Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 12, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 378.5 | ||
Entity Common Stock, Shares Outstanding | 6,960,194 | ||
Entity File Number | 001-38184 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2777442 | ||
Entity Address, Address Line One | 1336 Massachusetts Avenue | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02138 | ||
City Area Code | 617 | ||
Local Phone Number | 876-5500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on May 17, 2021, are incorporated by reference into Part III of this Report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 75,785 | $ 61,335 |
Investment securities | ||
Available for sale, at fair value (amortized cost $234,252 and $141,109, respectively) | 237,030 | 140,330 |
Held to maturity, at amortized cost (fair value $260,139 and $264,114, respectively) | 247,672 | 258,172 |
Total investment securities | 484,702 | 398,502 |
Loans held for sale, at lower of cost or fair value | 6,909 | 1,546 |
Loans | ||
Total loans | 3,153,648 | 2,226,728 |
Less: allowance for credit losses on loans | (36,016) | (18,180) |
Net loans | 3,117,632 | 2,208,548 |
Federal Home Loan Bank of Boston Stock, at cost | 5,734 | 7,854 |
Bank owned life insurance | 46,169 | 37,319 |
Banking premises and equipment, net | 18,158 | 14,756 |
Right-of-use asset operating leases | 34,927 | 33,587 |
Deferred income taxes, net | 11,639 | 8,229 |
Accrued interest receivable | 9,514 | 7,052 |
Goodwill | 51,912 | 31,206 |
Merger related intangibles, net | 2,977 | 3,338 |
Other assets | 83,239 | 42,291 |
Total assets | 3,949,297 | 2,855,563 |
Deposits | ||
Demand | 1,006,132 | 630,593 |
Interest bearing checking | 625,650 | 450,098 |
Money market | 532,218 | 181,406 |
Savings | 984,262 | 914,499 |
Certificates of deposit | 254,821 | 182,282 |
Total deposits | 3,403,083 | 2,358,878 |
Borrowings | 32,992 | 135,691 |
Operating lease liabilities | 37,448 | 35,054 |
Other liabilities | 74,042 | 39,379 |
Total liabilities | 3,547,565 | 2,569,002 |
Shareholders’ Equity | ||
Common stock, par value $1.00; Authorized 10,000,000 shares; Outstanding: 4,082,188 shares and 4,036,879 shares, respectively | 6,927 | 5,401 |
Additional paid-in capital | 226,967 | 136,766 |
Retained earnings | 165,404 | 146,875 |
Accumulated other comprehensive income (loss) | 2,434 | (2,481) |
Total shareholders’ equity | 401,732 | 286,561 |
Total liabilities and shareholders’ equity | 3,949,297 | 2,855,563 |
Residential Mortgage | ||
Loans | ||
Total loans | 1,298,868 | 917,566 |
Less: allowance for credit losses on loans | (5,141) | |
Commercial Mortgage | ||
Loans | ||
Total loans | 1,358,962 | 1,060,574 |
Home Equity | ||
Loans | ||
Total loans | 106,194 | 80,675 |
Less: allowance for credit losses on loans | (461) | |
Commercial & Industrial | ||
Loans | ||
Total loans | 347,855 | 133,236 |
Less: allowance for credit losses on loans | (1,388) | |
Consumer | ||
Loans | ||
Total loans | $ 41,769 | 34,677 |
Less: allowance for credit losses on loans | $ (198) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Available for sale securities, amortized cost | $ 234,252 | $ 141,109 |
Held-to-maturity securities, fair value | $ 260,139 | $ 264,114 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding | 6,926,728 | 5,400,868 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income | |||
Interest on taxable loans | $ 119,447 | $ 84,382 | $ 57,941 |
Interest on tax-exempt loans | 880 | 584 | 371 |
Interest on taxable investment securities | 6,048 | 7,963 | 7,457 |
Interest on tax-exempt investment securities | 2,485 | 2,289 | 2,404 |
Dividends on FHLB of Boston stock | 331 | 390 | 287 |
Interest on overnight investments | 187 | 731 | 595 |
Total interest and dividend income | 129,378 | 96,339 | 69,055 |
Interest expense | |||
Interest on deposits | 7,295 | 15,641 | 5,023 |
Interest on borrowed funds | 1,406 | 2,002 | 444 |
Interest on subordinated debt | 444 | ||
Total interest expense | 9,145 | 17,643 | 5,467 |
Net interest and dividend income | 120,233 | 78,696 | 63,588 |
Provision for credit losses | 18,310 | 3,004 | 1,502 |
Net interest and dividend income after provision for credit losses | 101,923 | 75,692 | 62,086 |
Noninterest income | |||
Bank owned life insurance income | 747 | 612 | 526 |
Gain (loss) on disposition of investment securities | 69 | (79) | 2 |
Gain on loans sold | 1,850 | 1,170 | 99 |
Loan related derivative income | 1,479 | 1,674 | 1,651 |
Other income | 1,726 | 1,927 | 1,269 |
Total noninterest income | 39,525 | 36,401 | 32,989 |
Noninterest expense | |||
Salaries and employee benefits | 58,975 | 47,494 | 41,212 |
Occupancy and equipment | 13,004 | 10,855 | 9,072 |
Data processing | 7,662 | 6,232 | 5,177 |
Professional services | 4,190 | 3,623 | 3,258 |
Marketing | 1,818 | 1,760 | 2,229 |
FDIC insurance (credit) | 992 | 291 | 574 |
Nonoperating expenses | 7,612 | 4,721 | 201 |
Other expenses | 3,832 | 3,199 | 2,264 |
Total noninterest expense | 98,085 | 78,175 | 63,987 |
Income before income taxes | 43,363 | 33,918 | 31,088 |
Income tax expense | 11,404 | 8,661 | 7,207 |
Net income | $ 31,959 | $ 25,257 | $ 23,881 |
Share data: | |||
Weighted average number of shares outstanding, basic | 6,289,481 | 4,629,255 | 4,061,529 |
Weighted average number of shares outstanding, diluted | 6,344,409 | 4,661,720 | 4,098,633 |
Basic earnings per share | $ 5.07 | $ 5.41 | $ 5.82 |
Diluted earnings per share | $ 5.03 | $ 5.37 | $ 5.77 |
Wealth Management Revenue | |||
Noninterest income | |||
Noninterest income | $ 29,751 | $ 26,499 | $ 25,191 |
Deposit Account Fees | |||
Noninterest income | |||
Noninterest income | 2,595 | 3,185 | 3,071 |
ATM/Debit Card Income | |||
Noninterest income | |||
Noninterest income | $ 1,308 | $ 1,413 | $ 1,180 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 31,959 | $ 25,257 | $ 23,881 |
Available for sale securities | |||
Unrealized holding gains(losses) | 2,800 | 2,500 | (242) |
Less: reclassification adjustment for (gains)losses realized in net income | (57) | 62 | (2) |
Total unrealized gains(losses) on available for sale securities | 2,743 | 2,562 | (244) |
Interest rate swaps designated as cash flow hedges | |||
Unrealized holding gains(losses) | 4,758 | 713 | 720 |
Less: reclassification adjustment for (gains)losses realized in net income | (1,354) | 108 | 31 |
Defined benefit retirement plans | |||
Change in retirement liabilities | (1,232) | 623 | 89 |
Other comprehensive income | 4,915 | 4,006 | 596 |
Comprehensive income | $ 36,874 | $ 29,263 | $ 24,477 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Optima Bank And Trust Company | Wellesley Bancorp Inc | Common Stock | Common StockOptima Bank And Trust Company | Common StockWellesley Bancorp Inc | Additional Paid-In Capital | Additional Paid-In CapitalOptima Bank And Trust Company | Additional Paid-In CapitalWellesley Bancorp Inc | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income / (Loss) | Accumulated Other Comprehensive Income / (Loss)Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance at Dec. 31, 2017 | $ 147,957 | $ 4,082 | $ 35,663 | $ 114,093 | $ 1,202 | $ (5,881) | $ (1,202) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Net income | $ 23,881 | $ 23,881 | ||||||||||||
Other comprehensive income | 596 | $ 596 | ||||||||||||
Share based compensation and other share-based activity | 2,633 | $ 25 | $ 2,608 | |||||||||||
Dividends declared | (8,041) | (8,041) | ||||||||||||
Ending balance at Dec. 31, 2018 | 167,026 | 4,107 | 38,271 | 131,135 | (6,487) | |||||||||
Net income | 25,257 | 25,257 | ||||||||||||
Other comprehensive income | 4,006 | 4,006 | ||||||||||||
Share based compensation and other share-based activity | 2,170 | 20 | 2,150 | |||||||||||
Dividends declared | (9,517) | (9,517) | ||||||||||||
Common stock issued for merger | $ 59,417 | $ 723 | $ 58,694 | |||||||||||
Common stock offering | 38,202 | 551 | 37,651 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 286,561 | $ (347) | $ 5,401 | $ 136,766 | $ 146,875 | $ (347) | $ (2,481) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Net income | $ 31,959 | $ 31,959 | ||||||||||||
Other comprehensive income | 4,915 | $ 4,915 | ||||||||||||
Share based compensation and other share-based activity | 4,564 | $ 23 | $ 4,541 | |||||||||||
Dividends declared | (13,083) | (13,083) | ||||||||||||
Common stock issued for merger | $ 87,163 | $ 1,503 | $ 85,660 | |||||||||||
Ending balance at Dec. 31, 2020 | $ 401,732 | $ 6,927 | $ 226,967 | $ 165,404 | $ 2,434 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retained Earnings | |||
Dividends declared, per share | $ 2.12 | $ 2.04 | $ 1.96 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 31,959 | $ 25,257 | $ 23,881 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 18,310 | 3,004 | 1,502 |
Amortization(accretion) of deferred charges and fees net | (780) | 166 | 777 |
(Accretion), depreciation, and amortization, net | (8,134) | 828 | 1,888 |
Bank owned life insurance income | (747) | (612) | (526) |
(Gain)/loss on disposition of investment securities | (69) | 79 | (2) |
Share based compensation and other share-based activity | 4,564 | 2,170 | 2,633 |
Change in accrued interest receivable | 253 | (162) | (634) |
Deferred income tax (benefit)/expense | (665) | 110 | (721) |
Change in other assets, net | (22,863) | (11,667) | (12,231) |
Change in other liabilities, net | 20,332 | 11,166 | 7,455 |
Change in loans held for sale | (5,363) | (1,546) | |
Net cash provided by operating activities | 36,797 | 28,793 | 24,022 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Origination of loans | (1,070,321) | (790,097) | (596,259) |
Proceeds from principal payments of loans | 1,022,516 | 524,907 | 387,537 |
Proceeds from loan pool sale | 74,412 | ||
Proceeds from calls/maturities of securities available for sale | 47,087 | 49,832 | 35,415 |
Purchase of securities available for sale | (140,570) | (23,450) | |
Proceeds from sales of securities available for sale | 10,821 | 26,552 | 702 |
Proceeds from calls/maturities of securities held to maturity | 56,007 | 72,655 | 33,064 |
Purchase of securities held to maturity | (33,818) | (48,906) | (84,261) |
Proceeds from settlement of bank owned life insurance policies | 676 | ||
Redemption (purchase) of FHLB of Boston stock | 8,505 | 456 | (2,602) |
Purchase of banking premises and equipment | (2,218) | (1,896) | (1,155) |
Net cash acquired in business combinations | 43,063 | 2,063 | |
Net cash used in investing activities | (58,928) | (113,472) | (226,883) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Change in demand, interest bearing, money market and savings accounts | 422,866 | 171,961 | 74,421 |
Change in certificates of deposit | (138,213) | (101,928) | (38,467) |
Change in borrowings | (224,989) | 28,823 | 89,830 |
Proceeds from common stock offering (net of underwriting fees) | 38,202 | ||
Redemption of subordinated debt | (10,000) | ||
Cash dividends paid on common stock | (13,083) | (9,517) | (8,041) |
Net cash provided by financing activities | 36,581 | 127,541 | 117,743 |
Net change in cash and cash equivalents | 14,450 | 42,862 | (85,118) |
Cash and cash equivalents at beginning of period | 61,335 | 18,473 | 103,591 |
Cash and cash equivalents at end of period | 75,785 | 61,335 | 18,473 |
Cash paid during the period for: | |||
Interest | 9,172 | 17,918 | 5,457 |
Income taxes | 14,628 | 7,770 | $ 8,330 |
Significant non-cash transactions | |||
Right-of-use assets for lessee operating leases | 33,587 | ||
Right-of-use liabilities for lessee operating leases | 35,054 | ||
Transfer of other real estate owned | 2,293 | 163 | |
Common Stock issued to shareholders due to merger | 87,163 | 59,417 | |
Fair value of assets acquired, net of cash acquired | 961,668 | 548,801 | |
Fair value of liabilities assumed | $ 917,569 | $ 491,447 |
The Business
The Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Business | 1. THE BUSINESS The accompanying 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 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, 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 is a private bank offering a full range of private banking and wealth management services to our clients. The private banking business, the Company’s only reportable operating segment, is managed as a single strategic unit. As a private bank, the Company focuses on four core services that center around client needs. The core services include Wealth Management, Commercial Banking, Residential Lending, and Personal Banking. The Bank offers a full range of commercial and consumer banking services through its network of 21 private banking offices in Massachusetts and New Hampshire. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities and has two wholly owned Massachusetts security corporations, CTC Security Corporation and CTC Security Corporation III, for this purpose. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC Regulations. Trust and investment management services are offered through the Bank’s private banking offices in Massachusetts and New Hampshire, and its wealth management offices located in Boston and Wellesley, Massachusetts and Concord, Manchester, and Portsmouth, New Hampshire. The Bank also has a non-depository trust company, Cambridge Trust Company of New Hampshire, Inc., which allows non-New Hampshire residents the opportunity to take advantage of the state’s favorable trust laws. The assets held for wealth management clients are not assets of the Bank and, accordingly, are not reflected in the accompanying consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). 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, the valuation of deferred tax assets, and the valuation of assets acquired and liabilities assumed in business combinations are particularly subject to change. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities. Debt securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Purchase premiums and discounts are recognized in interest income using the effective yield or straight-line method over the term of the securities, except for callable debt securities for which the purchase premiums are recognized through the earliest call date. Gains and losses on the sale of debt securities are recorded on the trade date and determined using the specific identification method. Allowance for Credit Losses- Held to Maturity Securities The Company measures expected credit losses on held to maturity debt securities on a collective basis by security type and risk rating where available. The reserve for each pool is calculated based on a Probability of Default/Loss Given Default (“PD/LGD”) basis taking into consideration the expected life of each security. Held to maturity securities which are issued by the United States of America (“U.S.”) or are guaranteed by U.S. federal agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise’s (“GSE”) ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government’s implicit guarantee on such securities. For securities which are not U.S. treasury or agency backed, risk ratings are generally sourced from Moody’s or Standard & Poor’s (“S&P”). The Company updates loss given default, probability of default, and recovery rates for each security as that information becomes available but no less than annually. The expected remaining life to maturity of each applicable security is updated quarterly. Any expected credit losses on held to maturity securities would be presented as an allowance rather than as a direct write-down through the consolidated statement of income if the Company does not intend to sell or believes that it is more-likely-than-not that the Company will be required to sell the security. Allowance for Credit Losses-Available for Sale Securities The Company measures expected credit losses on available for sale securities based upon the gain or loss position of the security. For available-for sale debt securities in an unrealized loss position, which the Company does not intend to sell, or it is not more likely than not that the Company will be required to sell the security before recovery of the Company’s amortized cost, the Company evaluates qualitative criteria to determine any expected loss. This includes among other items the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. The Company also evaluates quantitative criteria including determining whether there has been an adverse change in expected future cash flows of the security. If the Company does not expect to recover the entire amortized cost basis of the security, an allowance for credit losses would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the security’s amortized cost basis and its fair value in earnings. Prior to the adoption of Topic 326 on January 1, 2020, declines in the fair value of investment securities below their amortized cost that were deemed to be other-than-temporary were reflected in earnings as realized losses to the extent the impairment was related to credit losses. The amount of the impairment related to other factors was recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considered: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery. Loans Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for credit losses. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Allowance for Credit Losses - Loans Losses on loan receivables are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance as of the period end date. The Company uses a discounted cash flow method incorporating probability of default and loss given default forecasted based on statistically derived economic variable loss drivers combined with qualitative factors, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, considering historical experience, current conditions, and future expectations for homogeneous pools of loans over the reasonable and supportable forecast period. The reasonable and supportable forecast period is determined based upon the accuracy level of historical loss forecast estimates, the specific loan level models and methodology utilized, and considers material changes in growth and credit strategy, and business changes. For periods beyond a reasonable and supportable forecast interval, the Company revert s to historical information over a period for which comparable data is available. The historical information either experienced by the Company , or by a selection of peer banks when appropriate, is derived from a combination of recessionary and non-recessionary performance periods for which data is available. Similar to the reasonable and supportable forecast period, the Company reassess es the reversion period at the segment level, considering any required adjustments for differences in underwriting standards, portfolio mix, and other relevant data shifts over time. The Company generally segments its loan receivable population into homogeneous pools of loans. Consistent with the Company’s other assumptions, the Company regularly reviews segmentation to determine whether the segmentation pools remain relevant as risk characteristics change. When a loan no longer meets the criteria of its initial pooling as a result of credit deterioration or other changes, the Company may evaluate the credit for estimated losses on an individual basis if it determines that they no longer retain the same risk characteristics. To the extent that there are a multitude of these loans with new similar credit characteristics, the Company would anticipate a change to the pooling methodology. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. For loans with real estate collateral, when management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The Company evaluates the loan allowance for credit losses quarterly. The Company regularly reviews its collection experience (including delinquencies and net charge-offs) in determining our allowance for credit losses. The Company also considers its historical loss experience to date based on actual defaulted loans and overall portfolio indicators including delinquent and non-accrual loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment and interest rate changes. The underlying assumption estimates and assessments the Company uses to estimate the allowance for credit losses reflects the Company’s best estimate of model assumptions and forecasted conditions at that time. Changes in such estimates can significantly affect the allowance and provision for credit losses. It is possible and likely that the Company will experience credit losses that are different from the current estimates. The provision for credit losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent credit losses as of the evaluation date. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for credit losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses, generally at the time cash is received on a charged-off account. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for credit losses in the period in which they become known. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Company generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Company does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Company generally does not originate loans in this segment with a loan-to-value ratio greater than 75 . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial & industrial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. In addition, this segment includes loans issued under the United States Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). These loans are guaranteed and are not evaluated for an allowance for credit losses because the Company expects the guarantees will be effective, if necessary. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Company’s loans are concentrated in Eastern Massachusetts and Southern New Hampshire and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for credit losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. Allowance for Credit Losses- Unfunded Commitments The expected credit losses for unfunded commitments are measured over the contractual period of the Company’s exposure to credit risk. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, for the risk of loss, and current conditions and expectations. Management periodically reviews and updates its assumptions for estimated funding rates based on historical rates, and factors such as portfolio growth, changes to organizational structure, economic conditions, borrowing habits, or any other factor which could impact the likelihood that funding will occur. The Company does not reserve for unfunded commitments which are unconditionally cancellable. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors, including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they may be susceptible to significant change. Effective January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed PCD at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as provision for credit losses. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Loan Losses Prior to the adoption of CECL on January 1, 2020, the Company calculated provision for loan losses and the level of the allowance for loan losses to reflect management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management used a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate was made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments were further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment was based on a process that evaluated the risk characteristics relevant to each portfolio segment and took into consideration multiple internal and external factors. Internal factors included, but were not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors included, but were not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluated certain loans individually for specific impairment. A loan was considered impaired when, based on current information and events, it was probable that the Bank would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experienced insignificant payment delays and payment shortfalls generally were not classified as impaired. Loans were selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount was allocated to an individual loan when such loan had been deemed impaired and when the amount of the probable loss was able to be estimated. Estimates of loss were determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan was collateral dependent. Loans Held for Sale Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans sold. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans sold on the consolidated statements of income. Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Company is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received in excess of cash surrender value, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit the Company’s investment in bank-owned life insurance to 25% of our Tier 1 capital plus its allowance for credit losses. The Company reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation, and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. Leases The Company leases office space, certain branch locations under noncancelable operating leases, and two automated teller machine (“ATM”) locations, several of which have renewal options to extend lease terms. Upon commencement of a new lease, the Company will recognize a right of use (“ROU”) asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by Marketing Expense Advertising costs are expensed as incurred. Other Real Estate Owned Other real estate owned consists of properties formerly pledged as collateral to loans, which have been acquired by the Company through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for credit losses. Expenses and subsequent adjustments to the fair value are treated as noninterest expense through other expenses. Goodwill, Core Deposit Intangibles, and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Core deposit intangible (“CDI”) represents a premium paid to acquire the core deposits of an institution and is recorded as an intangible asset. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. There was no goodwill impairment recognized during 2020, 2019, or 2018. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the CDI on a straight-line basis over a ten-year period. Mortgage servicing rights (“MSR”) are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, the state of Maine, and other states as required. For the tax year ended December 31, 2020, the Company expects to will file taxes in Massachusetts, New Hampshire, and Maine. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expenses in the period of enactment. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. Wealth Management The Company earns wealth management fees for providing investment management, trust administration, and financial planning services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the monthly value of the assets under management and the applicable fee rate, or at a fixed annual rate, depending on the terms of the contract. No performance-based incentives are earned on wealth management contracts. The Company also earns trust fees for servicing as trustee for certain clients. As trustee, the Company serves as a fiduciary, administers the client’s trust, and in some cases, manages the assets of the trust. The Company’s performance obligation under these agreements is satisfied over time as the administrative and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account or at a fixed annual rate as outlined in the agreement. The Company also earns fees for trust related activities. The Company’s performance obligation under these agreements is satisfied at a point in time and recognized when these services have been performed. Other Banking Fee Income The Company charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, wire transfer fees, maintenance fees, ATM fee charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charged to clients based on disclosures presented to these clients upon opening these accounts, along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service and maintenance charges are recognized in the month they are earned and are charged directly to the client’s account. Pension and Retirement Plans The Company sponsors a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. Effective December 31, 2017, the accrual of benefits for all participants in the Pension Plan was frozen. Benefits for the postretirement health care plan are based on years of service. Expense for the postretirement health care plan is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. Effective November 7, 2019, the postretirement health care plan was frozen for employees hired after that date. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board of Directors discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. 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. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, . Each year, the Company may also make a discretionary contribution to the PSP based on eligible salary, bonus, and incentive. Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, time-based restricted stock units (“RSUs”), and performance-based restricted stock units (“PRSUs”). Compensation expense for restricted stock awards is recognized over the service period based on the fair value at the date of grant. RSUs and PRSUs are valued at the fair market value of the Company’s common stock as of the award date. PRSUs’ compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur, no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. Fair Value Measurements Fair value is defined as 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. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 82 |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Standards | 3. Recently Issued and Adopted Accounting Standards Accounting Pronouncements Yet to be Adopted Accounting Standards Update (“ASU”) 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting • Simplify accounting analyses for contract modifications. • Allow hedging relationships to continue without de-designation if there are qualifying changes in the critical terms of an existing hedging relationship due to reference rate reform. • Allow a change in the systematic and rational method used to recognize in earnings the components excluded from the assessment of hedge effectiveness. • Allow a change in the designated benchmark interest rate to a different eligible benchmark interest rate in a fair value hedging relationship. • Allow the shortcut method for a fair value hedging relationship to continue for the remainder of the hedging relationship. • Simplify the assessment of hedge effectiveness and provide temporary optional expedients for cash flow hedging relationships affected by reference rate reform. • Allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the impact the adoption of this guidance will have on its consolidated balance sheets, statements of income, and cash flows. Accounting Pronouncements Adopted in 2020 Accounting Standards Update 2018-13 - Changes to the Disclosure Requirements for Fair Value Measurement . Accounting Standards Update 2018-14 - Changes to the Disclosure Requirements for Defined Benefit Plans . Accounting Standards Update 2016-13 - Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments ASU 2016-13 also applies to OBS credit exposure not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar investment) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 - Leases January 1, 2020 CECL Transition (Day 1) Impact The CECL methodology reflects the Company’s view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company’s loan and investment portfolios as of the adoption date. The following table illustrates the impact of Topic 326: January 1, 2020 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (dollars in thousands) ASSETS Loans Residential mortgage $ 7,202 $ 5,141 $ 2,061 Commercial mortgage 9,545 10,992 (1,447 ) Home equity 256 461 (205 ) Commercial & industrial 896 1,388 (492 ) Consumer 486 198 288 Allowance for credit losses on loans $ 18,385 $ 18,180 $ 205 LIABILITIES Allowance for credit losses on OBS credit exposure $ 326 $ 50 $ 276 |
