 | 4,989 |
2,021 | 45,000 | 45,000 |
2,022 | 105,625 | |
Thereafter | 100,000 | 50,000 |
Total advances | $ 358,444 | $ 237,512 |
Weighted Average Rate, 2017 | 1.32% | |
Weighted Average Rate, 2018 | 1.26% | 1.25% |
Weighted Average Rate, 2019 | 1.66% | 1.23% |
Weighted Average Rate, 2020 | 1.80% | 1.22% |
Weighted Average Rate, 2021 | 1.46% | 1.46% |
Weighted Average Rate, 2022 | 1.79% | |
Weighted Average Rate, Thereafter | 1.21% | 1.01% |
Fixed Interest Rate [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 1.51% | 1.26% |
Variable Interest Rate [Member] | ||
Debt Instrument [Line Items] | ||
2,020 | $ 25,000 | |
2,021 | $ 35,000 | 60,000 |
2,022 | 100,000 | |
Thereafter | 20,000 | |
Total advances | $ 155,000 | $ 85,000 |
Weighted Average Rate, 2020 | 0.27% | |
Weighted Average Rate, 2021 | 0.82% | 0.31% |
Weighted Average Rate, 2022 | 0.43% | |
Weighted Average Rate, Thereafter | 0.49% | |
Variable Interest Rate [Member] | Weighted Average [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Rate | 0.53% | 0.29% |
Income Taxes - Summary of Alloc
Income Taxes - Summary of Allocation of Federal and State Income Taxes Between Current and Deferred Portions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax provision: | |||||||||||
Federal | $ 20,575 | $ 15,989 | $ 11,109 | ||||||||
State | 6,089 | 4,708 | 3,218 | ||||||||
Total current provision | 26,664 | 20,697 | 14,327 | ||||||||
Deferred tax provision (benefit): | |||||||||||
Federal | (16) | (2,176) | (1,841) | ||||||||
State | (219) | (640) | (520) | ||||||||
Effect of tax rate change | 7,058 | ||||||||||
Total deferred provision (benefit) | 6,823 | (2,816) | (2,361) | ||||||||
Total tax provision | $ 15,863 | $ 6,702 | $ 6,237 | $ 4,685 | $ 6,642 | $ 5,084 | $ 2,857 | $ 3,298 | $ 33,487 | $ 17,881 | $ 11,966 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
State taxes, net of federal tax benefit | 5.00% | 5.10% | 4.80% |
Dividends received deduction | (0.30%) | (0.70%) | (1.10%) |
Bank-owned life insurance | (1.30%) | (0.80%) | (1.20%) |
Tax exempt income | (4.20%) | (5.90%) | (6.00%) |
Effect of tax rate change | 9.20% | ||
Other, net | 0.40% | 1.60% | 1.20% |
Effective tax rates | 43.80% | 34.30% | 32.70% |
Income Taxes - Components of th
Income Taxes - Components of the Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Total deferred tax assets | $ 18,148 | $ 24,757 |
Deferred tax liabilities | ||
Total deferred tax liabilities | (2,904) | (3,296) |
Net deferred tax asset | 15,244 | 21,461 |
Federal [Member] | ||
Deferred tax assets: | ||
Total deferred tax assets | 12,353 | 19,275 |
Deferred tax liabilities | ||
Total deferred tax liabilities | (2,329) | (2,625) |
State [Member] | ||
Deferred tax assets: | ||
Total deferred tax assets | 5,795 | 5,482 |
Deferred tax liabilities | ||
Total deferred tax liabilities | $ (575) | $ (671) |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Effects of Each Item that Give Rise to Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 12,701 | $ 16,401 |
Employee benefit and retirement plans | 3,720 | 5,011 |
Acquisition accounting | 1,378 | 2,135 |
Non-accrual interest | 82 | 1,091 |
Other | 259 | 208 |
Deferred tax assets, gross | 18,148 | 24,757 |
Deferred tax liabilities | ||
Net unrealized gain on securities available for sale | (292) | (1,444) |
Depreciation and amortization | (945) | (1,289) |
Other | (1,659) | (652) |
Deferred tax liabilities, gross | (2,904) | (3,296) |
Net deferred tax asset | $ 15,244 | $ 21,461 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||||
Federal income tax reserve for loan losses | $ 9.8 | |||
Percentage of the amount actually used subject to taxation | 150.00% | |||
Deferred tax liability not been provided | $ 2.8 | |||
Corporate income tax rate | 35.00% | 35.00% | 35.00% | |
Reduction in net deferred tax assets | $ 7.1 | |||
Scenario, Forecast [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 21.00% |
Other Commitments and Conting68
Other Commitments and Contingencies and Derivatives - Loan Commitments Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | $ 1,205,466 | $ 1,178,033 |
Construction [Member] | Unadvanced Portion of Existing Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 603,557 | 503,586 |
Construction [Member] | Unfunded Loan Commitment [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 81,937 | 231,274 |
Home Equity Lines of Credit [Member] | Unadvanced Portion of Existing Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 46,352 | 36,722 |
