Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CATC | |
Entity Registrant Name | CAMBRIDGE BANCORP | |
Entity Central Index Key | 0000711772 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 7,006,525 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 04-2777442 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | MA | |
Entity Address, Address Line One | 1336 Massachusetts Avenue | |
Entity Address, State or Province | MA | |
Entity Address, City or Town | Cambridge | |
Entity Address, Postal Zip Code | 02138 | |
City Area Code | 617 | |
Local Phone Number | 876-5500 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-38184 |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 25,023 | $ 180,153 |
Investment securities | ||
Available for sale, at fair value (amortized cost $194,014 and $201,270, respectively) | 173,952 | 197,803 |
Held to maturity, at amortized cost (fair value $990,221 and $971,092, respectively) | 1,105,858 | 977,061 |
Total investment securities | 1,279,810 | 1,174,864 |
Loans held for sale, at lower of cost or fair value | 1,490 | |
Loans | ||
Total loans | 3,523,492 | 3,319,106 |
Less: allowance for credit losses on loans | (34,124) | (34,496) |
Net loans | 3,489,368 | 3,284,610 |
Federal Home Loan Bank of Boston Stock, at cost | 10,518 | 4,816 |
Bank owned life insurance | 33,621 | 46,970 |
Banking premises and equipment, net | 16,682 | 17,326 |
Right-of-use asset operating leases | 28,235 | 31,273 |
Deferred income taxes, net | 12,202 | 9,985 |
Accrued interest receivable | 10,061 | 9,162 |
Goodwill | 51,912 | 51,912 |
Merger-related intangibles, net | 2,436 | 2,617 |
Other assets | 98,067 | 76,366 |
Total assets | 5,057,935 | 4,891,544 |
Deposits | ||
Demand | 1,399,141 | 1,393,935 |
Interest-bearing checking | 710,150 | 763,188 |
Money market | 1,130,848 | 1,104,238 |
Savings | 898,178 | 907,722 |
Certificates of deposit | 125,740 | 162,069 |
Total deposits | 4,264,057 | 4,331,152 |
Borrowings | 252,867 | 16,510 |
Operating lease liabilities | 30,659 | 33,871 |
Other liabilities | 68,301 | 72,174 |
Total liabilities | 4,615,884 | 4,453,707 |
Shareholders’ Equity | ||
Common stock, par value $1.00; Authorized: 10,000,000 shares; Outstanding: 7,007,063 shares and 6,968,192 shares, respectively | 7,007 | 6,968 |
Additional paid-in capital | 229,918 | 229,205 |
Retained earnings | 220,907 | 202,874 |
Accumulated other comprehensive income (loss) | (15,781) | (1,210) |
Total shareholders’ equity | 442,051 | 437,837 |
Total liabilities and shareholders’ equity | 5,057,935 | 4,891,544 |
Residential Mortgage | ||
Loans | ||
Total loans | 1,482,551 | 1,415,079 |
Commercial Mortgage | ||
Loans | ||
Total loans | 1,636,867 | 1,511,002 |
Home Equity | ||
Loans | ||
Total loans | 91,835 | 87,960 |
Commercial and Industrial | ||
Loans | ||
Total loans | 268,170 | 269,446 |
Consumer | ||
Loans | ||
Total loans | $ 44,069 | $ 35,619 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Available for sale securities, amortized cost | $ 194,014 | $ 201,270 |
Held-to-maturity securities, fair value | $ 990,221 | $ 971,092 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding | 7,007,063 | 6,968,192 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income | ||||
Interest on taxable loans | $ 30,235 | $ 30,557 | $ 58,639 | $ 60,882 |
Interest on tax-exempt loans | 354 | 275 | 704 | 497 |
Interest on taxable investment securities | 4,989 | 2,023 | 9,400 | 3,608 |
Interest on tax-exempt investment securities | 627 | 633 | 1,281 | 1,291 |
Dividends on FHLB of Boston stock | 32 | 12 | 57 | 12 |
Interest on overnight investments | 42 | 28 | 96 | 59 |
Total interest and dividend income | 36,279 | 33,528 | 70,177 | 66,349 |
Interest expense | ||||
Interest on deposits | 1,844 | 1,006 | 3,740 | 2,281 |
Interest on borrowed funds | 254 | 141 | 387 | 281 |
Total interest expense | 2,098 | 1,147 | 4,127 | 2,562 |
Net interest and dividend income | 34,181 | 32,381 | 66,050 | 63,787 |
Release of credit losses | (901) | (412) | (1,107) | |
Net interest and dividend income after release of credit losses | 34,181 | 33,282 | 66,462 | 64,894 |
Noninterest income | ||||
Bank owned life insurance income | 1,343 | 209 | 1,530 | 405 |
Gain on loans sold, net | 4 | 165 | 98 | 734 |
Loan related derivative income | 45 | 567 | 341 | 1,238 |
Other income | 476 | 453 | 1,794 | 908 |
Total noninterest income | 11,149 | 10,906 | 22,503 | 21,755 |
Noninterest expense | ||||
Salaries and employee benefits | 17,048 | 16,462 | 34,439 | 32,508 |
Occupancy and equipment | 3,613 | 3,503 | 7,155 | 7,079 |
Data processing | 2,601 | 2,179 | 5,246 | 4,213 |
Professional services | 1,070 | 1,297 | 2,134 | 2,569 |
Marketing | 218 | 953 | 442 | 1,416 |
FDIC insurance | 472 | 261 | 927 | 597 |
Non-operating expenses | 246 | 246 | ||
Other expenses | 1,029 | 618 | 1,583 | 1,110 |
Total noninterest expense | 26,297 | 25,273 | 52,172 | 49,492 |
Income before income taxes | 19,033 | 18,915 | 36,793 | 37,157 |
Income tax expense | 5,375 | 4,971 | 9,819 | 9,714 |
Net income | $ 13,658 | $ 13,944 | $ 26,974 | $ 27,443 |
Share data: | ||||
Weighted average shares outstanding, basic | 6,981,907 | 6,930,268 | 6,959,856 | 6,918,779 |
Weighted average shares outstanding, diluted | 7,026,807 | 6,998,936 | 7,013,538 | 6,993,437 |
Basic earnings per share | $ 1.95 | $ 2 | $ 3.86 | $ 3.95 |
Diluted earnings per share | $ 1.94 | $ 1.98 | $ 3.83 | $ 3.91 |
Wealth Management Revenue | ||||
Noninterest income | ||||
Noninterest income | $ 8,122 | $ 8,623 | $ 16,696 | $ 16,774 |
Deposit Account Fees | ||||
Noninterest income | ||||
Noninterest income | 732 | 484 | 1,238 | 958 |
ATM/Debit Card Income | ||||
Noninterest income | ||||
Noninterest income | $ 427 | $ 405 | $ 806 | $ 738 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,658 | $ 13,944 | $ 26,974 | $ 27,443 |
Available for sale securities | ||||
Unrealized holding gains (losses) | (4,137) | 1,035 | (12,364) | (1,852) |
Interest rate swaps designated as cash flow hedges | ||||
Unrealized holding gains (losses) | (257) | 3 | (1,483) | (319) |
Less: reclassification adjustment for losses realized in net income | (283) | (466) | (724) | (920) |
Total unrealized losses on interest rate swaps | (540) | (463) | (2,207) | (1,239) |
Defined benefit retirement plans | ||||
Change in retirement liabilities | 7 | 15 | ||
Other comprehensive income (loss) income | (4,677) | 579 | (14,571) | (3,076) |
Comprehensive income | $ 8,981 | $ 14,523 | $ 12,403 | $ 24,367 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2020 | $ 401,732 | $ 6,927 | $ 226,967 | $ 165,404 | $ 2,434 |
Net income | 27,443 | 27,443 | |||
Other comprehensive loss | (3,076) | (3,076) | |||
Share based compensation and other share-based activity | 1,459 | 39 | 1,420 | ||
Dividends declared | (8,057) | (8,057) | |||
Ending balance at Jun. 30, 2021 | 419,501 | 6,966 | 228,387 | 184,790 | (642) |
Beginning balance at Mar. 31, 2021 | 407,673 | 6,960 | 226,841 | 175,093 | (1,221) |
Net income | 13,944 | 13,944 | |||
Other comprehensive loss | 579 | 579 | |||
Share based compensation and other share-based activity | 1,552 | 6 | 1,546 | ||
Dividends declared | (4,247) | (4,247) | |||
Ending balance at Jun. 30, 2021 | 419,501 | 6,966 | 228,387 | 184,790 | (642) |
Beginning balance at Dec. 31, 2021 | 437,837 | 6,968 | 229,205 | 202,874 | (1,210) |
Net income | 26,974 | 26,974 | |||
Other comprehensive loss | (14,571) | (14,571) | |||
Share based compensation and other share-based activity | 752 | 39 | 713 | ||
Dividends declared | (8,941) | (8,941) | |||
Ending balance at Jun. 30, 2022 | 442,051 | 7,007 | 229,918 | 220,907 | (15,781) |
Beginning balance at Mar. 31, 2022 | 436,165 | 7,001 | 228,538 | 211,730 | (11,104) |
Net income | 13,658 | 13,658 | |||
Other comprehensive loss | (4,677) | (4,677) | |||
Share based compensation and other share-based activity | 1,386 | 6 | 1,380 | ||
Dividends declared | (4,481) | (4,481) | |||
Ending balance at Jun. 30, 2022 | $ 442,051 | $ 7,007 | $ 229,918 | $ 220,907 | $ (15,781) |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retained Earnings | ||||
Dividends declared, per share | $ 0.64 | $ 0.61 | $ 1.28 | $ 1.16 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 26,974 | $ 27,443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Release of credit losses | (412) | (1,107) |
Amortization (accretion) of deferred charges and fees, net | 1,170 | (860) |
(Accretion), depreciation, and amortization, net | 268 | (1,846) |
Bank owned life insurance income | (1,530) | (405) |
Share-based compensation and other share-based activity | 752 | 1,459 |
Change in accrued interest receivable | (899) | 531 |
Deferred income tax expense | 2,872 | 2,278 |
Change in loans held for sale | 1,490 | 5,998 |
Change in other assets, net | (26,817) | 6,319 |
Change in other liabilities, net | (2,008) | (8,634) |
Net cash provided by operating activities | 1,860 | 31,176 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Origination of loans | (624,799) | (771,775) |
Proceeds from principal payments of loans | 445,460 | 649,435 |
Purchase of loans | (23,655) | |
Proceeds from calls/maturities of securities available for sale | 17,201 | 21,852 |
Purchase of securities available for sale | (10,170) | |
Proceeds from calls/maturities of securities held to maturity | 75,089 | 27,606 |
Purchase of securities held to maturity | (205,063) | (273,345) |
Death benefit on bank-owned life insurance | 4,068 | |
Redemption on bank-owned life insurance | 10,811 | |
(Purchase) Redemption of FHLB of Boston stock | (5,702) | 918 |
Purchase of banking premises and equipment | (647) | (725) |
Net cash used in investing activities | (317,407) | (346,034) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in demand, interest bearing, money market and savings accounts | (30,766) | 402,449 |
Change in certificates of deposit | (36,268) | (40,837) |
Change in borrowings | 236,392 | (15,693) |
Cash dividends paid on common stock | (8,941) | (8,057) |
Net cash provided by financing activities | 160,417 | 337,862 |
Net change in cash and cash equivalents | (155,130) | 23,004 |
Cash and cash equivalents at beginning of period | 180,153 | 75,785 |
Cash and cash equivalents at end of period | 25,023 | 98,789 |
Cash paid during the period for: | ||
Interest | 4,136 | 2,680 |
Income taxes | $ 15,337 | $ 4,890 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The unaudited consolidated financial statements include the accounts of Cambridge Bancorp (the “Company”) and its wholly owned subsidiary, Cambridge Trust Company (the “Bank”), and the Bank’s wholly owned subsidiaries, Cambridge Trust Company of New Hampshire Inc., CTC Security Corporation, and CTC Security Corporation III. References to the Company herein relate to the consolidated group of companies. All significant intercompany accounts and transactions have been eliminated in preparation of the consolidated financial statements. The Company is a state-chartered, federally registered bank holding company headquartered in Cambridge, Massachusetts and was incorporated in 1983. The Company is the sole shareholder of the Bank, a Massachusetts trust company chartered in 1890, which is a commercial bank. The Company operates as a private bank offering a full range of private banking and wealth management services to its clients. The private banking business, the Company’s only reportable operating segment, is managed as a single strategic unit. The unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) and disclosures necessary to present fairly the Company’s financial position, as of June 30, 2022 and December 31, 2021, and the results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Interim results are not necessarily reflective of the results of the entire year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 , filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2022. |
Use of Estimates
Use of Estimates | 3 Months Ended |
Mar. 31, 2022 | |
Use Of Estimates [Abstract] | |
Use of Estimates | 2. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for credit losses is particularly subject to change. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 3. Subsequent Events Management has reviewed events occurring through August 4, 2022, the date the unaudited consolidated financial statements were available to be issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these unaudited consolidated financial statements. |
Recently Issued Accounting Guid
Recently Issued Accounting Guidance | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Guidance | 4. Recently Issued Accounting Guidance Accounting Pronouncements Yet to be Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. For public business entities, the amendments in this ASU require an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this guidance will have on the disclosures within its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The amendments in this ASU allow multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. The amendments in this ASU also clarify the accounting for and promote consistency in the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers. These amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently assessing the impact that the adoption of this guidance will have on its consolidated financial statements. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. Cash and cash equivalents At June 30, 2022 and December 31, 2021, cash and cash equivalents totaled $ 25.0 million and $ 180.2 million , respectively. There were no amounts required to be maintained at the Federal Reserve Bank of Boston at June 30, 2022 and December 31, 2021. At June 30, 2022 and December 31, 2021 , the Company pledged $ 500,000 to the New Hampshire Banking Department relating to Cambridge Trust Company of New Hampshire, Inc.’s operations in that state. The Company did no t have any cash pledged as collateral to derivative counterparties at June 30, 2022 , as compared to the $ 13.3 million pledged at December 31, 2021. See Note 16- Derivative and Hedging Activities for a discussion of the Company’s derivative and hedging activities . |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 6. Investment Securities Investment securities have been classified in the unaudited consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: June 30, 2022 December 31, 2021 Amortized Gross Gross Fair Amortized Gross Gross Fair (dollars in thousands) Available for sale securities U.S. Government Sponsored $ 22,997 $ — $ ( 1,922 ) $ 21,075 $ 22,996 $ 246 $ ( 231 ) $ 23,011 Mortgage-backed securities 169,273 14 ( 18,157 ) 151,130 176,531 959 ( 4,462 ) 173,028 Corporate debt securities 1,744 9 ( 6 ) 1,747 1,743 24 ( 3 ) 1,764 Total available for sale securities $ 194,014 $ 23 $ ( 20,085 ) $ 173,952 $ 201,270 $ 1,229 $ ( 4,696 ) $ 197,803 Held to maturity securities Mortgage-backed securities $ 1,004,629 $ 21 $ ( 107,309 ) $ 897,341 $ 864,983 $ 3,981 $ ( 13,258 ) $ 855,706 Corporate debt securities 2,749 1 ( 5 ) 2,745 6,997 26 — 7,023 Municipal securities 98,480 307 ( 8,652 ) 90,135 105,081 3,798 ( 516 ) 108,363 Total held to maturity securities $ 1,105,858 $ 329 $ ( 115,966 ) $ 990,221 $ 977,061 $ 7,805 $ ( 13,774 ) $ 971,092 Total $ 1,299,872 $ 352 $ ( 136,051 ) $ 1,164,173 $ 1,178,331 $ 9,034 $ ( 18,470 ) $ 1,168,895 All of the Company’s mortgage-backed securities have been issued by, or are collateralized by securities issued by, either the Government National Mortgage Association (“Ginnie Mae” or “GNMA”), the Federal National Mortgage Association (“Fannie Mae” or “FNMA”), or the Federal Home Loan Mortgage Corporation (“Freddie Mac” or “FHLMC”). The following tables show the Company’s securities with gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2022 or at December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position: June 30, 2022 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Available for sale securities U.S. Government Sponsored Enterprise $ 11,830 $ ( 1,170 ) $ 9,245 $ ( 752 ) $ 21,075 $ ( 1,922 ) Mortgage-backed securities 77,487 ( 4,768 ) 73,190 ( 13,389 ) 150,677 ( 18,157 ) Corporate debt securities — — 749 ( 6 ) 749 ( 6 ) Total available for sale securities $ 89,317 $ ( 5,938 ) $ 83,184 $ ( 14,147 ) $ 172,501 $ ( 20,085 ) Held to maturity securities Mortgage-backed securities $ 806,188 $ ( 91,491 ) $ 88,138 $ ( 15,818 ) $ 894,326 $ ( 107,309 ) Corporate debt securities 245 ( 5 ) — — 245 ( 5 ) Municipal securities 45,807 ( 6,608 ) 6,078 ( 2,044 ) 51,885 ( 8,652 ) Total held to maturity securities $ 852,240 $ ( 98,104 ) $ 94,216 $ ( 17,862 ) $ 946,456 $ ( 115,966 ) Total $ 941,557 $ ( 104,042 ) $ 177,400 $ ( 32,009 ) $ 1,118,957 $ ( 136,051 ) December 31, 2021 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Available for sale securities U.S. Government Sponsored Enterprise $ 4,881 $ ( 115 ) $ 4,884 $ ( 116 ) $ 9,765 $ ( 231 ) Mortgage-backed securities 74,724 ( 2,253 ) 47,871 ( 2,209 ) 122,595 ( 4,462 ) Corporate debt securities 760 ( 3 ) — — 760 ( 3 ) Total available for sale securities $ 80,365 $ ( 2,371 ) $ 52,755 $ ( 2,325 ) $ 133,120 $ ( 4,696 ) Held to maturity securities Mortgage-backed securities $ 740,966 $ ( 12,509 ) $ 15,345 $ ( 749 ) $ 756,311 $ ( 13,258 ) Municipal securities 12,607 ( 194 ) 5,716 ( 322 ) 18,323 ( 516 ) Total held to maturity securities $ 753,573 $ ( 12,703 ) $ 21,061 $ ( 1,071 ) $ 774,634 $ ( 13,774 ) Total $ 833,938 $ ( 15,074 ) $ 73,816 $ ( 3,396 ) $ 907,754 $ ( 18,470 ) As of June 30, 2022 , 390 debt securities had gross unrealized losses, with an aggregate depreciation of 10.8 % from the Company’s amortized cost basis. The largest unrealized dollar loss of any single security was $ 1.6 million, or 16.6 % of its amortized cost. The largest unrealized loss percentage of any single security was 31.7 % of its amortized cost, or $ 745,000 . The Company believes that the nature and duration of unrealized losses on its debt security positions are primarily a function of interest rate movements and changes in investment spreads and does not consider full repayment of principal on the reported debt obligations to be at risk. Since nearly all of these securities are rated “investment grade” and (a) the Company does not intend to sell these securities before recovery and (b) it is more likely than not that the Company will not be required to sell these securities before recovery, the Company does not expect to suffer a credit loss as of June 30, 2022. The amortized cost and fair value of debt securities, aggregated by the earlier of call date or contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But After Five, But After Ten Years Total Amortized Fair Amortized Fair Amortized Fair Amortized Fair Amortized Fair At June 30, 2022 (dollars in thousands) Available for sale securities U.S. Government $ — $ — $ 9,997 $ 9,245 $ 5,000 $ 4,678 $ 8,000 $ 7,152 $ 22,997 $ 21,075 Mortgage-backed — — 8,833 8,506 45,909 40,953 114,531 101,671 169,273 151,130 Corporate debt securities 1,744 1,747 — — — — — — 1,744 1,747 Total available for $ 1,744 $ 1,747 $ 18,830 $ 17,751 $ 50,909 $ 45,631 $ 122,531 $ 108,823 $ 194,014 $ 173,952 Held to maturity securities Mortgage-backed $ — $ — $ 14,582 $ 14,245 $ 55,917 $ 52,819 $ 934,130 $ 830,277 $ 1,004,629 $ 897,341 Corporate debt securities 2,499 2,500 250 245 — — — — 2,749 2,745 Municipal securities 4,143 4,166 17,656 17,787 32,309 32,025 44,372 36,157 98,480 90,135 Total held to maturity $ 6,642 $ 6,666 $ 32,488 $ 32,277 $ 88,226 $ 84,844 $ 978,502 $ 866,434 $ 1,105,858 $ 990,221 Total $ 8,386 $ 8,413 $ 51,318 $ 50,028 $ 139,135 $ 130,475 $ 1,101,033 $ 975,257 $ 1,299,872 $ 1,164,173 There were no sales of investment securities during the three and six months ended June 30, 2022 and June 30, 2021. The Company monitors the credit quality of certain debt securities through the use of credit ratings among other factors on a quarterly basis. The following tables summarize the credit rating of the Company’s debt securities portfolio at June 30, 2022 and December 31, 2021. June 30, 2022 Mortgage-backed Securities (1) Corporate Debt Securities Municipal Securities U.S. GSE Obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A $ 151,130 $ 750 $ — $ 21,075 $ 172,955 BBB/BB/B — 997 — — 997 Total available for sale securities $ 151,130 $ 1,747 $ — $ 21,075 $ 173,952 Held to maturity securities, at amortized cost AAA/AA/A $ 1,004,629 $ 2,749 $ 98,480 $ — $ 1,105,858 Total held to maturity securities $ 1,004,629 $ 2,749 $ 98,480 $ — $ 1,105,858 December 31, 2021 Mortgage-backed Securities (1) Corporate Debt Securities Municipal Securities U.S. GSE Obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A $ 173,028 $ 759 $ — $ 23,011 $ 196,798 BBB/BB/B — 1,005 — — 1,005 Total available for sale securities $ 173,028 $ 1,764 $ — $ 23,011 $ 197,803 Held to maturity securities, at amortized cost AAA/AA/A $ 864,983 $ 6,997 $ 105,081 $ — $ 977,061 Total held to maturity securities $ 864,983 $ 6,997 $ 105,081 $ — $ 977,061 Includes agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by U.S. Government Sponsored Enterprises ("GSEs") and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or Standard & Poor's. Each security contains a guarantee by the issuing U.S. GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A . |