Mergers
Mergers | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Mergers | 4. Mergers Wellesley Bancorp, Inc. On June 1, 2020, the Company completed its merger with Wellesley Bancorp, Inc. (“Wellesley”), adding 6 banking offices in Massachusetts. Under the terms of the Agreement and Plan of Merger, each outstanding share of Wellesley common stock was converted into 0.580 shares of the Company’s common stock. As a result of the merger, former Wellesley stockholders received an aggregate of 1,502,814 shares of the Company's common stock. The total consideration paid amounted to $88.8 million, based on the closing price of $58.00 of the Company's common stock, the value of Wellesley's exercisable options, and cash paid for fractional shares on May 31, 2020. The Company accounted for the merger using the acquisition method pursuant to ASC Topic 805, “Business Combinations”. Accordingly, the Company recorded merger expenses of $6.4 million during the year ended at December 31, 2020. Additionally, on June 1, 2020, the Company recorded $8.6 million in provision for credit losses to reflect the impact of CECL on the acquired loans. The acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: At June 1, 2020 Wellesley Book Value Purchase Accounting Adjustments Net Assets Acquired at Fair Value (dollars in thousands) Total Purchase Price $ 88,766 Assets Cash and cash equivalents $ 44,667 $ — $ 44,667 Investments 23,331 — 23,331 Gross Loans 883,659 (13,626 ) 870,033 Allowance for loan loss (8,461 ) 8,461 — Premises and equipment 2,972 1,040 4,012 Other assets 41,082 2,505 43,587 Total assets acquired 987,250 (1,620 ) 985,630 Liabilities Deposits 758,976 1,902 760,878 Borrowings & Subordinated debt 132,005 477 132,482 Other liabilities 21,847 2,362 24,209 Total liabilities assumed 912,828 4,741 917,569 Net Assets Acquired $ 74,422 $ (6,361 ) $ 68,061 Goodwill $ 20,705 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life, and/or contractual term of the related assets and liabilities. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Investments The fair values of securities were based on quoted market prices for identical securities received from an independent, nationally recognized, third-party pricing service. Prices provided by the independent pricing service were based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads, and estimated prepayment rates where applicable. Loans Fair value was determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of default rate and prepayments, and then applying a market-based discount rate to those cash flows. Premises and Equipment The fair value of premises was determined based upon appraisals by licensed real estate appraisers. The appraisal was based upon the best and highest use of the property with the final value determined based upon an analysis of the cost, sales comparison, and income capitalization approaches for the property appraised. Deposits The fair value of acquired savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was determined based on the present value of the contractual cash flows over the remaining period to maturity using a market interest rate. Borrowings The fair value represents the adjustment necessary because the weighted average interest rate of the Federal Home Loan Bank borrowings differed from the cost of similar funding at the time of acquisition. Subordinated Debt The fair value represents the adjustment necessary because the interest rate of the subordinated debt differed from the cost of similar funding at the time of acquisition. Optima Bank & Trust Company The Company completed its merger with Optima Bank & Trust Company (“Optima”) on April 17, 2019. Under the terms of the Agreement and Plan of Merger, each outstanding share of Optima common stock was converted into $32.00 in cash or 0.3468 shares of the Company’s common stock, with the transaction structured as 95 percent common stock and 5 percent cash. As a result of the merger, former Optima shareholders received an aggregate of approximately 722,746 shares of the Company’s common stock and an aggregate of approximately $3.5 million in cash. The total consideration paid amounted to $64.3 million. The Company accounted for the merger using the acquisition method and recorded total assets of $555.7 million, including $30.8 million in goodwill, and assumed total liabilities of $491.4 million. Additionally, the Company recorded merger expenses of $3.9 million during the year ended December 31, 2019. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. CASH AND CASH EQUIVALENTS At December 31, 2020 and 2019, cash and due from banks totaled $75.8 million and $61.3 million, respectively. There were no amounts required to be maintained at the Federal Reserve Bank of Boston (“FRB”) at December 31, 2020. At December 31, 2019, the Company maintained $31.5 million of cash and cash equivalents at the FRB to satisfy reserve requirements. Additionally, at December 31, 2020 and 2019, 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 also pledged cash collateral to derivative counterparties totaling $29.9 million and $10.4 million at December 31, 2020 and 2019, respectively. See Note 21 - Derivatives and Hedging Activities . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 6. INVESTMENT SECURITIES Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Available for sale securities U.S. GSE obligations $ 22,995 $ 641 $ (19 ) $ 23,617 $ 38,000 $ — $ (152 ) $ 37,848 Mortgage-backed securities 208,515 2,502 (387 ) 210,630 103,109 231 (858 ) 102,482 Corporate debt securities 2,742 41 — 2,783 — — — — Total available for sale securities $ 234,252 $ 3,184 $ (406 ) $ 237,030 $ 141,109 $ 231 $ (1,010 ) $ 140,330 Held to maturity securities U.S. GSE obligations $ — $ — $ — $ — $ 5,000 $ — $ — $ 5,000 Mortgage-backed securities 137,435 6,784 (97 ) 144,122 161,759 2,751 (111 ) 164,399 Corporate debt securities 6,989 197 — 7,186 6,980 116 — 7,096 Municipal securities 103,248 5,643 (60 ) 108,831 84,433 3,252 (66 ) 87,619 Total held to maturity securities $ 247,672 $ 12,624 $ (157 ) $ 260,139 $ 258,172 $ 6,119 $ (177 ) $ 264,114 Total $ 481,924 $ 15,808 $ (563 ) $ 497,169 $ 399,281 $ 6,350 $ (1,187 ) $ 404,444 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 “FHLMA”). The amortized cost and fair value of investment securities, aggregated by contractual maturity, are shown below. Municipal securities are aggregated by the earliest of call date or contractual maturity. 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 Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2020 (dollars in thousands) Available for sale securities U.S. GSE obligations $ — $ — $ 9,995 $ 9,983 $ 5,000 $ 5,150 $ 8,000 $ 8,484 $ 22,995 $ 23,617 Mortgage-backed securities 1 1 4,226 4,318 54,849 56,127 149,439 150,184 208,515 210,630 Corporate debt securities 1,001 1,002 1,741 1,781 — — — — 2,742 2,783 Total available for sale securities $ 1,002 $ 1,003 $ 15,962 $ 16,082 $ 59,849 $ 61,277 $ 157,439 $ 158,668 $ 234,252 $ 237,030 Held to maturity securities Mortgage-backed securities $ — $ — $ 2 $ 2 $ 60,933 $ 64,779 $ 76,500 $ 79,341 $ 137,435 $ 144,122 Corporate debt securities — — 6,989 7,186 — — — — 6,989 7,186 Municipal securities 2,541 2,561 19,343 20,222 40,934 43,835 40,430 42,213 103,248 108,831 Total held to maturity securities $ 2,541 $ 2,561 $ 26,334 $ 27,410 $ 101,867 $ 108,614 $ 116,930 $ 121,554 $ 247,672 $ 260,139 Total $ 3,543 $ 3,564 $ 42,296 $ 43,492 $ 161,716 $ 169,891 $ 274,369 $ 280,222 $ 481,924 $ 497,169 The following tables show the Company’s investment securities with gross unrealized losses, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position at December 31, 2020: December 31, 2020 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Available for sale securities U.S. GSE obligations $ 4,981 $ (19 ) $ — $ — $ 4,981 $ (19 ) Mortgage-backed securities 91,094 (384 ) 944 (3 ) 92,038 (387 ) Total available for sale securities $ 96,075 $ (403 ) $ 944 $ (3 ) $ 97,019 $ (406 ) Held to maturity securities Mortgage-backed securities $ 16,340 $ (97 ) $ — $ — $ 16,340 $ (97 ) Municipal securities 6,221 (60 ) — — 6,221 (60 ) Total held to maturity securities $ 22,561 $ (157 ) $ — $ — $ 22,561 $ (157 ) Total $ 118,636 $ (560 ) $ 944 $ (3 ) $ 119,580 $ (563 ) December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Available for sale securities U.S. GSE obligations $ 12,912 $ (88 ) $ 24,936 $ (64 ) $ 37,848 $ (152 ) Mortgage-backed securities 33,381 (265 ) 50,766 (593 ) 84,147 (858 ) Total available for sale securities $ 46,293 $ (353 ) $ 75,702 $ (657 ) $ 121,995 $ (1,010 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 5,000 $ — $ 5,000 $ — Mortgage-backed securities 14,838 (27 ) 12,928 (84 ) 27,766 (111 ) Municipal securities 4,934 (66 ) — — 4,934 (66 ) Total held to maturity securities $ 19,772 $ (93 ) $ 17,928 $ (84 ) $ 37,700 $ (177 ) Total temporarily impaired securities $ 66,065 $ (446 ) $ 93,630 $ (741 ) $ 159,695 $ (1,187 ) The Company adopted Topic 326 on January 1, 2020 and did not record an allowance for credit losses on its investment securities as of December 31, 2020. The Company regularly reviews debt securities for expected credit loss using both qualitative and quantitative criteria, as necessary based on the composition of the portfolio at period end. Prior to January 1, 2020, investment securities were evaluated by management for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2020, 30 debt securities had gross unrealized losses, with an aggregate depreciation of 0.47% from the Company’s amortized cost basis. The largest unrealized dollar and percentage loss percentage of any single security was 2.07%, or $55,000. The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Amortized cost of securities sold $ 10,752 $ 26,631 $ 700 Gross gains realized on securities sold 111 — 2 Gross losses realized on securities sold (42 ) (79 ) Net proceeds from securities sold $ 10,821 $ 26,552 $ 702 The Company monitors the credit quality of certain debt securities through the use of credit rating among other factors on a quarterly basis. The following table summarizes the credit rating of the Company’s debt securities portfolio at December 31, 2020. December 31, 2020 Mortgage- backed Securities Corporate Debt Securities Municipal Securities U.S. GSE obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A (1) $ 210,630 $ 1,779 $ — $ 23,617 $ 236,026 BBB/BB/B — 1,004 — — 1,004 Total available for sale securities $ 210,630 $ 2,783 $ — $ 23,617 $ 237,030 Held to maturity securities, at amortized cost AAA/AA/A $ 137,435 $ 6,989 $ 102,973 $ — $ 247,397 BBB/BB/B — — 275 — 275 Total held to maturity securities $ 137,435 $ 6,989 $ 103,248 $ — $ 247,672 (1) Includes Agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or S&P. Each security contains a guarantee by the issuing GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | 7. LOANS AND ALLOWANCE FOR CREDIT LOSSES The Company’s lending activities are conducted primarily in Eastern Massachusetts and Southern New Hampshire. The Company grants single- and multi-family residential loans, commercial & industrial (“C&I”), commercial real estate (“CRE”), construction loans, and a variety of consumer loans. Most of the loans granted by the Company are secured by real estate collateral. Repayment of the Company’s residential loans are generally dependent on the health of the employment market in the borrowers’ geographic areas and that of the general economy with liquidation of the underlying real estate collateral being typically viewed as the primary source of repayment in the event of borrower default. The repayment of C&I loans depends primarily on the cash flow and credit worthiness of the borrower and secondarily on the underlying collateral provided by the borrower. As borrower cash flow may be difficult to predict, liquidation of the underlying collateral securing these loans is typically viewed as the primary source of repayment in the event of borrower default. However, collateral typically consists of equipment, inventory, accounts receivable, or other business assets that may fluctuate in value, so the liquidation of collateral in the event of default is often an insufficient source of repayment. The Company’s CRE loans are primarily made based on the cash flow from the collateral property and secondarily on the underlying collateral provided by the borrower, with liquidation of the underlying real estate collateral typically being viewed as the primary source of repayment in the event of borrower default. The Company’s construction loans are primarily made based on the borrower’s expected ability to execute and the future completed value of the collateral property, with sale of the underlying real estate collateral typically being viewed as the primary source of repayment. Loans outstanding are detailed by category as follows: December 31, 2020 December 31, 2019 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 535,804 $ 430,877 Mortgages - adjustable rate 734,593 467,139 Construction 25,495 17,374 Deferred costs net of unearned fees 2,976 2,176 Total residential mortgages 1,298,868 917,566 Commercial mortgage Mortgages - non-owner occupied 1,064,317 870,047 Mortgages - owner occupied 153,474 114,095 Construction 139,075 76,288 Deferred costs net of unearned fees 2,096 144 Total commercial mortgages 1,358,962 1,060,574 Home equity Home equity - lines of credit 102,460 73,880 Home equity - term loans 3,503 6,555 Deferred costs net of unearned fees 231 240 Total home equity 106,194 80,675 Commercial & industrial Commercial & industrial 223,415 133,337 PPP loans 126,227 — Unearned fees, net of deferred costs (1,787 ) (101 ) Total commercial & industrial 347,855 133,236 Consumer Secured 41,409 33,453 Unsecured 341 1,199 Deferred costs, net of unearned fees 19 25 Total consumer 41,769 34,677 Total loans $ 3,153,648 $ 2,226,728 The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provided emergency economic relief to individuals and businesses impacted by the novel coronavirus (“COVID-19”) pandemic. The CARES Act authorized the SBA to temporarily guarantee loans under a new 7(a) loan program called the PPP. As a qualified SBA lender, the Company was automatically authorized to originate PPP loans. An eligible business could apply for a PPP loan up to the lesser of: (1) 2.5 times its average monthly “payroll costs”; or (2) $10.0 million. PPP loans have: (a) an interest rate of 1.0%, (b) a two 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 will guarantee 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. 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 non-accrual 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: December 31, 2020 . Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 3,695 $ 3,917 $ — $ 132 $ 7,744 Loans past due >90 days, but still accruing — — — 407 407 Troubled debt restructurings 689 — — 122 811 Total $ 4,384 $ 3,917 $ — $ 661 $ 8,962 December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 1,298 $ 2,800 $ 12 $ 50 $ 4,160 Loans past due >90 days, but still accruing 527 486 — 251 1,264 Troubled debt restructurings 99 — — 128 227 Total $ 1,924 $ 3,286 $ 12 $ 429 $ 5,651 It is the Company’s policy to reverse any accrued interest when a loan is put on non-accrual status; as such the Company did not record any interest income on non-accrual loans during the years ended December 31, 2020 and 2019. Troubled Debt Restructurings (“TDRs”) Loans are considered restructured in a troubled debt restructuring when the Company has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Company by increasing the ultimate probability of collection. Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the restructuring generally remain on non-accrual status for approximately six months or longer before management considers such loans for return to accruing status. Accruing restructured loans are placed into non-accrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. TDRs are individually evaluated for credit losses. There was one new TDR during the year ended December 31, 2020. At December 31, 2020, four loans were determined to be TDRs with a total carrying value of $811,000. There were no TDR defaults during the year ended December 31, 2020. As of December 31, 2019 three loans were determined to be TDRs with a total carrying value of $227,000. There were no TDR defaults during the year ended December 31, 2019. The allowance for credit losses includes a specific reserve for these TDRs of approximately $90,000 as of December 31, 2020. The allowance for loan losses included a specific reserve for these TDRs of approximately $87,000 as of December 31, 2019. As of December 31, 2020 and 2019, there were no significant commitments to lend additional funds to borrowers whose loans were restructured. Pursuant to Section 4013 of the CARES Act, financial institutions can 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. On January 3, 2021, the President signed into law the Consolidated Appropriations Act, 2021 (the “Act”). As a result of the Act, the suspension of TDR accounting has been extended to the earlier of January 1, 2022, or the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared by the President terminates. The requirement that a loan be not more than 30 days past due as of December 31, 2019 is still applicable. In response to the COVID-19 and its economic impact to customers, a short-term modification program that complies 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 recently issued guidance, provided these loans were current as of either year end or the date of the modification, these loans are not considered TDR loans at December 31, 2020 and will not be reported as past due during the deferral period. As of December 31, 2020, the Company had $23.1 million of loans in deferral. Purchased Credit Deteriorated Loans As part of the Wellesley merger, the Company purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans was $16.9 million at December 31, 2020. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the statement of income. On June 1, 2020, the Company acquired PCD loans with a fair value of $18.6 million and total discount of $825,000. In connection with Topic 326, the fair value mark was reduced by $438,000, which represents the ACL amount recorded. The outstanding balance at December 31, 2020 and related allowance on PCD loans is as follows: Loan Balance ACL Balance (dollars in thousands) Residential Mortgages $ 558 $ 10 Commercial Mortgages 15,114 300 Home Equity 106 3 Commercial & Industrial 1,128 37 Consumer loans — — Total $ 16,906 $ 350 Loans by Credit Quality Indicator. Credit Quality Indicator - by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving loans amortized cost basis Total (in thousands) Residential: Current $ 398,267 $ 221,019 $ 158,962 $ 144,256 $ 106,360 $ 265,620 $ — $ 1,294,484 Non-performing — — 782 58 1,454 2,090 — 4,384 Total 398,267 221,019 159,744 144,314 107,814 267,710 — 1,298,868 Home equity: Current $ 2,131 $ 6,024 $ 7,997 $ 6,976 $ 2,119 $ 5,191 $ 75,756 $ 106,194 Non-performing — — — — — — — — Total $ 2,131 $ 6,024 $ 7,997 $ 6,976 $ 2,119 $ 5,191 $ 75,756 $ 106,194 Consumer: Current $ 16,192 $ 5,819 $ 3,652 $ 2,643 $ 4,879 $ 8,032 $ 552 $ 41,769 Non-performing — — — — — — — — Total $ 16,192 $ 5,819 $ 3,652 $ 2,643 $ 4,879 $ 8,032 $ 552 $ 41,769 Credit Quality Indicator - by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (in thousands) Commercial: Credit risk profile by internally assigned grade: 1-6 (Pass) $ 282,870 $ 396,026 $ 197,473 $ 106,489 $ 126,537 $ 221,257 $ — $ — $ 1,330,652 7 (Special Mention) — 872 13,445 1,270 85 8,304 — — 23,976 8 (Substandard) — 145 — — 215 3,300 — — 3,660 9 (Doubtful) — — — — — 674 — — 674 10 (Loss) — — — — — — — — — Total $ 282,870 $ 397,043 $ 210,918 $ 107,759 $ 126,837 $ 233,535 $ — $ — $ 1,358,962 Commercial & Industrial: Credit risk profile by internally assigned grade: 1-6 (Pass) $ 210,356 $ 51,424 $ 37,286 $ 23,700 $ 2,920 $ 7,373 $ 416 $ — $ 333,475 7 (Special Mention) 534 3,407 3,725 420 180 1,001 10 — 9,277 8 (Substandard) 1,333 1,116 544 — 1,907 203 — — 5,103 9 (Doubtful) — — — — — — — — — 10 (Loss) — — — — — — — — — Total $ 212,223 $ 55,947 $ 41,555 $ 24,120 $ 5,007 $ 8,577 $ 426 $ — $ 347,855 December 31, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 915,642 $ 80,663 $ 34,677 Non-performing 1,924 12 — Total $ 917,566 $ 80,675 $ 34,677 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 1,050,037 $ 123,900 7 (Special Mention) 7,360 4,289 8 (Substandard) 3,177 5,047 9 (Doubtful) — — 10 (Loss) — — Total $ 1,060,574 $ 133,236 With respect to residential real estate mortgages, home equity, and consumer loans, the Bank 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 non-accrual or are past due more than 90 days but are still accruing or are restructured. These loans may contain greater than average risk. With respect to commercial real estate mortgages and commercial loans, the Bank 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: December 31, 2020 30-59 Days 60-89 Days 90 Days or greater Total Past Due Current Loans Total Amortized Cost 90+ Days and Accruing (dollars in thousands) Residential Mortgages $ 12,647 $ 2,450 $ 2,335 $ 17,432 $ 1,281,436 $ 1,298,868 $ — Commercial Mortgages 1,080 — 674 1,754 1,357,208 1,358,962 — Home Equity 843 353 — 1,196 104,998 106,194 — Commercial & Industrial 276 1,917 409 2,602 345,253 347,855 407 Consumer loans 3,120 — — 3,120 38,649 41,769 — Total $ 17,966 $ 4,720 $ 3,418 $ 26,104 $ 3,127,544 $ 3,153,648 $ 407 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total Amortized Cost 90+ Days and Accruing (dollars in thousands) Residential Mortgages $ 8,710 $ 1,089 $ 1,047 $ 10,846 $ 906,720 $ 917,566 $ 527 Commercial Mortgages 811 — 3,161 3,972 1,056,602 1,060,574 486 Home Equity 57 12 — 69 80,606 80,675 — Commercial & Industrial 272 226 251 749 132,487 133,236 251 Consumer loans 4 5 — 9 34,668 34,677 — Total $ 9,854 $ 1,332 $ 4,459 $ 15,645 $ 2,211,083 $ 2,226,728 $ 1,264 There were no significant commitments to lend additional funds to borrowers whose loans were on non-accrual status at December 31, 2020. Allowance for Credit Losses The following tables contain changes in the allowance for credit losses disaggregated by loan category: For the Year Ended December 31, 2020 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan portfolio: Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ — $ 18,180 Adoption of ASC 326 2,061 (1,447 ) (205 ) (492 ) 288 — 205 Provision for acquired loans 2,880 3,625 188 1,577 12 — 8,282 Initial allowance for PCD 35 382 — 20 — — 437 Charge-offs — (264 ) — (400 ) (40 ) — (704 ) Recoveries — — — 250 15 — 265 Provision for (Release of)-loan portfolio 2,950 5,363 108 879 51 — 9,351 Allowance for credit losses - loan portfolio $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ — $ 36,016 Allowance for credit losses - unfunded commitments: Balance at December 31, 2019 $ — $ — $ — $ — $ — $ 50 $ 50 Adoption of ASC 326 — — — — — 276 276 Acquired loan commitments — — — — — 356 356 Provision for - unfunded commitments — — — — — 322 322 Allowance for credit losses-unfunded commitments — — — — — 1,004 1,004 Total allowance for credit loss $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ 1,004 $ 37,020 For the Year Ended December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 Charge-offs — (1,270 ) — (338 ) (48 ) — (1,656 ) Recoveries — — — 53 11 — 64 Provision for (Release of) 195 2,549 (56 ) 258 (29 ) 87 3,004 Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,388 $ 198 $ 87 $ 18,180 For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ 87 $ — $ 87 Collectively evaluated for impairment 5,141 10,905 461 1,388 198 18,093 Total $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ 18,180 Loans receivable Individually evaluated for impairment $ 764 $ 3,161 $ 92 $ 128 $ — $ 4,145 Collectively evaluated for impairment 916,802 1,057,413 80,583 133,108 34,677 2,222,583 Total $ 917,566 $ 1,060,574 $ 80,675 $ 133,236 $ 34,677 $ 2,226,728 The following is information pertaining to impaired loans: For the Year Ended December 31, 2019 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial mortgage $ 3,161 $ 1,385 $ 4,376 $ — $ 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total 4,019 2,172 5,449 — 41 With required reserve recorded: Commercial and industrial 128 59 167 87 — Total 128 59 167 87 — Total: Commercial and industrial 128 59 167 87 — Commercial mortgage 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total $ 4,147 $ 2,231 $ 5,616 $ 87 $ 41 |
Federal Home Loan Bank of Bosto
Federal Home Loan Bank of Boston Stock | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Bank of Boston | |
Federal Home Loan Bank Stock [Line Items] | |
Federal Home Loan Bank of Boston Stock | 8. FEDERAL HOME LOAN BANK OF BOSTON STOCK As a voluntary member of the FHLB of Boston, the Bank is required to invest in stock of the FHLB of Boston (which is considered a restricted equity security) in an amount based upon its outstanding advances from the FHLB of Boston. At December 31, 2020 and 2019, the Bank’s investment in FHLB of Boston stock totaled $5.7 million and $7.9 million, respectively. No market exists for shares of this stock. The Bank’s cost for FHLB of Boston stock is equal to its par value. Upon redemption of the stock, which is at the discretion of the FHLB of Boston, the Bank would receive an amount equal to the par value of the stock. At its discretion, the FHLB of Boston may also declare dividends on its stock. The Bank’s investment in FHLB of Boston stock is reviewed for impairment at each reporting date based on the ultimate recoverability of the cost basis of the stock. As of December 31, 2020 and 2019, no impairment has been recognized. |
Banking Premises and Equipment