One-to Four-Family [Member] | Unfunded Loan Commitment [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 25,432 | 18,272 |
Commercial Real Estate Portfolio Segment [Member] | Unfunded Loan Commitment [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 116,314 | 42,141 |
Unallocated Financing Receivables [Member] | Unfunded Loan Commitment [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 350 | |
Other Lines and Letters of Credit [Member] | Unadvanced Portion of Existing Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | 301,285 | 314,225 |
Commercial and Industrial [Member] | Unfunded Loan Commitment [Member] | ||
Loss Contingencies [Line Items] | ||
Total loan commitments outstanding | $ 30,589 | $ 31,463 |
Other Commitments and Conting69
Other Commitments and Contingencies and Derivatives - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash pledged for collateral interest rate swap | $ 1.3 | $ 1.8 |
Core Data Processing Provider [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Other outstanding commitments | $ 17.3 |
Other Commitments and Conting70
Other Commitments and Contingencies and Derivatives - Summary Information Regarding the Derivatives (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer Interest Rate Swap Maturing on 06/07/32 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 65,514,000 | |
Fair value | $ 486,000 | |
Maturity | Jun. 7, 2032 | |
Interest rate paid | 1 Mo. Libor + 200bp | |
Interest rate received | Fixed (4.40%) | |
Third Party Interest Rate Swap Maturing on 06/07/32 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 65,514,000 | |
Fair value | $ (486,000) | |
Maturity | Jun. 7, 2032 | |
Interest rate paid | Fixed (4.40%) | |
Interest rate received | 1 Mo. Libor + 200bp | |
Customer Interest Rate Swap Maturing on 10/17/33 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 10,709,000 | $ 10,922,000 |
Fair value | $ 720,000 | 839,000 |
Maturity | Oct. 17, 2033 | |
Interest rate paid | 1 Mo. Libor + 175bp | |
Interest rate received | Fixed (4.1052%) | |
Third Party Interest Rate Swap Maturing on 10/17/33 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 10,709,000 | 10,922,000 |
Fair value | $ (720,000) | (839,000) |
Maturity | Oct. 17, 2033 | |
Interest rate paid | Fixed (4.1052%) | |
Interest rate received | 1 Mo. Libor + 175bp | |
Customer Interest Rate Swap Maturing on 12/13/26 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 2,884,000 | 3,036,000 |
Fair value | $ (78,000) | (60,000) |
Maturity | Dec. 13, 2026 | |
Interest rate paid | 1 Mo. Libor + 205bp | |
Interest rate received | Fixed (3.82%) | |
Third Party Interest Rate Swap Maturing on 12/13/26 [Member] | ||
Loss Contingencies [Line Items] | ||
Notional amount | $ 2,884,000 | 3,036,000 |
Fair value | $ 78,000 | $ 60,000 |
Maturity | Dec. 13, 2026 | |
Interest rate paid | Fixed (3.82%) | |
Interest rate received | 1 Mo. Libor + 205bp |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | Sep. 17, 2015 | Aug. 19, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Employee Benefit Plan [Line Items] | |||||
Qualification criteria minimum age | 18 years | ||||
Service period | 3 months | ||||
Employer contribution, employee retirement plan | 3.00% | ||||
Employee retirement plan, employer matching contribution | 50.00% | ||||
Employee's compensation contribution | 8.00% | ||||
Expense attributable to retirement benefit plan | $ 2,000,000 | $ 1,600,000 | $ 1,600,000 | ||
Accrued liability for retirement benefit agreement | $ 6,700,000 | $ 6,400,000 | |||
Restricted stock awards, issued | 1,013,638 | ||||
Equity Incentive Plan, issued | 2,534,094 | ||||
Stock options and restricted shares granted date to employees and directors | 5 years | ||||
Restricted stock awards, delivered | 1,013,638 | ||||
Aggregate grant date fair value of options granted | $ 3,000,000 | 5,900,000 | |||
Options granted, Number of Shares | 709,654 | 0 | |||
Aggregate intrinsic value of stock outstanding | $ 38,900,000 | ||||
Aggregate intrinsic value of exercisable options | $ 30,900,000 | ||||
Aggregate intrinsic value of share | $ 20.60 | ||||
Pre-tax intrinsic value for options exercised | $ 3,000,000 | $ 954,000 | 2,300,000 | ||
Compensation expense related to Share-Based Compensation Plan | 3,800,000 | 3,300,000 | 1,100,000 | ||
Tax benefit related to Share-Based Compensation Plan | 926,000,000 | $ 1,100,000 | 289,000,000 | ||