Loans and the Allowance for Cre
Loans and the Allowance for Credit Losses | 3 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans and the Allowance for Credit Losses | 7. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES Loans outstanding are detailed by category as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 781,649 $ 716,456 Mortgages - adjustable rate 668,528 679,675 Construction 25,413 13,012 Deferred costs, net of unearned fees 6,961 5,936 Total residential mortgages 1,482,551 1,415,079 Commercial mortgage Mortgages - non-owner occupied 1,403,363 1,272,135 Mortgages - owner occupied 148,480 150,632 Construction 82,739 86,246 Deferred costs, net of unearned fees 2,285 1,989 Total commercial mortgages 1,636,867 1,511,002 Home equity Home equity - lines of credit 89,790 85,639 Home equity - term loans 1,706 2,017 Deferred costs, net of unearned fees 339 304 Total home equity 91,835 87,960 Commercial and industrial Commercial and industrial 265,295 247,024 PPP loans 2,652 22,856 Unearned fees, net of deferred costs 223 ( 434 ) Total commercial and industrial 268,170 269,446 Consumer Secured 43,181 34,308 Unsecured 874 1,303 Deferred costs, net of unearned fees 14 8 Total consumer 44,069 35,619 Total loans $ 3,523,492 $ 3,319,106 The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020 and provided emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. Among other things, the CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”). As a qualified SBA lender, the Company was authorized to originate PPP loans. PPP loans have: (a) an interest rate of 1.0%, (b) a two year or five-year loan term to maturity; and (c) principal and interest payments deferred until the SBA remits the forgiven amount to the Company or 10 months from the end of the covered period, as defined. The SBA guarantees 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expense, with the remaining 40% of the loan proceeds used for other qualifying expenses. The Company did not record an allowance for credit losses for PPP loans at June 30, 2022 or December 31, 2021. Directors and officers of the Company and their associates are customers of, and have other transactions with, the Company in the normal course of business. All loans and commitments included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collection or present other unfavorable features. Asset Quality The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. The Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. As a general rule, loans more than 90 days past due with respect to principal or interest are classified as nonaccrual loans. The Company may use discretion regarding other loans over 90 days past due if the loan is well secured and/or in process of collection. The following tables set forth information regarding non-performing loans disaggregated by loan category: June 30, 2022 Residential Commercial Home Commercial and Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 4,067 $ 450 $ 520 $ 101 $ 5,138 Troubled debt restructurings 646 — — 95 741 Total $ 4,713 $ 450 $ 520 $ 196 $ 5,879 December 31, 2021 Residential Commercial Home Commercial and Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 3,777 $ 517 $ 223 $ 111 $ 4,628 Troubled debt restructurings 652 — — 106 758 Total $ 4,429 $ 517 $ 223 $ 217 $ 5,386 Pursuant to Section 4013 of the CARES Act, financial institutions could suspend the requirements under U.S. GAAP related to TDRs for modifications made before December 31, 2020 to loans that were current as of December 31, 2019. As a result of the enactment of the Consolidated Appropriations Act, 2021, in January 2021, the suspension of TDR accounting was extended to, and expired on January 1, 2022. The requirement that a loan be not more than 30 days past due as of December 31, 2019 was still applicable. In response to the COVID-19 pandemic and its economic impact to customers, a short-term modification program that complied with the CARES Act was implemented to provide temporary payment relief to those borrowers directly impacted by COVID-19. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date. Under issued guidance, provided that these loans were current as of either year end or the date of the modification, these loans were not considered TDR loans at June 30, 2022 and will not be reported as past due during the deferral period. The Company had no loans in deferral as of June 30, 2022. Loans by Credit Quality Indicator. The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator: Credit Quality Indicator - by Origination Year as of June 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Total (dollars in thousands) Residential Mortgage: Current $ 202,979 $ 528,323 $ 291,931 $ 118,731 $ 81,085 $ 254,789 $ — $ 1,477,838 Non-performing — — 147 — 713 3,853 — 4,713 Total $ 202,979 $ 528,323 $ 292,078 $ 118,731 $ 81,798 $ 258,642 $ — $ 1,482,551 Home equity: Current $ — $ — $ 392 $ 1,864 $ 4,355 $ 9,826 $ 74,878 $ 91,315 Non-performing — — — 520 — — — 520 Total $ — $ — $ 392 $ 2,384 $ 4,355 $ 9,826 $ 74,878 $ 91,835 Consumer: Current $ 15,945 $ 10,181 $ 6,640 $ 1,365 $ 2,600 $ 6,738 $ 600 $ 44,069 Non-performing — — — — — — — — Total $ 15,945 $ 10,181 $ 6,640 $ 1,365 $ 2,600 $ 6,738 $ 600 $ 44,069 Credit Quality Indicator - by Origination Year as of June 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Total (dollars in thousands) Commercial Mortgage: Credit risk profile by internally 1-6 (Pass) $ 235,399 $ 314,981 $ 235,504 $ 284,164 $ 145,208 $ 350,393 $ — $ 1,565,649 7 (Special Mention) — — 1,081 40,582 22,220 6,847 — 70,730 8 (Substandard) — — — — — 488 — 488 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 235,399 $ 314,981 $ 236,585 $ 324,746 $ 167,428 $ 357,728 $ — $ 1,636,867 Commercial and Industrial: Credit risk profile by internally 1-6 (Pass) $ 19,941 $ 74,530 $ 75,736 $ 36,897 $ 32,042 $ 22,137 $ 435 $ 261,718 7 (Special Mention) — 264 266 2,145 407 176 10 3,268 8 (Substandard) — — 696 2,259 95 134 — 3,184 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 19,941 $ 74,794 $ 76,698 $ 41,301 $ 32,544 $ 22,447 $ 445 $ 268,170 Credit Quality Indicator - by Origination Year as of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Total (dollars in thousands) Residential Mortgage: Current $ 535,071 $ 329,501 $ 135,139 $ 101,108 $ 77,702 $ 232,129 $ — $ 1,410,650 Non-performing — 151 — 330 54 3,894 — 4,429 Total $ 535,071 $ 329,652 $ 135,139 $ 101,438 $ 77,756 $ 236,023 $ — $ 1,415,079 Home equity: Current $ — $ 719 $ 3,088 $ 4,469 $ 5,060 $ 5,475 $ 68,926 $ 87,737 Non-performing — — 223 — — — — 223 Total $ — $ 719 $ 3,311 $ 4,469 $ 5,060 $ 5,475 $ 68,926 $ 87,960 Consumer: Current $ 14,427 $ 8,758 $ 1,544 $ 3,168 $ 1,838 $ 5,357 $ 527 $ 35,619 Non-performing — — — — — — — — Total $ 14,427 $ 8,758 $ 1,544 $ 3,168 $ 1,838 $ 5,357 $ 527 $ 35,619 Credit Quality Indicator - by Origination Year as of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Total (dollars in thousands) Commercial Mortgage: Credit risk profile by internally 1-6 (Pass) $ 319,633 $ 248,691 $ 320,189 $ 158,462 $ 93,016 $ 298,791 $ — $ 1,438,782 7 (Special Mention) — 1,096 40,879 22,471 2,913 4,131 — 71,490 8 (Substandard) — — — — — 730 — 730 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 319,633 $ 249,787 $ 361,068 $ 180,933 $ 95,929 $ 303,652 $ — $ 1,511,002 Commercial and Industrial: Credit risk profile by internally 1-6 (Pass) $ 83,614 $ 77,073 $ 38,299 $ 34,360 $ 19,727 $ 4,622 $ 353 $ 258,048 7 (Special Mention) 318 350 5,523 406 161 859 10 7,627 8 (Substandard) — 792 2,331 504 — 144 — 3,771 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 83,932 $ 78,215 $ 46,153 $ 35,270 $ 19,888 $ 5,625 $ 363 $ 269,446 With respect to residential mortgages, home equity, and consumer loans, the Company utilizes the following categories as indicators of credit quality: • Performing – These loans are accruing and are considered having low to moderate risk. • Non-performing – These loans are on nonaccrual, are more than 90 days past due but are still accruing, or are restructured. These loans may contain greater than average risk. With respect to commercial real estate mortgages and commercial and industrial loans, the Company utilizes a 10-grade internal loan rating system as an indicator of credit quality. The grades are as follows: • Loans rated 1-6 (Pass) – These loans are considered “pass” rated with low to moderate risk. • Loans rated 7 (Special Mention) – These loans have potential weaknesses warranting close attention, which, if left uncorrected, may result in deterioration of the credit at some future date. • Loans rated 8 (Substandard) – These loans have well-defined weaknesses that jeopardize the orderly liquidation of the debt under the original loan terms. Loss potential exists but is not identifiable in any one customer. • Loans rated 9 (Doubtful) – These loans have pronounced weaknesses that make full collection highly questionable and improbable. • Loans rated 10 (Loss) – These loans are considered uncollectible and continuance as a bankable asset is not warranted. Delinquencies The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Loan delinquencies can be attributed to many factors, such as but not limited to, a continuing weakness in, or deteriorating, economic conditions in the region in which the collateral is located, the loss of a tenant or lower lease rates for commercial borrowers, or the loss of income for consumers and the resulting liquidity impacts on the borrowers. The following tables contain period-end balances of loans receivable disaggregated by past due status: June 30, 2022 30-59 Days 60-89 Days 90 Days or greater Total Past Due Current Loans Total Amortized Cost 90+ Days Past Due and Accruing (dollars in thousands) Residential mortgage $ 5,335 $ 991 $ 1,316 $ 7,642 $ 1,474,909 $ 1,482,551 $ — Commercial mortgage — 278 — 278 1,636,589 1,636,867 — Home equity 228 298 — 526 91,309 91,835 — Commercial and industrial 6 32 — 38 268,132 268,170 — Consumer — — — — 44,069 44,069 — Total $ 5,569 $ 1,599 $ 1,316 $ 8,484 $ 3,515,008 $ 3,523,492 $ — December 31, 2021 30-59 Days 60-89 Days 90 Days Total Current Total Amortized Cost 90+ Days Past Due and Accruing (dollars in thousands) Residential mortgage $ 8,470 $ 415 $ 1,488 $ 10,373 $ 1,404,706 $ 1,415,079 $ — Commercial mortgage 476 — — 476 1,510,526 1,511,002 — Home equity 314 643 — 957 87,003 87,960 — Commercial and industrial 5 437 — 442 269,004 269,446 — Consumer — — — — 35,619 35,619 — Total $ 9,265 $ 1,495 $ 1,488 $ 12,248 $ 3,306,858 $ 3,319,106 $ — There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at June 30, 2022 and December 31, 2021. Allowance for Credit Losses The following tables present changes in the allowance for credit losses disaggregated by loan category: Three Months Ended June 30, 2022 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at March 31, 2022 $ 13,193 $ 17,138 $ 377 $ 2,897 $ 505 $ — $ 34,110 Charge-offs — — ( 3 ) ( 3 ) — ( 6 ) Recoveries — — — 10 10 — 20 Provision for (release of) credit ( 554 ) 629 23 ( 52 ) ( 46 ) — — Allowance for credit losses - $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ — $ 34,124 Allowance for credit losses - Balance at March 31, 2022 $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Release of credit — — — — — — — Allowance for credit losses- $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Total allowance for credit loss $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ 1,371 $ 35,495 Six Months Ended June 30, 2022 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at December 31, 2021 $ 13,383 $ 17,133 $ 406 $ 2,989 $ 585 $ — $ 34,496 Charge-offs — — — ( 3 ) ( 28 ) — ( 31 ) Recoveries — — — 46 12 — 58 Provision for (release of) credit ( 744 ) 634 ( 6 ) ( 180 ) ( 103 ) — ( 399 ) Allowance for credit losses - loan portfolio $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ — $ 34,124 Allowance for credit losses - Balance at December 31, 2021 $ — $ — $ — $ — $ — $ 1,384 $ 1,384 Release of credit losses - unfunded commitments — — — — — ( 13 ) ( 13 ) Allowance for credit losses- unfunded commitments $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Total allowance for credit loss $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ 1,371 $ 35,495 Three Months Ended June 30, 2021 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at March 31, 2021 $ 13,144 $ 18,693 $ 363 $ 2,978 $ 468 $ — $ 35,646 Charge-offs — — — — — — — Recoveries — 30 — 15 1 — 46 Provision for (release of) credit 412 ( 1,422 ) 110 216 21 — ( 663 ) Allowance for credit losses - loan portfolio $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ — $ 35,029 Allowance for credit losses - Balance at March 31, 2021 $ — $ — $ — $ — $ — $ 1,188 $ 1,188 Release of credit — — — — — ( 238 ) ( 238 ) Allowance for credit losses- — — — — — 950 950 Total allowance for credit loss $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ 950 $ 35,979 Six Months Ended June 30, 2021 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan portfolio: Balance at December 31, 2020 $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ — $ 36,016 Charge-offs — — — — ( 3 ) — ( 3 ) Recoveries — 30 — 34 5 — 69 Provision for (release of) credit 489 ( 1,293 ) ( 79 ) ( 134 ) ( 36 ) — ( 1,053 ) Allowance for credit losses - loan portfolio $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ — $ 35,029 Allowance for credit losses - unfunded commitments: Balance at December 31, 2020 $ — $ — $ — $ — $ — $ 1,004 $ 1,004 Release of credit — — — — — ( 54 ) ( 54 ) Allowance for credit losses-unfunded commitments — — — — — 950 950 Total allowance for credit loss $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ 950 $ 35,979 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s effective tax rate was 28.2 % for the three months ended June 30, 2022 and 26.7 % for the six months ended June 30, 2022 , as compared to 26.3 % and 26.1 % for the three and six months ended June 30, 2021, respectively. The increase in the effective rate was primarily due to tax expense associated with the surrender of a Bank Owned Life Insurance policy during the quarter ended June 30, 2022. Net deferred tax assets totaled $ 12.2 million and $ 10.0 million at June 30, 2022 and December 31, 2021 , respectively. The Company did no t record a valuation allowance for deferred tax assets at June 30, 2022 or December 31, 2021. The components of income tax expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands) Current income tax expense Federal $ 3,868 $ 3,056 $ 4,963 $ 5,147 State $ 1,595 1,367 1,984 2,289 Total current income tax expense 5,463 4,423 6,947 7,436 Deferred income tax expense (benefit) Federal $ ( 61 ) $ 370 $ 1,964 $ 1,552 State $ ( 27 ) 178 908 726 Total deferred income tax expense (benefit) ( 88 ) 548 2,872 2,278 Total income tax expense $ 5,375 $ 4,971 $ 9,819 $ 9,714 |
Pension and Retirement Plans