Banking Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Banking Premises and Equipment | 9. BANKING PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2020 2019 Useful Lives (dollars in thousands) Land $ 1,516 $ 1,116 Building and leasehold improvements 20,017 17,817 3-30 years Equipment, including vaults 17,097 13,686 3-20 years Work in process 138 550 Subtotal 38,768 33,169 Accumulated depreciation and amortization (20,610 ) (18,413 ) Total $ 18,158 $ 14,756 Total depreciation expense for the years ended December 31, 2020, 2019, and 2018 amounted to $2.5 million, $2.0 million and $1.9 million, respectively, and is included in occupancy and equipment expenses in the accompanying consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 10. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. At December 31, 2020 and 2019, the carrying value of goodwill, which is included in other assets, totaled $51.9 million and $31.2 million, respectively. Goodwill is tested for impairment, based on its fair value, at least annually. As of December 31, 2020 and 2019, no goodwill impairment has been recognized. Core deposit intangibles . The Company recorded an asset for the CDI of $3.6 million related to the Optima merger. Amortization of CDI assets totaled $361,000 and $271,000 for the years ended December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the carrying value of CDI assets totaled $3.0 million and $3.3 million, respectively. The weighted-average remaining amortization period for CDI was 8.3 years at December 31, 2020. Mortgage servicing rights. Periodically, the Company sells certain residential mortgage loans to the secondary market. Generally, these loans are sold without recourse or other credit enhancements. The Company sells loans and either releases or retains the servicing rights. For loans sold with servicing rights retained, the Company provides the servicing for the loans on a per-loan fee basis. Mortgage loans sold and servicing rights retained during the years ended December 31, 2020, 2019, and 2018 were $60.5 million, $82.9 million, and $1.6 million, respectively. An analysis of mortgage servicing rights, which are included in other assets, follows: Mortgage Servicing Rights Valuation Allowance Total (dollars in thousands) Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 618 — 618 Amortization charged against servicing income (271 ) — (271 ) Change in impairment reserve — (26 ) (26 ) Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 Mortgage servicing rights acquired as a result of the merger 50 — 50 Mortgage servicing rights capitalized 536 — 536 Amortization charged against servicing income (572 ) — (572 ) Change in impairment reserve — (116 ) (116 ) Balance at December 31, 2020 $ 1,361 $ (142 ) $ 1,219 The fair value of the Company’s mortgage servicing rights portfolio was $1.2 million and $1.5 million as of December 31, 2020 and 2019, respectively. The fair value of mortgage servicing rights is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed, and servicing cost. The weighted-average amortization period for mortgage servicing rights portfolio was 3.3 years and 5.2 years at December 31, 2020 and 2019, respectively. The estimated aggregate future amortization expense for mortgage servicing rights for each of the next five years and thereafter is as follows: Future Amortization Expense (dollars in thousands) 2021 $ 370 2022 281 2023 205 2024 147 2025 82 Thereafter 134 Total $ 1,219 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposit | 11. DEPOSITS Deposits are summarized as follows: December 31, 2020 December 31, 2019 (dollars in thousands) Demand deposits (non-interest bearing) $ 1,006,132 $ 630,593 Interest bearing checking 625,650 450,098 Money market 532,218 181,406 Savings 984,262 914,499 Retail certificates of deposit under $250,000 127,202 113,940 Retail certificates of deposit $250,000 or greater 96,831 61,258 Wholesale certificates of deposit 30,788 7,084 Total deposits $ 3,403,083 $ 2,358,878 Certificates of deposit had the following schedule of maturities: December 31, 2020 December 31, 2019 (dollars in thousands) 2020 $ — $ 140,938 2021 215,206 30,240 2022 23,006 6,426 2023 11,997 3,071 2024 2,156 1,607 2025 2,456 — Total certificates of deposit $ 254,821 $ 182,282 Related Party Deposits Deposit accounts of directors, executive officers, and their respective affiliates totaled $7.7 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | 12. BORROWINGS Federal Home Loan Bank Advances At December 31, 2020 and 2019, the Company had $15.0 million and $135.7 million of short-term advances outstanding from the FHLB of Boston, with a weighted average rate of 2.14% and 2.31%, respectively. Information relating to long-term borrowings from the FHLB of Boston is presented below: December 31, 2020 Amount Rate (dollars in thousands) 2022 $ 595 1.84 % 2023* 17,240 3.61 $ 17,835 3.55 % *Includes a $15 million advance with an interest rate of 3.80%, that is callable by the FHLB of Boston on January 27, 2021. There were no long-term borrowings outstanding at December 31, 2019. Federal Reserve Bank PPP Loan Facility (“PPPLF”) Advances During the year ended December 31, 2020, in order to fund a portion of the Company’s PPP loan originations, the Company borrowed $85.4 million from the Federal Reserve Bank’s PPPLF, which carried a rate of 0.35% fixed for the term of the corresponding PPP loan. The Company pledged eligible PPP loans as collateral for the borrowings. At December 31, 2020, all of the Company’s borrowings under the PPPLF were repaid. Subordinated Debt In the fourth quarter of 2020, the Company redeemed $10.0 million in subordinated debt, bearing a 6.0% coupon, which was assumed as part of the Wellesley merger. Unused Borrowing Capacity with the FHLB of Boston and FRB Boston All short- and long-term borrowings with the FHLB of Boston are secured by the Company’s stock in the FHLB of Boston and a blanket lien on “qualified collateral” defined principally as 95% of the market value of certain U.S. Government and GSE obligations and 75% of the carrying value of certain residential mortgage loans. Based upon collateral pledged, the Bank’s unused borrowing capacity with the FHLB of Boston at December 31, 2020 was approximately $672.0 million. The Company also has a line of credit with the FRB Boston. At December 31, 2020 and 2019, the Company had pledged commercial real estate and commercial & industrial loans with aggregate principal balances of approximately $734.3 million and $316.4 million, respectively, as collateral for this line of credit. Based upon the collateral pledged, the Company’s unused borrowing capacity with the FRB Boston at December 31, 2020 and 2019 was approximately $562.4 million and $134.9 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES The components of income tax expense were as follows: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Current tax expense Federal $ 7,877 $ 5,954 $ 5,524 State 4,192 2,597 2,404 12,069 8,551 7,928 Deferred tax expense (benefit) Federal (250 ) (63 ) (490 ) State (415 ) 173 (231 ) (665 ) 110 (721 ) Total income tax expense $ 11,404 $ 8,661 $ 7,207 The following is a reconciliation of the total income tax expense, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2020 2019 2018 Dollars Rate Dollars Rate Dollars Rate (dollars in thousands) Income tax expense at statutory rates $ 9,106 21.0 % $ 7,123 21.0 % $ 6,528 21.0 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 2,984 6.9 2,188 6.5 1,717 5.5 Tax-exempt income (694 ) (1.6 ) (599 ) (1.8 ) (580 ) (1.9 ) ESOP dividends (125 ) (0.3 ) (124 ) (0.4 ) (127 ) (0.4 ) Bank owned life insurance (157 ) (0.4 ) (129 ) (0.4 ) (140 ) (0.5 ) Compensation limited under 162(m) 511 1.2 — — — — Benefit from stock compensation — — (150 ) (0.4 ) (168 ) (0.5 ) Non-deductible acquisition Costs 186 0.4 236 0.7 — — Impact of CARES Act (539 ) (1.2 ) — — — — Other 132 0.3 116 0.3 (23 ) (0.1 ) Total income tax expense $ 11,404 26.3 % $ 8,661 25.5 % $ 7,207 23.2 % The Coronavirus Aid, Relief, and Economic Security (the “CARES Act”) was signed into law on March 27, 2020, to help stimulate the United States economy. One of the business tax provisions of the CARES Act included allowing net operating losses (“NOL”) generated by the Company in tax years 2018 and 2019 to be carried back up to five years at the tax rates in effect during those periods, rather than carried forward at current federal tax rates of 21%. The effect of the Act allowed the Company to recognize lower tax expense associated with NOL carryforwards from 2018 and 2019 (as a result of the Optima merger) and resulted in a benefit of $ . The Company’s 2020 and 2019 net deferred tax assets were measured using a December 31, 2020 December 31, 2019 (dollars in thousands) Gross deferred tax assets Allowance for credit losses $ 10,336 $ 5,029 Accrued retirement benefits 1,576 1,592 Unrealized losses on available for sale securities — 171 Incentive compensation 1,591 1,248 Equity based compensation 1,343 1,034 Lease liability 10,455 9,765 ESOP dividends 166 165 Loss carryforwards as a result of the Optima merger 21 877 Intangibles / Fair value marks (merger related) 1,971 472 Other 205 252 Total gross deferred tax assets 27,664 20,605 Gross deferred tax liabilities Deferred loan origination costs (1,434 ) (911 ) Unrealized gains on available for sale securities (641 ) — Depreciation of premises and equipment (1,816 ) (1,021 ) Right of use asset (9,751 ) (9,356 ) Mortgage servicing rights (340 ) (368 ) Goodwill (115 ) (113 ) Derivative transactions (1,928 ) (607 ) Total gross deferred tax liabilities (16,025 ) (12,376 ) Net deferred tax asset $ 11,639 $ 8,229 It is management’s belief that it is more likely than not that the reversal of deferred tax liabilities and results of future operations will generate sufficient taxable income to realize the deferred tax assets. Therefore, no valuation allowance was required at either December 31, 2020 and 2019 for the deferred tax assets. It should be noted, however, that factors beyond management’s control, such as the general state of the economy and real estate values, can affect future levels of taxable income and that no assurance can be given that sufficient taxable income will be generated in future periods to fully absorb deductible temporary differences. At December 31, 2020 and 2019, the Company had no unrecognized tax benefits or any uncertain tax positions. The Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next 12 months. The Company’s federal income tax returns are open and subject to examination from the 2017 tax return year and forward. The Company’s state income tax returns are open from the 2017 and later tax return years based on individual states’ statute of limitations. |
Pension and Retirement Plans
Pension and Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Retirement Plans | 14. PENSION AND RETIREMENT PLANS The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10 % of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. The Company also offers postretirement health care benefits for current and future retirees of the Bank. Certain employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. Effective November 7, 2019, the postretirement health care plan was frozen for employees hired after that date. The Company uses a December 31 st measurement date each year to determine the benefit obligations for these plans. Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 45,401 $ 40,522 $ 9,622 $ 8,830 Service cost — — 355 283 Interest cost 1,438 1,680 283 349 Actuarial loss 4,827 4,670 840 770 Benefits paid (1,549 ) (1,471 ) (595 ) (610 ) Obligation at end of year 50,117 45,401 10,505 9,622 Change in plan assets Fair value at beginning of year 50,131 42,648 — — Actual return on plan assets 7,220 8,954 — — Employer contribution — — 595 610 Benefits paid (1,549 ) (1,471 ) (595 ) (610 ) Fair value at end of year 55,802 50,131 — — Funded status at end of year $ 5,685 $ 4,730 $ (10,505 ) $ (9,622 ) The discount rate used to calculate the benefit obligation for the 2020 fiscal year was 2.46%, as compared to 3.22%, for the 2019 fiscal year. This discount rate decrease was the primary source of the increase in the benefit obligation during the year. Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Accumulated benefit obligation 50,117 45,401 9,909 9,207 Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Other assets/(liabilities) $ 5,685 $ 4,730 $ (10,505 ) $ (9,622 ) Amounts recognized in accumulated other comprehensive income (loss) consisted of: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Net actuarial loss $ 4,517 $ 3,709 $ 1,959 $ 1,128 Prior service credit (3 ) (7 ) — — Total $ 4,514 $ 3,702 $ 1,959 $ 1,128 The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 355 $ 283 Interest cost 1,438 1,680 283 349 Expected return on assets (3,201 ) (2,721 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss — 154 8 — Net periodic benefit cost (1,767 ) (891 ) 646 632 Amounts recognized in other comprehensive income Net actuarial loss/(gain) 807 (1,563 ) 840 770 Amortization of prior service credit 4 4 — Amortization of net actuarial loss — (154 ) (8 ) — Total recognized in other comprehensive income 811 (1,713 ) 832 770 Total recognized in net periodic benefit cost and other comprehensive income $ (956 ) $ (2,604 ) $ 1,478 $ 1,402 Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 Discount rate 2.45 % 3.22 % 2.21 % 3.04 % Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 Discount rate 3.22 % 4.23 % 3.04 % 4.10 % Expected long-term return on plan assets 6.50 % 6.50 % N/A N/A Rate of compensation increase N/A N/A 4.00 % 4.00 % To develop the expected long-term rate of return on assets assumption for the Pension Plan, the Company considered the historical returns and the future expectations for returns for each asset class, as well as target asset allocations of the pension portfolio. The Company maintains an Investment Policy for its Pension Plan. The objective of this policy is to seek a balance between capital appreciation, current income, and preservation of capital, with a longer-term weighting towards equities because of the extended time horizon of the Pension Plan. The Investment Policy guidelines suggest that the target asset allocation percentages are from 30% to 60% in domestic large cap equities, from 5% to 20% in domestic small/mid cap equities, from 0% to 20% in international equities, and from 20% to 60% in cash and fixed income. The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2020 2019 Equity securities 42 % 53 % Debt securities 46 36 Other 9 3 Cash and equivalents 3 8 Total 100 % 100 % The three broad levels of fair values used to measure the Pension Plan assets are as follows: • Level 1 – Quoted prices for identical assets in active markets. • Level 2 – Quoted prices for similar assets in active markets; quoted prices for identical or similar assets 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. The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 1,527 $ — $ — $ 1,527 Fixed income — 14,402 — 14,402 Equity securities Common stock Large cap core 12,604 — — 12,604 Small cap core 1,767 — — 1,767 Mutual funds Domestic equity 9,306 — — 9,306 International 4,868 — — 4,868 Domestic fixed income 11,328 — — 11,328 Total $ 41,400 $ 14,402 $ — $ 55,802 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 4,834 $ — $ — $ 4,834 Fixed income — 7,197 — 7,197 Equity securities Common stock Large cap core 17,180 — — 17,180 Small cap core 2,627 — — 2,627 Mutual funds Domestic equity 3,931 — — 3,931 International 3,650 — — 3,650 Domestic fixed income 10,712 — — 10,712 Total $ 42,934 $ 7,197 $ — $ 50,131 There were no transfers between fair value levels during the years ended December 31, 2020 and 2019. The Company offers postretirement health care benefits for current and future retirees of the Bank. Employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligation for this plan. On November 7, 2019, the Company announced its decision to freeze the accrual of benefits to new hires within the plan. Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 689 $ 598 Service cost 30 25 Interest cost 21 25 Actuarial loss 51 76 Benefits paid (30 ) (35 ) Obligation at end of year 761 689 Change in plan assets Fair value at beginning of year — — Employer contribution 30 35 Benefits paid (30 ) (35 ) Fair value at end of year — — Funded status at end of year $ (761 ) $ (689 ) Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Accumulated benefit obligation 761 689 Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Other liabilities $ (761 ) $ (689 ) Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Net actuarial (gain)/loss $ 18 $ (34 ) The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Net periodic benefit cost Service cost $ 30 $ 25 Interest cost 21 25 Amortization of net actuarial gain — (3 ) Net periodic benefit cost 51 47 Amounts recognized in other comprehensive income/(loss) Net actuarial (gain) loss 51 76 Amortization of net actuarial loss — 3 Total recognized in other comprehensive income 51 79 Total recognized in net periodic benefit cost and other comprehensive income $ 102 $ 126 Weighted-average assumptions used to determine the projected benefit obligation are as follows: Postretirement Healthcare Plan 2020 2019 Discount rate 2.52 % 3.26 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2020 2019 Discount rate 3.26 % 4.22 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2020 2019 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2020 2019 Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2021 $ 1,829 $ 594 $ 33 $ 2,456 2022 1,966 611 33 2,610 2023 2,081 608 33 2,722 2024 2,156 604 33 2,793 2025 2,232 600 33 2,865 2026-2030 inclusive 12,183 3,238 166 15,587 Ten year total $ 22,447 $ 6,255 $ 331 $ 29,033 The estimated amounts that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2021 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service credit $ 3 $ — $ — $ 3 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. Effective in 2019, employees are eligible to participate in the discretionary contribution portion of the PSP on the first day of their initial date of service. In 2018, employees were eligible to participate in the discretionary contribution portion of the PSP after completing 12 months of employment, and 1,000 hours of service. The employee 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 stock by the ESOP will be funded by employer contributions or reinvestment of cash dividends. Total expenses related to the Profit Sharing and ESOP Plans for the years ended December 31, 2020, 2019 and 2018, amounted to $3.6 million, $2.8 million, and $2.6 million, respectively. Defined Contribution SERP Plan (“DC SERP”) For executives participating in the DC SERP plan, the Company made a discretionary contribution of 10% of each executive’s base salary and bonus to his or her account under the Company’s DC SERP, the Executive Deferred Compensation Plan. Total expenses related to the Company’s DC SERP for the years ended December 31, 2020, 2019, and 2018, amounted to $209,000, $167,000, and $209,000, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 15. SHARE-BASED COMPENSATION In 2017, the Company adopted the 2017 Equity and Cash Incentive Plan (the “2017 Plan”) and all future awards will be made under the 2017 Plan. The 2017 plan permits the issuance of restricted stock, restricted stock units (both time and performance-based), stock options, and stock appreciation rights. Restricted stock awards time-vest either over a three-year five-year 2020 2019 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 36,121 $ 70.25 41,311 $ 65.10 Granted 12,790 72.48 11,330 75.67 Vested (13,846 ) 66.55 (14,642 ) 60.55 Forfeited (3,416 ) 67.50 (1,878 ) 65.33 Non-vested at end of year 31,649 $ 73.07 36,121 $ 70.25 Performance-based restricted stock units vest based upon the Company’s performance over a three-year 2020 2019 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 57,256 $ 72.82 41,411 $ 66.39 Granted 36,067 71.36 28,542 73.00 Vested (Performance achieved) (8,623 ) 62.54 (12,697 ) 46.00 Forfeited (9,454 ) 70.21 — — Non-vested at end of year 75,246 $ 73.41 57,256 $ 72.82 Time-based restricted stock units vest over a three-year 2020 2019 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year 12,658 $ 74.27 6,777 $ 76.56 Granted 9,120 74.69 8,132 73.00 Vested (4,958 ) 74.62 (2,251 ) 76.56 Forfeited (1,852 ) 70.86 — — Non-vested at end of year 14,968 $ 74.84 12,658 $ 74.27 The following table presents the amounts recognized in the Consolidated Statement of Income for restricted stock, time-based restricted stock units, and performance-based restricted stock units: December 31, 2020 2019 2018 (dollars in thousands) Share-based compensation expense $ 4,923 $ 2,632 $ 2,592 Related income tax benefit $ 1,375 $ 733 $ 729 The 2017 Plan allows Directors of the Company to receive their annual retainer fee in the form of stock in the Company. Total shares issued under the 2017 Plan in the years ended December 31, 2020 and 2019 were 8,403 and 4,484, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 16. 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 real estate mortgage loans, risk participation agreements, 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 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 included the following: December 31, 2020 December 31, 2019 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 584,520 $ 428,020 Origination of new loans 94,399 24,413 Standby letters of credit 9,430 9,150 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 17,644 3,909 Standby letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments varies and may include real property, accounts receivable, or inventory. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of the credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include primary residences, accounts receivable, inventory, property, plant and equipment, and income-producing commercial real estate. See Note 21 Derivatives and Hedging Activities |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. COMMITMENTS AND CONTINGENCIES 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 2021 and 2032 and, in some instances, contain options to renew for periods up to 30 years . Effective January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 - Leases Operating lease expenses are comprised of operating lease costs and variable lease costs, net of sublease income. The pattern and measurement of expense recognition of these costs were not significantly impacted by ASU 2016-02 and subsequent ASUs issued to amend this Topic. Variable lease payments that are not dependent on an index or a rate or changes in variable payments based on an index or rate after the commencement date are excluded from the measurement of the lease liability, recognized in the period incurred and included within variable lease costs below. The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is determined as either the rate implicit in the lease or, when a rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The components of operating lease cost and other related information are as follows: For the Year Ended December 31, 2020 2019 (dollars in thousands) Operating lease cost $ 6,691 $ 5,280 Variable lease cost (Cost excluded from lease payments) 2 2 Sublease income (65 ) (64 ) Total operating lease cost $ 6,628 $ 5,218 Other Information Cash paid for amounts included in the measurement of lease liabilities – operating cash flows for operating leases $ 6,547 $ 5,027 Operating Lease - Operating cash flows (Liability reduction) 5,430 3,868 Right-of-use assets obtained in exchange for new operating lease liabilities 7,850 37,728 Weighted average lease term - operating leases 6.90 Years 8.15 Years Weighted average discount rate - operating leases 2.98 % 3.39 % The total minimum lease payments due in future periods under these agreements in effect at December 31, 2020 and December 31, 2019 were as follows: Future Minimum December 31, 2020 Lease Payments (dollars in thousands) 2021 $ 7,173 2022 6,789 2023 6,362 2024 5,493 2025 4,517 Thereafter 11,347 Total minimum lease payments 41,681 Less: interest (4,233 ) Total lease liability $ 37,448 Future Minimum December 31, 2019 Lease Payments (dollars in thousands) 2020 $ 5,478 2021 5,523 2022 5,371 2023 5,021 2024 4,355 Thereafter 14,553 Total minimum lease payments 40,301 Less: interest (5,247 ) Total lease liability $ 35,054 Several 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 $7.0 million, $5.7 million, and $4.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. During the fourth quarter of 2020, the Company closed its South End branch location and a support office location in Boston. At December 31, 2020, the Company determined the remaining right-of-use assets for these locations were fully impaired. Impairment charges of $1.2 million were recorded as noninterest expenses, within nonoperating expenses, in the consolidated statement of income. Change in Control Agreements . The Company has entered into agreements with its Chief Executive Officer and with certain other senior officers, whereby, following the occurrence of a change in control of the Company, if employment is terminated (except because of death, retirement, disability, or for “cause” as defined in the agreements) or is voluntarily terminated for “good reason,” as defined in the agreements, said officers will be entitled to receive additional compensation, as defined in the agreements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | 18. SHAREHOLDERS’ EQUITY Capital guidelines issued by the Federal Reserve Bank (the “FRB”) and by the FDIC require that the Company and the Bank maintain minimum capital levels for capital adequacy purposes. These regulations also require banks and their holding companies to maintain higher capital levels to be considered “well-capitalized.” Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, there are specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Capital Rules: (i) include “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the Capital Rules, for most banking organizations, including the Company, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules’ specific requirements. Pursuant to the Capital Rules, effective January 1, 2015, the minimum capital ratios are as follows: • 4.5 • 6.0 • 8.0 • 4.0 Additionally, the Company is required to maintain additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios inclusive of the capital conservation buffer of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) total capital to risk-weighted assets of at least 10.5%. Management believes that as of December 31, 2020 and 2019, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the FRB and the FDIC. The Company adopted ASU 2016-13 on January 1, 2020. The joint federal bank regulatory agencies issued an interim final rule that allows banking organizations to phase-in the effects of the CECL accounting standard in their regulatory capital, over a three-year period from January 1, 2022 through December 31, 2024. The Company did not elect to delay the adoption of CECL and did not adopt the transition period for regulatory capital. The Company’s and the Bank’s actual and required capital measures were as follows: Actual Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2020 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 378,393 13.9 % $ 285,145 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 344,409 12.7 % 230,832 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 344,409 12.7 % 190,097 7.0 % N/A N/A Tier I capital (to average assets) 344,409 8.9 % 155,009 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 376,209 13.9 % $ 285,117 10.5 % $ 271,540 10.0 % Tier I capital (to risk-weighted assets) 342,229 12.6 % 230,809 8.5 % 217,232 8.0 % Common equity tier I capital (to risk-weighted assets) 342,229 12.6 % 190,078 7.0 % 176,501 6.5 % Tier I capital (to average assets) 342,229 8.8 % 154,999 4.0 % 193,748 5.0 % Actual Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 272,727 13.6 % $ 210,342 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 254,497 12.7 % 170,277 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 254,497 12.7 % 140,228 7.0 % N/A N/A Tier I capital (to average assets) 254,497 9.0 % 113,365 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 271,034 13.5 % $ 210,341 10.5 % $ 200,325 10.0 % Tier I capital (to risk-weighted assets) 252,804 12.6 % 170,276 8.5 % 160,260 8.0 % Common equity tier I capital (to risk-weighted assets) 252,804 12.6 % 140,227 7.0 % 130,211 6.5 % Tier I capital (to average assets) 252,804 8.9 % 113,364 4.0 % 141,705 5.0 % |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income | 19. COMPREHENSIVE INCOME Comprehensive income is defined as all changes to shareholders’ equity except investments by and distributions to shareholders. Net income is a component of comprehensive income, with all other components referred to in the aggregate as “other comprehensive income.” The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Available for sale securities Unrealized holding gains/(losses) $ 3,630 $ (830 ) $ 2,800 $ 3,267 $ (767 ) $ 2,500 $ (231 ) $ (11 ) $ (242 ) Reclassification adjustment for (gains)/losses realized in net income (73 ) 16 (57 ) 81 (19 ) 62 (2 ) — (2 ) Interest rate swaps designated as cash flow hedges Unrealized holding gains(losses) 6,602 (1,844 ) 4,758 984 (271 ) 713 1,002 (282 ) 720 Reclassification adjustment for (gains)/losses recognized in net income (1,879 ) 525 (1,354 ) 150 (42 ) 108 43 (12 ) 31 Defined benefit retirement plans Net change in retirement liability (1,695 ) 463 (1,232 ) 864 (241 ) 623 124 (35 ) 89 Total other comprehensive income $ 6,585 $ (1,670 ) $ 4,915 $ 5,346 $ (1,340 ) $ 4,006 $ 936 $ (340 ) $ 596 Reclassifications out of accumulated other comprehensive income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2020 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains (losses) on available for sale securities $ 73 $ (81 ) $ 2 Gain (loss) on disposition of investment securities Unrealized gains (losses) on derivatives 1,879 (150 ) (43 ) Interest on taxable loans Tax (expense) benefit (541 ) 61 12 Income tax expense Net of tax $ 1,411 $ (170 ) $ (29 ) Net income |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2 0 . EARNINGS PER SHARE The following represents a reconciliation between basic and diluted earnings per share: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 31,959 $ 25,257 $ 23,881 Less dividends and undistributed earnings allocated to participating securities (47 ) (210 ) (239 ) Net income applicable to common shareholders $ 31,912 $ 25,047 $ 23,642 Denominator: Weighted average common shares outstanding 6,289 4,629 4,062 Earnings per common share – basic $ 5.07 $ 5.41 $ 5.82 Earnings per common share - diluted: Numerator: Net income $ 31,959 $ 25,257 $ 23,881 Less dividends and undistributed earnings allocated to participating securities (47 ) (210 ) (239 ) Net income applicable to common shareholders $ 31,912 $ 25,047 $ 23,642 Denominator: Weighted average common shares outstanding 6,289 4,629 4,062 Dilutive effect of common stock equivalents 55 33 37 Weighted average diluted common shares outstanding 6,344 4,662 4,099 Earnings per common share – diluted $ 5.03 $ 5.37 $ 5.77 |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | 2 1 . DERIVATIVES and Hedging Activities The Company utilizes interest rate swaps and floors to mitigate exposure to interest rate risk and to facilitate the needs of our 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 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 AOCI 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 AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. 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 client’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. 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 with a corresponding offset within other assets or other liabilities. 