Proceeds on loan from the Company's subsidiary, Meridian Interstate Funding Corporation | $ 8,300,000 | ||||
Maturity period of loan | 20 years | ||||
Loan payable rate | 6.50% | ||||
Additional funds utilized | $ 16,300,000 | ||||
Number of additional shares | 3,652,000 | 3,652,000 | |||
Employee stock ownership plan per share | $ 10 | ||||
Percentage of shares issued | 5.00% | ||||
Employee stock ownership plan purchase | 3,652,275 | ||||
Employee stock ownership plan, average purchase price | $ 7.22 | ||||
Fair value of the unallocated shares | $ 52,700,000 | $ 50,600,000 | |||
Compensation expense recognized in connection with the ESOP | 2,232,000 | 1,842,000 | 1,595,000 | ||
Post-retirement benefit expenses | 400,000 | 543,000 | 410,000 | ||
Incentive compensation plan expense | $ 5,600,000 | 4,900,000 | 4,200,000 | ||
2015 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Equity Incentive Plan award, delivered | 4,550,000 | ||||
Restricted stock awards, issued | 1,300,000 | ||||
Equity Incentive Plan, issued | 3,250,000 | ||||
Stock options and restricted shares granted date to employees and directors | 5 years | ||||
2008 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Equity Incentive Plan award, delivered | 3,547,732 | ||||
Maximum [Member] | 2015 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Share-based Compensation expiration term | 10 years | ||||
Maximum [Member] | 2008 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Share-based Compensation expiration term | 10 years | ||||
Subsidiaries [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Number of shares ESOP acquired | 2,027,275 | ||||
Supplemental Executive Retirement Benefits [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Benefit obligation | $ 1,300,000 | 1,300,000 | |||
Benefit payments | $ 259,000 | 411,000 | 0 | ||
Employee Stock Ownership Plan [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Maturity period of loan | 25 years | ||||
Loan payable rate | 3.50% | ||||
Number of additional shares | 1,625,000 | ||||
Restricted Stock [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Number of shares available for future grant | 10,834 | ||||
Fair value of restricted shares vested, total | $ 3,100,000 | ||||
Unrecognized compensation expense related to non-vested options under the plan | $ 15,500,000 | ||||
Cost expected to recognize weighted-average period | 3 years 8 months 12 days | ||||
Restricted Stock [Member] | 2015 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Number of shares available for future grant | 454,390 | ||||
Stock Option [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Number of shares available for future grant | 33,493 | ||||
Stock Option [Member] | 2015 EIP [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Number of shares available for future grant | 1,218,972 | ||||
Officer and Director [Member] | |||||
Employee Benefit Plan [Line Items] | |||||
Supplemental executive retirement benefit expense for officers and directors | $ 497,000 | $ 421,000 | $ 1,500,000 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-Average Assumptions Used And Fair Value For Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected term (years) | 5 years 7 months 10 days | 6 years 6 months |
Expected dividend yield | 0.94% | 0.83% |
Expected volatility | 24.65% | 26.02% |
Risk-free interest rate | 1.93% | 1.77% |
Weighted average fair value of options granted | $ 4.25 | $ 3.78 |
Expected forfeiture rate for expense recognition | 6.02% | 6.02% |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Options and SARs Under Share-based Compensation Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ||
Options outstanding at beginning of year, Number of Shares | 3,383,089 | |
Options granted, Number of Shares | 709,654 | 0 |
Options exercised, Number of Shares | (107,960) | |
Forfeited, Number of Shares | (56,988) | |
Options outstanding at end of year, Number of Shares | 3,829,687 | 3,383,089 |
Options exercisable at end of year, Number of Shares | 2,226,800 | |
Options outstanding at beginning of year, Weighted-Average Exercise Price | $ 8.60 | |
Options granted, Weighted-Average Exercise Price | 17.73 | |
Options exercised, Weighted-Average Exercise Price | 4.38 | |
Options forfeited, Weighted-Average Exercise Price | 13.67 | |
Options outstanding at end of year, Weighted-Average Exercise Price | 10.43 | $ 8.60 |
Options exercisable at end of year, Weighted-Average Exercise Price | $ 6.73 | |