Pension and Retirement Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Retirement Plans | 9 . Pension and Retirement Plans The components of net periodic benefit cost (credit) were as follows: Three Months Ended June 30, Pension Plan Supplemental Retirement Healthcare Plan 2022 2021 2022 2021 2022 2021 (dollars in thousands) Net periodic benefit cost (credit) Service cost $ — $ — $ 98 $ 106 $ 6 $ 8 Interest cost 345 303 71 56 5 5 Expected return on assets ( 1,002 ) ( 891 ) — — — — Amortization of net actuarial loss — — — 11 — — Net periodic benefit cost (credit) $ ( 657 ) $ ( 588 ) $ 169 $ 173 $ 11 $ 13 Six Months Ended June 30, Pension Plan Supplemental Retirement Healthcare Plan 2022 2021 2022 2021 2022 2021 (dollars in thousands) Net periodic benefit cost (credit) Service cost $ — $ — $ 199 $ 212 $ 14 $ 17 Interest cost 655 606 130 113 10 9 Expected return on assets ( 1,938 ) ( 1,783 ) — — — — Amortization of prior service credit — ( 1 ) — — — — Amortization of net actuarial loss — — — 22 — — Net periodic benefit cost (credit) $ ( 1,283 ) $ ( 1,178 ) $ 329 $ 347 $ 24 $ 26 The Company froze the accrual of benefits on the qualified defined benefit pension plan in 2017. The Company did no t make any contributions to the qualified defined benefit pension plan during the three and six months ended June 30, 2022 , no r does it expect to make any contributions to the qualified defined benefit plan during the remainder of 2022. Employee Profit-Sharing and 401(k) Plan The Company maintains a Profit-Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. The Company matches employee contributions up to 100 % of the first 4 % of each participant’s salary, eligible bonus, and eligible incentive. Employees are eligible to participate in the PSP on the first day of their initial date of service. Each year, the Company may also make a discretionary contribution to the PSP and employees are eligible to participate in the discretionary contribution portion of the PSP on the first day of their initial date of service. Additionally, employees must be employed on the last day of the calendar year or retire at the normal retirement age of 65 during the calendar year to receive the discretionary contribution. Employee Stock Ownership Plan The Company has an Employee Stock Ownership Plan (“ESOP”) for its eligible employees. Employees are eligible to participate upon the attainment of age 21 and the completion of 12 months of service consisting of at least 1,000 hours . Purchases of the Company’s common stock by the ESOP will be funded by employer contributions or reinvestment of cash dividends. Total expenses related to the PSP and ESOP for the three months ended June 30, 2022 and June 30, 2021 amounted to $ 1.1 million and $ 1.2 million , respectively. Total expenses related to the PSP and ESOP for the six months ended June 30, 2022 and June 30, 2021 amounted to $ 2.5 million and $ 2.3 million, respectively. Defined Contribution Supplemental Executive Retirement Plan For executives participating in the Defined Contribution Supplemental Executive Retirement Plan (“DC SERP”), the Company will make a discretionary contribution of up to 10 % of each executive’s base salary and bonus to his or her account under the Company’s DC SERP. Total expenses related to the DC SERP for the three months ended June 30, 2022, and June 30, 2021, amounted to $ 68,000 and $ 50,000 , respectively. Total expenses related to the DC SERP for the six months ended June 30, 2022, and June 30, 2021, amounted to $ 135,000 and $ 100,000 , respectively. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | 10. STOCK BASED COMPENSATION Time Vested Restricted Stock Awards (“RSAs”) and Time Vested Restricted Stock Units (“RSUs”) During the three and six months ended June 30, 2022 , the Company issued the following RSAs and RSUs pursuant to the Cambridge Bancorp 2017 Equity and Cash Incentive Plan (the “2017 Plan”). RSAs time-vest either over a three-year or five-year period. RSUs vest over a three-year -period. T he fair value of RSAs and RSUs are based upon the closing price of the Company's common stock on the date of the applicable grant. The holders of RSAs participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of RSUs do not participate in the rewards of stock ownership of the Company until vested. Three Months Ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 1,169 $ 78.53 RSAs Six Months ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 12,934 $ 87.31 RSAs 8,796 $ 88.18 RSUs Performance-Based Restricted Stock Units (“PRSUs”) There were no PRSUs granted during the three months ended June 30, 2022. During the six months ended June 30, 2022 , the Company granted 30,895 PRSUs from the 2017 Plan, as shown in the table below. PRSUs are subject to a three-year performance period and are earned based on two factors: (i) operating return on assets and (ii) operating diluted earnings per share growth as compared to the Company’s established peer indices as defined in the Company’s 2022 Proxy Statement filed with the SEC on March 16, 2022. Six Months ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 30,895 $ 88.18 PRSUs The following table presents the pre-tax expense associated with all outstanding non-vested RSAs, RSUs, and PRSUs, and the related tax benefits recognized: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands) Share based compensation expense $ 943 $ 1,138 $ 1,591 $ 2,513 Related tax benefits $ 263 $ 318 $ 444 $ 702 Share-based activity in the statement of changes in shareholders’ equity includes RSA, RSU, and PRSU expense, as well as expense related to the Company’s share-based compensation for directors and shares repurchased by the Company for shares tendered by employees to cover income tax liability as grants vest. The 2017 Plan allows Directors of the Company to receive their annual retainer fee in the form of stock in the Company. The total shares issued under the 2017 Plan for the three months ended June 30, 2022 and June 30, 2021 were 6,617 and 5,941 , respectively. The total shares issued under the 2017 Plan for the six months ended June 30, 2022 and June 30, 2021 were 6,776 and 5,941 , respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 11. Financial Instruments with Off-Balance-Sheet Risk To meet the financing needs of its customers, the Company is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments are primarily comprised of commitments to extend credit, commitments to sell residential mortgage loans, and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments assuming that the amounts are fully advanced, and that collateral or other security is of no value. The Company generally uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Off-balance-sheet financial instruments with contractual amounts that present credit risk include the following: June 30, 2022 December 31, 2021 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 849,282 $ 809,383 Origination of new loans 81,567 70,633 Standby letters of credit 20,230 18,880 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 250 3,920 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | 12. LEASES Lease Commitments . The Company is obligated under various lease agreements covering its main office, branch offices, and other locations. These agreements are accounted for as operating leases and their terms expire between 2023 and 2032 and, in some instances, contain options to renew for periods up to 30 years. The components of operating lease cost and other related information are as follows: Three Months Ended June 30, 2022 2021 (dollars in thousands) Operating lease cost $ 1,743 $ 1,731 Variable lease cost (cost excluded from lease payments) 1 3 Sublease income ( 17 ) ( 17 ) Total operating lease cost $ 1,727 $ 1,717 Other Information Cash paid for amounts included in the measurement of lease liabilities - $ 1,805 $ 1,780 Operating Lease - operating cash flows (liability reduction) 1,586 1,527 Weighted average lease term - operating leases 5.80 Years 6.56 Years Weighted average discount rate - operating leases 2.97 % 2.93 % Six Months Ended June 30, 2022 2021 (dollars in thousands) Operating lease cost $ 3,486 $ 3,499 Variable lease cost (cost excluded from lease payments) 2 6 Sublease income ( 33 ) ( 33 ) Total operating lease cost $ 3,455 $ 3,472 Other Information Cash paid for amounts included in the measurement of lease liabilities - $ 3,638 $ 3,634 Operating Lease - operating cash flows (liability reduction) 3,191 3,125 Weighted average lease term - operating leases 5.80 Years 6.56 Years Weighted average discount rate - operating leases 2.97 % 2.93 % The total minimum lease payments due in future periods for lease agreements in effect at June 30, 2022 were as follows: Future Minimum June 30, 2022 Lease Payments (dollars in thousands) Remainder of 2022 $ 7,059 2023 6,654 2024 5,386 2025 4,750 2026 2,703 Thereafter 6,896 Total minimum lease payments $ 33,448 Less: interest ( 2,789 ) Total lease liability $ 30,659 Several of the Company’s lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in real estate taxes, gross income adjustments, percentage increases in the consumer price index, and certain ancillary maintenance costs. Total rental expense was $ 1.9 million and $ 1.8 million for the three months ended June 30, 2022 and June 30, 2021 , respectively. Total rental expense was $ 3.7 million for both the six months ended June 30, 2022 and June 30, 2021 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 13. Shareholders’ Equity As of June 30, 2022 and December 31, 2021, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the Federal Reserve Bank (“FRB”) and the Federal Deposit Insurance Corporation (“FDIC”). Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At June 30, 2022 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 438,979 13.4 % $ 344,617 10.5 % N/A N/A Tier 1 capital (to risk-weighted assets) 403,484 12.3 % 278,976 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 403,484 12.3 % 229,745 7.0 % N/A N/A Tier 1 capital (to average assets) 403,484 8.1 % 199,142 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 422,899 12.9 % $ 344,585 10.5 % $ 328,176 10.0 % Tier 1 capital (to risk-weighted assets) 387,404 11.8 % 278,950 8.5 % 262,541 8.0 % Common equity tier I capital (to risk-weighted assets) 387,404 11.8 % 229,723 7.0 % 213,314 6.5 % Tier 1 capital (to average assets) 387,404 7.8 % 199,131 4.0 % 248,913 5.0 % Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2021 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 420,398 13.6 % $ 325,617 10.5 % N/A N/A Tier 1 capital (to risk-weighted assets) 384,518 12.4 % 263,595 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 384,518 12.4 % 217,078 7.0 % N/A N/A Tier 1 capital (to average assets) 384,518 8.3 % 185,015 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 409,806 13.2 % $ 325,587 10.5 % $ 310,082 10.0 % Tier 1 capital (to risk-weighted assets) 373,926 12.1 % 263,570 8.5 % 248,066 8.0 % Common equity tier I capital (to risk-weighted assets) 373,926 12.1 % 217,058 7.0 % 201,554 6.5 % Tier 1 capital (to average assets) 373,926 8.1 % 185,003 4.0 % 231,254 5.0 % |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 14. Other Comprehensive INcome (LOSS) The following tables present the changes in accumulated other comprehensive income (loss) ("AOCI") ("AOCL") during the periods, by component, net of tax: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Before Tax Tax (Expense) Net-of-tax Before Tax Tax (Expense) Net-of-tax (dollars in thousands) Available for sale securities Unrealized holding (losses) gains $ ( 5,579 ) $ 1,442 $ ( 4,137 ) $ 1,421 $ ( 386 ) $ 1,035 Interest rate swaps designated as cash flow Unrealized holding (losses) gains ( 358 ) 101 ( 257 ) 4 ( 1 ) 3 Reclassification adjustment for (losses) income recognized in net income ( 391 ) 108 ( 283 ) ( 646 ) 180 ( 466 ) Defined benefit retirement plans Net change in retirement liability — — — 10 ( 3 ) 7 Total other comprehensive (loss) income $ ( 6,328 ) $ 1,651 $ ( 4,677 ) $ 789 $ ( 210 ) $ 579 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Before Tax Tax (Expense) Net-of-tax Before Tax Tax (Expense) or Benefit Net-of-tax (dollars in thousands) Available for sale securities Unrealized holding losses $ ( 16,595 ) $ 4,231 $ ( 12,364 ) $ ( 2,502 ) $ 650 $ ( 1,852 ) Interest rate swaps designated as cash flow Unrealized holding losses ( 2,058 ) 575 ( 1,483 ) ( 443 ) 124 ( 319 ) Reclassification adjustment for losses recognized in net income ( 1,005 ) 281 ( 724 ) ( 1,276 ) 356 ( 920 ) Defined benefit retirement plans Net change in retirement liability — — — 21 ( 6 ) 15 Total other comprehensive loss $ ( 19,658 ) $ 5,087 $ ( 14,571 ) $ ( 4,200 ) $ 1,124 $ ( 3,076 ) Reclassifications out of AOCI and AOCL that have an impact on net income are presented below. Three Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components June 30, 2022 June 30, 2021 Affected Line Item in the (dollars in thousands) Unrealized gains on derivatives $ 391 $ 646 Interest on taxable loans Tax expense ( 108 ) ( 180 ) Income tax expense Net of tax $ 283 $ 466 Net income Six Months Ended Details about Accumulated Other Comprehensive Loss Components June 30, 2022 June 30, 2021 Affected Line Item in the (dollars in thousands) Unrealized gains on derivatives $ 1,005 $ 1,276 Interest on taxable loans Tax expense ( 281 ) ( 356 ) Income tax expense Net of tax $ 724 $ 920 Net income |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings per Share The following represents a reconciliation between basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 13,658 $ 13,944 $ 26,974 $ 27,443 Less dividends and undistributed earnings allocated ( 43 ) ( 67 ) ( 122 ) ( 126 ) Net income applicable to common shareholders $ 13,615 $ 13,877 $ 26,852 $ 27,317 Denominator: Weighted average common shares outstanding 6,982 6,930 6,960 6,919 Earnings per common share - basic $ 1.95 $ 2.00 $ 3.86 $ 3.95 Earnings per common share - diluted: Numerator: Net income $ 13,658 $ 13,944 $ 26,974 $ 27,443 Less dividends and undistributed earnings allocated ( 43 ) ( 67 ) ( 122 ) ( 126 ) Net income applicable to common shareholders $ 13,615 $ 13,877 $ 26,852 $ 27,317 Denominator: Weighted average common shares outstanding 6,982 6,930 6,960 6,919 Dilutive effect of common stock equivalents 45 69 54 74 Weighted average diluted common shares outstanding 7,027 6,999 7,014 6,993 Earnings per common share - diluted $ 1.94 $ 1.98 $ 3.83 $ 3.91 |
Derivative And Hedging Activiti
Derivative And Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative And Hedging Activities | 16. Derivative AND HEDGING ACTIVITIES The Company utilizes interest rate swaps and floors to mitigate exposure to interest rate risk and to facilitate the needs of its customers. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company uses interest rate floors to manage its exposure to interest rate movements. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCL and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in interest income. Amounts reported in AOCL related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. During the next twelve months, the Company estimates that $ 167,000 will be reclassified out of AOCL into earning s, as a decrease to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. For the Company’s customers, these are interest rate swaps and risk participation agreements. Interest Rate Swaps. The Company enters into interest rate swap contracts to help commercial loan borrowers manage their interest rate risk. The interest rate swap contracts with commercial loan borrowers allow them to convert floating-rate loan payments to fixed rate loan payments. When the Company enters into an interest rate swap contract with a commercial loan borrower, it simultaneously enters into a “mirror” swap contract with a third party. The third party exchanges the borrower’s fixed-rate loan payments for floating-rate loan payments. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. Because these derivatives have mirror-image contractual terms, the changes in fair value substantially offset each other through earnings. Fees earned in connection with the execution of derivatives related to this program are recognized in earnings through loan-related derivative income. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Company enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy and maintains collateral pledging agreements with its counterparties. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of the potential loss exposure. Risk Participation Agreements. The Company enters into risk participation agreements (“RPAs”) with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and, therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower for a fee received from the other bank. The following tables present the notional amount, the location, and fair values of derivative instruments in the Company’s consolidated balance sheets: June 30, 2022 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Fair Value Notional Amount Balance Sheet Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 244 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 244 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate contracts $ 518,964 Other Assets $ 33,276 $ 518,964 Other Liabilities $ 33,276 Risk participation agreements-out to counterparties 47,365 Other Assets 37 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 108,650 Other Liabilities 113 Total derivatives not designated as hedging instruments $ 33,313 $ 33,389 December 31, 2021 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Fair Value Notional Amount Balance Sheet Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 3,513 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 3,513 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 522,581 Other Assets $ 23,431 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 522,581 Other Liabilities 23,431 Risk participation agreements-out to counterparties 47,988 Other Assets 107 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 109,510 Other Liabilities 293 Total derivatives not designated as hedging instruments $ 23,538 $ 23,724 The following tables present the changes to AOCI and AOCL as a result of cash flow hedge accounting as of the periods presented: Three Months Ended June 30, 2022 Amount of Gain Amount of Gain Amount of Gain Location of Gain Amount of Gain Amount of Gain or (Loss) Reclassified from AOCL into Income Included Component Amount of Gain or (Loss) Reclassified from AOCL into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 358 ) $ ( 101 ) $ ( 257 ) Interest Income $ 391 $ 439 $ ( 48 ) Six Months Ended June 30, 2022 Amount of Gain or (Loss) Recognized in OCI Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from AOCL into Income Amount of Gain or (Loss) Reclassified from AOCL into Income Included Component Amount of Gain or (Loss) Reclassified from AOCL into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 2,058 ) $ ( 2,012 ) $ ( 46 ) Interest Income $ 1,005 $ 1,101 $ ( 96 ) Three Months Ended June 30, 2021 Amount of Gain Amount of Gain Amount of Gain Location of Gain Amount of Gain Amount of Gain Amount of Gain (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 642 ) $ ( 627 ) $ ( 15 ) Interest Income $ 646 $ 695 $ ( 49 ) Six Months Ended June 30, 2021 Amount of Gain or (Loss) Recognized in OCI Amount of Gain or (Loss) Recognized in OCI - Included Component Amount of Gain or (Loss) Recognized in OCI - Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 1,719 ) $ ( 173 ) $ ( 1,546 ) Interest Income $ 1,276 $ 1,373 $ ( 97 ) The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivatives Three Months Ended June 30, 2022 June 30, 2021 Location of Gain or (Loss) (dollars in thousands) Other contracts Loan-related derivative income $ ( 33 ) $ ( 53 ) Amount of Gain or (Loss) Recognized in Income on Derivatives Six Months Ended June 30, 2022 June 30, 2021 Location of Gain or (Loss) (dollars in thousands) Other contracts Loan-related derivative income $ ( 110 ) $ 153 Credit-risk-related Contingent Features By entering into derivative transactions, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s board of directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. In addition, the Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative position(s) and the Company would be required to settle its obligations under the agreements. Balance Sheet Offsetting Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes. The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheets at June 30, 2022 and December 31, 2021: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount June 30, 2022 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 33,557 $ — $ 33,557 $ 965 $ ( 30,917 ) $ 1,675 Offsetting of Derivative Liabilities Derivative Liabilities $ 33,389 $ — $ 33,389 $ 965 $ — $ 32,424 Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2021 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 27,051 $ — $ 27,051 $ 6,365 $ — $ 20,686 Offsetting of Derivative Liabilities Derivative Liabilities $ 23,724 $ — $ 23,724 $ 6,365 $ 14,011 $ 3,348 At June 30, 2022 there were no derivatives in a net liability position related to these agreements. At December 31, 2021, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $ 14.0 million. At December 31, 2021, the Company had minimum collateral posting thresholds with certain derivative counterparties and posted cash collateral of $ 13.3 million. If the Company had breached any of these provisions at December 31, 2021, it could have been required to settle its obligations under the agreements at their termination value of $ 14.0 million. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 17. Fair Value Measurements The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated: June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated (dollars in thousands) Financial assets Cash and cash equivalents $ 25,023 $ 25,023 $ 180,153 $ 180,153 Securities available for sale 173,952 173,952 197,803 197,803 Securities held to maturity 1,105,858 990,221 977,061 971,092 Loans, net 3,489,368 3,374,268 3,284,610 3,230,339 Loans held for sale — — 1,490 1,528 FHLB of Boston stock 10,518 10,518 4,816 4,816 Accrued interest receivable 10,061 10,061 9,162 9,162 Mortgage servicing rights 1,020 1,655 1,083 1,518 Interest rate contracts 244 244 3,513 3,513 Loan level interest rate swaps 33,276 33,276 23,431 23,431 Risk participation agreements out to counterparties 37 37 107 107 Financial liabilities Deposits 4,264,057 4,261,934 4,331,152 4,330,991 Borrowings 252,867 252,691 16,510 16,523 Loan level interest rate swaps 33,276 33,276 23,431 23,431 Risk participation agreements in with counterparties 113 113 293 293 The Company follows ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) for financial assets and liabilities. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820, among other things, emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and states that a fair value measurement should be determined based on the assumptions the market participants would use in pricing the asset or liability. In addition, ASC 820 specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical assets or liabilities in active markets. • Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 – Valuations derived from techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Company’s market assumptions. Under ASC 820, fair values are based on 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. When available, the Company uses quoted market prices to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques, such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates. If observable market-based inputs are not available, the Company uses unobservable inputs to determine appropriate valuation adjustments using methodologies applied consistently over time. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time, they are susceptible to material near-term changes. The fair values disclosed do not reflect any premium or discount that could result from offering significant holdings of financial instruments at bulk sale, nor do they reflect the possible tax ramifications or estimated transaction costs. Changes in economic conditions may also dramatically affect the estimated fair values. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale, derivative instruments, and hedges are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as individually evaluated collateral dependent loans. The Company uses an exit price notion for its fair value disclosures. The following tables summarize certain assets and liabilities reported at fair value on a recurring basis: Fair Value as of June 30, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 21,075 $ — $ 21,075 Mortgage-backed securities — 151,130 — 151,130 Corporate debt securities — 1,747 — 1,747 Other assets Interest rate swaps with customers — 33,276 — 33,276 Risk participation agreements-out to counterparties — 37 — 37 Interest rate contracts — 244 — 244 Other liabilities Interest rate swaps with customers — 33,276 — 18,161 Risk participation agreements-in with counterparties — 113 — 113 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 23,011 $ — $ 23,011 Mortgage-backed securities — 173,028 — 173,028 Corporate debt securities — 1,764 — 1,764 Other assets Interest rate swaps with customers — 23,431 — 23,431 Risk participation agreements-out to counterparties — 107 — 107 Interest rate contracts — 3,513 — 3,513 Other liabilities Mirror swaps with counterparties — 23,431 — 23,431 Risk participation agreements-in with counterparties — 293 — 293 The following tables present the carrying value of assets held at June 30, 2022 and December 31, 2021, which were measured at fair value on a non-recurring basis: June 30, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Individually evaluated collateral dependent loans $ — $ — $ 278 $ 278 Total $ — $ — $ 278 $ 278 December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Loans held for sale $ 1,490 $ — $ — $ 1,490 Individually evaluated collateral dependent loans — — 130 130 Total $ 1,490 $ — $ 130 $ 1,620 Individually evaluated collateral dependent loans . Collateral dependent loans are carried at the lower of cost or fair value of the collateral less estimated costs to sell which approximates fair value. The Company uses the appraisal value of the collateral and applies certain adjustments depending on the nature, quality, and type of collateral securing the loan. Loans held for sale . Loans held for sale are carried at the lower of fair value or carrying value (unpaid principal and unamortized loans fees). There were no transfers between levels for the three and six months ended June 30, 2022 or June 30, 2021. The following is a description of the principal valuation methodologies used by the Company to estimate the fair values of its financial instruments: Investment Securities For investment securities, fair values are primarily based upon valuations obtained from a national pricing service which uses matrix pricing with inputs that are observable in the market or can be derived from, or corroborated by, observable market data. When available, quoted prices in active markets for identical securities are utilized. Loans Held for Sale For loans held for sale, fair values are estimated using projected future cash flows, discounted at rates based upon either trades of similar loans or mortgage-backed securities, or at current rates at which similar loans would be made to borrowers with similar credit ratings and for similar remaining maturities. Loans For most categories of loans, fair values are estimated using projected future cash flows, discounted at rates based upon current rates at which similar loans would be made to borrowers with similar credit ratings, and for similar remaining maturities. Projected estimated cash flows are adjusted for prepayment assumptions, liquidity premium assumptions, and credit loss assumptions. Loans that are deemed to be impaired in accordance with ASC 310, Receivables, are valued based upon the lower of cost or fair value of the underlying collateral. Federal Home Loan Bank of Boston (“FHLB of Boston”) Stock The fair value of FHLB of Boston stock equals its carrying value since such stock is only redeemable at its par value. Deposits The fair value of non-maturity deposit accounts is the amount payable on demand at the reporting date. This amount does not take into account the value of the Bank’s long-term relationships with core depositors. The fair value of fixed-maturity certificates of deposit is estimated using a replacement cost of funds approach and is based upon rates currently offered for deposits of similar remaining maturities. Borrowings For long-term borrowings, fair values are estimated using future cash flows, discounted at rates based upon current costs for debt securities with similar terms and remaining maturities. Other Financial Assets and Liabilities Cash and cash equivalents, accrued interest receivable, and short-term borrowings have fair values which approximate their respective carrying values because these instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk. Derivative Instruments and Hedges The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Off-Balance-Sheet Financial Instruments In the course of originating loans and extending credit, the Company will charge fees in exchange for its commitment. While these commitment fees have value, the Company has not estimated their value due to the short-term nature of the underlying commitments and their immateriality. Values Not Determined In accordance with ASC 820, the Company has not estimated fair values for non-financial assets, such as banking premises and equipment, goodwill, the intangible value of the Company’s portfolio of loans serviced for itself, and the intangible value inherent in the Company’s deposit relationships (i.e., core deposits), among others. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for credit losses is particularly subject to change. |
Recently Issued Accounting Guidance | Accounting Pronouncements Yet to be Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. For public business entities, the amendments in this ASU require an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that the adoption of this guidance will have on the disclosures within its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The amendments in this ASU allow multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. The amendments in this ASU also clarify the accounting for and promote consistency in the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers. These amendments are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company is currently assessing the impact that the adoption of this guidance will have on its consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Carrying Amounts of Securities and Their Approximate Fair Values | Investment securities have been classified in the unaudited consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: June 30, 2022 December 31, 2021 Amortized Gross Gross Fair Amortized Gross Gross Fair (dollars in thousands) Available for sale securities U.S. Government Sponsored $ 22,997 $ — $ ( 1,922 ) $ 21,075 $ 22,996 $ 246 $ ( 231 ) $ 23,011 Mortgage-backed securities 169,273 14 ( 18,157 ) 151,130 176,531 959 ( 4,462 ) 173,028 Corporate debt securities 1,744 9 ( 6 ) 1,747 1,743 24 ( 3 ) 1,764 Total available for sale securities $ 194,014 $ 23 $ ( 20,085 ) $ 173,952 $ 201,270 $ 1,229 $ ( 4,696 ) $ 197,803 Held to maturity securities Mortgage-backed securities $ 1,004,629 $ 21 $ ( 107,309 ) $ 897,341 $ 864,983 $ 3,981 $ ( 13,258 ) $ 855,706 Corporate debt securities 2,749 1 ( 5 ) 2,745 6,997 26 — 7,023 Municipal securities 98,480 307 ( 8,652 ) 90,135 105,081 3,798 ( 516 ) 108,363 Total held to maturity securities $ 1,105,858 $ 329 $ ( 115,966 ) $ 990,221 $ 977,061 $ 7,805 $ ( 13,774 ) $ 971,092 Total $ 1,299,872 $ 352 $ ( 136,051 ) $ 1,164,173 $ 1,178,331 $ 9,034 $ ( 18,470 ) $ 1,168,895 |
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position | The following tables show the Company’s securities with gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2022 or at December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position: June 30, 2022 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Available for sale securities U.S. Government Sponsored Enterprise $ 11,830 $ ( 1,170 ) $ 9,245 $ ( 752 ) $ 21,075 $ ( 1,922 ) Mortgage-backed securities 77,487 ( 4,768 ) 73,190 ( 13,389 ) 150,677 ( 18,157 ) Corporate debt securities — — 749 ( 6 ) 749 ( 6 ) Total available for sale securities $ 89,317 $ ( 5,938 ) $ 83,184 $ ( 14,147 ) $ 172,501 $ ( 20,085 ) Held to maturity securities Mortgage-backed securities $ 806,188 $ ( 91,491 ) $ 88,138 $ ( 15,818 ) $ 894,326 $ ( 107,309 ) Corporate debt securities 245 ( 5 ) — — 245 ( 5 ) Municipal securities 45,807 ( 6,608 ) 6,078 ( 2,044 ) 51,885 ( 8,652 ) Total held to maturity securities $ 852,240 $ ( 98,104 ) $ 94,216 $ ( 17,862 ) $ 946,456 $ ( 115,966 ) Total $ 941,557 $ ( 104,042 ) $ 177,400 $ ( 32,009 ) $ 1,118,957 $ ( 136,051 ) December 31, 2021 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Available for sale securities U.S. Government Sponsored Enterprise $ 4,881 $ ( 115 ) $ 4,884 $ ( 116 ) $ 9,765 $ ( 231 ) Mortgage-backed securities 74,724 ( 2,253 ) 47,871 ( 2,209 ) 122,595 ( 4,462 ) Corporate debt securities 760 ( 3 ) — — 760 ( 3 ) Total available for sale securities $ 80,365 $ ( 2,371 ) $ 52,755 $ ( 2,325 ) $ 133,120 $ ( 4,696 ) Held to maturity securities Mortgage-backed securities $ 740,966 $ ( 12,509 ) $ 15,345 $ ( 749 ) $ 756,311 $ ( 13,258 ) Municipal securities 12,607 ( 194 ) 5,716 ( 322 ) 18,323 ( 516 ) Total held to maturity securities $ 753,573 $ ( 12,703 ) $ 21,061 $ ( 1,071 ) $ 774,634 $ ( 13,774 ) Total $ 833,938 $ ( 15,074 ) $ 73,816 $ ( 3,396 ) $ 907,754 $ ( 18,470 ) |
Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity | The amortized cost and fair value of debt securities, aggregated by the earlier of call date or contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But After Five, But After Ten Years Total Amortized Fair Amortized Fair Amortized Fair Amortized Fair Amortized Fair At June 30, 2022 (dollars in thousands) Available for sale securities U.S. Government $ — $ — $ 9,997 $ 9,245 $ 5,000 $ 4,678 $ 8,000 $ 7,152 $ 22,997 $ 21,075 Mortgage-backed — — 8,833 8,506 45,909 40,953 114,531 101,671 169,273 151,130 Corporate debt securities 1,744 1,747 — — — — — — 1,744 1,747 Total available for $ 1,744 $ 1,747 $ 18,830 $ 17,751 $ 50,909 $ 45,631 $ 122,531 $ 108,823 $ 194,014 $ 173,952 Held to maturity securities Mortgage-backed $ — $ — $ 14,582 $ 14,245 $ 55,917 $ 52,819 $ 934,130 $ 830,277 $ 1,004,629 $ 897,341 Corporate debt securities 2,499 2,500 250 245 — — — — 2,749 2,745 Municipal securities 4,143 4,166 17,656 17,787 32,309 32,025 44,372 36,157 98,480 90,135 Total held to maturity $ 6,642 $ 6,666 $ 32,488 $ 32,277 $ 88,226 $ 84,844 $ 978,502 $ 866,434 $ 1,105,858 $ 990,221 Total $ 8,386 $ 8,413 $ 51,318 $ 50,028 $ 139,135 $ 130,475 $ 1,101,033 $ 975,257 $ 1,299,872 $ 1,164,173 |
Summary of Credit Rating of Debt Securities Portfolio | The Company monitors the credit quality of certain debt securities through the use of credit ratings among other factors on a quarterly basis. The following tables summarize the credit rating of the Company’s debt securities portfolio at June 30, 2022 and December 31, 2021. June 30, 2022 Mortgage-backed Securities (1) Corporate Debt Securities Municipal Securities U.S. GSE Obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A $ 151,130 $ 750 $ — $ 21,075 $ 172,955 BBB/BB/B — 997 — — 997 Total available for sale securities $ 151,130 $ 1,747 $ — $ 21,075 $ 173,952 Held to maturity securities, at amortized cost AAA/AA/A $ 1,004,629 $ 2,749 $ 98,480 $ — $ 1,105,858 Total held to maturity securities $ 1,004,629 $ 2,749 $ 98,480 $ — $ 1,105,858 December 31, 2021 Mortgage-backed Securities (1) Corporate Debt Securities Municipal Securities U.S. GSE Obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A $ 173,028 $ 759 $ — $ 23,011 $ 196,798 BBB/BB/B — 1,005 — — 1,005 Total available for sale securities $ 173,028 $ 1,764 $ — $ 23,011 $ 197,803 Held to maturity securities, at amortized cost AAA/AA/A $ 864,983 $ 6,997 $ 105,081 $ — $ 977,061 Total held to maturity securities $ 864,983 $ 6,997 $ 105,081 $ — $ 977,061 Includes agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by U.S. Government Sponsored Enterprises ("GSEs") and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or Standard & Poor's. Each security contains a guarantee by the issuing U.S. GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A . |
Loans and the Allowance for C_2
Loans and the Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans Outstanding by Category | Loans outstanding are detailed by category as follows: June 30, 2022 December 31, 2021 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 781,649 $ 716,456 Mortgages - adjustable rate 668,528 679,675 Construction 25,413 13,012 Deferred costs, net of unearned fees 6,961 5,936 Total residential mortgages 1,482,551 1,415,079 Commercial mortgage Mortgages - non-owner occupied 1,403,363 1,272,135 Mortgages - owner occupied 148,480 150,632 Construction 82,739 86,246 Deferred costs, net of unearned fees 2,285 1,989 Total commercial mortgages 1,636,867 1,511,002 Home equity Home equity - lines of credit 89,790 85,639 Home equity - term loans 1,706 2,017 Deferred costs, net of unearned fees 339 304 Total home equity 91,835 87,960 Commercial and industrial Commercial and industrial 265,295 247,024 PPP loans 2,652 22,856 Unearned fees, net of deferred costs 223 ( 434 ) Total commercial and industrial 268,170 269,446 Consumer Secured 43,181 34,308 Unsecured 874 1,303 Deferred costs, net of unearned fees 14 8 Total consumer 44,069 35,619 Total loans $ 3,523,492 $ 3,319,106 |
Non-performing Loans Disaggregated by Loan Category | The following tables set forth information regarding non-performing loans disaggregated by loan category: June 30, 2022 Residential Commercial Home Commercial and Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 4,067 $ 450 $ 520 $ 101 $ 5,138 Troubled debt restructurings 646 — — 95 741 Total $ 4,713 $ 450 $ 520 $ 196 $ 5,879 December 31, 2021 Residential Commercial Home Commercial and Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 3,777 $ 517 $ 223 $ 111 $ 4,628 Troubled debt restructurings 652 — — 106 758 Total $ 4,429 $ 517 $ 223 $ 217 $ 5,386 |