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: December 31, 2020 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 7,618 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 7,618 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 409,493 Other Assets $ 38,415 — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 409,493 Other Liabilities 38,415 Risk participation agreements-out to counterparties 26,580 Other Assets 51 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 104,956 Other Liabilities 496 Total derivatives not designated as hedging instruments $ 38,466 $ 38,911 December 31, 2019 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 2,911 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 2,911 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 241,187 Other Assets $ 12,980 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 241,187 Other Liabilities 12,980 Risk participation agreements-out to counterparties 19,000 Other Assets 21 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 88,489 Other Liabilities 250 Total derivatives not designated as hedging instruments $ 13,001 $ 13,230 The following tables presents the effect of cash flow hedge accounting on AOCI as of the periods presented: For the Year Ended December 31, 2020 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 $ 4,723 $ 5,650 $ (927 ) Interest Income $ 1,879 $ 2,074 $ (195 ) For the Year Ended December 31, 2019 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) Recognized in OCI - Included Component Amount of Gain or (Loss) Recognized in OCI - Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ 984 $ 2,120 $ (1,136 ) Interest Income $ (150 ) $ — $ (150 ) The Company estimates that an additional The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income as of the periods presented: For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Interest Income Interest Income (dollars in thousands) (dollars in thousands) Total amount of income presented in the statements of income in which the effects of cash flow hedges are recorded $ 1,879 $ (150 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts: Amount of gain (loss) reclassed from AOCI into income $ 1,879 $ (150 ) Amount of loss reclassed from AOCI into income - Included Component 2,074 — Amount of loss reclassed from AOCI into income - Excluded Component $ (195 ) $ (150 ) 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 Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 2020 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 155 $ 311 $ 276 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 as December 31, 2020 and 2019: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2020 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 46,084 $ — $ 46,084 $ 7,649 $ — $ 38,435 Offsetting of Derivative Liabilities Derivative Liabilities $ 38,911 $ — $ 38,911 $ 7,649 $ 30,724 $ 538 Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,912 $ — $ 15,912 $ 3,128 $ - $ 12,784 Offsetting of Derivative Liabilities Derivative Liabilities $ 13,230 $ — $ 13,230 $ 3,128 $ 9,645 $ 457 As of December 31, 2020 and December 31, 2019, 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 $30.7 million and $9.6 million, respectively. As of December 31, 2020 and December 31, 2019, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted cash collateral of $29.9 million and $10.4 million, respectively, against these agreements. If the Company had breached any of these provisions at December 31, 2020 or December 31, 2019, it could have been required to settle its obligations under the agreements at their termination value of $30.7 million and $9.6 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2 2 . 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: December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 75,785 $ 75,785 $ 61,335 $ 61,335 Securities available for sale 237,030 237,030 140,330 140,330 Securities held to maturity 247,672 260,139 258,172 264,114 Loans, net 3,117,632 3,092,021 2,208,548 2,160,087 Loans held for sale 6,909 7,101 1,546 2,051 FHLB Boston stock 5,734 5,734 7,854 7,854 Accrued interest receivable 9,514 9,514 7,052 7,052 Mortgage servicing rights 1,219 1,219 1,321 1,526 Interest rate contracts 7,618 7,618 2,911 2,911 Loan level interest rate swaps 38,415 38,415 12,980 12,980 Risk participation agreements out to counterparties 51 51 21 21 Financial liabilities Deposits 3,403,083 3,403,832 2,358,878 2,358,089 Borrowings 32,992 34,284 135,691 135,744 Loan level interest rate swaps 38,415 38,415 12,980 12,980 Risk participation agreements in with counterparties 496 496 250 250 The Company follows ASC 820, Fair Value Measurements and Disclosures, • 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 loans held for sale, mortgage servicing rights, other real estate owned, and collateral dependent impaired loans. T he Company uses an exit price notion for its fair value disclosures. The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 23,617 $ — $ 23,617 Mortgage-backed securities — 210,630 — 210,630 Corporate debt securities — 2,783 — 2,783 Other assets Interest rate swaps with customers — 38,415 — 38,415 Risk participation agreements out to counterparties — 51 — 51 Interest rate contracts — 7,618 — 7,618 Other liabilities Mirror swaps with counterparties — 38,415 — 38,415 Risk participation agreements in with counterparties — 496 — 496 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 37,848 $ — $ 37,848 Mortgage-backed securities — 102,482 — 102,482 Other assets Interest rate swaps with customers — 12,980 — 12,980 Risk participation agreements out to counterparties — 21 — 21 Interest rate contracts — 2,911 — 2,911 Other liabilities Mirror swaps with counterparties — 12,980 — 12,980 Risk participation agreements in with counterparties — 250 — 250 The following table presents the carrying value of assets held at December 31, 2020 and 2019, which were measured at fair value on a non-recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Mortgage servicing rights $ — $ — $ 1,219 $ 1,219 Loans held for sale 6,909 — — 6,909 Individually evaluated collateral dependent loans — — 672 672 Other real estate owned — — 1,820 1,820 Total $ 6,909 $ — $ 3,711 $ 10,620 December 31, 2019 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 1,546 — — 1,546 Individually evaluated collateral dependent loans — — 2,541 2,541 Other real estate owned — — 163 163 Total $ 1,546 $ — $ 2,704 $ 4,250 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). Other Real Estate Owned . These properties are carried at fair value less estimated costs to sell. Mortgage servicing rights . These assets are carried at the fair value determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. There were no transfers between fair value levels for the years ended December 31, 2020 and 2019. 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 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 Company’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. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 2 3 . Quarterly Results of Operations (unaudited) 2020 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 35,870 $ 36,881 $ 30,531 $ 26,095 Interest Expense 1,789 1,919 1,742 3,695 Net Interest and Dividend Income 34,081 34,962 28,789 22,400 Provision for (Release of) Credit Losses (120 ) 2,000 14,430 2,000 Net Interest and Dividend Income after Provision for Credit Losses 34,201 32,962 14,359 20,400 Noninterest Income 10,802 10,933 8,972 8,818 Noninterest Expense 27,127 25,445 25,587 19,925 Income (Loss) Before Taxes 17,876 18,450 (2,256 ) 9,293 Income Taxes 4,862 5,021 (540 ) 2,061 Net Income (Loss) $ 13,014 $ 13,429 $ (1,716 ) $ 7,232 Share Data: Average Shares Outstanding, Basic 6,897,450 6,918,692 5,912,889 5,397,040 Average Shares Outstanding, Diluted 6,970,542 6,954,324 5,912,889 5,432,099 Basic Earnings (Loss) Per Share $ 1.88 $ 1.94 $ (0.29 ) $ 1.34 Diluted Earnings (Loss) Per Share $ 1.86 $ 1.93 $ (0.29 ) $ 1.33 2019 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 26,415 $ 26,336 $ 24,470 $ 19,118 Interest Expense 4,807 5,285 4,694 2,857 Net Interest and Dividend Income 21,608 21,051 19,776 16,261 Provision for (Release of) Loan Losses 331 2,170 596 (93 ) Net Interest and Dividend Income after Provision for Loan Losses 21,277 18,881 19,180 16,354 Noninterest Income 9,933 10,366 8,145 7,957 Noninterest Expense 21,428 18,863 21,513 16,373 Income Before Taxes 9,782 10,384 5,812 7,938 Income Taxes 2,673 2,708 1,540 1,740 Net Income $ 7,109 $ 7,676 $ 4,272 $ 6,198 Share Data: Average Shares Outstanding, Basic 4,939,973 4,815,020 4,682,109 4,072,805 Average Shares Outstanding, Diluted 4,980,439 4,842,965 4,715,724 4,106,658 Basic Earnings Per Share $ 1.43 $ 1.58 $ 0.91 $ 1.51 Diluted Earnings Per Share $ 1.42 $ 1.57 $ 0.90 $ 1.49 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 2 4 . Condensed Financial Statements of Parent Company The condensed balance sheets of Cambridge Bancorp, the Parent Company, as of December 31, 2020 Condensed Balance Sheet December 31, 2020 2019 (dollars in thousands) ASSETS Cash and cash equivalents $ 1,920 $ 1,680 Goodwill 33 — Other assets 260 13 Investment in subsidiary 399,519 284,868 Total assets $ 401,732 $ 286,561 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 401,732 $ 286,561 Total shareholders’ equity $ 401,732 $ 286,561 Condensed Statements of Income For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Income Dividends from subsidiary $ 21,639 $ 10,732 $ 8,615 Total income 21,639 10,732 8,615 Expenses Interest expense 444 — — Other expenses 110 132 116 Total expenses 554 132 116 Income before income taxes and equity in undistributed income of subsidiary 21,085 10,600 8,499 Income tax benefit (153 ) (36 ) (32 ) Income of parent company 21,238 10,636 8,531 Equity in undistributed income of subsidiary 10,721 14,621 15,350 Net income $ 31,959 $ 25,257 $ 23,881 Condensed Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 31,959 $ 25,257 $ 23,881 Adjustments to reconcile net income to net cash provided by operating activities Deferred income tax (benefit)/expense (153 ) — — Change in other assets, net 3,032 (13 ) — Change in other liabilities, net 444 — — Undistributed income of subsidiary (10,721 ) (14,621 ) (15,350 ) Net cash provided by operating activities 24,561 10,623 8,531 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid in business combinations (534 ) (3,525 ) — Investment in subsidiary — (38,202 ) — Net cash (used in)/provided by investing activities (534 ) (41,727 ) — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock 452 38,576 761 Repurchase of common stock (556 ) (687 ) (574 ) Redemption of subordinate debt (10,600 ) — — Cash dividends paid on common stock (13,083 ) (9,517 ) (8,041 ) Net cash provided by/(used in) financing activities (23,787 ) 28,372 (7,854 ) Net increase (decrease) in cash 240 (2,732 ) 677 Cash at beginning of year 1,680 4,412 3,735 Cash at end of year $ 1,920 $ 1,680 $ 4,412 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Significant non-cash transactions Common Stock issued to shareholders due to merger $ 87,163 $ 59,417 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
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, the valuation of deferred tax assets, and the valuation of assets acquired and liabilities assumed in business combinations are particularly subject to change. |
Reclassifications | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. |
Investment Securities | Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities. Debt securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Purchase premiums and discounts are recognized in interest income using the effective yield or straight-line method over the term of the securities, except for callable debt securities for which the purchase premiums are recognized through the earliest call date. Gains and losses on the sale of debt securities are recorded on the trade date and determined using the specific identification method. Allowance for Credit Losses- Held to Maturity Securities The Company measures expected credit losses on held to maturity debt securities on a collective basis by security type and risk rating where available. The reserve for each pool is calculated based on a Probability of Default/Loss Given Default (“PD/LGD”) basis taking into consideration the expected life of each security. Held to maturity securities which are issued by the United States of America (“U.S.”) or are guaranteed by U.S. federal agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise’s (“GSE”) ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government’s implicit guarantee on such securities. For securities which are not U.S. treasury or agency backed, risk ratings are generally sourced from Moody’s or Standard & Poor’s (“S&P”). The Company updates loss given default, probability of default, and recovery rates for each security as that information becomes available but no less than annually. The expected remaining life to maturity of each applicable security is updated quarterly. Any expected credit losses on held to maturity securities would be presented as an allowance rather than as a direct write-down through the consolidated statement of income if the Company does not intend to sell or believes that it is more-likely-than-not that the Company will be required to sell the security. Allowance for Credit Losses-Available for Sale Securities The Company measures expected credit losses on available for sale securities based upon the gain or loss position of the security. For available-for sale debt securities in an unrealized loss position, which the Company does not intend to sell, or it is not more likely than not that the Company will be required to sell the security before recovery of the Company’s amortized cost, the Company evaluates qualitative criteria to determine any expected loss. This includes among other items the financial health of, and specific prospects for the issuer, including whether the issuer is in compliance with the terms and covenants of the security. The Company also evaluates quantitative criteria including determining whether there has been an adverse change in expected future cash flows of the security. If the Company does not expect to recover the entire amortized cost basis of the security, an allowance for credit losses would be recorded, with a related charge to earnings, limited by the amount of the fair value of the security less its amortized cost. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the debt security before recovery of its amortized cost basis, the Company recognizes the entire difference between the security’s amortized cost basis and its fair value in earnings. Prior to the adoption of Topic 326 on January 1, 2020, declines in the fair value of investment securities below their amortized cost that were deemed to be other-than-temporary were reflected in earnings as realized losses to the extent the impairment was related to credit losses. The amount of the impairment related to other factors was recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considered: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery. |
Loans | Loans Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for credit losses. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Allowance for Credit Losses - Loans Losses on loan receivables are estimated and recognized upon origination of the loan, based on expected credit losses for the life of the loan balance as of the period end date. The Company uses a discounted cash flow method incorporating probability of default and loss given default forecasted based on statistically derived economic variable loss drivers combined with qualitative factors, to estimate expected credit losses. This process includes estimates which involve modeling loss projections attributable to existing loan balances, considering historical experience, current conditions, and future expectations for homogeneous pools of loans over the reasonable and supportable forecast period. The reasonable and supportable forecast period is determined based upon the accuracy level of historical loss forecast estimates, the specific loan level models and methodology utilized, and considers material changes in growth and credit strategy, and business changes. For periods beyond a reasonable and supportable forecast interval, the Company revert s to historical information over a period for which comparable data is available. The historical information either experienced by the Company , or by a selection of peer banks when appropriate, is derived from a combination of recessionary and non-recessionary performance periods for which data is available. Similar to the reasonable and supportable forecast period, the Company reassess es the reversion period at the segment level, considering any required adjustments for differences in underwriting standards, portfolio mix, and other relevant data shifts over time. The Company generally segments its loan receivable population into homogeneous pools of loans. Consistent with the Company’s other assumptions, the Company regularly reviews segmentation to determine whether the segmentation pools remain relevant as risk characteristics change. When a loan no longer meets the criteria of its initial pooling as a result of credit deterioration or other changes, the Company may evaluate the credit for estimated losses on an individual basis if it determines that they no longer retain the same risk characteristics. To the extent that there are a multitude of these loans with new similar credit characteristics, the Company would anticipate a change to the pooling methodology. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. For loans with real estate collateral, when management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. The Company evaluates the loan allowance for credit losses quarterly. The Company regularly reviews its collection experience (including delinquencies and net charge-offs) in determining our allowance for credit losses. The Company also considers its historical loss experience to date based on actual defaulted loans and overall portfolio indicators including delinquent and non-accrual loans, trends in loan volume and lending terms, credit policies and other observable environmental factors such as unemployment and interest rate changes. The underlying assumption estimates and assessments the Company uses to estimate the allowance for credit losses reflects the Company’s best estimate of model assumptions and forecasted conditions at that time. Changes in such estimates can significantly affect the allowance and provision for credit losses. It is possible and likely that the Company will experience credit losses that are different from the current estimates. The provision for credit losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent credit losses as of the evaluation date. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for credit losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses, generally at the time cash is received on a charged-off account. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for credit losses in the period in which they become known. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Company generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Company does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Company generally does not originate loans in this segment with a loan-to-value ratio greater than 75 . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial & industrial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. In addition, this segment includes loans issued under the United States Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). These loans are guaranteed and are not evaluated for an allowance for credit losses because the Company expects the guarantees will be effective, if necessary. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Company’s loans are concentrated in Eastern Massachusetts and Southern New Hampshire and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for credit losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. Allowance for Credit Losses- Unfunded Commitments The expected credit losses for unfunded commitments are measured over the contractual period of the Company’s exposure to credit risk. The estimate of credit loss incorporates assumptions for both the likelihood and amount of funding over the estimated life of the commitments, for the risk of loss, and current conditions and expectations. Management periodically reviews and updates its assumptions for estimated funding rates based on historical rates, and factors such as portfolio growth, changes to organizational structure, economic conditions, borrowing habits, or any other factor which could impact the likelihood that funding will occur. The Company does not reserve for unfunded commitments which are unconditionally cancellable. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition based on a discounted cash flow methodology that considers various factors, including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they may be susceptible to significant change. Effective January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on, but not limited to, the following: (1) non-accrual status; (2) troubled debt restructured designation; (3) risk ratings of special mention, substandard or doubtful; (4) watchlist credits; and (5) delinquency status, including loans that are current on acquisition date, but had been previously delinquent. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed PCD at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as provision for credit losses. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Loan Losses Prior to the adoption of CECL on January 1, 2020, the Company calculated provision for loan losses and the level of the allowance for loan losses to reflect management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management used a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate was made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments were further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment was based on a process that evaluated the risk characteristics relevant to each portfolio segment and took into consideration multiple internal and external factors. Internal factors included, but were not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors included, but were not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluated certain loans individually for specific impairment. A loan was considered impaired when, based on current information and events, it was probable that the Bank would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experienced insignificant payment delays and payment shortfalls generally were not classified as impaired. Loans were selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount was allocated to an individual loan when such loan had been deemed impaired and when the amount of the probable loss was able to be estimated. Estimates of loss were determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan was collateral dependent. Loans Held for Sale Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans sold. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans sold on the consolidated statements of income. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Company is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received in excess of cash surrender value, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit the Company’s investment in bank-owned life insurance to 25% of our Tier 1 capital plus its allowance for credit losses. The Company reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. |
Banking Premises and Equipment | Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation, and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. |
Leases | Leases The Company leases office space, certain branch locations under noncancelable operating leases, and two automated teller machine (“ATM”) locations, several of which have renewal options to extend lease terms. Upon commencement of a new lease, the Company will recognize a right of use (“ROU”) asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by |
Marketing Expense | Marketing Expense Advertising costs are expensed as incurred. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned consists of properties formerly pledged as collateral to loans, which have been acquired by the Company through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for credit losses. Expenses and subsequent adjustments to the fair value are treated as noninterest expense through other expenses. |
Goodwill, Core Deposit Intangibles, and Other Intangible Assets | Goodwill, Core Deposit Intangibles, and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Core deposit intangible (“CDI”) represents a premium paid to acquire the core deposits of an institution and is recorded as an intangible asset. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. There was no goodwill impairment recognized during 2020, 2019, or 2018. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. The Company is amortizing the CDI on a straight-line basis over a ten-year period. Mortgage servicing rights (“MSR”) are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, the state of Maine, and other states as required. For the tax year ended December 31, 2020, the Company expects to will file taxes in Massachusetts, New Hampshire, and Maine. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through income tax expenses in the period of enactment. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. |
Wealth Management Fee Revenue | Wealth Management The Company earns wealth management fees for providing investment management, trust administration, and financial planning services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the monthly value of the assets under management and the applicable fee rate, or at a fixed annual rate, depending on the terms of the contract. No performance-based incentives are earned on wealth management contracts. The Company also earns trust fees for servicing as trustee for certain clients. As trustee, the Company serves as a fiduciary, administers the client’s trust, and in some cases, manages the assets of the trust. The Company’s performance obligation under these agreements is satisfied over time as the administrative and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account or at a fixed annual rate as outlined in the agreement. The Company also earns fees for trust related activities. The Company’s performance obligation under these agreements is satisfied at a point in time and recognized when these services have been performed. Other Banking Fee Income The Company charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, wire transfer fees, maintenance fees, ATM fee charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charged to clients based on disclosures presented to these clients upon opening these accounts, along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service and maintenance charges are recognized in the month they are earned and are charged directly to the client’s account. |
Pension and Retirement Plans | Pension and Retirement Plans The Company sponsors a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. Effective December 31, 2017, the accrual of benefits for all participants in the Pension Plan was frozen. Benefits for the postretirement health care plan are based on years of service. Expense for the postretirement health care plan is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. Effective November 7, 2019, the postretirement health care plan was frozen for employees hired after that date. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board of Directors discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. 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. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, . Each year, the Company may also make a discretionary contribution to the PSP based on eligible salary, bonus, and incentive. |
Share-Based Compensation | Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, time-based restricted stock units (“RSUs”), and performance-based restricted stock units (“PRSUs”). Compensation expense for restricted stock awards is recognized over the service period based on the fair value at the date of grant. RSUs and PRSUs are valued at the fair market value of the Company’s common stock as of the award date. PRSUs’ compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur, no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as 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. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 820, “ Fair Value Measurements and Disclosures” Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level 1 are highly liquid cash instruments with quoted prices such as government or agency securities, listed equities, and money market securities, as well as listed derivative instruments. Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds, and over-the-counter derivatives. Level 3 – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured over-the-counter derivative contracts. |
Earnings per Common Share | Earnings per Common Share Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has determined that its outstanding non-vested stock awards are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 20 - Earnings Per Share |