Options outstanding at beginning of year | 5 years 5 months 12 days | 5 years 4 months 20 days |
Options outstanding at end of year | 5 years 5 months 12 days | 5 years 4 months 20 days |
Options exercisable at end of year | 3 years 2 months 19 days | |
Stock Appreciation Rights (SARs) [Member] | ||
Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ||
Options exercised, Number of Shares | (98,108) | |
Options exercised, Weighted-Average Exercise Price | $ 4.32 |
Employee Benefit Plans - Non-ve
Employee Benefit Plans - Non-vested Restricted Stock Activity (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Compensation Related Costs [Abstract] | |
Non-vested restricted stock at beginning of year, Number of shares | shares | 583,503 |
Granted, Number of shares | shares | 282,500 |
Vested, Number of shares | shares | (156,351) |
Forfeited, Number of shares | shares | (22,839) |
Non-vested restricted stock at end of year, Number of shares | shares | 686,813 |
Non-vested restricted stock at beginning of year, Weighted average grant date fair value | $ / shares | $ 13.50 |
Granted, Weighted average grant date fair value | $ / shares | 17.72 |
Vested, Weighted average grant date fair value | $ / shares | 12.92 |
Forfeited, Weighted average grant date fair value | $ / shares | 14.44 |
Non-vested restricted stock at end of year, Weighted average grant date fair value | $ / shares | $ 15.34 |
Employee Benefit Plans - Remain
Employee Benefit Plans - Remaining Principal Balance Payable on ESOP Debt (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Compensation Related Costs [Abstract] | |
2,018 | $ 689 |
2,019 | 711 |
2,020 | 734 |
2,021 | 758 |
2,022 | 783 |
Thereafter | 16,612 |
Total | $ 20,287 |
Employee Benefit Plans - Shares
Employee Benefit Plans - Shares Held by ESOP (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Allocated | 973,000 | 851,000 |
Committed to be allocated | 122,000 | 122,000 |
Unallocated | 2,557,036 | 2,678,800 |
Total | 3,652,000 | 3,652,000 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | Dec. 01, 2017 | Sep. 01, 2017 | Jun. 01, 2017 | Mar. 01, 2017 | Jul. 28, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Stockholders Equity [Line Items] | ||||||||
Capital conservation buffer rate | 1.25% | |||||||
Capital conservation buffer rate increase in 2018 | 1.875% | |||||||
Capital conservation buffer rate increase in 2019 | 2.50% | |||||||
Capital conservation buffer description | Community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total to risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. | |||||||
Liquidation amount | $ 114,200,000 | |||||||
Reserve for dividend payment | $ 77,000,000 | |||||||
Percentage of Loans or advances | 10.00% | |||||||
Funds available for loans or advances by the Bank to the Company | $ 53,300,000 | |||||||
Stock repurchased during period, shares | 2,059,611 | |||||||
Average cost per share | $ 13.71 | |||||||
Stock repurchase program percentage of shares repurchased | 75.20% | |||||||
Shares authorized to be repurchased | 2,737,334 | |||||||
Stock repurchase program, percentage of shares authorized to be repurchased | 5.00% | |||||||
Cash dividends declared per common share | $ 0.05 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.17 | $ 0.12 | $ 0.06 | |
Second Step Offering Liquidation[Member] | ||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||
Liquidation amount | $ 150,200,000 | $ 65,300,000 | ||||||
Minority Stock Offering [Member] | ||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||
Liquidation amount | $ 14,300,000 |
Stockholders' Equity - The Comp
Stockholders' Equity - The Company's and the Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) | $ 669,536 | $ 633,420 |
Meridian Interstate Bancorp, Inc/Parent Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) | $ 669,536 | $ 633,420 |
Total Capital (to Risk Weighted Assets), Ratio | 13.60% | 15.00% |
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 393,875 | $ 338,878 |
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 492,343 | $ 423,597 |
Total capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets) | $ 624,039 | $ 591,804 |
Tier 1 Capital (to Risk Weighted Assets), Ratio | 12.70% | 14.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 295,406 | $ 254,158 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 393,875 | $ 338,878 |
Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 624,039 | $ 591,804 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | 12.70% | 14.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 221,554 | $ 190,619 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 320,023 | $ 275,338 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) | $ 624,039 | $ 591,804 |
Tier 1 Capital (to Average Assets), Ratio | 12.10% | 13.80% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement | $ 206,293 | $ 171,854 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 capital (to Average Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 257,867 | $ 214,817 |
Tier 1 capital (to Average Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk Weighted Assets) | $ 555,737 | $ 493,944 |
Total Capital (to Risk Weighted Assets), Ratio | 11.30% | 11.70% |
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 392,729 | $ 337,058 |
Total Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 490,911 | $ 421,323 |
Total capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets) | $ 510,240 | $ 452,328 |
Tier 1 Capital (to Risk Weighted Assets), Ratio | 10.40% | 10.70% |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 294,546 | $ 252,794 |
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 392,729 | $ 337,058 |
Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 510,240 | $ 452,328 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Ratio | 10.40% | 10.70% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement | $ 220,910 | $ 189,595 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 319,092 | $ 273,860 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) | $ 510,240 | $ 452,328 |
Tier 1 Capital (to Average Assets), Ratio | 10.10% | 10.70% |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement | $ 202,224 | $ 168,518 |
Tier 1 Capital (to Average Assets), Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 capital (to Average Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 252,780 | $ 210,648 |
Tier 1 capital (to Average Assets), Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Stockholder's Equity - Reconcil
Stockholder's Equity - Reconciliation of the Company's and Banks Stockholders Equity to Total Regulatory Capital (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total stockholders' equity per financial statements | $ 646,399 | $ 607,297 | $ 588,126 | $ 577,710 |
Adjustments to Tier 1 and Common Equity Tier 1 capital: | ||||
Accumulated other comprehensive income | (128) | (1,806) | ||
Goodwill disallowed | (19,638) | (13,687) | ||
Core deposit intangible, net of deferred tax liability disallowed | (2,594) | |||
Total Tier 1 and Common Equity Tier 1 capital | 624,039 | 591,804 | ||
Adjustments to total capital: | ||||
Allowance for loan losses | 45,185 | 40,149 | $ 33,405 | $ 28,469 |
45% of net unrealized gains on marketable equity securities | 312 | 1,467 | ||
Total regulatory capital | 669,536 | 633,420 | ||
Bank [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total stockholders' equity per financial statements | 532,600 | 467,821 | ||
Adjustments to Tier 1 and Common Equity Tier 1 capital: | ||||
Accumulated other comprehensive income | (128) | (1,806) | ||
Goodwill disallowed | (19,638) | (13,687) | ||
Core deposit intangible, net of deferred tax liability disallowed | (2,594) | |||
Total Tier 1 and Common Equity Tier 1 capital | 510,240 | 452,328 | ||
Adjustments to total capital: | ||||
Allowance for loan losses | 45,185 | 40,149 | ||
45% of net unrealized gains on marketable equity securities | 312 | 1,467 | ||
Total regulatory capital | $ 555,737 | $ 493,944 |
Fair Values of Assets and Lia80
Fair Values of Assets and Liabilities - Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 20,589 | $ 21,631 |
Marketable equity securities | 17,775 | 46,032 |
Total assets | 39,648 | 68,562 |
Total liabilities | 1,284 | 899 |
Loan Level Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,284 | 899 |
Total liabilities | 1,284 | 899 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 17,775 | 46,032 |
Total assets | 17,775 | 46,032 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 20,589 | 21,631 |
Total assets | 20,589 | 21,631 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,284 | 899 |
Total liabilities | 1,284 | 899 |
Fair Value, Inputs, Level 3 [Member] | Loan Level Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,284 | 899 |
Total liabilities | $ 1,284 | $ 899 |
Fair Values of Assets and Lia81
Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans measured at fair value | $ 1.9 | $ 4.9 |