Loans Receivable Disaggregated by Credit Quality Indicator | The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator: Credit Quality Indicator - by Origination Year as of June 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Total (dollars in thousands) Residential Mortgage: Current $ 202,979 $ 528,323 $ 291,931 $ 118,731 $ 81,085 $ 254,789 $ — $ 1,477,838 Non-performing — — 147 — 713 3,853 — 4,713 Total $ 202,979 $ 528,323 $ 292,078 $ 118,731 $ 81,798 $ 258,642 $ — $ 1,482,551 Home equity: Current $ — $ — $ 392 $ 1,864 $ 4,355 $ 9,826 $ 74,878 $ 91,315 Non-performing — — — 520 — — — 520 Total $ — $ — $ 392 $ 2,384 $ 4,355 $ 9,826 $ 74,878 $ 91,835 Consumer: Current $ 15,945 $ 10,181 $ 6,640 $ 1,365 $ 2,600 $ 6,738 $ 600 $ 44,069 Non-performing — — — — — — — — Total $ 15,945 $ 10,181 $ 6,640 $ 1,365 $ 2,600 $ 6,738 $ 600 $ 44,069 Credit Quality Indicator - by Origination Year as of June 30, 2022 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Total (dollars in thousands) Commercial Mortgage: Credit risk profile by internally 1-6 (Pass) $ 235,399 $ 314,981 $ 235,504 $ 284,164 $ 145,208 $ 350,393 $ — $ 1,565,649 7 (Special Mention) — — 1,081 40,582 22,220 6,847 — 70,730 8 (Substandard) — — — — — 488 — 488 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 235,399 $ 314,981 $ 236,585 $ 324,746 $ 167,428 $ 357,728 $ — $ 1,636,867 Commercial and Industrial: Credit risk profile by internally 1-6 (Pass) $ 19,941 $ 74,530 $ 75,736 $ 36,897 $ 32,042 $ 22,137 $ 435 $ 261,718 7 (Special Mention) — 264 266 2,145 407 176 10 3,268 8 (Substandard) — — 696 2,259 95 134 — 3,184 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 19,941 $ 74,794 $ 76,698 $ 41,301 $ 32,544 $ 22,447 $ 445 $ 268,170 Credit Quality Indicator - by Origination Year as of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Total (dollars in thousands) Residential Mortgage: Current $ 535,071 $ 329,501 $ 135,139 $ 101,108 $ 77,702 $ 232,129 $ — $ 1,410,650 Non-performing — 151 — 330 54 3,894 — 4,429 Total $ 535,071 $ 329,652 $ 135,139 $ 101,438 $ 77,756 $ 236,023 $ — $ 1,415,079 Home equity: Current $ — $ 719 $ 3,088 $ 4,469 $ 5,060 $ 5,475 $ 68,926 $ 87,737 Non-performing — — 223 — — — — 223 Total $ — $ 719 $ 3,311 $ 4,469 $ 5,060 $ 5,475 $ 68,926 $ 87,960 Consumer: Current $ 14,427 $ 8,758 $ 1,544 $ 3,168 $ 1,838 $ 5,357 $ 527 $ 35,619 Non-performing — — — — — — — — Total $ 14,427 $ 8,758 $ 1,544 $ 3,168 $ 1,838 $ 5,357 $ 527 $ 35,619 Credit Quality Indicator - by Origination Year as of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Total (dollars in thousands) Commercial Mortgage: Credit risk profile by internally 1-6 (Pass) $ 319,633 $ 248,691 $ 320,189 $ 158,462 $ 93,016 $ 298,791 $ — $ 1,438,782 7 (Special Mention) — 1,096 40,879 22,471 2,913 4,131 — 71,490 8 (Substandard) — — — — — 730 — 730 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 319,633 $ 249,787 $ 361,068 $ 180,933 $ 95,929 $ 303,652 $ — $ 1,511,002 Commercial and Industrial: Credit risk profile by internally 1-6 (Pass) $ 83,614 $ 77,073 $ 38,299 $ 34,360 $ 19,727 $ 4,622 $ 353 $ 258,048 7 (Special Mention) 318 350 5,523 406 161 859 10 7,627 8 (Substandard) — 792 2,331 504 — 144 — 3,771 9 (Doubtful) — — — — — — — — 10 (Loss) — — — — — — — — Total $ 83,932 $ 78,215 $ 46,153 $ 35,270 $ 19,888 $ 5,625 $ 363 $ 269,446 |
Schedule of Loans Receivable Disaggregated by Past Due Status | The following tables contain period-end balances of loans receivable disaggregated by past due status: June 30, 2022 30-59 Days 60-89 Days 90 Days or greater Total Past Due Current Loans Total Amortized Cost 90+ Days Past Due and Accruing (dollars in thousands) Residential mortgage $ 5,335 $ 991 $ 1,316 $ 7,642 $ 1,474,909 $ 1,482,551 $ — Commercial mortgage — 278 — 278 1,636,589 1,636,867 — Home equity 228 298 — 526 91,309 91,835 — Commercial and industrial 6 32 — 38 268,132 268,170 — Consumer — — — — 44,069 44,069 — Total $ 5,569 $ 1,599 $ 1,316 $ 8,484 $ 3,515,008 $ 3,523,492 $ — December 31, 2021 30-59 Days 60-89 Days 90 Days Total Current Total Amortized Cost 90+ Days Past Due and Accruing (dollars in thousands) Residential mortgage $ 8,470 $ 415 $ 1,488 $ 10,373 $ 1,404,706 $ 1,415,079 $ — Commercial mortgage 476 — — 476 1,510,526 1,511,002 — Home equity 314 643 — 957 87,003 87,960 — Commercial and industrial 5 437 — 442 269,004 269,446 — Consumer — — — — 35,619 35,619 — Total $ 9,265 $ 1,495 $ 1,488 $ 12,248 $ 3,306,858 $ 3,319,106 $ — |
Summary of Changes in Allowance for Credit Losses Disaggregated by Loan Category | The following tables present changes in the allowance for credit losses disaggregated by loan category: Three Months Ended June 30, 2022 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at March 31, 2022 $ 13,193 $ 17,138 $ 377 $ 2,897 $ 505 $ — $ 34,110 Charge-offs — — ( 3 ) ( 3 ) — ( 6 ) Recoveries — — — 10 10 — 20 Provision for (release of) credit ( 554 ) 629 23 ( 52 ) ( 46 ) — — Allowance for credit losses - $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ — $ 34,124 Allowance for credit losses - Balance at March 31, 2022 $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Release of credit — — — — — — — Allowance for credit losses- $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Total allowance for credit loss $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ 1,371 $ 35,495 Six Months Ended June 30, 2022 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at December 31, 2021 $ 13,383 $ 17,133 $ 406 $ 2,989 $ 585 $ — $ 34,496 Charge-offs — — — ( 3 ) ( 28 ) — ( 31 ) Recoveries — — — 46 12 — 58 Provision for (release of) credit ( 744 ) 634 ( 6 ) ( 180 ) ( 103 ) — ( 399 ) Allowance for credit losses - loan portfolio $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ — $ 34,124 Allowance for credit losses - Balance at December 31, 2021 $ — $ — $ — $ — $ — $ 1,384 $ 1,384 Release of credit losses - unfunded commitments — — — — — ( 13 ) ( 13 ) Allowance for credit losses- unfunded commitments $ — $ — $ — $ — $ — $ 1,371 $ 1,371 Total allowance for credit loss $ 12,639 $ 17,767 $ 400 $ 2,852 $ 466 $ 1,371 $ 35,495 Three Months Ended June 30, 2021 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan Balance at March 31, 2021 $ 13,144 $ 18,693 $ 363 $ 2,978 $ 468 $ — $ 35,646 Charge-offs — — — — — — — Recoveries — 30 — 15 1 — 46 Provision for (release of) credit 412 ( 1,422 ) 110 216 21 — ( 663 ) Allowance for credit losses - loan portfolio $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ — $ 35,029 Allowance for credit losses - Balance at March 31, 2021 $ — $ — $ — $ — $ — $ 1,188 $ 1,188 Release of credit — — — — — ( 238 ) ( 238 ) Allowance for credit losses- — — — — — 950 950 Total allowance for credit loss $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ 950 $ 35,979 Six Months Ended June 30, 2021 Residential Commercial Home Commercial & Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan portfolio: Balance at December 31, 2020 $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ — $ 36,016 Charge-offs — — — — ( 3 ) — ( 3 ) Recoveries — 30 — 34 5 — 69 Provision for (release of) credit 489 ( 1,293 ) ( 79 ) ( 134 ) ( 36 ) — ( 1,053 ) Allowance for credit losses - loan portfolio $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ — $ 35,029 Allowance for credit losses - unfunded commitments: Balance at December 31, 2020 $ — $ — $ — $ — $ — $ 1,004 $ 1,004 Release of credit — — — — — ( 54 ) ( 54 ) Allowance for credit losses-unfunded commitments — — — — — 950 950 Total allowance for credit loss $ 13,556 $ 17,301 $ 473 $ 3,209 $ 490 $ 950 $ 35,979 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands) Current income tax expense Federal $ 3,868 $ 3,056 $ 4,963 $ 5,147 State $ 1,595 1,367 1,984 2,289 Total current income tax expense 5,463 4,423 6,947 7,436 Deferred income tax expense (benefit) Federal $ ( 61 ) $ 370 $ 1,964 $ 1,552 State $ ( 27 ) 178 908 726 Total deferred income tax expense (benefit) ( 88 ) 548 2,872 2,278 Total income tax expense $ 5,375 $ 4,971 $ 9,819 $ 9,714 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | The components of net periodic benefit cost (credit) were as follows: Three Months Ended June 30, Pension Plan Supplemental Retirement Healthcare Plan 2022 2021 2022 2021 2022 2021 (dollars in thousands) Net periodic benefit cost (credit) Service cost $ — $ — $ 98 $ 106 $ 6 $ 8 Interest cost 345 303 71 56 5 5 Expected return on assets ( 1,002 ) ( 891 ) — — — — Amortization of net actuarial loss — — — 11 — — Net periodic benefit cost (credit) $ ( 657 ) $ ( 588 ) $ 169 $ 173 $ 11 $ 13 Six Months Ended June 30, Pension Plan Supplemental Retirement Healthcare Plan 2022 2021 2022 2021 2022 2021 (dollars in thousands) Net periodic benefit cost (credit) Service cost $ — $ — $ 199 $ 212 $ 14 $ 17 Interest cost 655 606 130 113 10 9 Expected return on assets ( 1,938 ) ( 1,783 ) — — — — Amortization of prior service credit — ( 1 ) — — — — Amortization of net actuarial loss — — — 22 — — Net periodic benefit cost (credit) $ ( 1,283 ) $ ( 1,178 ) $ 329 $ 347 $ 24 $ 26 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Schedule of Shares Issued and Fair Value of RSAs, RSUs | During the three and six months ended June 30, 2022 , the Company issued the following RSAs and RSUs pursuant to the Cambridge Bancorp 2017 Equity and Cash Incentive Plan (the “2017 Plan”). RSAs time-vest either over a three-year or five-year period. RSUs vest over a three-year -period. T he fair value of RSAs and RSUs are based upon the closing price of the Company's common stock on the date of the applicable grant. The holders of RSAs participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of RSUs do not participate in the rewards of stock ownership of the Company until vested. Three Months Ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 1,169 $ 78.53 RSAs Six Months ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 12,934 $ 87.31 RSAs 8,796 $ 88.18 RSUs |
Schedule of Pre-tax Expense Associated with All Outstanding Non-vested RSAs, RSUs, Performance Based Restricted Stock Units and Related Tax Benefits | The following table presents the pre-tax expense associated with all outstanding non-vested RSAs, RSUs, and PRSUs, and the related tax benefits recognized: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands) Share based compensation expense $ 943 $ 1,138 $ 1,591 $ 2,513 Related tax benefits $ 263 $ 318 $ 444 $ 702 |
Performance-Based Restricted Stock Units | |
Schedule of Shares Issued and Fair Value of RSAs, RSUs | There were no PRSUs granted during the three months ended June 30, 2022. During the six months ended June 30, 2022 , the Company granted 30,895 PRSUs from the 2017 Plan, as shown in the table below. PRSUs are subject to a three-year performance period and are earned based on two factors: (i) operating return on assets and (ii) operating diluted earnings per share growth as compared to the Company’s established peer indices as defined in the Company’s 2022 Proxy Statement filed with the SEC on March 16, 2022. Six Months ended June 30, 2022 Weighted-Average Shares Granted Fair Value at Grant Date Type of Award 30,895 $ 88.18 PRSUs |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Off-Balance-Sheet Financial Instruments with Contractual Amounts Include Present Credit Risk | Off-balance-sheet financial instruments with contractual amounts that present credit risk include the following: June 30, 2022 December 31, 2021 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 849,282 $ 809,383 Origination of new loans 81,567 70,633 Standby letters of credit 20,230 18,880 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 250 3,920 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Components of Operating Lease Cost and Other Related Information | The components of operating lease cost and other related information are as follows: Three Months Ended June 30, 2022 2021 (dollars in thousands) Operating lease cost $ 1,743 $ 1,731 Variable lease cost (cost excluded from lease payments) 1 3 Sublease income ( 17 ) ( 17 ) Total operating lease cost $ 1,727 $ 1,717 Other Information Cash paid for amounts included in the measurement of lease liabilities - $ 1,805 $ 1,780 Operating Lease - operating cash flows (liability reduction) 1,586 1,527 Weighted average lease term - operating leases 5.80 Years 6.56 Years Weighted average discount rate - operating leases 2.97 % 2.93 % Six Months Ended June 30, 2022 2021 (dollars in thousands) Operating lease cost $ 3,486 $ 3,499 Variable lease cost (cost excluded from lease payments) 2 6 Sublease income ( 33 ) ( 33 ) Total operating lease cost $ 3,455 $ 3,472 Other Information Cash paid for amounts included in the measurement of lease liabilities - $ 3,638 $ 3,634 Operating Lease - operating cash flows (liability reduction) 3,191 3,125 Weighted average lease term - operating leases 5.80 Years 6.56 Years Weighted average discount rate - operating leases 2.97 % 2.93 % |
Schedule of Total Minimum Lease Payments Due in Future Periods for Lease Agreements | The total minimum lease payments due in future periods for lease agreements in effect at June 30, 2022 were as follows: Future Minimum June 30, 2022 Lease Payments (dollars in thousands) Remainder of 2022 $ 7,059 2023 6,654 2024 5,386 2025 4,750 2026 2,703 Thereafter 6,896 Total minimum lease payments $ 33,448 Less: interest ( 2,789 ) Total lease liability $ 30,659 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Minimum Capital Requirements Considered Well Capitalized by FRB and FDIC | As of June 30, 2022 and December 31, 2021, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the Federal Reserve Bank (“FRB”) and the Federal Deposit Insurance Corporation (“FDIC”). Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At June 30, 2022 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 438,979 13.4 % $ 344,617 10.5 % N/A N/A Tier 1 capital (to risk-weighted assets) 403,484 12.3 % 278,976 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 403,484 12.3 % 229,745 7.0 % N/A N/A Tier 1 capital (to average assets) 403,484 8.1 % 199,142 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 422,899 12.9 % $ 344,585 10.5 % $ 328,176 10.0 % Tier 1 capital (to risk-weighted assets) 387,404 11.8 % 278,950 8.5 % 262,541 8.0 % Common equity tier I capital (to risk-weighted assets) 387,404 11.8 % 229,723 7.0 % 213,314 6.5 % Tier 1 capital (to average assets) 387,404 7.8 % 199,131 4.0 % 248,913 5.0 % Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2021 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 420,398 13.6 % $ 325,617 10.5 % N/A N/A Tier 1 capital (to risk-weighted assets) 384,518 12.4 % 263,595 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 384,518 12.4 % 217,078 7.0 % N/A N/A Tier 1 capital (to average assets) 384,518 8.3 % 185,015 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 409,806 13.2 % $ 325,587 10.5 % $ 310,082 10.0 % Tier 1 capital (to risk-weighted assets) 373,926 12.1 % 263,570 8.5 % 248,066 8.0 % Common equity tier I capital (to risk-weighted assets) 373,926 12.1 % 217,058 7.0 % 201,554 6.5 % Tier 1 capital (to average assets) 373,926 8.1 % 185,003 4.0 % 231,254 5.0 % |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) ("AOCI") ("AOCL") | The following tables present the changes in accumulated other comprehensive income (loss) ("AOCI") ("AOCL") during the periods, by component, net of tax: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Before Tax Tax (Expense) Net-of-tax Before Tax Tax (Expense) Net-of-tax (dollars in thousands) Available for sale securities Unrealized holding (losses) gains $ ( 5,579 ) $ 1,442 $ ( 4,137 ) $ 1,421 $ ( 386 ) $ 1,035 Interest rate swaps designated as cash flow Unrealized holding (losses) gains ( 358 ) 101 ( 257 ) 4 ( 1 ) 3 Reclassification adjustment for (losses) income recognized in net income ( 391 ) 108 ( 283 ) ( 646 ) 180 ( 466 ) Defined benefit retirement plans Net change in retirement liability — — — 10 ( 3 ) 7 Total other comprehensive (loss) income $ ( 6,328 ) $ 1,651 $ ( 4,677 ) $ 789 $ ( 210 ) $ 579 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Before Tax Tax (Expense) Net-of-tax Before Tax Tax (Expense) or Benefit Net-of-tax (dollars in thousands) Available for sale securities Unrealized holding losses $ ( 16,595 ) $ 4,231 $ ( 12,364 ) $ ( 2,502 ) $ 650 $ ( 1,852 ) Interest rate swaps designated as cash flow Unrealized holding losses ( 2,058 ) 575 ( 1,483 ) ( 443 ) 124 ( 319 ) Reclassification adjustment for losses recognized in net income ( 1,005 ) 281 ( 724 ) ( 1,276 ) 356 ( 920 ) Defined benefit retirement plans Net change in retirement liability — — — 21 ( 6 ) 15 Total other comprehensive loss $ ( 19,658 ) $ 5,087 $ ( 14,571 ) $ ( 4,200 ) $ 1,124 $ ( 3,076 ) |
Summary of Reclassifications out of Accumulated Other Comprehensive Income (Loss) ("AOCI") ("AOCL") | Reclassifications out of AOCI and AOCL that have an impact on net income are presented below. Three Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components June 30, 2022 June 30, 2021 Affected Line Item in the (dollars in thousands) Unrealized gains on derivatives $ 391 $ 646 Interest on taxable loans Tax expense ( 108 ) ( 180 ) Income tax expense Net of tax $ 283 $ 466 Net income Six Months Ended Details about Accumulated Other Comprehensive Loss Components June 30, 2022 June 30, 2021 Affected Line Item in the (dollars in thousands) Unrealized gains on derivatives $ 1,005 $ 1,276 Interest on taxable loans Tax expense ( 281 ) ( 356 ) Income tax expense Net of tax $ 724 $ 920 Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation Between Basic and Diluted Earnings Per Share | The following represents a reconciliation between basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 13,658 $ 13,944 $ 26,974 $ 27,443 Less dividends and undistributed earnings allocated ( 43 ) ( 67 ) ( 122 ) ( 126 ) Net income applicable to common shareholders $ 13,615 $ 13,877 $ 26,852 $ 27,317 Denominator: Weighted average common shares outstanding 6,982 6,930 6,960 6,919 Earnings per common share - basic $ 1.95 $ 2.00 $ 3.86 $ 3.95 Earnings per common share - diluted: Numerator: Net income $ 13,658 $ 13,944 $ 26,974 $ 27,443 Less dividends and undistributed earnings allocated ( 43 ) ( 67 ) ( 122 ) ( 126 ) Net income applicable to common shareholders $ 13,615 $ 13,877 $ 26,852 $ 27,317 Denominator: Weighted average common shares outstanding 6,982 6,930 6,960 6,919 Dilutive effect of common stock equivalents 45 69 54 74 Weighted average diluted common shares outstanding 7,027 6,999 7,014 6,993 Earnings per common share - diluted $ 1.94 $ 1.98 $ 3.83 $ 3.91 |
Derivative And Hedging Activi_2
Derivative And Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets | The following tables present the notional amount, the location, and fair values of derivative instruments in the Company’s consolidated balance sheets: June 30, 2022 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Fair Value Notional Amount Balance Sheet Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 244 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 244 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate contracts $ 518,964 Other Assets $ 33,276 $ 518,964 Other Liabilities $ 33,276 Risk participation agreements-out to counterparties 47,365 Other Assets 37 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 108,650 Other Liabilities 113 Total derivatives not designated as hedging instruments $ 33,313 $ 33,389 December 31, 2021 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Fair Value Notional Amount Balance Sheet Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 3,513 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 3,513 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 522,581 Other Assets $ 23,431 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 522,581 Other Liabilities 23,431 Risk participation agreements-out to counterparties 47,988 Other Assets 107 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 109,510 Other Liabilities 293 Total derivatives not designated as hedging instruments $ 23,538 $ 23,724 |