Subsequent Events | Subsequent Events Management has reviewed events occurring through March 15, 2021, the date the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards Accounting Pronouncements Yet to be Adopted Accounting Standards Update (“ASU”) 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting • Simplify accounting analyses for contract modifications. • Allow hedging relationships to continue without de-designation if there are qualifying changes in the critical terms of an existing hedging relationship due to reference rate reform. • Allow a change in the systematic and rational method used to recognize in earnings the components excluded from the assessment of hedge effectiveness. • Allow a change in the designated benchmark interest rate to a different eligible benchmark interest rate in a fair value hedging relationship. • Allow the shortcut method for a fair value hedging relationship to continue for the remainder of the hedging relationship. • Simplify the assessment of hedge effectiveness and provide temporary optional expedients for cash flow hedging relationships affected by reference rate reform. • Allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the impact the adoption of this guidance will have on its consolidated balance sheets, statements of income, and cash flows. Accounting Pronouncements Adopted in 2020 Accounting Standards Update 2018-13 - Changes to the Disclosure Requirements for Fair Value Measurement . Accounting Standards Update 2018-14 - Changes to the Disclosure Requirements for Defined Benefit Plans . Accounting Standards Update 2016-13 - Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments ASU 2016-13 also applies to OBS credit exposure not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar investment) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 - Leases January 1, 2020 CECL Transition (Day 1) Impact The CECL methodology reflects the Company’s view of the state of the economy and forecasted macroeconomic conditions and their impact on the Company’s loan and investment portfolios as of the adoption date. The following table illustrates the impact of Topic 326: January 1, 2020 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (dollars in thousands) ASSETS Loans Residential mortgage $ 7,202 $ 5,141 $ 2,061 Commercial mortgage 9,545 10,992 (1,447 ) Home equity 256 461 (205 ) Commercial & industrial 896 1,388 (492 ) Consumer 486 198 288 Allowance for credit losses on loans $ 18,385 $ 18,180 $ 205 LIABILITIES Allowance for credit losses on OBS credit exposure $ 326 $ 50 $ 276 |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Guidance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASC 326 | |
Schedule of Impact of Topic 326 | The following table illustrates the impact of Topic 326: January 1, 2020 As reported under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (dollars in thousands) ASSETS Loans Residential mortgage $ 7,202 $ 5,141 $ 2,061 Commercial mortgage 9,545 10,992 (1,447 ) Home equity 256 461 (205 ) Commercial & industrial 896 1,388 (492 ) Consumer 486 198 288 Allowance for credit losses on loans $ 18,385 $ 18,180 $ 205 LIABILITIES Allowance for credit losses on OBS credit exposure $ 326 $ 50 $ 276 |
Mergers (Tables)
Mergers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: At June 1, 2020 Wellesley Book Value Purchase Accounting Adjustments Net Assets Acquired at Fair Value (dollars in thousands) Total Purchase Price $ 88,766 Assets Cash and cash equivalents $ 44,667 $ — $ 44,667 Investments 23,331 — 23,331 Gross Loans 883,659 (13,626 ) 870,033 Allowance for loan loss (8,461 ) 8,461 — Premises and equipment 2,972 1,040 4,012 Other assets 41,082 2,505 43,587 Total assets acquired 987,250 (1,620 ) 985,630 Liabilities Deposits 758,976 1,902 760,878 Borrowings & Subordinated debt 132,005 477 132,482 Other liabilities 21,847 2,362 24,209 Total liabilities assumed 912,828 4,741 917,569 Net Assets Acquired $ 74,422 $ (6,361 ) $ 68,061 Goodwill $ 20,705 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Carrying Amounts of Securities and Their Approximate Fair Values | Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 2020 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Available for sale securities U.S. GSE obligations $ 22,995 $ 641 $ (19 ) $ 23,617 $ 38,000 $ — $ (152 ) $ 37,848 Mortgage-backed securities 208,515 2,502 (387 ) 210,630 103,109 231 (858 ) 102,482 Corporate debt securities 2,742 41 — 2,783 — — — — Total available for sale securities $ 234,252 $ 3,184 $ (406 ) $ 237,030 $ 141,109 $ 231 $ (1,010 ) $ 140,330 Held to maturity securities U.S. GSE obligations $ — $ — $ — $ — $ 5,000 $ — $ — $ 5,000 Mortgage-backed securities 137,435 6,784 (97 ) 144,122 161,759 2,751 (111 ) 164,399 Corporate debt securities 6,989 197 — 7,186 6,980 116 — 7,096 Municipal securities 103,248 5,643 (60 ) 108,831 84,433 3,252 (66 ) 87,619 Total held to maturity securities $ 247,672 $ 12,624 $ (157 ) $ 260,139 $ 258,172 $ 6,119 $ (177 ) $ 264,114 Total $ 481,924 $ 15,808 $ (563 ) $ 497,169 $ 399,281 $ 6,350 $ (1,187 ) $ 404,444 |
Schedule of Amortized Cost and Fair Value of Investment Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity | The amortized cost and fair value of investment securities, aggregated by contractual maturity, are shown below. Municipal securities are aggregated by the earliest of call date or contractual maturity. 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 Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2020 (dollars in thousands) Available for sale securities U.S. GSE obligations $ — $ — $ 9,995 $ 9,983 $ 5,000 $ 5,150 $ 8,000 $ 8,484 $ 22,995 $ 23,617 Mortgage-backed securities 1 1 4,226 4,318 54,849 56,127 149,439 150,184 208,515 210,630 Corporate debt securities 1,001 1,002 1,741 1,781 — — — — 2,742 2,783 Total available for sale securities $ 1,002 $ 1,003 $ 15,962 $ 16,082 $ 59,849 $ 61,277 $ 157,439 $ 158,668 $ 234,252 $ 237,030 Held to maturity securities Mortgage-backed securities $ — $ — $ 2 $ 2 $ 60,933 $ 64,779 $ 76,500 $ 79,341 $ 137,435 $ 144,122 Corporate debt securities — — 6,989 7,186 — — — — 6,989 7,186 Municipal securities 2,541 2,561 19,343 20,222 40,934 43,835 40,430 42,213 103,248 108,831 Total held to maturity securities $ 2,541 $ 2,561 $ 26,334 $ 27,410 $ 101,867 $ 108,614 $ 116,930 $ 121,554 $ 247,672 $ 260,139 Total $ 3,543 $ 3,564 $ 42,296 $ 43,492 $ 161,716 $ 169,891 $ 274,369 $ 280,222 $ 481,924 $ 497,169 |
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Investment Securities have been in Continuous Loss Position | The following tables show the Company’s investment securities with gross unrealized losses, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position at December 31, 2020: December 31, 2020 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Available for sale securities U.S. GSE obligations $ 4,981 $ (19 ) $ — $ — $ 4,981 $ (19 ) Mortgage-backed securities 91,094 (384 ) 944 (3 ) 92,038 (387 ) Total available for sale securities $ 96,075 $ (403 ) $ 944 $ (3 ) $ 97,019 $ (406 ) Held to maturity securities Mortgage-backed securities $ 16,340 $ (97 ) $ — $ — $ 16,340 $ (97 ) Municipal securities 6,221 (60 ) — — 6,221 (60 ) Total held to maturity securities $ 22,561 $ (157 ) $ — $ — $ 22,561 $ (157 ) Total $ 118,636 $ (560 ) $ 944 $ (3 ) $ 119,580 $ (563 ) December 31, 2019 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Available for sale securities U.S. GSE obligations $ 12,912 $ (88 ) $ 24,936 $ (64 ) $ 37,848 $ (152 ) Mortgage-backed securities 33,381 (265 ) 50,766 (593 ) 84,147 (858 ) Total available for sale securities $ 46,293 $ (353 ) $ 75,702 $ (657 ) $ 121,995 $ (1,010 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 5,000 $ — $ 5,000 $ — Mortgage-backed securities 14,838 (27 ) 12,928 (84 ) 27,766 (111 ) Municipal securities 4,934 (66 ) — — 4,934 (66 ) Total held to maturity securities $ 19,772 $ (93 ) $ 17,928 $ (84 ) $ 37,700 $ (177 ) Total temporarily impaired securities $ 66,065 $ (446 ) $ 93,630 $ (741 ) $ 159,695 $ (1,187 ) |
Summary of Gains (Losses) from Sale of Investment Securities | The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Amortized cost of securities sold $ 10,752 $ 26,631 $ 700 Gross gains realized on securities sold 111 — 2 Gross losses realized on securities sold (42 ) (79 ) Net proceeds from securities sold $ 10,821 $ 26,552 $ 702 |
Summary of Credit Rating of Debt Securities Portfolio | The Company monitors the credit quality of certain debt securities through the use of credit rating among other factors on a quarterly basis. The following table summarizes the credit rating of the Company’s debt securities portfolio at December 31, 2020. December 31, 2020 Mortgage- backed Securities Corporate Debt Securities Municipal Securities U.S. GSE obligations Total (dollars in thousands) Available for sale securities, at fair value AAA/AA/A (1) $ 210,630 $ 1,779 $ — $ 23,617 $ 236,026 BBB/BB/B — 1,004 — — 1,004 Total available for sale securities $ 210,630 $ 2,783 $ — $ 23,617 $ 237,030 Held to maturity securities, at amortized cost AAA/AA/A $ 137,435 $ 6,989 $ 102,973 $ — $ 247,397 BBB/BB/B — — 275 — 275 Total held to maturity securities $ 137,435 $ 6,989 $ 103,248 $ — $ 247,672 (1) Includes Agency mortgage-backed pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as FNMA, FHLMC, and GNMA that are not rated by Moody’s or S&P. Each security contains a guarantee by the issuing GSE or agency and therefore carries an implicit guarantee of the U.S. government. These have been categorized as AAA/AA/A. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Outstanding by Category | Loans outstanding are detailed by category as follows: December 31, 2020 December 31, 2019 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 535,804 $ 430,877 Mortgages - adjustable rate 734,593 467,139 Construction 25,495 17,374 Deferred costs net of unearned fees 2,976 2,176 Total residential mortgages 1,298,868 917,566 Commercial mortgage Mortgages - non-owner occupied 1,064,317 870,047 Mortgages - owner occupied 153,474 114,095 Construction 139,075 76,288 Deferred costs net of unearned fees 2,096 144 Total commercial mortgages 1,358,962 1,060,574 Home equity Home equity - lines of credit 102,460 73,880 Home equity - term loans 3,503 6,555 Deferred costs net of unearned fees 231 240 Total home equity 106,194 80,675 Commercial & industrial Commercial & industrial 223,415 133,337 PPP loans 126,227 — Unearned fees, net of deferred costs (1,787 ) (101 ) Total commercial & industrial 347,855 133,236 Consumer Secured 41,409 33,453 Unsecured 341 1,199 Deferred costs, net of unearned fees 19 25 Total consumer 41,769 34,677 Total loans $ 3,153,648 $ 2,226,728 |
Non-performing Loans Disaggregated by Loan Category | The following tables set forth information regarding non-performing loans disaggregated by loan category: December 31, 2020 . Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 3,695 $ 3,917 $ — $ 132 $ 7,744 Loans past due >90 days, but still accruing — — — 407 407 Troubled debt restructurings 689 — — 122 811 Total $ 4,384 $ 3,917 $ — $ 661 $ 8,962 December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 1,298 $ 2,800 $ 12 $ 50 $ 4,160 Loans past due >90 days, but still accruing 527 486 — 251 1,264 Troubled debt restructurings 99 — — 128 227 Total $ 1,924 $ 3,286 $ 12 $ 429 $ 5,651 |
Schedule of Outstanding Balance and Related Allowance on PCD Loans | The outstanding balance at December 31, 2020 and related allowance on PCD loans is as follows: Loan Balance ACL Balance (dollars in thousands) Residential Mortgages $ 558 $ 10 Commercial Mortgages 15,114 300 Home Equity 106 3 Commercial & Industrial 1,128 37 Consumer loans — — Total $ 16,906 $ 350 |
Schedule of Loans by Credit Quality Indicator | Credit Quality Indicator - by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving loans amortized cost basis Total (in thousands) Residential: Current $ 398,267 $ 221,019 $ 158,962 $ 144,256 $ 106,360 $ 265,620 $ — $ 1,294,484 Non-performing — — 782 58 1,454 2,090 — 4,384 Total 398,267 221,019 159,744 144,314 107,814 267,710 — 1,298,868 Home equity: Current $ 2,131 $ 6,024 $ 7,997 $ 6,976 $ 2,119 $ 5,191 $ 75,756 $ 106,194 Non-performing — — — — — — — — Total $ 2,131 $ 6,024 $ 7,997 $ 6,976 $ 2,119 $ 5,191 $ 75,756 $ 106,194 Consumer: Current $ 16,192 $ 5,819 $ 3,652 $ 2,643 $ 4,879 $ 8,032 $ 552 $ 41,769 Non-performing — — — — — — — — Total $ 16,192 $ 5,819 $ 3,652 $ 2,643 $ 4,879 $ 8,032 $ 552 $ 41,769 Credit Quality Indicator - by Origination Year as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (in thousands) Commercial: Credit risk profile by internally assigned grade: 1-6 (Pass) $ 282,870 $ 396,026 $ 197,473 $ 106,489 $ 126,537 $ 221,257 $ — $ — $ 1,330,652 7 (Special Mention) — 872 13,445 1,270 85 8,304 — — 23,976 8 (Substandard) — 145 — — 215 3,300 — — 3,660 9 (Doubtful) — — — — — 674 — — 674 10 (Loss) — — — — — — — — — Total $ 282,870 $ 397,043 $ 210,918 $ 107,759 $ 126,837 $ 233,535 $ — $ — $ 1,358,962 Commercial & Industrial: Credit risk profile by internally assigned grade: 1-6 (Pass) $ 210,356 $ 51,424 $ 37,286 $ 23,700 $ 2,920 $ 7,373 $ 416 $ — $ 333,475 7 (Special Mention) 534 3,407 3,725 420 180 1,001 10 — 9,277 8 (Substandard) 1,333 1,116 544 — 1,907 203 — — 5,103 9 (Doubtful) — — — — — — — — — 10 (Loss) — — — — — — — — — Total $ 212,223 $ 55,947 $ 41,555 $ 24,120 $ 5,007 $ 8,577 $ 426 $ — $ 347,855 December 31, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 915,642 $ 80,663 $ 34,677 Non-performing 1,924 12 — Total $ 917,566 $ 80,675 $ 34,677 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 1,050,037 $ 123,900 7 (Special Mention) 7,360 4,289 8 (Substandard) 3,177 5,047 9 (Doubtful) — — 10 (Loss) — — Total $ 1,060,574 $ 133,236 |
Schedule of Loans Receivable Disaggregated by Past Due Status | The following tables contain period-end balances of loans receivable disaggregated by past due status: December 31, 2020 30-59 Days 60-89 Days 90 Days or greater Total Past Due Current Loans Total Amortized Cost 90+ Days and Accruing (dollars in thousands) Residential Mortgages $ 12,647 $ 2,450 $ 2,335 $ 17,432 $ 1,281,436 $ 1,298,868 $ — Commercial Mortgages 1,080 — 674 1,754 1,357,208 1,358,962 — Home Equity 843 353 — 1,196 104,998 106,194 — Commercial & Industrial 276 1,917 409 2,602 345,253 347,855 407 Consumer loans 3,120 — — 3,120 38,649 41,769 — Total $ 17,966 $ 4,720 $ 3,418 $ 26,104 $ 3,127,544 $ 3,153,648 $ 407 December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total Amortized Cost 90+ Days and Accruing (dollars in thousands) Residential Mortgages $ 8,710 $ 1,089 $ 1,047 $ 10,846 $ 906,720 $ 917,566 $ 527 Commercial Mortgages 811 — 3,161 3,972 1,056,602 1,060,574 486 Home Equity 57 12 — 69 80,606 80,675 — Commercial & Industrial 272 226 251 749 132,487 133,236 251 Consumer loans 4 5 — 9 34,668 34,677 — Total $ 9,854 $ 1,332 $ 4,459 $ 15,645 $ 2,211,083 $ 2,226,728 $ 1,264 |
Summary of Changes in Allowance for Credit Losses Disaggregated by Loan Category | The following tables contain changes in the allowance for credit losses disaggregated by loan category: For the Year Ended December 31, 2020 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Unfunded Commitments Total (dollars in thousands) Allowance for credit loss: Allowance for credit losses - loan portfolio: Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ — $ 18,180 Adoption of ASC 326 2,061 (1,447 ) (205 ) (492 ) 288 — 205 Provision for acquired loans 2,880 3,625 188 1,577 12 — 8,282 Initial allowance for PCD 35 382 — 20 — — 437 Charge-offs — (264 ) — (400 ) (40 ) — (704 ) Recoveries — — — 250 15 — 265 Provision for (Release of)-loan portfolio 2,950 5,363 108 879 51 — 9,351 Allowance for credit losses - loan portfolio $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ — $ 36,016 Allowance for credit losses - unfunded commitments: Balance at December 31, 2019 $ — $ — $ — $ — $ — $ 50 $ 50 Adoption of ASC 326 — — — — — 276 276 Acquired loan commitments — — — — — 356 356 Provision for - unfunded commitments — — — — — 322 322 Allowance for credit losses-unfunded commitments — — — — — 1,004 1,004 Total allowance for credit loss $ 13,067 $ 18,564 $ 552 $ 3,309 $ 524 $ 1,004 $ 37,020 The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ 87 $ — $ 87 Collectively evaluated for impairment 5,141 10,905 461 1,388 198 18,093 Total $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ 18,180 Loans receivable Individually evaluated for impairment $ 764 $ 3,161 $ 92 $ 128 $ — $ 4,145 Collectively evaluated for impairment 916,802 1,057,413 80,583 133,108 34,677 2,222,583 Total $ 917,566 $ 1,060,574 $ 80,675 $ 133,236 $ 34,677 $ 2,226,728 |
Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Category | For the Year Ended December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 Charge-offs — (1,270 ) — (338 ) (48 ) — (1,656 ) Recoveries — — — 53 11 — 64 Provision for (Release of) 195 2,549 (56 ) 258 (29 ) 87 3,004 Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,388 $ 198 $ 87 $ 18,180 For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 |
Information Pertaining to Impaired Loans | The following is information pertaining to impaired loans: For the Year Ended December 31, 2019 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial mortgage $ 3,161 $ 1,385 $ 4,376 $ — $ 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total 4,019 2,172 5,449 — 41 With required reserve recorded: Commercial and industrial 128 59 167 87 — Total 128 59 167 87 — Total: Commercial and industrial 128 59 167 87 — Commercial mortgage 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total $ 4,147 $ 2,231 $ 5,616 $ 87 $ 41 |
Banking Premises and Equipment
Banking Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment | A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2020 2019 Useful Lives (dollars in thousands) Land $ 1,516 $ 1,116 Building and leasehold improvements 20,017 17,817 3-30 years Equipment, including vaults 17,097 13,686 3-20 years Work in process 138 550 Subtotal 38,768 33,169 Accumulated depreciation and amortization (20,610 ) (18,413 ) Total $ 18,158 $ 14,756 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Mortgage Servicing Rights | An analysis of mortgage servicing rights, which are included in other assets, follows: Mortgage Servicing Rights Valuation Allowance Total (dollars in thousands) Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 618 — 618 Amortization charged against servicing income (271 ) — (271 ) Change in impairment reserve — (26 ) (26 ) Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 Mortgage servicing rights acquired as a result of the merger 50 — 50 Mortgage servicing rights capitalized 536 — 536 Amortization charged against servicing income (572 ) — (572 ) Change in impairment reserve — (116 ) (116 ) Balance at December 31, 2020 $ 1,361 $ (142 ) $ 1,219 |
Mortgage Servicing Rights | |
Schedule of Aggregate Estimated Future Amortization Expense | The estimated aggregate future amortization expense for mortgage servicing rights for each of the next five years and thereafter is as follows: Future Amortization Expense (dollars in thousands) 2021 $ 370 2022 281 2023 205 2024 147 2025 82 Thereafter 134 Total $ 1,219 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows: December 31, 2020 December 31, 2019 (dollars in thousands) Demand deposits (non-interest bearing) $ 1,006,132 $ 630,593 Interest bearing checking 625,650 450,098 Money market 532,218 181,406 Savings 984,262 914,499 Retail certificates of deposit under $250,000 127,202 113,940 Retail certificates of deposit $250,000 or greater 96,831 61,258 Wholesale certificates of deposit 30,788 7,084 Total deposits $ 3,403,083 $ 2,358,878 |
Scheduled Maturities of Certificates of Deposits | Certificates of deposit had the following schedule of maturities: December 31, 2020 December 31, 2019 (dollars in thousands) 2020 $ — $ 140,938 2021 215,206 30,240 2022 23,006 6,426 2023 11,997 3,071 2024 2,156 1,607 2025 2,456 — Total certificates of deposit $ 254,821 $ 182,282 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Information Relating to Long-term Borrowings from FHLB of Boston | Information relating to long-term borrowings from the FHLB of Boston is presented below: December 31, 2020 Amount Rate (dollars in thousands) 2022 $ 595 1.84 % 2023* 17,240 3.61 $ 17,835 3.55 % *Includes a $15 million advance with an interest rate of 3.80%, that is callable by the FHLB of Boston on January 27, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Current tax expense Federal $ 7,877 $ 5,954 $ 5,524 State 4,192 2,597 2,404 12,069 8,551 7,928 Deferred tax expense (benefit) Federal (250 ) (63 ) (490 ) State (415 ) 173 (231 ) (665 ) 110 (721 ) Total income tax expense $ 11,404 $ 8,661 $ 7,207 |
Reconciliation of Total Income Tax Expense, Calculated at Statutory Federal Income Tax Expense in Consolidated Statements of Income | The following is a reconciliation of the total income tax expense, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2020 2019 2018 Dollars Rate Dollars Rate Dollars Rate (dollars in thousands) Income tax expense at statutory rates $ 9,106 21.0 % $ 7,123 21.0 % $ 6,528 21.0 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 2,984 6.9 2,188 6.5 1,717 5.5 Tax-exempt income (694 ) (1.6 ) (599 ) (1.8 ) (580 ) (1.9 ) ESOP dividends (125 ) (0.3 ) (124 ) (0.4 ) (127 ) (0.4 ) Bank owned life insurance (157 ) (0.4 ) (129 ) (0.4 ) (140 ) (0.5 ) Compensation limited under 162(m) 511 1.2 — — — — Benefit from stock compensation — — (150 ) (0.4 ) (168 ) (0.5 ) Non-deductible acquisition Costs 186 0.4 236 0.7 — — Impact of CARES Act (539 ) (1.2 ) — — — — Other 132 0.3 116 0.3 (23 ) (0.1 ) Total income tax expense $ 11,404 26.3 % $ 8,661 25.5 % $ 7,207 23.2 % |
Summary of Net Deferred Tax Asset | The Company’s 2020 and 2019 net deferred tax assets were measured using a December 31, 2020 December 31, 2019 (dollars in thousands) Gross deferred tax assets Allowance for credit losses $ 10,336 $ 5,029 Accrued retirement benefits 1,576 1,592 Unrealized losses on available for sale securities — 171 Incentive compensation 1,591 1,248 Equity based compensation 1,343 1,034 Lease liability 10,455 9,765 ESOP dividends 166 165 Loss carryforwards as a result of the Optima merger 21 877 Intangibles / Fair value marks (merger related) 1,971 472 Other 205 252 Total gross deferred tax assets 27,664 20,605 Gross deferred tax liabilities Deferred loan origination costs (1,434 ) (911 ) Unrealized gains on available for sale securities (641 ) — Depreciation of premises and equipment (1,816 ) (1,021 ) Right of use asset (9,751 ) (9,356 ) Mortgage servicing rights (340 ) (368 ) Goodwill (115 ) (113 ) Derivative transactions (1,928 ) (607 ) Total gross deferred tax liabilities (16,025 ) (12,376 ) Net deferred tax asset $ 11,639 $ 8,229 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Projected Benefit Obligations and Funded Status | Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 45,401 $ 40,522 $ 9,622 $ 8,830 Service cost — — 355 283 Interest cost 1,438 1,680 283 349 Actuarial loss 4,827 4,670 840 770 Benefits paid (1,549 ) (1,471 ) (595 ) (610 ) Obligation at end of year 50,117 45,401 10,505 9,622 Change in plan assets Fair value at beginning of year 50,131 42,648 — — Actual return on plan assets 7,220 8,954 — — Employer contribution — — 595 610 Benefits paid (1,549 ) (1,471 ) (595 ) (610 ) Fair value at end of year 55,802 50,131 — — Funded status at end of year $ 5,685 $ 4,730 $ (10,505 ) $ (9,622 ) Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 689 $ 598 Service cost 30 25 Interest cost 21 25 Actuarial loss 51 76 Benefits paid (30 ) (35 ) Obligation at end of year 761 689 Change in plan assets Fair value at beginning of year — — Employer contribution 30 35 Benefits paid (30 ) (35 ) Fair value at end of year — — Funded status at end of year $ (761 ) $ (689 ) |
Schedule of Accumulated Benefit Obligation | Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Accumulated benefit obligation 50,117 45,401 9,909 9,207 Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Accumulated benefit obligation 761 689 |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Other assets/(liabilities) $ 5,685 $ 4,730 $ (10,505 ) $ (9,622 ) Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Other liabilities $ (761 ) $ (689 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) consisted of: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Net actuarial loss $ 4,517 $ 3,709 $ 1,959 $ 1,128 Prior service credit (3 ) (7 ) — — Total $ 4,514 $ 3,702 $ 1,959 $ 1,128 Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Net actuarial (gain)/loss $ 18 $ (34 ) |
Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) | The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 355 $ 283 Interest cost 1,438 1,680 283 349 Expected return on assets (3,201 ) (2,721 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss — 154 8 — Net periodic benefit cost (1,767 ) (891 ) 646 632 Amounts recognized in other comprehensive income Net actuarial loss/(gain) 807 (1,563 ) 840 770 Amortization of prior service credit 4 4 — Amortization of net actuarial loss — (154 ) (8 ) — Total recognized in other comprehensive income 811 (1,713 ) 832 770 Total recognized in net periodic benefit cost and other comprehensive income $ (956 ) $ (2,604 ) $ 1,478 $ 1,402 The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2020 2019 (dollars in thousands) Net periodic benefit cost Service cost $ 30 $ 25 Interest cost 21 25 Amortization of net actuarial gain — (3 ) Net periodic benefit cost 51 47 Amounts recognized in other comprehensive income/(loss) Net actuarial (gain) loss 51 76 Amortization of net actuarial loss — 3 Total recognized in other comprehensive income 51 79 Total recognized in net periodic benefit cost and other comprehensive income $ 102 $ 126 |
Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 Discount rate 2.45 % 3.22 % 2.21 % 3.04 % Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2020 2019 2020 2019 Discount rate 3.22 % 4.23 % 3.04 % 4.10 % Expected long-term return on plan assets 6.50 % 6.50 % N/A N/A Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine the projected benefit obligation are as follows: Postretirement Healthcare Plan 2020 2019 Discount rate 2.52 % 3.26 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2020 2019 Discount rate 3.26 % 4.22 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A |
Schedule of Pension Plan Weighted-average Asset Allocations by Asset | The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2020 2019 Equity securities 42 % 53 % Debt securities 46 36 Other 9 3 Cash and equivalents 3 8 Total 100 % 100 % |
Summary of Various Categories of Pension Plan Assets | The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 1,527 $ — $ — $ 1,527 Fixed income — 14,402 — 14,402 Equity securities Common stock Large cap core 12,604 — — 12,604 Small cap core 1,767 — — 1,767 Mutual funds Domestic equity 9,306 — — 9,306 International 4,868 — — 4,868 Domestic fixed income 11,328 — — 11,328 Total $ 41,400 $ 14,402 $ — $ 55,802 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 4,834 $ — $ — $ 4,834 Fixed income — 7,197 — 7,197 Equity securities Common stock Large cap core 17,180 — — 17,180 Small cap core 2,627 — — 2,627 Mutual funds Domestic equity 3,931 — — 3,931 International 3,650 — — 3,650 Domestic fixed income 10,712 — — 10,712 Total $ 42,934 $ 7,197 $ — $ 50,131 |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2020 2019 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2020 2019 |
Schedule of Benefits Expected to be Paid in the Next Ten Years | Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2021 $ 1,829 $ 594 $ 33 $ 2,456 2022 1,966 611 33 2,610 2023 2,081 608 33 2,722 2024 2,156 604 33 2,793 2025 2,232 600 33 2,865 2026-2030 inclusive 12,183 3,238 166 15,587 Ten year total $ 22,447 $ 6,255 $ 331 $ 29,033 |
Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income (loss) into Net Periodic Benefit Cost | The estimated amounts that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during 2021 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service credit $ 3 $ — $ — $ 3 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Non-vested Restricted Shares Outstanding | A summary of restricted stock outstanding as of December 31, 2020 and 2019, and changes during the years ended on those dates, is presented below 2020 2019 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 36,121 $ 70.25 41,311 $ 65.10 Granted 12,790 72.48 11,330 75.67 Vested (13,846 ) 66.55 (14,642 ) 60.55 Forfeited (3,416 ) 67.50 (1,878 ) 65.33 Non-vested at end of year 31,649 $ 73.07 36,121 $ 70.25 |
Schedule of Amounts Recognized in Consolidated Statement of Income for Restricted Stock, Time Based Restricted Stock Units and Performance Based Restricted Stock Units | The following table presents the amounts recognized in the Consolidated Statement of Income for restricted stock, time-based restricted stock units, and performance-based restricted stock units: December 31, 2020 2019 2018 (dollars in thousands) Share-based compensation expense $ 4,923 $ 2,632 $ 2,592 Related income tax benefit $ 1,375 $ 733 $ 729 |
Performance-Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of non-vested performance-based restricted stock units outstanding as of December 31, 2020 and 2019, and changes during the years ended on those dates, is presented below 2020 2019 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 57,256 $ 72.82 41,411 $ 66.39 Granted 36,067 71.36 28,542 73.00 Vested (Performance achieved) (8,623 ) 62.54 (12,697 ) 46.00 Forfeited (9,454 ) 70.21 — — Non-vested at end of year 75,246 $ 73.41 57,256 $ 72.82 |
Time Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of non-vested time-based restricted stock units outstanding as of December 31, 2020 and 2019, and changes during the years ended on those dates, is presented below: 2020 2019 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year 12,658 $ 74.27 6,777 $ 76.56 Granted 9,120 74.69 8,132 73.00 Vested (4,958 ) 74.62 (2,251 ) 76.56 Forfeited (1,852 ) 70.86 — — Non-vested at end of year 14,968 $ 74.84 12,658 $ 74.27 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 included the following: December 31, 2020 December 31, 2019 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 584,520 $ 428,020 Origination of new loans 94,399 24,413 Standby letters of credit 9,430 9,150 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 17,644 3,909 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [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: For the Year Ended December 31, 2020 2019 (dollars in thousands) Operating lease cost $ 6,691 $ 5,280 Variable lease cost (Cost excluded from lease payments) 2 2 Sublease income (65 ) (64 ) Total operating lease cost $ 6,628 $ 5,218 Other Information Cash paid for amounts included in the measurement of lease liabilities – operating cash flows for operating leases $ 6,547 $ 5,027 Operating Lease - Operating cash flows (Liability reduction) 5,430 3,868 Right-of-use assets obtained in exchange for new operating lease liabilities 7,850 37,728 Weighted average lease term - operating leases 6.90 Years 8.15 Years Weighted average discount rate - operating leases 2.98 % 3.39 % |