Fair Values of Assets and Lia82
Fair Values of Assets and Liabilities - Summary of Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Cash and due from banks, fair value | $ 402,687 | $ 236,423 |
Cash and due from banks, carrying amount | 402,687 | 236,423 |
Certificates of deposit, fair value | 69,615 | 80,710 |
Certificates of deposit, carrying amount | 69,326 | 80,323 |
Securities available for sale, carrying amount | 38,364 | 67,663 |
Federal Home Loan Bank stock, carrying amount | 24,947 | 18,175 |
Federal Home Loan Bank stock, fair value | 24,947 | 18,175 |
Loans and loans held for sale, net, carrying amount | 4,626,570 | 3,902,612 |
Loans and loans held for sale, net, fair value | 4,590,543 | 3,970,896 |
Accrued interest receivable, carrying amount | 12,902 | 10,381 |
Accrued interest receivable, fair value | 12,902 | 10,381 |
Financial liabilities: | ||
Deposits, fair value | 3,995,215 | 3,485,618 |
Deposits, carrying amount | 4,107,861 | 3,475,837 |
Borrowings, fair value | 508,411 | 322,928 |
Borrowings, carrying amount | 513,444 | 322,523 |
Accrued interest payable, fair value | 2,025 | 1,384 |
Accrued interest payable, carrying amount | 2,025 | 1,384 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Securities available for sale, carrying amount | 38,364 | 67,663 |
Interest Rate Swaps Asset [Member] | ||
Financial liabilities: | ||
Derivative Financial Assets, fair value | 1,284 | 899 |
Derivative Financial Assets, carrying amount | 1,284 | 899 |
Interest Rate Swaps Liability [Member] | ||
Financial liabilities: | ||
Derivative Financial Liability, fair value | 1,284 | 899 |
Derivative Financial Liability, carrying amount | 1,284 | 899 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and due from banks, fair value | 402,687 | 236,423 |
Securities available for sale, carrying amount | 17,775 | 46,032 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Certificates of deposit, fair value | 69,615 | 80,710 |
Securities available for sale, carrying amount | 20,589 | 21,631 |
Financial liabilities: | ||
Borrowings, fair value | 508,411 | 322,928 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Federal Home Loan Bank stock, fair value | 24,947 | 18,175 |
Loans and loans held for sale, net, fair value | 4,590,543 | 3,970,896 |
Accrued interest receivable, fair value | 12,902 | 10,381 |
Financial liabilities: | ||
Deposits, fair value | 3,995,215 | 3,485,618 |
Accrued interest payable, fair value | 2,025 | 1,384 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swaps Asset [Member] | ||
Financial liabilities: | ||
Derivative Financial Assets, fair value | 1,284 | 899 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swaps Liability [Member] | ||
Financial liabilities: | ||
Derivative Financial Liability, fair value | $ 1,284 | $ 899 |
Condensed Financial Statement83
Condensed Financial Statements of Parent Company - Balance Sheets Pertaining Only to Meridian Bancorp (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents from bank subsidiary | $ 402,687 | $ 236,423 | $ 96,363 | $ 205,732 |
Certificates of deposit | 69,326 | 80,323 | ||
Securities available for sale, at fair value | 38,364 | 67,663 | ||
Other assets | 5,231 | 3,105 | ||
Total assets | 5,299,455 | 4,436,002 | ||
Liabilities and Stockholders' Equity | ||||
Accrued expenses and other liabilities | 31,751 | 30,356 | ||
Stockholders' equity | 646,399 | 607,297 | 588,126 | 577,710 |
Total liabilities and stockholders' equity | 5,299,455 | 4,436,002 | ||
Meridian Interstate Bancorp, Inc/Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents from bank subsidiary | 23,072 | 34,613 | $ 13,513 | $ 21,255 |
Certificates of deposit | 67,843 | 80,323 | ||
Securities available for sale, at fair value | 10 | 5,003 | ||
ESOP loan receivable | 20,287 | 20,954 | ||
Other assets | 3,316 | 2,735 | ||
Total assets | 647,128 | 611,449 | ||
Liabilities and Stockholders' Equity | ||||
Accrued expenses and other liabilities | 729 | 4,152 | ||
Stockholders' equity | 646,399 | 607,297 | ||
Total liabilities and stockholders' equity | 647,128 | 611,449 | ||
Subsidiaries [Member] | Meridian Interstate Bancorp, Inc/Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents from bank subsidiary | 23,072 | 34,613 | ||
Investment in bank subsidiary | $ 532,600 | $ 467,821 |
Condensed Financial Statement84
Condensed Financial Statements of Parent Company - Statements of Income Pertaining Only to Meridian Bancorp (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income: | |||||||||||