Summary of Changes to AOCI and AOCL as a Result of Cash Flow Hedge Accounting | The following tables present the changes to AOCI and AOCL as a result of cash flow hedge accounting as of the periods presented: Three Months Ended June 30, 2022 Amount of Gain Amount of Gain Amount of Gain Location of Gain Amount of Gain Amount of Gain or (Loss) Reclassified from AOCL into Income Included Component Amount of Gain or (Loss) Reclassified from AOCL into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 358 ) $ ( 101 ) $ ( 257 ) Interest Income $ 391 $ 439 $ ( 48 ) Six Months Ended June 30, 2022 Amount of Gain or (Loss) Recognized in OCI Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from AOCL into Income Amount of Gain or (Loss) Reclassified from AOCL into Income Included Component Amount of Gain or (Loss) Reclassified from AOCL into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 2,058 ) $ ( 2,012 ) $ ( 46 ) Interest Income $ 1,005 $ 1,101 $ ( 96 ) Three Months Ended June 30, 2021 Amount of Gain Amount of Gain Amount of Gain Location of Gain Amount of Gain Amount of Gain Amount of Gain (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 642 ) $ ( 627 ) $ ( 15 ) Interest Income $ 646 $ 695 $ ( 49 ) Six Months Ended June 30, 2021 Amount of Gain or (Loss) Recognized in OCI Amount of Gain or (Loss) Recognized in OCI - Included Component Amount of Gain or (Loss) Recognized in OCI - Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ ( 1,719 ) $ ( 173 ) $ ( 1,546 ) Interest Income $ 1,276 $ 1,373 $ ( 97 ) |
Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Income | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivatives Three Months Ended June 30, 2022 June 30, 2021 Location of Gain or (Loss) (dollars in thousands) Other contracts Loan-related derivative income $ ( 33 ) $ ( 53 ) Amount of Gain or (Loss) Recognized in Income on Derivatives Six Months Ended June 30, 2022 June 30, 2021 Location of Gain or (Loss) (dollars in thousands) Other contracts Loan-related derivative income $ ( 110 ) $ 153 |
Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet | The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheets at June 30, 2022 and December 31, 2021: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount June 30, 2022 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 33,557 $ — $ 33,557 $ 965 $ ( 30,917 ) $ 1,675 Offsetting of Derivative Liabilities Derivative Liabilities $ 33,389 $ — $ 33,389 $ 965 $ — $ 32,424 Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2021 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 27,051 $ — $ 27,051 $ 6,365 $ — $ 20,686 Offsetting of Derivative Liabilities Derivative Liabilities $ 23,724 $ — $ 23,724 $ 6,365 $ 14,011 $ 3,348 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Values and Estimated Fair Values of Financial Instruments | The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated: June 30, 2022 December 31, 2021 Carrying Estimated Carrying Estimated (dollars in thousands) Financial assets Cash and cash equivalents $ 25,023 $ 25,023 $ 180,153 $ 180,153 Securities available for sale 173,952 173,952 197,803 197,803 Securities held to maturity 1,105,858 990,221 977,061 971,092 Loans, net 3,489,368 3,374,268 3,284,610 3,230,339 Loans held for sale — — 1,490 1,528 FHLB of Boston stock 10,518 10,518 4,816 4,816 Accrued interest receivable 10,061 10,061 9,162 9,162 Mortgage servicing rights 1,020 1,655 1,083 1,518 Interest rate contracts 244 244 3,513 3,513 Loan level interest rate swaps 33,276 33,276 23,431 23,431 Risk participation agreements out to counterparties 37 37 107 107 Financial liabilities Deposits 4,264,057 4,261,934 4,331,152 4,330,991 Borrowings 252,867 252,691 16,510 16,523 Loan level interest rate swaps 33,276 33,276 23,431 23,431 Risk participation agreements in with counterparties 113 113 293 293 |
Summary of Certain Assets and Liabilities Reported at Fair Value on a Recurring Basis | The following tables summarize certain assets and liabilities reported at fair value on a recurring basis: Fair Value as of June 30, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 21,075 $ — $ 21,075 Mortgage-backed securities — 151,130 — 151,130 Corporate debt securities — 1,747 — 1,747 Other assets Interest rate swaps with customers — 33,276 — 33,276 Risk participation agreements-out to counterparties — 37 — 37 Interest rate contracts — 244 — 244 Other liabilities Interest rate swaps with customers — 33,276 — 18,161 Risk participation agreements-in with counterparties — 113 — 113 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 23,011 $ — $ 23,011 Mortgage-backed securities — 173,028 — 173,028 Corporate debt securities — 1,764 — 1,764 Other assets Interest rate swaps with customers — 23,431 — 23,431 Risk participation agreements-out to counterparties — 107 — 107 Interest rate contracts — 3,513 — 3,513 Other liabilities Mirror swaps with counterparties — 23,431 — 23,431 Risk participation agreements-in with counterparties — 293 — 293 |
Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis | The following tables present the carrying value of assets held at June 30, 2022 and December 31, 2021, which were measured at fair value on a non-recurring basis: June 30, 2022 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Individually evaluated collateral dependent loans $ — $ — $ 278 $ 278 Total $ — $ — $ 278 $ 278 December 31, 2021 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Loans held for sale $ 1,490 $ — $ — $ 1,490 Individually evaluated collateral dependent loans — — 130 130 Total $ 1,490 $ — $ 130 $ 1,620 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 25,023,000 | $ 180,153,000 |
Cash pledged as collateral to derivative counterparties | 0 | 13,300,000 |
Federal Reserve Bank of Boston | ||
Cash And Cash Equivalents [Line Items] | ||
Reserve balance of cash and due from banks | 0 | 0 |
New Hampshire | ||
Cash And Cash Equivalents [Line Items] | ||
Pledged amount to federal banking department | $ 500,000 | $ 500,000 |
Investment Securities - Summary
Investment Securities - Summary of Carrying Amounts of Securities and Their Approximate Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Available for sale securities, Amortized Cost | $ 194,014 | $ 201,270 | |
Available for sale securities, Gross Unrealized Gains | 23 | 1,229 | |
Available for sale securities, Gross Unrealized Losses | (20,085) | (4,696) | |
Total available for sale securities | 173,952 | 197,803 | |
Held to maturity securities, Amortized Cost | 1,105,858 | 977,061 | |
Held to maturity securities, Gross Unrealized Gains | 329 | 7,805 | |
Held to maturity securities, Gross Unrealized Losses | (115,966) | (13,774) | |
Held-to-maturity securities, fair value | 990,221 | 971,092 | |
Total, Amortized Cost | 1,299,872 | 1,178,331 | |
Total, Gross Unrealized Gains | 352 | 9,034 | |
Total, Gross Unrealized Losses | (136,051) | (18,470) | |
Total, Fair Value | 1,164,173 | 1,168,895 | |
U.S. Government Sponsored Enterprise Obligations | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Available for sale securities, Amortized Cost | 22,997 | 22,996 | |
Available for sale securities, Gross Unrealized Gains | 246 | ||
Available for sale securities, Gross Unrealized Losses | (1,922) | (231) | |
Total available for sale securities | 21,075 | 23,011 | |
Corporate Debt Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Available for sale securities, Amortized Cost | 1,744 | 1,743 | |
Available for sale securities, Gross Unrealized Gains | 9 | 24 | |
Available for sale securities, Gross Unrealized Losses | (6) | (3) | |
Total available for sale securities | 1,747 | 1,764 | |
Held to maturity securities, Amortized Cost | 2,749 | 6,997 | |
Held to maturity securities, Gross Unrealized Gains | 1 | 26 | |
Held to maturity securities, Gross Unrealized Losses | (5) | ||
Held-to-maturity securities, fair value | 2,745 | 7,023 | |
Mortgage Backed Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Available for sale securities, Amortized Cost | 169,273 | 176,531 | |
Available for sale securities, Gross Unrealized Gains | 14 | 959 | |
Available for sale securities, Gross Unrealized Losses | (18,157) | (4,462) | |
Total available for sale securities | [1] | 151,130 | 173,028 |
Held to maturity securities, Amortized Cost | [1] | 1,004,629 | 864,983 |
Held to maturity securities, Gross Unrealized Gains | 21 | 3,981 | |
Held to maturity securities, Gross Unrealized Losses | (107,309) | (13,258) | |
Held-to-maturity securities, fair value | 897,341 | 855,706 | |
Municipal Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Held to maturity securities, Amortized Cost | 98,480 | 105,081 | |
Held to maturity securities, Gross Unrealized Gains | 307 | 3,798 | |
Held to maturity securities, Gross Unrealized Losses | (8,652) | (516) | |
Held-to-maturity securities, fair value | $ 90,135 | $ 108,363 | |
[1] Includes agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by U.S. Government Sponsored Enterprises ("GSEs") and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or Standard & Poor's. Each security contains a guarantee by the issuing U.S. GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | $ 89,317 | $ 80,365 |
Available for sale securities, Unrealized Losses, Less than 12 months | (5,938) | (2,371) |
Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer, Total | 83,184 | 52,755 |
Available for sale securities, Unrealized Losses, 12 months or longer | (14,147) | (2,325) |
Available for sale securities, Fair Value | 172,501 | 133,120 |
Available for sale securities, Unrealized Losses | (20,085) | (4,696) |
Held to maturity securities, Fair Value, Less than 12 months | 852,240 | 753,573 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (98,104) | (12,703) |
Held to maturity securities, Fair Value, 12 months or longer | 94,216 | 21,061 |
Held to maturity securities, Unrealized Losses, 12 months or longer | (17,862) | (1,071) |
Held to maturity securities, Fair Value | 946,456 | 774,634 |
Held to maturity securities, Unrealized Losses | (115,966) | (13,774) |
Fair Value, Less than 12 months | 941,557 | 833,938 |
Unrealized Losses, Less than 12 months | 104,042 | (15,074) |
Fair Value, 12 months or longer | 177,400 | 73,816 |
Unrealized Losses, 12 months or longer | 32,009 | (3,396) |
Fair Value | 1,118,957 | 907,754 |
Unrealized Losses | 136,051 | (18,470) |
U.S. Government Sponsored Enterprise Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | 11,830 | 4,881 |
Available for sale securities, Unrealized Losses, Less than 12 months | (1,170) | (115) |
Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer, Total | 9,245 | 4,884 |
Available for sale securities, Unrealized Losses, 12 months or longer | (752) | (116) |
Available for sale securities, Fair Value | 21,075 | 9,765 |
Available for sale securities, Unrealized Losses | (1,922) | (231) |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | 77,487 | 74,724 |
Available for sale securities, Unrealized Losses, Less than 12 months | (4,768) | (2,253) |
Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer, Total | 73,190 | 47,871 |
Available for sale securities, Unrealized Losses, 12 months or longer | (13,389) | (2,209) |
Available for sale securities, Fair Value | 150,677 | 122,595 |
Available for sale securities, Unrealized Losses | (18,157) | (4,462) |
Held to maturity securities, Fair Value, Less than 12 months | 806,188 | 740,966 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (91,491) | (12,509) |
Held to maturity securities, Fair Value, 12 months or longer | 88,138 | 15,345 |
Held to maturity securities, Unrealized Losses, 12 months or longer | (15,818) | (749) |
Held to maturity securities, Fair Value | 894,326 | 756,311 |
Held to maturity securities, Unrealized Losses | (107,309) | (13,258) |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | 760 | |
Available for sale securities, Unrealized Losses, Less than 12 months | (3) | |
Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer, Total | 749 | |
Available for sale securities, Unrealized Losses, 12 months or longer | (6) | |
Available for sale securities, Fair Value | 749 | 760 |
Available for sale securities, Unrealized Losses | (6) | (3) |
Held to maturity securities, Fair Value, Less than 12 months | 245 | |
Held to maturity securities, Unrealized Losses, Less than 12 months | (5) | |
Held to maturity securities, Fair Value | 245 | |
Held to maturity securities, Unrealized Losses | (5) | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Fair Value, Less than 12 months | 45,807 | 12,607 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (6,608) | (194) |
Held to maturity securities, Fair Value, 12 months or longer | 6,078 | 5,716 |
Held to maturity securities, Unrealized Losses, 12 months or longer | (2,044) | (322) |
Held to maturity securities, Fair Value | 51,885 | 18,323 |
Held to maturity securities, Unrealized Losses | $ (8,652) | $ (516) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) Security | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Security | Jun. 30, 2021 USD ($) | |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||||
Number of debt securities with unrealized losses | Security | 390 | 390 | ||
Aggregate depreciation percentage of gross unrealized losses from amortized cost | 10.80% | 10.80% | ||
Percentage of unrealized dollar loss on amortized cost | 16.60% | 16.60% | ||
Percentage of unrealized loss on amortized cost | 31.70% | 31.70% | ||
Unrealized dollar loss of amortized cost basis | $ 1,600,000 | $ 1,600,000 | ||
Unrealized loss of amortized cost basis | 745,000 | 745,000 | ||
Net proceeds from securities sold | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | $ 1,744 | |
Available for sale securities, Within One Year, Fair Value | 1,747 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 18,830 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 17,751 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 50,909 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 45,631 | |
Available for sale securities, After Ten Years, Amortized Cost | 122,531 | |
Available for sale securities, After Ten Years, Fair Value | 108,823 | |
Available for sale securities, Total, Amortized Cost | 194,014 | |
Available for sale securities, Total, Fair Value | 173,952 | |
Held to maturity securities, Within One Year, Amortized Cost | 6,642 | |
Held to maturity securities, Within One Year, Fair Value | 6,666 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 32,488 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 32,277 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 88,226 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 84,844 | |
Held to maturity securities, After Ten Years, Amortized Cost | 978,502 | |
Held to maturity securities, After Ten Years, Fair Value | 866,434 | |
Held to maturity securities, Amortized Cost | 1,105,858 | $ 977,061 |
Held to maturity securities, Fair Value | 990,221 | 971,092 |
Available for sale securities and Held to maturity securities, Within One Year, Amortized Cost | 8,386 | |
Available for sale securities and Held to maturity securities, Within One Year, Fair Value | 8,413 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Amortized Cost | 51,318 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Fair Value | 50,028 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 139,135 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Fair Value | 130,475 | |
Available for sale securities and Held to maturity securities, After Ten Years, Amortized Cost | 1,101,033 | |
Available for sale securities and Held to maturity securities, After Ten Years, Fair Value | 975,257 | |
Available for sale securities and Held to maturity securities, Total, Amortized Cost | 1,299,872 | |
Available for sale securities and Held to maturity securities, Total, Fair Value | 1,164,173 | |
U.S. Government Sponsored Enterprise Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, After One, But Within Five Years, Amortized Cost | 9,997 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 9,245 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 5,000 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 4,678 | |
Available for sale securities, After Ten Years, Amortized Cost | 8,000 | |
Available for sale securities, After Ten Years, Fair Value | 7,152 | |
Available for sale securities, Total, Amortized Cost | 22,997 | |
Available for sale securities, Total, Fair Value | 21,075 | |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, After One, But Within Five Years, Amortized Cost | 8,833 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 8,506 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 45,909 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 40,953 | |
Available for sale securities, After Ten Years, Amortized Cost | 114,531 | |
Available for sale securities, After Ten Years, Fair Value | 101,671 | |
Available for sale securities, Total, Amortized Cost | 169,273 | |
Available for sale securities, Total, Fair Value | 151,130 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 14,582 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 14,245 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 55,917 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 52,819 | |
Held to maturity securities, After Ten Years, Amortized Cost | 934,130 | |
Held to maturity securities, After Ten Years, Fair Value | 830,277 | |
Held to maturity securities, Amortized Cost | 1,004,629 | |
Held to maturity securities, Fair Value | 897,341 | |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | 1,744 | |
Available for sale securities, Within One Year, Fair Value | 1,747 | |
Available for sale securities, Total, Amortized Cost | 1,744 | |
Available for sale securities, Total, Fair Value | 1,747 | |
Held to maturity securities, Within One Year, Amortized Cost | 2,499 | |
Held to maturity securities, Within One Year, Fair Value | 2,500 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 250 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 245 | |
Held to maturity securities, Amortized Cost | 2,749 | |
Held to maturity securities, Fair Value | 2,745 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Within One Year, Amortized Cost | 4,143 | |
Held to maturity securities, Within One Year, Fair Value | 4,166 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 17,656 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 17,787 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 32,309 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 32,025 | |
Held to maturity securities, After Ten Years, Amortized Cost | 44,372 | |
Held to maturity securities, After Ten Years, Fair Value | 36,157 | |
Held to maturity securities, Amortized Cost | 98,480 | 105,081 |
Held to maturity securities, Fair Value | $ 90,135 | $ 108,363 |
Investment Securities - Summa_2
Investment Securities - Summary of Credit Rating of Debt Securities Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | $ 173,952 | $ 197,803 | |