Schedule of Total Minimum Lease Payments Due in Future Periods under Lease Agreements | The total minimum lease payments due in future periods under these agreements in effect at December 31, 2020 and December 31, 2019 were as follows: Future Minimum December 31, 2020 Lease Payments (dollars in thousands) 2021 $ 7,173 2022 6,789 2023 6,362 2024 5,493 2025 4,517 Thereafter 11,347 Total minimum lease payments 41,681 Less: interest (4,233 ) Total lease liability $ 37,448 Future Minimum December 31, 2019 Lease Payments (dollars in thousands) 2020 $ 5,478 2021 5,523 2022 5,371 2023 5,021 2024 4,355 Thereafter 14,553 Total minimum lease payments 40,301 Less: interest (5,247 ) Total lease liability $ 35,054 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Minimum Capital Requirements Considered Well Capitalized by FRB and FDIC | The Company’s and the Bank’s actual and required capital measures were as follows: Actual Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2020 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 378,393 13.9 % $ 285,145 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 344,409 12.7 % 230,832 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 344,409 12.7 % 190,097 7.0 % N/A N/A Tier I capital (to average assets) 344,409 8.9 % 155,009 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 376,209 13.9 % $ 285,117 10.5 % $ 271,540 10.0 % Tier I capital (to risk-weighted assets) 342,229 12.6 % 230,809 8.5 % 217,232 8.0 % Common equity tier I capital (to risk-weighted assets) 342,229 12.6 % 190,078 7.0 % 176,501 6.5 % Tier I capital (to average assets) 342,229 8.8 % 154,999 4.0 % 193,748 5.0 % Actual Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 272,727 13.6 % $ 210,342 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 254,497 12.7 % 170,277 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 254,497 12.7 % 140,228 7.0 % N/A N/A Tier I capital (to average assets) 254,497 9.0 % 113,365 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 271,034 13.5 % $ 210,341 10.5 % $ 200,325 10.0 % Tier I capital (to risk-weighted assets) 252,804 12.6 % 170,276 8.5 % 160,260 8.0 % Common equity tier I capital (to risk-weighted assets) 252,804 12.6 % 140,227 7.0 % 130,211 6.5 % Tier I capital (to average assets) 252,804 8.9 % 113,364 4.0 % 141,705 5.0 % |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Comprehensive Income | The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Available for sale securities Unrealized holding gains/(losses) $ 3,630 $ (830 ) $ 2,800 $ 3,267 $ (767 ) $ 2,500 $ (231 ) $ (11 ) $ (242 ) Reclassification adjustment for (gains)/losses realized in net income (73 ) 16 (57 ) 81 (19 ) 62 (2 ) — (2 ) Interest rate swaps designated as cash flow hedges Unrealized holding gains(losses) 6,602 (1,844 ) 4,758 984 (271 ) 713 1,002 (282 ) 720 Reclassification adjustment for (gains)/losses recognized in net income (1,879 ) 525 (1,354 ) 150 (42 ) 108 43 (12 ) 31 Defined benefit retirement plans Net change in retirement liability (1,695 ) 463 (1,232 ) 864 (241 ) 623 124 (35 ) 89 Total other comprehensive income $ 6,585 $ (1,670 ) $ 4,915 $ 5,346 $ (1,340 ) $ 4,006 $ 936 $ (340 ) $ 596 |
Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") | Reclassifications out of accumulated other comprehensive income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2020 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains (losses) on available for sale securities $ 73 $ (81 ) $ 2 Gain (loss) on disposition of investment securities Unrealized gains (losses) on derivatives 1,879 (150 ) (43 ) Interest on taxable loans Tax (expense) benefit (541 ) 61 12 Income tax expense Net of tax $ 1,411 $ (170 ) $ (29 ) Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: For the Year Ended December 31, 2020 2019 2018 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 31,959 $ 25,257 $ 23,881 Less dividends and undistributed earnings allocated to participating securities (47 ) (210 ) (239 ) Net income applicable to common shareholders $ 31,912 $ 25,047 $ 23,642 Denominator: Weighted average common shares outstanding 6,289 4,629 4,062 Earnings per common share – basic $ 5.07 $ 5.41 $ 5.82 Earnings per common share - diluted: Numerator: Net income $ 31,959 $ 25,257 $ 23,881 Less dividends and undistributed earnings allocated to participating securities (47 ) (210 ) (239 ) Net income applicable to common shareholders $ 31,912 $ 25,047 $ 23,642 Denominator: Weighted average common shares outstanding 6,289 4,629 4,062 Dilutive effect of common stock equivalents 55 33 37 Weighted average diluted common shares outstanding 6,344 4,662 4,099 Earnings per common share – diluted $ 5.03 $ 5.37 $ 5.77 |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 7,618 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 7,618 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 409,493 Other Assets $ 38,415 — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 409,493 Other Liabilities 38,415 Risk participation agreements-out to counterparties 26,580 Other Assets 51 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 104,956 Other Liabilities 496 Total derivatives not designated as hedging instruments $ 38,466 $ 38,911 December 31, 2019 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 2,911 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 2,911 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 241,187 Other Assets $ 12,980 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 241,187 Other Liabilities 12,980 Risk participation agreements-out to counterparties 19,000 Other Assets 21 — Other Liabilities — Risk participation agreements-in with counterparties — Other Assets — 88,489 Other Liabilities 250 Total derivatives not designated as hedging instruments $ 13,001 $ 13,230 |
Summary of Cash Flow Hedge Accounting on AOCI | The following tables presents the effect of cash flow hedge accounting on AOCI as of the periods presented: For the Year Ended December 31, 2020 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 $ 4,723 $ 5,650 $ (927 ) Interest Income $ 1,879 $ 2,074 $ (195 ) For the Year Ended December 31, 2019 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) Recognized in OCI - Included Component Amount of Gain or (Loss) Recognized in OCI - Excluded Component (dollars in thousands) (dollars in thousands) Interest rate contracts $ 984 $ 2,120 $ (1,136 ) Interest Income $ (150 ) $ — $ (150 ) |
Summary of Derivative Financial Instruments on the Consolidated Statements of Income (Loss) | The following table presents the effect of the Company’s derivative financial instruments on the consolidated statements of income as of the periods presented: For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Interest Income Interest Income (dollars in thousands) (dollars in thousands) Total amount of income presented in the statements of income in which the effects of cash flow hedges are recorded $ 1,879 $ (150 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts: Amount of gain (loss) reclassed from AOCI into income $ 1,879 $ (150 ) Amount of loss reclassed from AOCI into income - Included Component 2,074 — Amount of loss reclassed from AOCI into income - Excluded Component $ (195 ) $ (150 ) |
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 Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 2020 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 155 $ 311 $ 276 |
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 as December 31, 2020 and 2019: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2020 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 46,084 $ — $ 46,084 $ 7,649 $ — $ 38,435 Offsetting of Derivative Liabilities Derivative Liabilities $ 38,911 $ — $ 38,911 $ 7,649 $ 30,724 $ 538 Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,912 $ — $ 15,912 $ 3,128 $ - $ 12,784 Offsetting of Derivative Liabilities Derivative Liabilities $ 13,230 $ — $ 13,230 $ 3,128 $ 9,645 $ 457 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 75,785 $ 75,785 $ 61,335 $ 61,335 Securities available for sale 237,030 237,030 140,330 140,330 Securities held to maturity 247,672 260,139 258,172 264,114 Loans, net 3,117,632 3,092,021 2,208,548 2,160,087 Loans held for sale 6,909 7,101 1,546 2,051 FHLB Boston stock 5,734 5,734 7,854 7,854 Accrued interest receivable 9,514 9,514 7,052 7,052 Mortgage servicing rights 1,219 1,219 1,321 1,526 Interest rate contracts 7,618 7,618 2,911 2,911 Loan level interest rate swaps 38,415 38,415 12,980 12,980 Risk participation agreements out to counterparties 51 51 21 21 Financial liabilities Deposits 3,403,083 3,403,832 2,358,878 2,358,089 Borrowings 32,992 34,284 135,691 135,744 Loan level interest rate swaps 38,415 38,415 12,980 12,980 Risk participation agreements in with counterparties 496 496 250 250 |
Summary of Certain Assets Reported at Fair Value on a Recurring Basis | The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 23,617 $ — $ 23,617 Mortgage-backed securities — 210,630 — 210,630 Corporate debt securities — 2,783 — 2,783 Other assets Interest rate swaps with customers — 38,415 — 38,415 Risk participation agreements out to counterparties — 51 — 51 Interest rate contracts — 7,618 — 7,618 Other liabilities Mirror swaps with counterparties — 38,415 — 38,415 Risk participation agreements in with counterparties — 496 — 496 Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 37,848 $ — $ 37,848 Mortgage-backed securities — 102,482 — 102,482 Other assets Interest rate swaps with customers — 12,980 — 12,980 Risk participation agreements out to counterparties — 21 — 21 Interest rate contracts — 2,911 — 2,911 Other liabilities Mirror swaps with counterparties — 12,980 — 12,980 Risk participation agreements in with counterparties — 250 — 250 |
Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis | The following table presents the carrying value of assets held at December 31, 2020 and 2019, which were measured at fair value on a non-recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Mortgage servicing rights $ — $ — $ 1,219 $ 1,219 Loans held for sale 6,909 — — 6,909 Individually evaluated collateral dependent loans — — 672 672 Other real estate owned — — 1,820 1,820 Total $ 6,909 $ — $ 3,711 $ 10,620 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 2020 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 35,870 $ 36,881 $ 30,531 $ 26,095 Interest Expense 1,789 1,919 1,742 3,695 Net Interest and Dividend Income 34,081 34,962 28,789 22,400 Provision for (Release of) Credit Losses (120 ) 2,000 14,430 2,000 Net Interest and Dividend Income after Provision for Credit Losses 34,201 32,962 14,359 20,400 Noninterest Income 10,802 10,933 8,972 8,818 Noninterest Expense 27,127 25,445 25,587 19,925 Income (Loss) Before Taxes 17,876 18,450 (2,256 ) 9,293 Income Taxes 4,862 5,021 (540 ) 2,061 Net Income (Loss) $ 13,014 $ 13,429 $ (1,716 ) $ 7,232 Share Data: Average Shares Outstanding, Basic 6,897,450 6,918,692 5,912,889 5,397,040 Average Shares Outstanding, Diluted 6,970,542 6,954,324 5,912,889 5,432,099 Basic Earnings (Loss) Per Share $ 1.88 $ 1.94 $ (0.29 ) $ 1.34 Diluted Earnings (Loss) Per Share $ 1.86 $ 1.93 $ (0.29 ) $ 1.33 2019 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 26,415 $ 26,336 $ 24,470 $ 19,118 Interest Expense 4,807 5,285 4,694 2,857 Net Interest and Dividend Income 21,608 21,051 19,776 16,261 Provision for (Release of) Loan Losses 331 2,170 596 (93 ) Net Interest and Dividend Income after Provision for Loan Losses 21,277 18,881 19,180 16,354 Noninterest Income 9,933 10,366 8,145 7,957 Noninterest Expense 21,428 18,863 21,513 16,373 Income Before Taxes 9,782 10,384 5,812 7,938 Income Taxes 2,673 2,708 1,540 1,740 Net Income $ 7,109 $ 7,676 $ 4,272 $ 6,198 Share Data: Average Shares Outstanding, Basic 4,939,973 4,815,020 4,682,109 4,072,805 Average Shares Outstanding, Diluted 4,980,439 4,842,965 4,715,724 4,106,658 Basic Earnings Per Share $ 1.43 $ 1.58 $ 0.91 $ 1.51 Diluted Earnings Per Share $ 1.42 $ 1.57 $ 0.90 $ 1.49 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, 2020 2019 (dollars in thousands) ASSETS Cash and cash equivalents $ 1,920 $ 1,680 Goodwill 33 — Other assets 260 13 Investment in subsidiary 399,519 284,868 Total assets $ 401,732 $ 286,561 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 401,732 $ 286,561 Total shareholders’ equity $ 401,732 $ 286,561 |
Condensed Statements of Income | Condensed Statements of Income For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) Income Dividends from subsidiary $ 21,639 $ 10,732 $ 8,615 Total income 21,639 10,732 8,615 Expenses Interest expense 444 — — Other expenses 110 132 116 Total expenses 554 132 116 Income before income taxes and equity in undistributed income of subsidiary 21,085 10,600 8,499 Income tax benefit (153 ) (36 ) (32 ) Income of parent company 21,238 10,636 8,531 Equity in undistributed income of subsidiary 10,721 14,621 15,350 Net income $ 31,959 $ 25,257 $ 23,881 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 31,959 $ 25,257 $ 23,881 Adjustments to reconcile net income to net cash provided by operating activities Deferred income tax (benefit)/expense (153 ) — — Change in other assets, net 3,032 (13 ) — Change in other liabilities, net 444 — — Undistributed income of subsidiary (10,721 ) (14,621 ) (15,350 ) Net cash provided by operating activities 24,561 10,623 8,531 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid in business combinations (534 ) (3,525 ) — Investment in subsidiary — (38,202 ) — Net cash (used in)/provided by investing activities (534 ) (41,727 ) — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock 452 38,576 761 Repurchase of common stock (556 ) (687 ) (574 ) Redemption of subordinate debt (10,600 ) — — Cash dividends paid on common stock (13,083 ) (9,517 ) (8,041 ) Net cash provided by/(used in) financing activities (23,787 ) 28,372 (7,854 ) Net increase (decrease) in cash 240 (2,732 ) 677 Cash at beginning of year 1,680 4,412 3,735 Cash at end of year $ 1,920 $ 1,680 $ 4,412 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Significant non-cash transactions Common Stock issued to shareholders due to merger $ 87,163 $ 59,417 $ — |
The Business - Additional Infor
The Business - Additional Information (Details) - Cambridge Bancorp | 12 Months Ended |
Dec. 31, 2020ServiceBankCorporation | |
Description Of Business [Line Items] | |
Number of core services | Service | 4 |
Number of wholly owned investment in corporations | Corporation | 2 |
Massachusetts and New Hampshire | |
Description Of Business [Line Items] | |
Number of private banking office | Bank | 21 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)Machine | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Lessee, operating lease, existence of option to extend | true | |||
Number of automated teller machine under lease | Machine | 2 | |||
Impairment of goodwill recognized | $ 0 | $ 0 | $ 0 | |
Defined contribution plan, employer matching contribution, percent | 10.00% | |||
Defined benefit pension highest consecutive plan period | 3 years | |||
Compensation cost | $ 0 | |||
Profit Sharing Plan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | |||
Defined contribution plan, employer matching contribution, percent | 4.00% | |||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | |||
Defined contribution plan, minimum service period required for eligibility | 12 months | |||
Normal retirement age of employees | 65 years | |||
Commercial Mortgage | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 75.00% | |||
Minimum | Residential Mortgage and Home Equity Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 80.00% | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of bank-owned life insurance | 25.00% | |||
Maximum | Residential Mortgage and Home Equity Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 97.00% |
Recently Issued and Adopted A_3
Recently Issued and Adopted Accounting Standards - Additional Information (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings, net of taxes | $ 165,404,000 | $ 146,875,000 | |
ASU 2018-14 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Dec. 31, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
ASC 326 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Additional allowance for credit losses recorded | $ 481,000 | ||
ASC 326 | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Retained earnings, net of taxes | $ 347,000 |
Recently Issued and Adopted A_4
Recently Issued and Adopted Accounting Standards - Schedule of Impact of Topic 326 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Loans | |||
Allowance for credit losses on loans | $ 37,020 | $ 18,180 | |
ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | $ 18,385 | ||
LIABILITIES | |||
Allowance for credit losses on OBS credit exposure | 326 | ||
Residential Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 7,202 | ||
Commercial Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 9,545 | ||
Home Equity | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 256 | ||
Commercial & Industrial | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 896 | ||
Consumer | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 486 | ||
Pre-ASC 326 Adoption | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 18,180 | ||
LIABILITIES | |||
Allowance for credit losses on OBS credit exposure | 50 | ||
Pre-ASC 326 Adoption | Residential Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 5,141 | ||
Pre-ASC 326 Adoption | Commercial Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 10,992 | ||
Pre-ASC 326 Adoption | Home Equity | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 461 | ||
Pre-ASC 326 Adoption | Commercial & Industrial | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 1,388 | ||
Pre-ASC 326 Adoption | Consumer | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 198 | ||
Impact of ASC 326 Adoption | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 205 | ||
LIABILITIES | |||
Allowance for credit losses on OBS credit exposure | 276 | ||
Impact of ASC 326 Adoption | Residential Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | 2,061 | ||
Impact of ASC 326 Adoption | Commercial Mortgage | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | (1,447) | ||
Impact of ASC 326 Adoption | Home Equity | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | (205) | ||
Impact of ASC 326 Adoption | Commercial & Industrial | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | (492) | ||
Impact of ASC 326 Adoption | Consumer | ASC 326 | |||
Loans | |||
Allowance for credit losses on loans | $ 288 |
Mergers - Additional Informatio
Mergers - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 01, 2020USD ($)$ / sharesshares | Apr. 17, 2019USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 51,912 | $ 31,206 | ||
Wellesley Bancorp Inc | ||||
Business Acquisition [Line Items] | ||||
Number of banking offices | 6 | |||
Business combination, share conversion ratio | 0.580 | |||
Total consideration paid | $ 88,800 | |||
Common stock issued related to merger | shares | 1,502,814 | |||
Business combination, share price | $ / shares | $ 58 | |||
Merger expenses | $ 6,400 | |||
Business combination, provision for credit losses | $ 8,600 | |||
Total assets acquired | 985,630 | |||
Goodwill | 20,705 | |||
Total liabilities assumed | $ 917,569 | |||
Optima Bank And Trust Company | ||||
Business Acquisition [Line Items] | ||||
Business combination, share conversion ratio | 0.3468 | |||
Total consideration paid | $ 64,300 | |||
Common stock issued related to merger | shares | 722,746 | |||
Business combination, share price | $ / shares | $ 32 | |||
Merger expenses | $ 3,900 | |||
Business combination percentage of common stock transaction | 95.00% | |||
Business combination percentage of cash transaction | 5.00% | |||
Cash payment related to merger | $ 3,500 | |||
Total assets acquired | 555,700 | |||
Goodwill | 30,800 | |||
Total liabilities assumed | $ 491,400 |
Mergers - Summary of Estimated
Mergers - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 01, 2020 | Dec. 31, 2019 |
Liabilities | |||
Goodwill | $ 51,912 | $ 31,206 | |
Wellesley Bancorp Inc | |||
Business Acquisition [Line Items] | |||
Total Purchase Price | $ 88,766 | ||
Assets | |||
Cash and cash equivalents | 44,667 | ||
Investments | 23,331 | ||
Gross Loans | 870,033 | ||
Premises and equipment | 4,012 | ||
Other assets | 43,587 | ||
Total assets acquired | 985,630 | ||
Liabilities | |||
Deposits | 760,878 | ||
Borrowings & Subordinated debt | 132,482 | ||
Other liabilities | 24,209 | ||
Total liabilities assumed | 917,569 | ||
Net Assets Acquired | 68,061 | ||
Goodwill | 20,705 | ||
Wellesley Bancorp Inc | Wellesley Book Value | |||
Assets | |||
Cash and cash equivalents | 44,667 | ||
Investments | 23,331 | ||
Gross Loans | 883,659 | ||
Allowance for loan loss | (8,461) | ||
Premises and equipment | 2,972 | ||
Other assets | 41,082 | ||
Total assets acquired | 987,250 | ||
Liabilities | |||
Deposits | 758,976 | ||
Borrowings & Subordinated debt | 132,005 | ||
Other liabilities | 21,847 | ||
Total liabilities assumed | 912,828 | ||
Net Assets Acquired | 74,422 | ||
Wellesley Bancorp Inc | Purchase Accounting Adjustments | |||
Assets | |||
Gross Loans | (13,626) | ||
Allowance for loan loss | 8,461 | ||
Premises and equipment | 1,040 | ||
Other assets | 2,505 | ||
Total assets acquired | (1,620) | ||
Liabilities | |||
Deposits | 1,902 | ||
Borrowings & Subordinated debt | 477 | ||
Other liabilities | 2,362 | ||
Total liabilities assumed | 4,741 | ||
Net Assets Acquired | $ (6,361) |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 75,785,000 | $ 61,335,000 |
Pledged cash collateral to derivative counterparties | 29,900,000 | 10,400,000 |
Federal Reserve Bank of Boston | ||
Cash And Cash Equivalents [Line Items] | ||
Reserve balance of cash and due from banks | 0 | 31,500,000 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | $ 234,252 | $ 141,109 |
Available for sale securities, Gross Unrealized Gains | 3,184 | 231 |
Available for sale securities, Gross Unrealized Losses | (406) | (1,010) |
Available for sale securities, Fair Value | 237,030 | 140,330 |
Held to maturity securities, Amortized Cost | 247,672 | 258,172 |
Held to maturity securities, Gross Unrealized Gains | 12,624 | 6,119 |
Held to maturity securities, Gross Unrealized Losses | (157) | (177) |
Held to maturity securities, Fair Value | 260,139 | 264,114 |
Total, Amortized Cost | 481,924 | 399,281 |
Total, Gross Unrealized Gains | 15,808 | 6,350 |
Total, Gross Unrealized Losses | (563) | (1,187) |
Total, Fair Value | 497,169 | 404,444 |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 22,995 | 38,000 |
Available for sale securities, Gross Unrealized Gains | 641 | |
Available for sale securities, Gross Unrealized Losses | (19) | (152) |
Available for sale securities, Fair Value | 23,617 | 37,848 |
Held to maturity securities, Amortized Cost | 5,000 | |
Held to maturity securities, Fair Value | 5,000 | |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 2,742 | |
Available for sale securities, Gross Unrealized Gains | 41 | |
Available for sale securities, Fair Value | 2,783 | |
Held to maturity securities, Amortized Cost | 6,989 | 6,980 |
Held to maturity securities, Gross Unrealized Gains | 197 | 116 |
Held to maturity securities, Fair Value | 7,186 | 7,096 |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 208,515 | 103,109 |
Available for sale securities, Gross Unrealized Gains | 2,502 | 231 |
Available for sale securities, Gross Unrealized Losses | (387) | (858) |
Available for sale securities, Fair Value | 210,630 | 102,482 |
Held to maturity securities, Amortized Cost | 137,435 | 161,759 |
Held to maturity securities, Gross Unrealized Gains | 6,784 | 2,751 |
Held to maturity securities, Gross Unrealized Losses | (97) | (111) |
Held to maturity securities, Fair Value | 144,122 | 164,399 |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 103,248 | 84,433 |
Held to maturity securities, Gross Unrealized Gains | 5,643 | 3,252 |
Held to maturity securities, Gross Unrealized Losses | (60) | (66) |
Held to maturity securities, Fair Value | $ 108,831 | $ 87,619 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Investment Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | $ 1,002 | |
Available for sale securities, Within One Year, Fair Value | 1,003 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 15,962 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 16,082 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 59,849 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 61,277 | |
Available for sale securities, After Ten Years, Amortized Cost | 157,439 | |
Available for sale securities, After Ten Years, Fair Value | 158,668 | |
Available for sale securities, Total, Amortized Cost | 234,252 | |
Available for sale securities, Total, Fair Value | 237,030 | |
Held to maturity securities, Within One Year, Amortized Cost | 2,541 | |
Held to maturity securities, Within One Year, Fair Value | 2,561 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 26,334 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 27,410 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 101,867 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 108,614 | |
Held to maturity securities, After Ten Years, Amortized Cost | 116,930 | |
Held to maturity securities, After Ten Years, Fair Value | 121,554 | |
Held to maturity securities, Amortized Cost | 247,672 | $ 258,172 |
Held to maturity securities, Fair Value | 260,139 | 264,114 |
Available for sale securities and Held to maturity securities, Within One Year, Amortized Cost | 3,543 | |
Available for sale securities and Held to maturity securities, Within One Year, Fair Value | 3,564 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Amortized Cost | 42,296 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Fair Value | 43,492 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 161,716 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Fair Value | 169,891 | |
Available for sale securities and Held to maturity securities, After Ten Years, Amortized Cost | 274,369 | |
Available for sale securities and Held to maturity securities, After Ten Years, Fair Value | 280,222 | |
Available for sale securities and Held to maturity securities, Total, Amortized Cost | 481,924 | |
Available for sale securities and Held to maturity securities, Total, Fair Value | 497,169 | |
U.S. GSE 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 | 9,995 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 9,983 | |
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 | 5,150 | |
Available for sale securities, After Ten Years, Amortized Cost | 8,000 | |
Available for sale securities, After Ten Years, Fair Value | 8,484 | |
Available for sale securities, Total, Amortized Cost | 22,995 | |
Available for sale securities, Total, Fair Value | 23,617 | |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | 1 | |
Available for sale securities, Within One Year, Fair Value | 1 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 4,226 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 4,318 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 54,849 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 56,127 | |
Available for sale securities, After Ten Years, Amortized Cost | 149,439 | |
Available for sale securities, After Ten Years, Fair Value | 150,184 | |
Available for sale securities, Total, Amortized Cost | 208,515 | |
Available for sale securities, Total, Fair Value | 210,630 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 2 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 2 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 60,933 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 64,779 | |
Held to maturity securities, After Ten Years, Amortized Cost | 76,500 | |
Held to maturity securities, After Ten Years, Fair Value | 79,341 | |
Held to maturity securities, Amortized Cost | 137,435 | |
Held to maturity securities, Fair Value | 144,122 | |
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 | 1,001 | |
Available for sale securities, Within One Year, Fair Value | 1,002 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 1,741 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 1,781 | |
Available for sale securities, Total, Amortized Cost | 2,742 | |
Available for sale securities, Total, Fair Value | 2,783 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 6,989 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 7,186 | |
Held to maturity securities, Amortized Cost | 6,989 | |
Held to maturity securities, Fair Value | 7,186 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Within One Year, Amortized Cost | 2,541 | |
Held to maturity securities, Within One Year, Fair Value | 2,561 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 19,343 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 20,222 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 40,934 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 43,835 | |
Held to maturity securities, After Ten Years, Amortized Cost | 40,430 | |
Held to maturity securities, After Ten Years, Fair Value | 42,213 | |
Held to maturity securities, Amortized Cost | 103,248 | 84,433 |