Interest on ESOP loan | $ 179,425 | $ 145,541 | $ 118,586 | ||||||||
Interest on certificates of deposit | 814 | 495 | 624 | ||||||||
Other interest and dividend income | 3,465 | 1,147 | 724 | ||||||||
Gain on sale of securities, net | 9,305 | 3,020 | 2,432 | ||||||||
Total interest and dividend income | $ 50,873 | $ 47,970 | $ 44,509 | $ 41,752 | $ 41,249 | $ 38,420 | $ 35,839 | $ 34,184 | 185,104 | 149,692 | 123,342 |
Expenses: | |||||||||||
Merger and acquisition | 2,055 | ||||||||||
Other general and administrative | 4,994 | 4,503 | 4,537 | ||||||||
Applicable income tax provision (benefit) | 15,863 | 6,702 | 6,237 | 4,685 | 6,642 | 5,084 | 2,857 | 3,298 | 33,487 | 17,881 | 11,966 |
Net income | $ 9,021 | $ 13,333 | $ 11,347 | $ 9,244 | $ 11,309 | $ 9,497 | $ 5,907 | $ 7,477 | 42,945 | 34,190 | 24,607 |
Meridian Interstate Bancorp, Inc/Parent Company [Member] | |||||||||||
Income: | |||||||||||
Interest on ESOP loan | 681 | 702 | 722 | ||||||||
Interest on certificates of deposit | 814 | 495 | 624 | ||||||||
Interest and dividend income on securities | 46 | 184 | 151 | ||||||||
Other interest and dividend income | 4 | 82 | |||||||||
Gain on sale of securities, net | 1 | 182 | |||||||||
Total interest and dividend income | 1,542 | 1,567 | 1,579 | ||||||||
Expenses: | |||||||||||
Merger and acquisition | 484 | ||||||||||
Other general and administrative | 1,144 | 1,174 | 993 | ||||||||
Total operating expenses | 1,628 | 1,174 | 993 | ||||||||
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | (86) | 393 | 586 | ||||||||
Applicable income tax provision (benefit) | (35) | 160 | 240 | ||||||||
Income after income tax provision, Total | (51) | 233 | 346 | ||||||||
Equity in undistributed earnings of subsidiary | 42,996 | 33,957 | 24,261 | ||||||||
Net income | $ 42,945 | $ 34,190 | $ 24,607 |
Condensed Financial Statement85
Condensed Financial Statements of Parent Company - Statements of Cash Flows Pertaining Only to Meridian Bancorp (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 9,021 | $ 13,333 | $ 11,347 | $ 9,244 | $ 11,309 | $ 9,497 | $ 5,907 | $ 7,477 | $ 42,945 | $ 34,190 | $ 24,607 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||||||||||
Net accretion of securities available for sale | 8 | (47) | (64) | ||||||||
Gain on sales of securities, net | (9,305) | (3,020) | (2,432) | ||||||||
Share-based compensation expense | 3,804 | 3,335 | 1,088 | ||||||||
Decrease (increase) in other assets | 471 | 179 | 3,172 | ||||||||
Net cash provided (used) by operating activities | 50,426 | 44,011 | 27,777 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of certificates of deposit | (22,650) | (80,423) | (26,562) | ||||||||
Maturities of certificates of deposit | 35,130 | 99,162 | 12,500 | ||||||||
Activity in securities available for sale: | |||||||||||
Redemption (purchase) of mutual funds, net | (8) | 1,191 | 19,867 | ||||||||
Proceeds from sales | 40,864 | 38,429 | 27,120 | ||||||||
Proceeds from maturities | 16,759 | 56,353 | 44,470 | ||||||||
Purchases | (8,395) | (12,035) | (35,507) | ||||||||
Net cash provided (used) by investing activities | (597,944) | (767,947) | (361,337) | ||||||||
Cash flows from financing activities: | |||||||||||
Cash dividends paid on common stock | (7,656) | (6,148) | (1,462) | ||||||||
Repurchase of common stock | (18,799) | (9,428) | |||||||||
Stock options exercised | 501 | 205 | 232 | ||||||||
Net cash (used) provided by financing activities | 713,782 | 863,996 | 224,191 | ||||||||
Net change in cash and cash equivalents | 166,264 | 140,060 | (109,369) | ||||||||
Cash and cash equivalents at beginning of year | 236,423 | 96,363 | 236,423 | 96,363 | 205,732 | ||||||
Cash and cash equivalents at end of year | 402,687 | 236,423 | 402,687 | 236,423 | 96,363 | ||||||
Meridian Interstate Bancorp, Inc/Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 42,945 | 34,190 | 24,607 | ||||||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (42,996) | (33,957) | (24,261) | ||||||||
Net accretion of securities available for sale | 4 | (3) | |||||||||
Gain on sales of securities, net | (1) | (182) | |||||||||
Share-based compensation expense | 379 | 319 | 97 | ||||||||
Decrease (increase) in other assets | (582) | 232 | 828 | ||||||||
Increase in other liabilities | (4,460) | 550 | 211 | ||||||||