Total held to maturity securities | 1,105,858 | 977,061 | |
Municipal Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total held to maturity securities | 98,480 | 105,081 | |
Corporate Debt Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 1,747 | 1,764 | |
Total held to maturity securities | 2,749 | 6,997 | |
U.S. Government Sponsored Enterprise Obligations | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 21,075 | 23,011 | |
AAA/AA/A | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 172,955 | 196,798 | |
Total held to maturity securities | 1,105,858 | 977,061 | |
AAA/AA/A | Municipal Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total held to maturity securities | 98,480 | 105,081 | |
AAA/AA/A | Corporate Debt Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 750 | 759 | |
Total held to maturity securities | 2,749 | 6,997 | |
AAA/AA/A | U.S. Government Sponsored Enterprise Obligations | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 21,075 | 23,011 | |
BBB/BB/B | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 997 | 1,005 | |
Total held to maturity securities | 977,061 | ||
BBB/BB/B | Municipal Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total held to maturity securities | 105,081 | ||
BBB/BB/B | Corporate Debt Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | 997 | 1,005 | |
Mortgage Backed Securities | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | [1] | 151,130 | 173,028 |
Total held to maturity securities | [1] | 1,004,629 | 864,983 |
Mortgage Backed Securities | AAA/AA/A | |||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |||
Total available for sale securities | [1] | 151,130 | 173,028 |
Total held to maturity securities | [1] | $ 1,004,629 | $ 864,983 |
[1] Includes agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by U.S. Government Sponsored Enterprises ("GSEs") and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or Standard & Poor's. Each security contains a guarantee by the issuing U.S. GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A |
Loans and the Allowance for C_3
Loans and the Allowance for Credit Losses - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 3,523,492 | $ 3,319,106 |
Residential Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 6,961 | 5,936 |
Total loans | 1,482,551 | 1,415,079 |
Residential Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 25,413 | 13,012 |
Residential Mortgage | Mortgages - Fixed Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 781,649 | 716,456 |
Residential Mortgage | Mortgages - Adjustable Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 668,528 | 679,675 |
Commercial Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 2,285 | 1,989 |
Total loans | 1,636,867 | 1,511,002 |
Commercial Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 82,739 | 86,246 |
Commercial Mortgage | Mortgages - Non-owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 1,403,363 | 1,272,135 |
Commercial Mortgage | Mortgages - Owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 148,480 | 150,632 |
Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 339 | 304 |
Total loans | 91,835 | 87,960 |
Home Equity | Home Equity - Lines of Credit | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 89,790 | 85,639 |
Home Equity | Home Equity - Term Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 1,706 | 2,017 |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 265,295 | 247,024 |
Unearned fees, net of deferred costs | 223 | (434) |
Total loans | 268,170 | 269,446 |
Commercial and Industrial | PPP Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 2,652 | 22,856 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 14 | 8 |
Total loans | 44,069 | 35,619 |
Consumer | Secured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 43,181 | 34,308 |
Consumer | Unsecured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | $ 874 | $ 1,303 |
Loans and the Allowance for C_4
Loans and the Allowance for Credit Losses - Additional Information (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Modifications [Line Items] | ||
Loans in deferral | $ 0 | |
Commitments to lend additional funds to borrowers whose loans were on non-accrual status | $ 0 | $ 0 |
Loans and the Allowance for C_5
Loans and the Allowance for Credit Losses - Non-performing Loans Disaggregated by Loan Category (Details) - Non-Performing Loans - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | $ 5,138 | $ 4,628 |
Troubled debt restructurings | 741 | 758 |
Total | 5,879 | 5,386 |
Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 4,067 | 3,777 |
Troubled debt restructurings | 646 | 652 |
Total | 4,713 | 4,429 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 450 | 517 |
Total | 450 | 517 |
Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 520 | 223 |
Total | 520 | 223 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 101 | 111 |
Troubled debt restructurings | 95 | 106 |
Total | $ 196 | $ 217 |
Loans and the Allowance for C_6
Loans and the Allowance for Credit Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | $ 202,979 | $ 535,071 |
2021 | 528,323 | 329,652 |
2020 | 292,078 | 135,139 |
2019 | 118,731 | 101,438 |
2018 | 81,798 | 77,756 |
Prior | 258,642 | 236,023 |
Total | 1,482,551 | 1,415,079 |
Residential Mortgage | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 202,979 | 535,071 |
2021 | 528,323 | 329,501 |
2020 | 291,931 | 135,139 |
2019 | 118,731 | 101,108 |
2018 | 81,085 | 77,702 |
Prior | 254,789 | 232,129 |
Total | 1,477,838 | 1,410,650 |
Residential Mortgage | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 151 | |
2020 | 147 | |
2019 | 330 | |
2018 | 713 | 54 |
Prior | 3,853 | 3,894 |
Total | 4,713 | 4,429 |
Home Equity | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 719 | |
2020 | 392 | 3,311 |
2019 | 2,384 | 4,469 |
2018 | 4,355 | 5,060 |
Prior | 9,826 | 5,475 |
Revolving loans amortized cost basis | 74,878 | 68,926 |
Total | 91,835 | 87,960 |
Home Equity | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 719 | |
2020 | 392 | 3,088 |
2019 | 1,864 | 4,469 |
2018 | 4,355 | 5,060 |
Prior | 9,826 | 5,475 |
Revolving loans amortized cost basis | 74,878 | 68,926 |
Total | 91,315 | 87,737 |
Home Equity | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
2020 | 223 | |
2019 | 520 | |
Total | 520 | 223 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 15,945 | 14,427 |
2021 | 10,181 | 8,758 |
2020 | 6,640 | 1,544 |
2019 | 1,365 | 3,168 |
2018 | 2,600 | 1,838 |
Prior | 6,738 | 5,357 |
Revolving loans amortized cost basis | 600 | 527 |
Total | 44,069 | 35,619 |
Consumer | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 15,945 | 14,427 |
2021 | 10,181 | 8,758 |
2020 | 6,640 | 1,544 |
2019 | 1,365 | 3,168 |
2018 | 2,600 | 1,838 |
Prior | 6,738 | 5,357 |
Revolving loans amortized cost basis | 600 | 527 |
Total | 44,069 | 35,619 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 235,399 | 319,633 |
2021 | 314,981 | 249,787 |
2020 | 236,585 | 361,068 |
2019 | 324,746 | 180,933 |
2018 | 167,428 | 95,929 |
Prior | 357,728 | 303,652 |
Total | 1,636,867 | 1,511,002 |
Commercial Mortgage | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 235,399 | 319,633 |
2021 | 314,981 | 248,691 |
2020 | 235,504 | 320,189 |
2019 | 284,164 | 158,462 |
2018 | 145,208 | 93,016 |
Prior | 350,393 | 298,791 |
Total | 1,565,649 | 1,438,782 |
Commercial Mortgage | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 1,096 | |
2020 | 1,081 | 40,879 |
2019 | 40,582 | 22,471 |
2018 | 22,220 | 2,913 |
Prior | 6,847 | 4,131 |
Total | 70,730 | 71,490 |
Commercial Mortgage | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Prior | 488 | 730 |
Total | 488 | 730 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 19,941 | 83,932 |
2021 | 74,794 | 78,215 |
2020 | 76,698 | 46,153 |
2019 | 41,301 | 35,270 |
2018 | 32,544 | 19,888 |
Prior | 22,447 | 5,625 |
Revolving loans amortized cost basis | 445 | 363 |
Total | 268,170 | 269,446 |
Commercial and Industrial | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 19,941 | 83,614 |
2021 | 74,530 | 77,073 |
2020 | 75,736 | 38,299 |
2019 | 36,897 | 34,360 |
2018 | 32,042 | 19,727 |
Prior | 22,137 | 4,622 |
Revolving loans amortized cost basis | 435 | 353 |
Total | 261,718 | 258,048 |
Commercial and Industrial | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
2022 | 318 | |
2021 | 264 | 350 |
2020 | 266 | 5,523 |
2019 | 2,145 | 406 |
2018 | 407 | 161 |
Prior | 176 | 859 |
Revolving loans amortized cost basis | 10 | 10 |
Total | 3,268 | 7,627 |
Commercial and Industrial | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
2021 | 792 | |
2020 | 696 | 2,331 |
2019 | 2,259 | 504 |
2018 | 95 | |
Prior | 134 | 144 |
Total | $ 3,184 | $ 3,771 |
Loans and the Allowance for C_7
Loans and the Allowance for Credit Losses - Schedule of Loans Receivable Disaggregated by Past Due Status (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | $ 3,515,008 | $ 3,306,858 |
Total loans | 3,523,492 | 3,319,106 |
30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 5,569 | 9,265 |
60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,599 | 1,495 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,316 | 1,488 |
Total Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 8,484 | 12,248 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,474,909 | 1,404,706 |
Total loans | 1,482,551 | 1,415,079 |
Residential Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 5,335 | 8,470 |
Residential Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 991 | 415 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,316 | 1,488 |
Residential Mortgage | Total Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 7,642 | 10,373 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,636,589 | 1,510,526 |
Total loans | 1,636,867 | 1,511,002 |
Commercial Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 476 | |
Commercial Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 278 | |
Commercial Mortgage | Total Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 278 | 476 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 91,309 | 87,003 |
Total loans | 91,835 | 87,960 |
Home Equity | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 228 | 314 |
Home Equity | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 298 | 643 |
Home Equity | Total Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 526 | 957 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 268,132 | 269,004 |
Total loans | 268,170 | 269,446 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 6 | 5 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 32 | 437 |
Commercial and Industrial | Total Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 38 | 442 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 44,069 | 35,619 |
Total loans | $ 44,069 | $ 35,619 |
Loans and the Allowance for C_8
Loans and the Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses Disaggregated by Loan Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Release of credit losses - unfunded commitments | $ (412) | $ (1,107) | ||
Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | $ 34,110 | $ 35,646 | 34,496 | 36,016 |
Charge-offs | (6) | (31) | (3) | |
Recoveries | 20 | 46 | 58 | 69 |
Provision for (release of) credit losses - loan portfolio | (663) | (399) | (1,053) | |
Allowance for credit losses-loan portfolio, Ending Balance | 34,124 | 35,029 | 34,124 | 35,029 |
Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 1,371 | 1,188 | 1,384 | 1,004 |
Release of credit losses - unfunded commitments | (238) | (13) | (54) | |
Allowance for credit losses-unfunded commitments | 1,371 | 950 | 1,371 | 950 |
Allowance for credit losses-loan portfolio, Ending Balance | 35,495 | 35,979 | 35,495 | 35,979 |
Residential Mortgage | Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 13,193 | 13,144 | 13,383 | 13,067 |
Provision for (release of) credit losses - loan portfolio | (554) | 412 | (744) | 489 |
Allowance for credit losses-loan portfolio, Ending Balance | 12,639 | 13,556 | 12,639 | 13,556 |
Residential Mortgage | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Ending Balance | 12,639 | 13,556 | 12,639 | 13,556 |
Commercial Mortgage | Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 17,138 | 18,693 | 17,133 | 18,564 |
Recoveries | 30 | 30 | ||
Provision for (release of) credit losses - loan portfolio | 629 | (1,422) | 634 | (1,293) |
Allowance for credit losses-loan portfolio, Ending Balance | 17,767 | 17,301 | 17,767 | 17,301 |
Commercial Mortgage | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Ending Balance | 17,767 | 17,301 | 17,767 | 17,301 |
Home Equity | Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 377 | 363 | 406 | 552 |
Provision for (release of) credit losses - loan portfolio | 23 | 110 | (6) | (79) |
Allowance for credit losses-loan portfolio, Ending Balance | 400 | 473 | 400 | 473 |
Home Equity | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Ending Balance | 400 | 473 | 400 | 473 |
Commercial & Industrial | Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 2,897 | 2,978 | 2,989 | 3,309 |
Charge-offs | (3) | (3) | ||
Recoveries | 10 | 15 | 46 | 34 |
Provision for (release of) credit losses - loan portfolio | (52) | 216 | (180) | (134) |
Allowance for credit losses-loan portfolio, Ending Balance | 2,852 | 3,209 | 2,852 | 3,209 |
Commercial & Industrial | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Ending Balance | 2,852 | 3,209 | 2,852 | 3,209 |
Consumer | Funded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 505 | 468 | 585 | 524 |
Charge-offs | (3) | (28) | (3) | |
Recoveries | 10 | 1 | 12 | 5 |
Provision for (release of) credit losses - loan portfolio | (46) | 21 | (103) | (36) |
Allowance for credit losses-loan portfolio, Ending Balance | 466 | 490 | 466 | 490 |
Consumer | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Ending Balance | 466 | 490 | 466 | 490 |
Unfunded Commitments | Unfunded Commitments | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for credit losses-loan portfolio, Beginning Balance | 1,371 | 1,188 | 1,384 | 1,004 |
Release of credit losses - unfunded commitments | (238) | (13) | (54) | |
Allowance for credit losses-unfunded commitments | 1,371 | 950 | 1,371 | 950 |
Allowance for credit losses-loan portfolio, Ending Balance | $ 1,371 | $ 950 | $ 1,371 | $ 950 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 28.20% | 26.30% | 26.70% | 26.10% | |
Net deferred tax assets | $ 12,202,000 | $ 12,202,000 | $ 9,985,000 | ||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current income tax expense | ||||
Federal | $ 3,868 | $ 3,056 | $ 4,963 | $ 5,147 |
State | 1,595 | 1,367 | 1,984 | 2,289 |
Total current income tax expense | 5,463 | 4,423 | 6,947 | 7,436 |
Deferred income tax expense (benefit) | ||||
Federal | (61) | 370 | 1,964 | 1,552 |
State | (27) | 178 | 908 | 726 |
Total deferred income tax expense (benefit) | (88) | 548 | 2,872 | 2,278 |
Total income tax expense | $ 5,375 | $ 4,971 | $ 9,819 | $ 9,714 |
Pension and Retirement Plans -
Pension and Retirement Plans - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension Plan | ||||
Net periodic benefit cost (credit) | ||||
Interest cost | $ 345 | $ 303 | $ 655 | $ 606 |
Expected return on assets | (1,002) | (891) | (1,938) | (1,783) |
Amortization of prior service credit | (1) | |||
Net periodic benefit cost (credit) | (657) | (588) | (1,283) | (1,178) |
Supplemental Retirement Plan | ||||
Net periodic benefit cost (credit) | ||||
Service cost | 98 | 106 | 199 | 212 |
Interest cost | 71 | 56 | 130 | 113 |
Amortization of net actuarial loss | 11 | 22 | ||
Net periodic benefit cost (credit) | 169 | 173 | 329 | 347 |
Postretirement Healthcare Plan | ||||
Net periodic benefit cost (credit) | ||||
Service cost | 6 | 8 | 14 | 17 |
Interest cost | 5 | 5 | 10 | 9 |
Net periodic benefit cost (credit) | $ 11 | $ 13 | $ 24 | $ 26 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Profit Sharing Plan | 401(k) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, maximum employee contribution, percent | 100% | ||||
Profit Sharing Plan | 401(k) | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer matching contribution, percent | 4% | ||||
Profit Sharing Plan | Discretionary Contribution | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Normal retirement age of employees | 65 years | ||||
Employee Stock Ownership Plan (ESOP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||||
Employee Stock Ownership Plan (ESOP) | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee eligibility age under the plan | 21 years | ||||
Profit Sharing and ESOP Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution expense related to plans | $ 1,100,000 | $ 1,200,000 | $ 2,500,000 | $ 2,300,000 | |
Defined Contribution Supplemental Executive Retirement Plan ("DC SERP") | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution expense related to plans | 68,000 | $ 50,000 | $ 135,000 | $ 100,000 | |
Defined Contribution Supplemental Executive Retirement Plan ("DC SERP") | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer matching contribution, percent | 10% | ||||
Qualified Defined Benefit Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions to defined benefit pension plan | $ 0 | $ 0 | |||
Qualified Defined Benefit Pension Plan | Scenario Forecast | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions to defined benefit pension plan | $ 0 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Shares Issued and Fair Value of RSAs and RSUs (Details) - 2017 Equity and Cash Incentive Plan - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
RSAs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Granted | 1,169 | 12,934 |
Weighted Average Fair Value at Grant Date | $ 78.53 | $ 87.31 |
RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Granted | 8,796 | |
Weighted Average Fair Value at Grant Date | $ 88.18 | |
PRSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Granted | 0 | 30,895 |
Weighted Average Fair Value at Grant Date | $ 88.18 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
DSP Plan and 2017 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total shares issued under this plan | 6,617 | 5,941 | 6,776 | 5,941 |
Restricted Stock | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options time-vest period | 3 years | |||
Restricted Stock | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options time-vest period | 5 years | |||
Restricted Stock | 2017 Equity and Cash Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 1,169 | 12,934 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options time-vest period | 3 years | |||
Restricted Stock Units | 2017 Equity and Cash Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 8,796 | |||
Performance-Based Restricted Stock Units | 2017 Cash Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Performance-based restricted stock units performance period | 3 years | |||