Held to maturity securities, Fair Value | $ 108,831 | $ 87,619 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Investment Securities have been in Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | $ 96,075 | $ 46,293 |
Available for sale securities, Unrealized Losses, Less than 12 months | (403) | (353) |
Available for sale securities, Fair Value, 12 months or longer | 944 | 75,702 |
Available for sale securities, Unrealized Losses, 12 months or longer | (3) | (657) |
Available for sale securities, Fair Value | 97,019 | 121,995 |
Available for sale securities, Unrealized Losses | (406) | (1,010) |
Held to maturity securities, Fair Value, Less than 12 months | 22,561 | 19,772 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (157) | (93) |
Held to maturity securities, Fair Value, 12 months or longer | 17,928 | |
Held to maturity securities, Unrealized Losses, 12 months or longer | (84) | |
Held to maturity securities, Fair Value | 22,561 | 37,700 |
Held to maturity securities, Unrealized Losses | (157) | (177) |
Fair Value, Less than 12 months | 118,636 | 66,065 |
Unrealized Losses, Less than 12 months | (560) | (446) |
Fair Value, 12 months or longer | 944 | 93,630 |
Unrealized Losses, 12 months or longer | (3) | (741) |
Fair Value | 119,580 | 159,695 |
Unrealized Losses | (563) | (1,187) |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Fair Value, Less than 12 months | 4,981 | 12,912 |
Available for sale securities, Unrealized Losses, Less than 12 months | (19) | (88) |
Available for sale securities, Fair Value, 12 months or longer | 24,936 | |
Available for sale securities, Unrealized Losses, 12 months or longer | (64) | |
Available for sale securities, Fair Value | 4,981 | 37,848 |
Available for sale securities, Unrealized Losses | (19) | (152) |
Held to maturity securities, Fair Value, 12 months or longer | 5,000 | |
Held to maturity securities, Fair Value | 5,000 | |
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 | 91,094 | 33,381 |
Available for sale securities, Unrealized Losses, Less than 12 months | (384) | (265) |
Available for sale securities, Fair Value, 12 months or longer | 944 | 50,766 |
Available for sale securities, Unrealized Losses, 12 months or longer | (3) | (593) |
Available for sale securities, Fair Value | 92,038 | 84,147 |
Available for sale securities, Unrealized Losses | (387) | (858) |
Held to maturity securities, Fair Value, Less than 12 months | 16,340 | 14,838 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (97) | (27) |
Held to maturity securities, Fair Value, 12 months or longer | 12,928 | |
Held to maturity securities, Unrealized Losses, 12 months or longer | (84) | |
Held to maturity securities, Fair Value | 16,340 | 27,766 |
Held to maturity securities, Unrealized Losses | (97) | (111) |
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 | 6,221 | 4,934 |
Held to maturity securities, Unrealized Losses, Less than 12 months | (60) | (66) |
Held to maturity securities, Fair Value | 6,221 | 4,934 |
Held to maturity securities, Unrealized Losses | $ (60) | $ (66) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Dec. 31, 2020USD ($)Security |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |
Number of debt securities with unrealized losses | Security | 30 |
Aggregate depreciation percentage of gross unrealized losses from amortized cost | 0.47% |
Maximum | |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | |
Percentage of unrealized loss on amortized cost | 2.07% |
Unrealized loss of amortized cost basis | $ | $ 55,000 |
Investment Securities - Summa_2
Investment Securities - Summary of Gains (Losses) from Sale of Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |||
Amortized cost of securities sold | $ 10,752 | $ 26,631 | $ 700 |
Gross gains realized on securities sold | 111 | 2 | |
Gross losses realized on securities sold | (42) | (79) | |
Net proceeds from securities sold | $ 10,821 | $ 26,552 | $ 702 |
Investment Securities - Summa_3
Investment Securities - Summary of Credit Rating of Debt Securities Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | $ 237,030 | $ 140,330 |
Total held to maturity securities | 247,672 | 258,172 |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total held to maturity securities | 103,248 | 84,433 |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 2,783 | |
Total held to maturity securities | 6,989 | 6,980 |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 23,617 | 37,848 |
Total held to maturity securities | 5,000 | |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 210,630 | 102,482 |
Total held to maturity securities | 137,435 | $ 161,759 |
AAA/AA/A | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 236,026 | |
Total held to maturity securities | 247,397 | |
AAA/AA/A | Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total held to maturity securities | 102,973 | |
AAA/AA/A | Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 1,779 | |
Total held to maturity securities | 6,989 | |
AAA/AA/A | U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 23,617 | |
AAA/AA/A | Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 210,630 | |
Total held to maturity securities | 137,435 | |
BBB/BB/B | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | 1,004 | |
Total held to maturity securities | 275 | |
BBB/BB/B | Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total held to maturity securities | 275 | |
BBB/BB/B | Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Total available for sale securities | $ 1,004 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 3,153,648 | $ 2,226,728 |
Residential Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 2,976 | 2,176 |
Total loans | 1,298,868 | 917,566 |
Residential Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 25,495 | 17,374 |
Residential Mortgage | Mortgages - Fixed Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 535,804 | 430,877 |
Residential Mortgage | Mortgages - Adjustable Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 734,593 | 467,139 |
Commercial Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 2,096 | 144 |
Total loans | 1,358,962 | 1,060,574 |
Commercial Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 139,075 | 76,288 |
Commercial Mortgage | Mortgages - Non-owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 1,064,317 | 870,047 |
Commercial Mortgage | Mortgages - Owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 153,474 | 114,095 |
Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 231 | 240 |
Total loans | 106,194 | 80,675 |
Home Equity | Home Equity - Lines of Credit | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 102,460 | 73,880 |
Home Equity | Home Equity - Term Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 3,503 | 6,555 |
Commercial & Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 223,415 | 133,337 |
Unearned fees, net of deferred costs | (1,787) | (101) |
Total loans | 347,855 | 133,236 |
Commercial & Industrial | PPP Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 126,227 | |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 19 | 25 |
Total loans | 41,769 | 34,677 |
Consumer | Secured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 41,409 | 33,453 |
Consumer | Unsecured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | $ 341 | $ 1,199 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Non-performing Loans Disaggregated by Loan Category (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due >90 days, but still accruing | $ 407,000 | $ 1,264,000 |
Troubled debt restructurings | 227,000 | |
Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due >90 days, but still accruing | 527,000 | |
Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due >90 days, but still accruing | 486,000 | |
Commercial & Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due >90 days, but still accruing | 407,000 | 251,000 |
Non-Performing Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 7,744,000 | 4,160,000 |
Loans past due >90 days, but still accruing | 407,000 | 1,264,000 |
Troubled debt restructurings | 811,000 | 227,000 |
Total | 8,962,000 | 5,651,000 |
Non-Performing Loans | Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 3,695,000 | 1,298,000 |
Loans past due >90 days, but still accruing | 527,000 | |
Troubled debt restructurings | 689,000 | 99,000 |
Total | 4,384,000 | 1,924,000 |
Non-Performing Loans | Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 3,917,000 | 2,800,000 |
Loans past due >90 days, but still accruing | 486,000 | |
Total | 3,917,000 | 3,286,000 |
Non-Performing Loans | Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 12,000 | |
Total | 12,000 | |
Non-Performing Loans | Commercial & Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 132,000 | 50,000 |
Loans past due >90 days, but still accruing | 407,000 | 251,000 |
Troubled debt restructurings | 122,000 | 128,000 |
Total | $ 661,000 | $ 429,000 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses - Additional Information (Details) | Jun. 01, 2020USD ($) | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan |
Financing Receivable Modifications [Line Items] | |||
Commitments to lend additional funds to borrowers whose loans were on non-accrual status | $ 0 | $ 0 | |
Number of loans modified during the period | Loan | 1 | ||
Number of loans determined to be troubled debt restructurings | Loan | 4 | 3 | |
Troubled debt restructuring carrying value | $ 227,000 | ||
Number of TDRs defaulted during the period | Loan | 0 | 0 | |
Allowance for credit losses on loans | $ 37,020,000 | $ 18,180,000 | |
Specific reserve for troubled debt restructurings | 87,000 | ||
Loans in deferral | 23,100,000 | ||
Total loans | 3,153,648,000 | $ 2,226,728,000 | |
Credit Deteriorated Loans | |||
Financing Receivable Modifications [Line Items] | |||
Fair value of acquired PCD loans | $ 18,600,000 | ||
Financing receivable discount | 825,000 | ||
Reduction in fair value of acquired PCD loans | $ 438,000 | ||
Wellesley Bancorp Inc | |||
Financing Receivable Modifications [Line Items] | |||
Allowance for credit losses on loans | 350,000 | ||
Total loans | 16,906,000 | ||
Wellesley Bancorp Inc | Credit Deteriorated Loans | |||
Financing Receivable Modifications [Line Items] | |||
Total loans | 16,900,000 | ||
Troubled Debt Restructurings | |||
Financing Receivable Modifications [Line Items] | |||
Troubled debt restructuring carrying value | 811,000 | ||
Allowance for credit losses on loans | $ 90,000,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Schedule of Outstanding Balance and Related Allowance on PCD Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | $ 3,153,648 | $ 2,226,728 |
ACL Balance | 37,020 | 18,180 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 1,298,868 | 917,566 |
ACL Balance | 13,067 | 5,141 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 1,358,962 | 1,060,574 |
ACL Balance | 10,905 | |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 106,194 | 80,675 |
ACL Balance | 552 | 461 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 347,855 | 133,236 |
ACL Balance | 3,309 | 1,475 |
Consumer Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 41,769 | 34,677 |
ACL Balance | 524 | $ 198 |
Wellesley Bancorp Inc | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 16,906 | |
ACL Balance | 350 | |
Wellesley Bancorp Inc | Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 558 | |
ACL Balance | 10 | |
Wellesley Bancorp Inc | Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 15,114 | |
ACL Balance | 300 | |
Wellesley Bancorp Inc | Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 106 | |
ACL Balance | 3 | |
Wellesley Bancorp Inc | Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loan Balance | 1,128 | |
ACL Balance | $ 37 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Residential Mortgage | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | $ 398,267 |
2019 | 221,019 |
2018 | 159,744 |
2017 | 144,314 |
2016 | 107,814 |
Prior | 267,710 |
Total | 1,298,868 |
Residential Mortgage | Current | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 398,267 |
2019 | 221,019 |
2018 | 158,962 |
2017 | 144,256 |
2016 | 106,360 |
Prior | 265,620 |
Total | 1,294,484 |
Residential Mortgage | Non-Performing Loans | |
Financing Receivable Recorded Investment [Line Items] | |
2018 | 782 |
2017 | 58 |
2016 | 1,454 |
Prior | 2,090 |
Total | 4,384 |
Home Equity | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 2,131 |
2019 | 6,024 |
2018 | 7,997 |
2017 | 6,976 |
2016 | 2,119 |
Prior | 5,191 |
Revolving loans amortized cost basis | 75,756 |
Total | 106,194 |
Home Equity | Current | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 2,131 |
2019 | 6,024 |
2018 | 7,997 |
2017 | 6,976 |
2016 | 2,119 |
Prior | 5,191 |
Revolving loans amortized cost basis | 75,756 |
Total | 106,194 |
Consumer | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 16,192 |
2019 | 5,819 |
2018 | 3,652 |
2017 | 2,643 |
2016 | 4,879 |
Prior | 8,032 |
Revolving loans amortized cost basis | 552 |
Total | 41,769 |
Consumer | Current | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 16,192 |
2019 | 5,819 |
2018 | 3,652 |
2017 | 2,643 |
2016 | 4,879 |
Prior | 8,032 |
Revolving loans amortized cost basis | 552 |
Total | 41,769 |
Commercial Mortgage | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 282,870 |
2019 | 397,043 |
2018 | 210,918 |
2017 | 107,759 |
2016 | 126,837 |
Prior | 233,535 |
Total | 1,358,962 |
Commercial Mortgage | 1-6 (Pass) | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 282,870 |
2019 | 396,026 |
2018 | 197,473 |
2017 | 106,489 |
2016 | 126,537 |
Prior | 221,257 |
Total | 1,330,652 |
Commercial Mortgage | 7 (Special Mention) | |
Financing Receivable Recorded Investment [Line Items] | |
2019 | 872 |
2018 | 13,445 |
2017 | 1,270 |
2016 | 85 |
Prior | 8,304 |
Total | 23,976 |
Commercial Mortgage | 8 (Substandard) | |
Financing Receivable Recorded Investment [Line Items] | |
2019 | 145 |
2016 | 215 |
Prior | 3,300 |
Total | 3,660 |
Commercial Mortgage | 9 (Doubtful) | |
Financing Receivable Recorded Investment [Line Items] | |
Prior | 674 |
Total | 674 |
Commercial & Industrial | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 212,223 |
2019 | 55,947 |
2018 | 41,555 |
2017 | 24,120 |
2016 | 5,007 |
Prior | 8,577 |
Revolving loans amortized cost basis | 426 |
Total | 347,855 |
Commercial & Industrial | 1-6 (Pass) | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 210,356 |
2019 | 51,424 |
2018 | 37,286 |
2017 | 23,700 |
2016 | 2,920 |
Prior | 7,373 |
Revolving loans amortized cost basis | 416 |
Total | 333,475 |
Commercial & Industrial | 7 (Special Mention) | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 534 |
2019 | 3,407 |
2018 | 3,725 |
2017 | 420 |
2016 | 180 |
Prior | 1,001 |
Revolving loans amortized cost basis | 10 |
Total | 9,277 |
Commercial & Industrial | 8 (Substandard) | |
Financing Receivable Recorded Investment [Line Items] | |
2020 | 1,333 |
2019 | 1,116 |
2018 | 544 |
2016 | 1,907 |
Prior | 203 |
Total | $ 5,103 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 3,153,648 | $ 2,226,728 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,358,962 | 1,060,574 |
Commercial Mortgage | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,050,037 | |
Commercial Mortgage | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 7,360 | |
Commercial Mortgage | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 3,177 | |
Commercial & Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 347,855 | 133,236 |
Commercial & Industrial | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 123,900 | |
Commercial & Industrial | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 4,289 | |
Commercial & Industrial | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 5,047 | |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,298,868 | 917,566 |
Residential Mortgage | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 915,642 | |
Residential Mortgage | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,924 | |
Home Equity | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 106,194 | 80,675 |
Home Equity | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 80,663 | |
Home Equity | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 12 | |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 41,769 | 34,677 |
Consumer | Current | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 34,677 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Loans Receivable Disaggregated by Past Due Status (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | $ 26,104 | $ 15,645 |
Current Loans | 3,127,544 | 2,211,083 |
Total loans | 3,153,648 | 2,226,728 |
Amortized Cost 90+ Days and Accruing | 407 | 1,264 |
30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 17,966 | 9,854 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 4,720 | 1,332 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 3,418 | 4,459 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 17,432 | 10,846 |
Current Loans | 1,281,436 | 906,720 |
Total loans | 1,298,868 | 917,566 |
Amortized Cost 90+ Days and Accruing | 527 | |
Residential Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 12,647 | 8,710 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 2,450 | 1,089 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 2,335 | 1,047 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,754 | 3,972 |
Current Loans | 1,357,208 | 1,056,602 |
Total loans | 1,358,962 | 1,060,574 |
Amortized Cost 90+ Days and Accruing | 486 | |
Commercial Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,080 | 811 |
Commercial Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 674 | 3,161 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,196 | 69 |
Current Loans | 104,998 | 80,606 |
Total loans | 106,194 | 80,675 |
Home Equity | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 843 | 57 |
Home Equity | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 353 | 12 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 2,602 | 749 |
Current Loans | 345,253 | 132,487 |
Total loans | 347,855 | 133,236 |
Amortized Cost 90+ Days and Accruing | 407 | 251 |
Commercial & Industrial | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 276 | 272 |
Commercial & Industrial | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 1,917 | 226 |
Commercial & Industrial | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 409 | 251 |
Consumer Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | 3,120 | 9 |
Current Loans | 38,649 | 34,668 |
Total loans | 41,769 | 34,677 |
Consumer Loans | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | $ 3,120 | 4 |
Consumer Loans | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Principal Balance/Past Due | $ 5 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses Disaggregated by Loan Category (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | $ 18,180 |
Allowance for credit losses-loan portfolio, Ending Balance | 37,020 |
Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 18,180 |
Provision for acquired loans | 8,282 |
Initial allowance for PCD | 437 |
Charge-offs | (704) |
Recoveries | 265 |
Provision for (Release of)-loan portfolio | 9,351 |
Allowance for credit losses-loan portfolio, Ending Balance | 36,016 |
Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | 205 |
Unfunded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 50 |
Acquired loan commitments | 356 |
Provision for (Release of)-loan portfolio | 322 |
Allowance for credit losses-unfunded commitments | 1,004 |
Unfunded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | 276 |
Residential Mortgage | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 5,141 |
Allowance for credit losses-loan portfolio, Ending Balance | 13,067 |
Residential Mortgage | Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 5,141 |
Provision for acquired loans | 2,880 |
Initial allowance for PCD | 35 |
Provision for (Release of)-loan portfolio | 2,950 |
Allowance for credit losses-loan portfolio, Ending Balance | 13,067 |
Residential Mortgage | Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | 2,061 |
Commercial Mortgage | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Ending Balance | 18,564 |
Commercial Mortgage | Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 10,905 |
Provision for acquired loans | 3,625 |
Initial allowance for PCD | 382 |
Charge-offs | (264) |
Provision for (Release of)-loan portfolio | 5,363 |
Allowance for credit losses-loan portfolio, Ending Balance | 18,564 |
Commercial Mortgage | Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | (1,447) |
Home Equity | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 461 |
Allowance for credit losses-loan portfolio, Ending Balance | 552 |
Home Equity | Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 461 |
Provision for acquired loans | 188 |
Provision for (Release of)-loan portfolio | 108 |
Allowance for credit losses-loan portfolio, Ending Balance | 552 |
Home Equity | Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | (205) |
Commercial & Industrial | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 1,475 |
Allowance for credit losses-loan portfolio, Ending Balance | 3,309 |
Commercial & Industrial | Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 1,475 |
Provision for acquired loans | 1,577 |
Initial allowance for PCD | 20 |
Charge-offs | (400) |
Recoveries | 250 |
Provision for (Release of)-loan portfolio | 879 |
Allowance for credit losses-loan portfolio, Ending Balance | 3,309 |
Commercial & Industrial | Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | (492) |
Consumer | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 198 |
Allowance for credit losses-loan portfolio, Ending Balance | 524 |
Consumer | Funded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 198 |
Provision for acquired loans | 12 |
Charge-offs | (40) |
Recoveries | 15 |
Provision for (Release of)-loan portfolio | 51 |
Allowance for credit losses-loan portfolio, Ending Balance | 524 |
Consumer | Funded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | 288 |
Unfunded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Ending Balance | 1,004 |
Unfunded Commitments | Unfunded Commitments | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Allowance for credit losses-loan portfolio, Beginning Balance | 50 |
Acquired loan commitments | 356 |
Provision for (Release of)-loan portfolio | 322 |
Allowance for credit losses-unfunded commitments | 1,004 |
Unfunded Commitments | Unfunded Commitments | ASC 326 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Adoption of ASC 326 | $ 276 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | $ 16,768 | $ 15,320 |
Charge-offs | (1,656) | (109) |
Recoveries | 64 | 55 |
Provision for (Release of) | 3,004 | 1,502 |
Allowance for loan losses, Ending balance | 18,180 | 16,768 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 4,946 | 5,047 |
Provision for (Release of) | 195 | (101) |
Allowance for loan losses, Ending balance | 5,141 | 4,946 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 9,626 | |
Charge-offs | (1,270) | |
Provision for (Release of) | 2,549 | |
Allowance for loan losses, Ending balance | 10,905 | 9,626 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 517 | 630 |
Provision for (Release of) | (56) | (113) |
Allowance for loan losses, Ending balance | 461 | 517 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 1,415 | 946 |
Charge-offs | (338) | (73) |
Recoveries | 53 | 48 |
Provision for (Release of) | 258 | 494 |
Allowance for loan losses, Ending balance | 1,388 | 1,415 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 264 | 315 |
Charge-offs | (48) | (36) |
Recoveries | 11 | 7 |
Provision for (Release of) | (29) | (22) |
Allowance for loan losses, Ending balance | 198 | 264 |
Impaired Financing Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | 93 | |
Provision for (Release of) | 87 | (93) |
Allowance for loan losses, Ending balance | 87 | |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for loan losses, Beginning balance | $ 9,626 | 8,289 |
Provision for (Release of) | 1,337 | |
Allowance for loan losses, Ending balance | $ 9,626 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 87 | |
Collectively evaluated for impairment | 18,093 | |
Allowance for loan losses | $ 37,020 | 18,180 |
Individually evaluated for impairment | 4,145 | |
Collectively evaluated for impairment | 2,222,583 | |
Total loans | 3,153,648 | 2,226,728 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 5,141 | |
Allowance for loan losses | 13,067 | 5,141 |
Individually evaluated for impairment | 764 | |
Collectively evaluated for impairment | 916,802 | |
Total loans | 1,298,868 | 917,566 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 10,905 | |
Allowance for loan losses | 10,905 | |
Individually evaluated for impairment | 3,161 | |
Collectively evaluated for impairment | 1,057,413 | |
Total loans | 1,358,962 | 1,060,574 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 461 | |
Allowance for loan losses | 552 | 461 |
Individually evaluated for impairment | 92 | |
Collectively evaluated for impairment | 80,583 | |
Total loans | 106,194 | 80,675 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | 87 | |
Collectively evaluated for impairment | 1,388 | |
Allowance for loan losses | 3,309 | 1,475 |
Individually evaluated for impairment | 128 | |
Collectively evaluated for impairment | 133,108 | |
Total loans | 347,855 | 133,236 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 198 | |
Allowance for loan losses | 524 | 198 |
Collectively evaluated for impairment | 34,677 | |
Total loans | $ 41,769 | $ 34,677 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of Impaired Financing Receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
With no required reserve recorded, Carrying Value | $ 4,019 |
With no required reserve recorded, Average Carrying Value | 2,172 |
With no required reserve recorded, Unpaid Principal Balance | 5,449 |
With no required reserve recorded, Interest Income Recognized | 41 |
With required reserve recorded, Carrying Value | 128 |
With required reserve recorded, Average Carrying Value | 59 |
With required reserve recorded, Unpaid Principal Balance | 167 |
With required reserve recorded, Related Allowance | 87 |
Carrying Value | 4,147 |
Average Carrying Value | 2,231 |
Unpaid Principal Balance | 5,616 |
Related Allowance | 87 |
Interest Income Recognized | 41 |
Commercial Mortgage | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
With no required reserve recorded, Carrying Value | 3,161 |
With no required reserve recorded, Average Carrying Value | 1,385 |
With no required reserve recorded, Unpaid Principal Balance | 4,376 |
With no required reserve recorded, Interest Income Recognized | 35 |
Carrying Value | 3,161 |
Average Carrying Value | 1,385 |
Unpaid Principal Balance | 4,376 |
Interest Income Recognized | 35 |
Residential Mortgage | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
With no required reserve recorded, Carrying Value | 765 |
With no required reserve recorded, Average Carrying Value | 691 |
With no required reserve recorded, Unpaid Principal Balance | 940 |
With no required reserve recorded, Interest Income Recognized | 5 |
Carrying Value | 765 |
Average Carrying Value | 691 |
Unpaid Principal Balance | 940 |
Interest Income Recognized | 5 |
Home Equity | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
With no required reserve recorded, Carrying Value | 93 |
With no required reserve recorded, Average Carrying Value | 96 |
With no required reserve recorded, Unpaid Principal Balance | 133 |
With no required reserve recorded, Interest Income Recognized | 1 |
Carrying Value | 93 |
Average Carrying Value | 96 |
Unpaid Principal Balance | 133 |
Interest Income Recognized | 1 |
Commercial and Industrial | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
With required reserve recorded, Carrying Value | 128 |
With required reserve recorded, Average Carrying Value | 59 |
With required reserve recorded, Unpaid Principal Balance | 167 |
With required reserve recorded, Related Allowance | 87 |
Carrying Value | 128 |
Average Carrying Value | 59 |
Unpaid Principal Balance | 167 |
Related Allowance | $ 87 |
Federal Home Loan Bank of Bos_2
Federal Home Loan Bank of Boston Stock - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | $ 5,734,000 | $ 7,854,000 |
Federal Home Loan Bank of Boston | ||
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | 5,700,000 | 7,900,000 |
Impairment on investment of federal home loan bank stock | $ 0 | $ 0 |
Banking Premises and Equipmen_2
Banking Premises and Equipment - Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 38,768 | $ 33,169 |
Accumulated depreciation and amortization | (20,610) | (18,413) |
Total | 18,158 | 14,756 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | 1,516 | 1,116 |
Building and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 20,017 | 17,817 |
Building and leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Building and leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Equipment, including vaults | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 17,097 | 13,686 |
Equipment, including vaults | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Equipment, including vaults | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 20 years | |
Work in process | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 138 | $ 550 |
Banking Premises and Equipmen_3
Banking Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 2.5 | $ 2 | $ 1.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 17, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Carrying value of goodwill | $ 51,912,000 | $ 31,206,000 | ||
Impairment of goodwill recognized | 0 | 0 | $ 0 | |
Carrying value of intangible asset | $ 2,977,000 | $ 3,338,000 | ||
Mortgage Servicing Rights | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period | 3 years 3 months 18 days | 5 years 2 months 12 days | ||
Amount of mortgage loans sold and servicing rights retained | $ 60,500,000 | $ 82,900,000 | $ 1,600,000 | |