Net cash provided (used) by operating activities | (4,711) | 1,152 | 1,479 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of certificates of deposit | (22,650) | (80,423) | (26,562) | ||||||||
Maturities of certificates of deposit | 35,130 | 99,162 | 12,500 | ||||||||
Activity in securities available for sale: | |||||||||||
Redemption (purchase) of mutual funds, net | (8) | 123 | 19,882 | ||||||||
Proceeds from sales | 782 | ||||||||||
Proceeds from maturities | 5,000 | 25,000 | |||||||||
Purchases | (600) | (5,009) | |||||||||
Cash paid as purchase price of acquisition | (17,805) | ||||||||||
Principal payments on ESOP loan receivable | 667 | 646 | 626 | ||||||||
Net cash provided (used) by investing activities | 334 | 44,690 | 1,437 | ||||||||
Cash flows from financing activities: | |||||||||||
Cash dividends paid on common stock | (7,665) | (6,148) | (1,462) | ||||||||
Repurchase of common stock | (18,799) | (9,428) | |||||||||
Stock options exercised | 501 | 205 | 232 | ||||||||
Net cash (used) provided by financing activities | (7,164) | (24,742) | (10,658) | ||||||||
Net change in cash and cash equivalents | (11,541) | 21,100 | (7,742) | ||||||||
Cash and cash equivalents at beginning of year | $ 34,613 | $ 13,513 | 34,613 | 13,513 | 21,255 | ||||||
Cash and cash equivalents at end of year | $ 23,072 | $ 34,613 | $ 23,072 | $ 34,613 | $ 13,513 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Office$ / shares | Dec. 29, 2017USD ($) | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 19,638 | $ 13,687 | |
Meetinghouse Bancorp, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Dec. 29, 2017 | ||
Number of offices operated | Office | 2 | ||
Business acquisition, share price | $ / shares | $ 26 | ||
Merger and acquisition expense | $ 2,100 | ||
Goodwill | $ 5,951 | ||
Core deposit intangible | $ 3,243 |
Acquisition - Summary of Estima
Acquisition - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 19,638 | $ 13,687 | |
Meetinghouse Bancorp, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash and due from banks | $ 15,800 | ||
Securities available for sale, at fair value | 15,775 | ||
Loans and loans held for sale, net | 75,708 | ||
Premises and equipment, net | 1,314 | ||
Goodwill | 5,951 | ||
Core deposit intangible | 3,243 | ||
Other assets | 2,625 | ||
Total assets acquired | 120,416 | ||
Deposits | 93,845 | ||
Long-term debt | 8,193 | ||
Accrued expenses and other liabilities | 573 | ||
Total liabilities assumed | 102,611 | ||
Purchase price | $ 17,805 |
Selected Quarterly Consolidat88
Selected Quarterly Consolidated Financial Information (Unaudited) - Selected Quarterly Financial Data Consolidated Financial Statements (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 50,873 | $ 47,970 | $ 44,509 | $ 41,752 | $ 41,249 | $ 38,420 | $ 35,839 | $ 34,184 | $ 185,104 | $ 149,692 | $ 123,342 |
Interest expense | 11,544 | 9,916 | 9,053 | 8,399 | 7,830 | 7,118 | 6,384 | 5,805 | 38,912 | 27,137 | 20,451 |
Net interest income | 39,329 | 38,054 | 35,456 | 33,353 | 33,419 | 31,302 | 29,455 | 28,379 | 146,192 | 122,555 | 102,891 |
Provision for loan losses | (715) | 2,458 | 1,497 | 1,619 | 1,304 | 858 | 3,952 | 1,066 | 4,859 | 7,180 | 6,667 |
Net interest income, after provision for loan losses | 40,044 | 35,596 | 33,959 | 31,734 | 32,115 | 30,444 | 25,503 | 27,313 | 141,333 | 115,375 | 96,224 |
Non-interest income | 8,709 | 5,253 | 5,030 | 4,072 | 5,614 | 3,301 | 2,583 | 2,692 | 23,064 | 14,190 | 13,040 |
Non-interest expenses | 23,869 | 20,814 | 21,405 | 21,877 | 19,778 | 19,164 | 19,322 | 19,230 | 87,965 | 77,494 | 72,691 |
Income before income taxes | 24,884 | 20,035 | 17,584 | 13,929 | 17,951 | 14,581 | 8,764 | 10,775 | |||
Provision for income taxes | 15,863 | 6,702 | 6,237 | 4,685 | 6,642 | 5,084 | 2,857 | 3,298 | 33,487 | 17,881 | 11,966 |
Net income | $ 9,021 | $ 13,333 | $ 11,347 | $ 9,244 | $ 11,309 | $ 9,497 | $ 5,907 | $ 7,477 | $ 42,945 | $ 34,190 | $ 24,607 |
Earnings per share: | |||||||||||
Basic | $ 0.18 | $ 0.26 | $ 0.22 | $ 0.18 | $ 0.22 | $ 0.19 | $ 0.12 | $ 0.14 | $ 0.84 | $ 0.67 | $ 0.47 |
Diluted | $ 0.17 | $ 0.25 | $ 0.22 | $ 0.18 | $ 0.22 | $ 0.18 | $ 0.11 | $ 0.14 | $ 0.82 | $ 0.65 | $ 0.46 |
Weighted average shares: | |||||||||||
Basic | 51,425,793 | 51,229,203 | 51,003,967 | 50,949,634 | 50,940,037 | 50,982,633 | 51,026,985 | 51,569,683 | 51,153,665 | 51,128,914 | 51,965,036 |
Diluted | 53,026,141 | 52,672,962 | 52,422,486 | 52,526,737 | 52,102,511 | 52,093,009 | 52,137,475 | 52,663,921 | 52,663,597 | 52,248,308 | 53,071,932 |