Performance-Based Restricted Stock Units | 2017 Equity and Cash Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units granted | 0 | 30,895 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Pre-tax Expense Associated with All Outstanding Non-vested RSAs, RSUs, Performance Based Restricted Stock Units and Related Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||
Share based compensation expense | $ 943 | $ 1,138 | $ 1,591 | $ 2,513 |
Related tax benefits | $ 263 | $ 318 | $ 444 | $ 702 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk - Summary of Off-Balance-Sheet Financial Instruments with Contractual Amounts Include Present Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Standby Letters of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 20,230 | $ 18,880 |
Unused Portion of Existing Lines of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 849,282 | 809,383 |
Origination of New Loans | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 81,567 | 70,633 |
Commitments to Sell Residential Mortgage Loans | ||
Financial instruments whose notional amount exceeds the amount of credit risk: | ||
Financial instrument notional amount exceeds credit risk | $ 250 | $ 3,920 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Description of operating lease expiration terms | operating leases and their terms expire between 2023 and 2032 and, in some instances, contain options to renew for periods up to | |||
Renewal option period for operating leases | 30 years | 30 years | ||
Existence of option to expire | true | |||
Total rental expense | $ 1.9 | $ 1.8 | $ 3.7 | $ 3.7 |
Leases - Summary of Components
Leases - Summary of Components of Operating Lease Cost and Other Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,743 | $ 1,731 | $ 3,486 | $ 3,499 |
Variable lease cost (cost excluded from lease payments) | 1 | 3 | 2 | 6 |
Sublease income | (17) | (17) | (33) | (33) |
Total operating lease cost | 1,727 | 1,717 | 3,455 | 3,472 |
Other Information | ||||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows for operating leases | 1,805 | 1,780 | 3,638 | 3,634 |
Operating Lease - operating cash flows (liability reduction) | $ 1,586 | $ 1,527 | $ 3,191 | $ 3,125 |
Weighted average lease term - operating leases | 5 years 9 months 18 days | 6 years 6 months 21 days | 5 years 9 months 18 days | 6 years 6 months 21 days |
Weighted average discount rate - operating leases | 2.97% | 2.93% | 2.97% | 2.93% |
Leases - Schedule of Total Mini
Leases - Schedule of Total Minimum Lease Payments Due in Future Periods for Lease Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remainder of 2022 | $ 7,059 | |
2023 | 6,654 | |
2024 | 5,386 | |
2025 | 4,750 | |
2026 | 2,703 | |
Thereafter | 6,896 | |
Total minimum lease payments | 33,448 | |
Less: interest | (2,789) | |
Total lease liability | $ 30,659 | $ 33,871 |
Shareholders' Equity - Minimum
Shareholders' Equity - Minimum Capital Requirements were Considered Well Capitalized by FRB and FDIC (Details) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 438,979,000 | $ 420,398,000 |
Tier I capital (to risk-weighted assets), Actual, Amount | 403,484,000 | 384,518,000 |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 403,484,000 | 384,518,000 |
Tier I capital (to average assets), Actual, Amount | $ 403,484,000 | $ 384,518,000 |
Total capital (to risk-weighted assets), Actual, Ratio | 0.134 | 0.136 |
Tier I capital (to risk-weighted assets), Actual, Ratio | 0.123 | 0.124 |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 0.123 | 0.124 |
Tier I capital (to average assets), Actual, Ratio | 0.081 | 0.083 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 344,617,000 | $ 325,617,000 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 278,976,000 | 263,595,000 |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 229,745,000 | 217,078,000 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 199,142,000 | $ 185,015,000 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.105 | 0.105 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.085 | 0.085 |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.070 | 0.070 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.040 | 0.040 |
Cambridge Trust Company | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 422,899,000 | $ 409,806,000 |
Tier I capital (to risk-weighted assets), Actual, Amount | 387,404,000 | 373,926,000 |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 387,404,000 | 373,926,000 |
Tier I capital (to average assets), Actual, Amount | $ 387,404,000 | $ 373,926,000 |
Total capital (to risk-weighted assets), Actual, Ratio | 0.129 | 0.132 |
Tier I capital (to risk-weighted assets), Actual, Ratio | 0.118 | 0.121 |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 0.118 | 0.121 |
Tier I capital (to average assets), Actual, Ratio | 0.078 | 0.081 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 344,585,000 | $ 325,587,000 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 278,950,000 | 263,570,000 |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 229,723,000 | 217,058,000 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 199,131,000 | $ 185,003,000 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.105 | 0.105 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.085 | 0.085 |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.070 | 0.070 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 0.040 | 0.040 |
Cambridge Trust Company | Minimum | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 328,176,000 | $ 310,082,000 |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 262,541,000 | 248,066,000 |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 213,314,000 | 201,554,000 |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 248,913,000 | $ 231,254,000 |
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065 | 0.065 |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Summary of Accumulated Other Comprehensive Income (Loss) ("AOCI") ("AOCL") (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Available for sale securities, before tax amount | ||||
Unrealized holding (losses) gains, before tax amount | $ (5,579) | $ 1,421 | $ (16,595) | $ (2,502) |
Interest rate swaps designated as cash flow hedges, before tax amount | ||||
Unrealized holding (losses) gains, before tax amount | (358) | 4 | (2,058) | (443) |
Reclassification adjustment for (losses) income recognized in net income, before tax amount | (391) | (646) | (1,005) | (1,276) |
Defined benefit retirement plans, before tax amount | ||||
Net change in retirement liability, before tax amount | 10 | 21 | ||
Total other comprehensive (loss) income, before tax amount | (6,328) | 789 | (19,658) | (4,200) |
Available for sale securities, tax (expense) or benefit | ||||
Unrealized holding (losses) gains,tax (expense) or benefit | 1,442 | (386) | 4,231 | 650 |
Interest rate swaps designated as cash flow hedges, tax (expense) or benefit | ||||
Unrealized holding (losses) gains, tax (expense) or benefit | 101 | (1) | 575 | 124 |
Reclassification adjustment for (losses) income recognized in net income, tax (expense) or benefit | 108 | 180 | 281 | 356 |
Defined benefit retirement plans, tax (expense) or benefit | ||||
Net change in retirement liability, tax (expense) or benefit | (3) | (6) | ||
Total other comprehensive (loss) income, tax (expense) or benefit | 1,651 | (210) | 5,087 | 1,124 |
Available for sale securities | ||||
Unrealized holding (losses) gains, net-of-tax amount | (4,137) | 1,035 | (12,364) | (1,852) |
Interest rate swaps designated as cash flow hedges | ||||
Unrealized holding (losses) gains, net-of-tax amount | (257) | 3 | (1,483) | (319) |
Reclassification adjustment for (losses) income realized in net income | (283) | (466) | (724) | (920) |
Defined benefit retirement plans | ||||
Change in retirement liabilities | 7 | 15 | ||
Other comprehensive income (loss) income | $ (4,677) | $ 579 | $ (14,571) | $ (3,076) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Summary of Reclassifications out of Accumulated Other Comprehensive Income (Loss) ("AOCI") ("AOCL") (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Loss [Line Items] | ||||
Tax expense | $ (5,375) | $ (4,971) | $ (9,819) | $ (9,714) |
Net income | 13,658 | 13,944 | 26,974 | 27,443 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Loss [Line Items] | ||||
Unrealized gains on derivatives | 391 | 646 | 1,005 | 1,276 |
Tax expense | (108) | (180) | (281) | (356) |
Net income | $ 283 | $ 466 | $ 724 | $ 920 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation Between Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income | $ 13,658 | $ 13,944 | $ 26,974 | $ 27,443 |
Less dividends and undistributed earnings allocated to participating securities | (43) | (67) | (122) | (126) |
Net income applicable to common shareholders | $ 13,615 | $ 13,877 | $ 26,852 | $ 27,317 |
Denominator: | ||||
Weighted average number of shares outstanding, basic | 6,981,907 | 6,930,268 | 6,959,856 | 6,918,779 |
Earnings per common share - basic | $ 1.95 | $ 2 | $ 3.86 | $ 3.95 |
Numerator: | ||||
Net income | $ 13,658 | $ 13,944 | $ 26,974 | $ 27,443 |
Less dividends and undistributed earnings allocated to participating securities | (43) | (67) | (122) | (126) |
Net income applicable to common shareholders | $ 13,615 | $ 13,877 | $ 26,852 | $ 27,317 |
Denominator: | ||||
Weighted average number of shares outstanding, basic | 6,981,907 | 6,930,268 | 6,959,856 | 6,918,779 |
Dilutive effect of common stock equivalents | 45,000 | 69,000 | 54,000 | 74,000 |
Weighted average diluted common shares outstanding | 7,026,807 | 6,998,936 | 7,013,538 | 6,993,437 |
Earnings per common share - diluted | $ 1.94 | $ 1.98 | $ 3.83 | $ 3.91 |
Derivative And Hedging Activi_3
Derivative And Hedging Activities - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | $ 33,557 | $ 27,051 |
Derivative Liabilities, Fair value | 33,389 | 23,724 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 244 | 3,513 |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 150,000 | 150,000 |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 244 | 3,513 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 33,313 | 23,538 |
Derivative Liabilities, Fair value | 33,389 | 23,724 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 518,964 | |
Derivative Liabilities, Notional Amount | 518,964 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Contracts | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 33,276 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Contracts | Other Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Fair value | 33,276 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Swaps with Customers | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 522,581 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Swaps with Customers | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 23,431 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Mirror Swaps with Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Notional Amount | 522,581 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Mirror Swaps with Counterparties | Other Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Fair value | 23,431 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements Out to Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 47,365 | 47,988 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements Out to Counterparties | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 37 | 107 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements with Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Notional Amount | 108,650 | 109,510 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements with Counterparties | Other Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Fair value | $ 113 | $ 293 |
Derivative And Hedging Activi_4
Derivative And Hedging Activities - Summary of Changes to AOCI and AOCL as a Result of Cash Flow Hedge Accounting (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from AOCI and AOCL into Income | $ 391 | $ 646 | $ 1,005 | $ 1,276 |
Amount of Gain or (Loss) Reclassified from AOCI and AOCL into Income Included Component | 439 | 695 | 1,101 | 1,373 |
Amount of Gain or (Loss) Reclassified from AOCI and AOCL into Income Excluded Component | (48) | (49) | (96) | (97) |
Interest Rate Contracts | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI | (358) | (642) | (2,058) | (1,719) |
Amount of Gain or (Loss) Recognized in OCI - Included Component | (101) | (627) | (2,012) | (173) |
Amount of Gain or (Loss) Recognized in OCI - Excluded Component | $ (257) | $ (15) | $ (46) | $ (1,546) |
Derivative And Hedging Activi_5
Derivative And Hedging Activities - Additional Information (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Estimated amount will be reclassified out of AOCL into earnings | $ 167,000 | |
Fair value of derivative liability | 33,389,000 | $ 23,724,000 |
Minimum collateral posting threshold of derivative counterparties | 0 | 13,300,000 |
Termination amount | 14,000,000 | |
Minimum | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Minimum collateral posting threshold of derivative counterparties | 13,300,000 | |
Accrued Interest | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivative liability | $ 0 | $ 14,000,000 |
Derivative And Hedging Activi_6
Derivative And Hedging Activities - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other contracts | Loan related derivative income | Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (33) | $ (53) | $ (110) | $ 153 |
Derivative And Hedging Activi_7
Derivative And Hedging Activities - Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Offsetting [Abstract] | ||
Gross Amounts Recognized, Derivative assets | $ 33,557 | $ 27,051 |
Net Amounts Recognized, Derivative Assets | 33,557 | 27,051 |
Gross Amounts Not Offset, Financial Instruments, Derivative Assets | 965 | 6,365 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Assets | (30,917) | |
Gross Amounts Not Offset, Net amount, Derivative Assets | 1,675 | 20,686 |
Gross Amounts Recognized, Derivative Liabilities | 33,389 | 23,724 |
Net Amounts Recognized, Derivative Liabilities | 33,389 | 23,724 |
Gross Amounts Not Offset, Financial Instruments, Derivative Liabilities | 965 | 6,365 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Liabilities | 14,011 | |
Gross Amounts Not Offset, Net amount, Derivative Liabilities | $ 32,424 | $ 3,348 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets | ||
Securities available for sale | $ 173,952 | $ 197,803 |
Securities held to maturity | 990,221 | 971,092 |
FHLB of Boston stock | 10,518 | 4,816 |
Recurring Basis | Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 25,023 | 180,153 |
Securities available for sale | 173,952 | 197,803 |
Securities held to maturity | 1,105,858 | 977,061 |
Loans, net | 3,489,368 | 3,284,610 |
Loans held for sale | 1,490 | |
FHLB of Boston stock | 10,518 | 4,816 |
Accrued interest receivable | 10,061 | 9,162 |
Mortgage servicing rights | 1,020 | 1,083 |
Interest rate contracts | 244 | 3,513 |
Loan level interest rate swaps | 33,276 | 23,431 |
Risk participation agreements out to counterparties | 37 | 107 |
Financial liabilities | ||
Deposits | 4,264,057 | 4,331,152 |
Borrowings | 252,867 | 16,510 |
Loan level interest rate swaps | 33,276 | 23,431 |
Risk participation agreements in with counterparties | 113 | 293 |
Recurring Basis | Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 25,023 | 180,153 |
Securities available for sale | 173,952 | 197,803 |
Securities held to maturity | 990,221 | 971,092 |
Loans, net | 3,374,268 | 3,230,339 |
Loans held for sale | 1,528 | |
FHLB of Boston stock | 10,518 | 4,816 |
Accrued interest receivable | 10,061 | 9,162 |
Mortgage servicing rights | 1,655 | 1,518 |
Interest rate contracts | 244 | 3,513 |
Loan level interest rate swaps | 33,276 | 23,431 |
Risk participation agreements out to counterparties | 37 | 107 |
Financial liabilities | ||
Deposits | 4,261,934 | 4,330,991 |
Borrowings | 252,691 | 16,523 |
Loan level interest rate swaps | 33,276 | 23,431 |
Risk participation agreements in with counterparties | $ 113 | $ 293 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Certain Assets and Liabilities Reported at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 173,952 | $ 197,803 |
U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,075 | 23,011 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,747 | 1,764 |
Recurring Basis | U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,075 | 23,011 |
Recurring Basis | U.S. GSE Obligations | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,075 | 23,011 |
Recurring Basis | Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 151,130 | 173,028 |
Recurring Basis | Mortgage Backed Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 151,130 | 173,028 |
Recurring Basis | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,747 | 1,764 |
Recurring Basis | Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,747 | 1,764 |
Recurring Basis | Interest Rate Swaps with Customers | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 33,276 | 23,431 |
Other liabilities | 18,161 | |
Recurring Basis | Interest Rate Swaps with Customers | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 33,276 | 23,431 |
Other liabilities | 33,276 | |
Recurring Basis | Risk Participation Agreements Out to Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 37 | 107 |
Recurring Basis | Risk Participation Agreements Out to Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 37 | 107 |
Recurring Basis | Interest Rate Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 244 | 3,513 |
Recurring Basis | Interest Rate Contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 244 | 3,513 |
Recurring Basis | Mirror Swaps with Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 23,431 | |
Recurring Basis | Mirror Swaps with Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 23,431 | |
Recurring Basis | Risk Participation Agreements in With Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 113 | 293 |
Recurring Basis | Risk Participation Agreements in With Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | $ 113 | $ 293 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Non-recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 278 | $ 1,620 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,490 | |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 278 | 130 |
Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,490 | |
Loans Held for Sale | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,490 | |
Individually Evaluated Collateral Dependent Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 278 | 130 |
Individually Evaluated Collateral Dependent Loans | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 278 | $ 130 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Transfers between levels | $ 0 | $ 0 | $ 0 | $ 0 |
Mergers - Additional Informatio
Mergers - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Goodwill | $ 51,912 | $ 51,912 |