Fair value of mortgage servicing rights portfolio | 1,200,000 | 1,500,000 | ||
Optima Bank And Trust Company | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Carrying value of goodwill | $ 30,800,000 | |||
Optima Bank And Trust Company | Core Deposit Intangibles | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | 3,600,000 | |||
Amortization of intangible asset | 361,000,000 | 271,000,000 | ||
Carrying value of intangible asset | $ 3,000,000 | $ 3,300,000 | ||
Weighted average amortization period | 8 years 3 months 18 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning Balance, Mortgage servicing rights | $ 1,347 | $ 666 | $ 823 |
Mortgage servicing rights acquired as a result of the merger, Mortgage servicing rights | 50 | 334 | |
Mortgage servicing rights capitalized, Mortgage servicing rights | 536 | 618 | 20 |
Amortization charged against servicing income, Mortgage servicing rights | (572) | (271) | (147) |
Change in impairment reserve, Mortgage servicing rights | (30) | ||
Ending Balance, Mortgage servicing rights | 1,361 | 1,347 | 666 |
Beginning Balance, Valuation allowance | (26) | (30) | |
Change in impairment reserve, Valuation allowance | (116) | (26) | 30 |
Ending Balance, Valudation allowance | (142) | (26) | |
Beginning Balance, Total | 1,321 | 666 | 793 |
Mortgage servicing rights acquired as a result of the merger, Total | 50 | 334 | |
Mortgage servicing rights capitalized, Total | 536 | 618 | 20 |
Amortization charged against servicing income, Total | (572) | (271) | (147) |
Change in impairment reserve, Total | (116) | (26) | |
Ending Balance, Total | $ 1,219 | $ 1,321 | $ 666 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Aggregate Estimated Future Amortization Expense (Details) - Mortgage Servicing Rights $ in Thousands | Dec. 31, 2020USD ($) |
Future Amortization Expense | |
2021 | $ 370 |
2022 | 281 |
2023 | 205 |
2024 | 147 |
2025 | 82 |
Thereafter | 134 |
Total | $ 1,219 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Demand deposits (non-interest bearing) | $ 1,006,132 | $ 630,593 |
Interest bearing checking | 625,650 | 450,098 |
Money market | 532,218 | 181,406 |
Savings | 984,262 | 914,499 |
Retail certificates of deposit under $250,000 | 127,202 | 113,940 |
Retail certificates of deposit $250,000 or greater | 96,831 | 61,258 |
Wholesale certificates of deposit | 30,788 | 7,084 |
Total deposits | $ 3,403,083 | $ 2,358,878 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
2020 | $ 140,938 | |
2021 | $ 215,206 | 30,240 |
2022 | 23,006 | 6,426 |
2023 | 11,997 | 3,071 |
2024 | 2,156 | 1,607 |
2025 | 2,456 | |
Total certificates of deposit | $ 254,821 | $ 182,282 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Deposit accounts of directors, executive officers and their respective affiliates | $ 7.7 | $ 7.2 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Short-term advances outstanding from FHLB of boston | $ 15 | $ 15 | $ 135.7 |
Weighted average interest rate | 2.14% | 2.31% | |
Borrowings under PPP loan | $ 85.4 | $ 85.4 | |
Percentage of debt instrument interest rate stated | 0.35% | 0.35% | |
Percentage of market value, secured blanket lien on qualified collateral | 95.00% | ||
Percentage of carrying value, secured blanket lien on qualified collateral | 75.00% | ||
Unused borrowing capacity based upon collateral pledged | $ 672 | $ 672 | |
Commercial Real Estate And Commercial And Industrial Loans | Line of Credit | |||
Debt Instrument [Line Items] | |||
Collateral pledged amount | 734.3 | 734.3 | $ 316.4 |
FRB Boston | Commercial Real Estate And Commercial And Industrial Loans | |||
Debt Instrument [Line Items] | |||
Line of credit unused borrowing capacity | 562.4 | $ 562.4 | $ 134.9 |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Redemption amount | $ 10 | ||
Coupon rate | 6.00% |
Borrowings - Schedule of Inform
Borrowings - Schedule of Information Relating to Long-term Borrowings from FHLB of Boston (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Federal Home Loan Bank Advances [Line Items] | |
FHLB of Boston long-term borrowings | $ 17,835 |
FHLB of Boston long-term borrowings, percentage | 3.55% |
2022 | |
Federal Home Loan Bank Advances [Line Items] | |
FHLB of Boston long-term borrowings | $ 595 |
FHLB of Boston long-term borrowings, percentage | 1.84% |
2023 | |
Federal Home Loan Bank Advances [Line Items] | |
FHLB of Boston long-term borrowings | $ 17,240 |
FHLB of Boston long-term borrowings, percentage | 3.61% |
Borrowings - Schedule of Info_2
Borrowings - Schedule of Information Relating to Long-term Borrowings from FHLB of Boston (Parenthetical) (Details) - USD ($) $ in Thousands | Jan. 27, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank Advances [Line Items] | ||
FHLB of Boston long-term borrowings | $ 17,835 | |
FHLB of Boston long-term borrowings, percentage | 3.55% | |
Subsequent Event | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB of Boston long-term borrowings | $ 15,000 | |
FHLB of Boston long-term borrowings, percentage | 3.80% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense | |||||||||||
Federal | $ 7,877 | $ 5,954 | $ 5,524 | ||||||||
State | 4,192 | 2,597 | 2,404 | ||||||||
Total current tax expense | 12,069 | 8,551 | 7,928 | ||||||||
Deferred tax expense (benefit) | |||||||||||
Federal | (250) | (63) | (490) | ||||||||
State | (415) | 173 | (231) | ||||||||
Total deferred tax expense (benefit) | (665) | 110 | (721) | ||||||||
Total income tax expense | $ 4,862 | $ 5,021 | $ (540) | $ 2,061 | $ 2,673 | $ 2,708 | $ 1,540 | $ 1,740 | $ 11,404 | $ 8,661 | $ 7,207 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Income Tax Expense, Calculated at Statutory Federal Income Tax Rates, to Income Tax Expense in Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense at statutory rates | $ 9,106 | $ 7,123 | $ 6,528 | ||||||||
Increase/(decrease) resulting from: | |||||||||||
State tax, net of federal tax benefit | 2,984 | 2,188 | 1,717 | ||||||||
Tax-exempt income | (694) | (599) | (580) | ||||||||
ESOP dividends | (125) | (124) | (127) | ||||||||
Bank owned life insurance | (157) | (129) | (140) | ||||||||
Compensation limited under 162(m) | 511 | ||||||||||
Benefit from stock compensation | (150) | (168) | |||||||||
Non-deductible acquisition Costs | 186 | 236 | |||||||||
Impact of CARES Act | (539) | ||||||||||
Other | 132 | 116 | (23) | ||||||||
Total income tax expense | $ 4,862 | $ 5,021 | $ (540) | $ 2,061 | $ 2,673 | $ 2,708 | $ 1,540 | $ 1,740 | $ 11,404 | $ 8,661 | $ 7,207 |
Income tax expense at statutory rates | 21.00% | 21.00% | 21.00% | ||||||||
Increase/(decrease) resulting from: (Rate) | |||||||||||
State tax, net of federal tax benefit, Rate | 6.90% | 6.50% | 5.50% | ||||||||
Tax-exempt income, Rate | (1.60%) | (1.80%) | (1.90%) | ||||||||
ESOP dividends, Rate | (0.30%) | (0.40%) | (0.40%) | ||||||||
Bank owned life insurance, Rate | (0.40%) | (0.40%) | (0.50%) | ||||||||
Compensation limited under 162(m), Rate | 1.20% | ||||||||||
Benefit from stock compensation, Rate | (0.40%) | (0.50%) | |||||||||
Non-deductible Acquisition Costs, Rate | 0.40% | 0.70% | |||||||||
Impact of CARES Act, Rate | (1.20%) | ||||||||||
Other, Rate | 0.30% | 0.30% | (0.10%) | ||||||||
Total income tax expense, Rate | 26.30% | 25.50% | 23.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||||||||||
Current federal tax rates | 21.00% | 21.00% | 21.00% | ||||||||
Net operating losses carryback period | 5 years | ||||||||||
Income tax benefit | $ (4,862,000) | $ (5,021,000) | $ 540,000 | $ (2,061,000) | $ (2,673,000) | $ (2,708,000) | $ (1,540,000) | $ (1,740,000) | $ (11,404,000) | $ (8,661,000) | $ (7,207,000) |
Tax rate deferred tax assets were measured | 27.92% | 27.86% | |||||||||
Deferred tax assets, valuation allowance | 0 | 0 | $ 0 | $ 0 | |||||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Federal Income Tax | Earliest Tax Year | |||||||||||
Income Taxes [Line Items] | |||||||||||
Income tax returns year open and subject to examination | 2017 | ||||||||||
State Income Tax | Earliest Tax Year | |||||||||||
Income Taxes [Line Items] | |||||||||||
Income tax returns year open and subject to examination | 2017 | ||||||||||
State NOL [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Income tax benefit | $ 539,000 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Gross deferred tax assets | ||
Allowance for credit losses | $ 10,336 | $ 5,029 |
Accrued retirement benefits | 1,576 | 1,592 |
Unrealized losses on available for sale securities | 171 | |
Incentive compensation | 1,591 | 1,248 |
Equity based compensation | 1,343 | 1,034 |
Lease liability | 10,455 | 9,765 |
ESOP dividends | 166 | 165 |
Loss carryforwards as a result of the Optima merger | 21 | 877 |
Intangibles / Fair value marks (merger related) | 1,971 | 472 |
Other | 205 | 252 |
Total gross deferred tax assets | 27,664 | 20,605 |
Gross deferred tax liabilities | ||
Deferred loan origination costs | (1,434) | (911) |
Unrealized gains on available for sale securities | (641) | |
Depreciation of premises and equipment | (1,816) | (1,021) |
Right of use asset | (9,751) | (9,356) |
Mortgage servicing rights | (340) | (368) |
Goodwill | (115) | (113) |
Derivative transactions | (1,928) | (607) |
Total gross deferred tax liabilities | (16,025) | (12,376) |
Net deferred tax asset | $ 11,639 | $ 8,229 |
Pension and Retirement Plans -
Pension and Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension highest consecutive plan period | 3 years | ||||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||||
Discount rate used to calculate benefit obligation | 2.46% | 3.22% | |||
Transfers between fair value levels | $ 0 | $ 0 | |||
Minimum | Domestic Large Cap Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 30.00% | ||||
Minimum | Domestic Small/Mid Cap Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 5.00% | ||||
Minimum | International Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 0.00% | ||||
Minimum | Cash and Fixed Income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 20.00% | ||||
Maximum | Domestic Large Cap Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 60.00% | ||||
Maximum | Domestic Small/Mid Cap Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 20.00% | ||||
Maximum | International Equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 20.00% | ||||
Maximum | Cash and Fixed Income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target asset allocation percentages | 60.00% | ||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, description | The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). | ||||
Minimum number of hours of service per year required for eligibility | 1000 hours | ||||
Employee eligibility age under the plan | 21 years | ||||
Minimum number of years of service required for eligibility | 12 months | ||||
Discount rate used to calculate benefit obligation | 2.45% | 3.22% | |||
Supplemental Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension highest consecutive plan period | 3 years | ||||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||||
Discount rate used to calculate benefit obligation | 2.21% | 3.04% | |||
Postretirement Medical Coverage | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee eligibility age under the plan | 65 years | ||||
Discount rate used to calculate benefit obligation | 2.52% | 3.26% | |||
Profit Sharing Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||||
Defined contribution plan, employer matching contribution, percent | 4.00% | ||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||||
Profit Sharing Plan | 401(k) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||||
Profit Sharing Plan | Discretionary Contribution | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||||
Normal retirement age of employees | 65 years | ||||
Profit Sharing Plan | Maximum | 401(k) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer matching contribution, percent | 4.00% | ||||
Employee Stock Ownership Plan (ESOP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||||
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 | $ 3,600,000 | $ 2,800,000 | $ 2,600,000 | ||
Defined Contribution SERP Plan (“DC SERP”) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||||
Contribution expense related to plans | $ 209,000 | $ 167,000 | $ 209,000 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Schedule of Projected Benefit Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | $ 45,401 | $ 40,522 |
Interest cost | 1,438 | 1,680 |
Actuarial loss | 4,827 | 4,670 |
Benefits paid | (1,549) | (1,471) |
Obligation at end of year | 50,117 | 45,401 |
Change in plan assets | ||
Fair value at beginning of year | 50,131 | 42,648 |
Actual return on plan assets | 7,220 | 8,954 |
Benefits paid | (1,549) | (1,471) |
Fair value at end of year | 55,802 | 50,131 |
Funded (underfunded) status at end of year | 5,685 | 4,730 |
Supplemental Retirement Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 9,622 | 8,830 |
Service cost | 355 | 283 |
Interest cost | 283 | 349 |
Actuarial loss | 840 | 770 |
Benefits paid | (595) | (610) |
Obligation at end of year | 10,505 | 9,622 |
Change in plan assets | ||
Employer contribution | 595 | 610 |
Benefits paid | (595) | (610) |
Funded (underfunded) status at end of year | (10,505) | (9,622) |
Postretirement Healthcare Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 689 | 598 |
Service cost | 30 | 25 |
Interest cost | 21 | 25 |
Actuarial loss | 51 | 76 |
Benefits paid | (30) | (35) |
Obligation at end of year | 761 | 689 |
Change in plan assets | ||
Employer contribution | 30 | 35 |
Benefits paid | (30) | (35) |
Funded (underfunded) status at end of year | $ (761) | $ (689) |
Pension and Retirement Plans _3
Pension and Retirement Plans - Schedule of Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 50,117 | $ 45,401 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 9,909 | 9,207 |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 761 | $ 689 |
Pension and Retirement Plans _4
Pension and Retirement Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ 5,685 | $ 4,730 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | (10,505) | (9,622) |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ (761) | $ (689) |
Pension and Retirement Plans _5
Pension and Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain)/loss | $ 4,517 | $ 3,709 |
Prior service credit | (3) | (7) |
Total | 4,514 | 3,702 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain)/loss | 1,959 | 1,128 |
Total | 1,959 | 1,128 |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial (gain)/loss | $ 18 | $ (34) |
Pension and Retirement Plans _6
Pension and Retirement Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in other comprehensive income | |||
Total recognized in other comprehensive income | $ 1,695 | $ (864) | $ (124) |
Pension Plan | |||
Net periodic benefit cost | |||
Interest cost | 1,438 | 1,680 | |
Expected return on assets | (3,201) | (2,721) | |
Amortization of prior service credit | (4) | (4) | |
Amortization of net actuarial loss | 154 | ||
Net periodic benefit cost | (1,767) | (891) | |
Amounts recognized in other comprehensive income | |||
Net actuarial loss/(gain) | 807 | (1,563) | |
Amortization of prior service credit | 4 | 4 | |
Amortization of net actuarial loss | (154) | ||
Total recognized in other comprehensive income | 811 | (1,713) | |
Total recognized in net periodic benefit cost and other comprehensive income | (956) | (2,604) | |
Supplemental Retirement Plan | |||
Net periodic benefit cost | |||
Service cost | 355 | 283 | |
Interest cost | 283 | 349 | |
Amortization of net actuarial loss | 8 | ||
Net periodic benefit cost | 646 | 632 | |
Amounts recognized in other comprehensive income | |||
Net actuarial loss/(gain) | 840 | 770 | |
Amortization of net actuarial loss | (8) | ||
Total recognized in other comprehensive income | 832 | 770 | |
Total recognized in net periodic benefit cost and other comprehensive income | 1,478 | 1,402 | |
Postretirement Healthcare Plan | |||
Net periodic benefit cost | |||
Service cost | 30 | 25 | |
Interest cost | 21 | 25 | |
Amortization of net actuarial loss | (3) | ||
Net periodic benefit cost | 51 | 47 | |
Amounts recognized in other comprehensive income | |||
Net actuarial loss/(gain) | 51 | 76 | |
Amortization of net actuarial loss | 3 | ||
Total recognized in other comprehensive income | 51 | 79 | |
Total recognized in net periodic benefit cost and other comprehensive income | $ 102 | $ 126 |
Pension and Retirement Plans _7
Pension and Retirement Plans - Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.46% | 3.22% |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.45% | 3.22% |
Discount rate | 3.22% | 4.23% |
Expected long-term return on plan assets | 6.50% | 6.50% |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.21% | 3.04% |
Rate of compensation increase | 4.00% | 4.00% |
Discount rate | 3.04% | 4.10% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.52% | 3.26% |
Discount rate | 3.26% | 4.22% |
Pension and Retirement Plans _8
Pension and Retirement Plans - Schedule of Pension Plan Weighted-average Asset Allocations by Asset (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 42.00% | 53.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 46.00% | 36.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 9.00% | 3.00% |
Cash and Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 3.00% | 8.00% |
Pension and Retirement Plans _9
Pension and Retirement Plans - Summary of Various Categories of Pension Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 55,802 | $ 50,131 | $ 42,648 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 41,400 | 42,934 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 14,402 | 7,197 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,527 | 4,834 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,527 | 4,834 | |
Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 14,402 | 7,197 | |
Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 14,402 | 7,197 | |
Common Stock, Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 12,604 | 17,180 | |
Common Stock, Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 12,604 | 17,180 | |
Common Stock, Small Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,767 | 2,627 | |
Common Stock, Small Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,767 | 2,627 | |
Mutual Funds, Domestic Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9,306 | 3,931 | |
Mutual Funds, Domestic Equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9,306 | 3,931 | |
Mutual Funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,868 | 3,650 | |
Mutual Funds, International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,868 | 3,650 | |
Mutual Funds, Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 11,328 | 10,712 | |
Mutual Funds, Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 11,328 | $ 10,712 |
Pension and Retirement Plans_10
Pension and Retirement Plans - Schedule of Assumed Health Care Cost Trend Rates (Details) - Postretirement Healthcare Plan | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 4.00% | 4.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.00% | 4.00% |
Year that the rate reaches the ultimate trend rate | 2020 | 2019 |
Pension and Retirement Plans_11
Pension and Retirement Plans - Schedule of Benefits Expected to be Paid in the Next Ten Years (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Year-ended December 31, | |
2021 | $ 2,456 |
2022 | 2,610 |
2023 | 2,722 |
2024 | 2,793 |
2025 | 2,865 |
2026-2030 inclusive | 15,587 |
Ten year total | 29,033 |
Pension Plan | |
Year-ended December 31, | |
2021 | 1,829 |
2022 | 1,966 |
2023 | 2,081 |
2024 | 2,156 |
2025 | 2,232 |
2026-2030 inclusive | 12,183 |
Ten year total | 22,447 |
Supplemental Retirement Plan | |
Year-ended December 31, | |
2021 | 594 |
2022 | 611 |
2023 | 608 |
2024 | 604 |
2025 | 600 |
2026-2030 inclusive | 3,238 |
Ten year total | 6,255 |
Postretirement Healthcare Plan | |
Year-ended December 31, | |
2021 | 33 |
2022 | 33 |
2023 | 33 |
2024 | 33 |
2025 | 33 |
2026-2030 inclusive | 166 |
Ten year total | $ 331 |
Pension and Retirement Plans_12
Pension and Retirement Plans - Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income (loss) into Net Periodic Benefit Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | $ 3 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit | $ 3 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
DSP Plan and 2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares issued under this plan | 8,403 | 4,484 |
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 | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options time-vest period | 3 years | |
Time Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options time-vest period | 3 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Non-vested at beginning of year | 36,121 | 41,311 |
Number of Shares, Granted | 12,790 | 11,330 |
Number of Shares, Vested | (13,846) | (14,642) |
Number of Shares, Forfeited | (3,416) | (1,878) |
Number of Shares, Non-vested at end of year | 31,649 | 36,121 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 70.25 | $ 65.10 |
Weighted Average Grant Value, Granted | 72.48 | 75.67 |
Weighted Average Grant Value, Vested | 66.55 | 60.55 |
Weighted Average Grant Value, Forfeited | 67.50 | 65.33 |
Weighted Average Grant Value, Non-vested at end of year | $ 73.07 | $ 70.25 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Non-vested Performance-Based Restricted Stock Units Outstanding (Details) - Performance-Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Units, Non-vested at beginning of year | 57,256 | 41,411 |
Number of Units, Granted | 36,067 | 28,542 |
Number of Units, Vested (Performance achieved) | (8,623) | (12,697) |
Number of Units, Forfeited | (9,454) | |
Number of Units, Non-vested at end of year | 75,246 | 57,256 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 72.82 | $ 66.39 |
Weighted Average Grant Value, Granted | 71.36 | 73 |
Weighted Average Grant Value, Vested (Performance achieved) | 62.54 | 46 |
Weighted Average Grant Value, Forfeited | 70.21 | |
Weighted Average Grant Value, Non-vested at end of year | $ 73.41 | $ 72.82 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Non-vested Time-Based Restricted Stock Units Outstanding (Details) - Time Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Non-vested at beginning of year | 12,658 | 6,777 |
Number of Shares, Granted | 9,120 | 8,132 |
Number of Shares, Vested | (4,958) | (2,251) |
Number of Shares, Forfeited | (1,852) | |
Number of Shares, Non-vested at end of year | 14,968 | 12,658 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 74.27 | $ 76.56 |
Weighted Average Grant Value, Granted | 74.69 | 73 |
Weighted Average Grant Value, Vested | 74.62 | 76.56 |
Weighted Average Grant Value, Forfeited | 70.86 | |
Weighted Average Grant Value, Non-vested at end of year | $ 74.84 | $ 74.27 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Amounts Recognized in Consolidated Statement of Income for Restricted Stock, Time Based Restricted Stock Units and Performance Based Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation [Abstract] | |||
Share-based compensation expense | $ 4,923 | $ 2,632 | $ 2,592 |
Related income tax benefit | $ 1,375 | $ 733 | $ 729 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Standby Letters of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 9,430 | $ 9,150 |
Unused Portion of Existing Lines of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 584,520 | 428,020 |
Origination of New Loans | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 94,399 | 24,413 |
Commitments to Sell Residential Mortgage Loans | ||
Financial instruments whose notional amount exceeds the amount of credit risk: | ||
Financial instrument notional amount exceeds credit risk | $ 17,644 | $ 3,909 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Line Items] | ||||
Description of operating lease expiration terms | operating leases and their terms expire between 2021 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 | $ 7 | $ 5.7 | $ 4.7 | |
South End Branch and Support Office | ||||
Commitments and Contingencies [Line Items] | ||||
Impairment charges | $ 1.2 | |||
ASU 2016-02 | ||||
Commitments and Contingencies [Line Items] | ||||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2019 | Jan. 1, 2019 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Components of Operating Lease Cost and Other Related Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease cost | $ 6,691 | $ 5,280 |
Variable lease cost (Cost excluded from lease payments) | 2 | 2 |
Sublease income | (65) | (64) |
Total operating lease cost | 6,628 | 5,218 |
Other Information | ||
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows for operating leases | 6,547 | 5,027 |
Operating Lease - Operating cash flows (Liability reduction) | 5,430 | 3,868 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 7,850 | $ 37,728 |
Weighted average lease term - operating leases | 6 years 10 months 24 days | 8 years 1 month 24 days |
Weighted average discount rate - operating leases | 2.98% | 3.39% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Total Minimum Lease Payments Due in Future Periods under Lease Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases Future Minimum Payments Due [Abstract] | ||
Year 1 | $ 7,173 | $ 5,478 |
Year 2 | 6,789 | 5,523 |
Year 3 | 6,362 | 5,371 |
Year 4 | 5,493 | 5,021 |
Year 5 | 4,517 | 4,355 |
Thereafter | 11,347 | 14,553 |
Total minimum lease payments | 41,681 | 40,301 |
Less: interest | (4,233) | (5,247) |
Total lease liability | $ 37,448 | $ 35,054 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 risk based capital to risk weighted assets | 0.127 | 0.127 | |
Capital to risk weighted assets | 0.139 | 0.136 | |
Tier 1 capital to average assets of leverage ratio | 0.089 | 0.090 | |
Minimum | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Common equity tier 1 risk based capital to risk weighted assets | 0.07 | 0.045 | |
Tier 1 risk based capital to risk weighted assets | 0.085 | 0.060 | |
Capital to risk weighted assets | 0.105 | 0.080 | |
Tier 1 capital to average assets of leverage ratio | 0.040 | ||
Capital conservation buffer rate | 2.50% |
Shareholders' Equity - Minimum
Shareholders' Equity - Minimum Capital Requirements were Considered Well Capitalized by FRB and FDIC (Details) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 378,393,000 | $ 272,727,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 344,409,000 | 254,497,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 344,409,000 | 254,497,000 | |
Tier I capital (to average assets), Actual, Amount | $ 344,409,000 | $ 254,497,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 0.139 | 0.136 | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 0.127 | 0.127 | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 0.127 | 0.127 | |
Tier I capital (to average assets), Actual, Ratio | 0.089 | 0.090 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 285,145,000 | $ 210,342,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 230,832,000 | 170,277,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 190,097,000 | 140,228,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 155,009,000 | $ 113,365,000 | |
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 | |
Minimum | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Ratio | 0.105 | 0.080 | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 0.085 | 0.060 | |
Tier I capital (to average assets), Actual, Ratio | 0.040 | ||
Cambridge Trust Company | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 376,209,000 | $ 271,034,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 342,229,000 | 252,804,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 342,229,000 | 252,804,000 | |
Tier I capital (to average assets), Actual, Amount | $ 342,229,000 | $ 252,804,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 0.139 | 0.135 | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 0.126 | 0.126 | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 0.126 | 0.126 | |
Tier I capital (to average assets), Actual, Ratio | 0.088 | 0.089 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 285,117,000 | $ 210,341,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 230,809,000 | 170,276,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 190,078,000 | 140,227,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 154,999,000 | $ 113,364,000 | |
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 | $ 271,540,000 | $ 200,325,000 | |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 217,232,000 | 160,260,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 176,501,000 | 130,211,000 | |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 193,748,000 | $ 141,705,000 | |
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 |
Comprehensive Income - Summary
Comprehensive Income - Summary of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Available for sale securities, before tax amount | |||
Unrealized holding gains/(losses), before tax amount | $ 3,630 | $ 3,267 | $ (231) |
Reclassification adjustment for (gains)/losses realized in net income, before tax amount | (73) | 81 | (2) |
Interest rate swaps designated as cash flow hedges, before tax amount | |||
Unrealized holding gains/(losses), before tax amount | 6,602 | 984 | 1,002 |
Reclassification adjustment for (gains)/losses recognized in net income, before tax amount | (1,879) | 150 | 43 |
Defined benefit retirement plans, before tax amount | |||
Net change in retirement liability, before tax amount | (1,695) | 864 | 124 |
Total Other Comprehensive Income/(Loss), before tax amount | 6,585 | 5,346 | 936 |
Available for sale securities, tax (expense) or benefit | |||
Unrealized holding gains/(losses),tax (expense) or benefit | (830) | (767) | (11) |
Reclassification adjustment for (gains)/losses realized in net income, tax (expense) or benefit | 16 | (19) | |
Interest rate swaps designated as cash flow hedges, tax (expense) or benefit | |||
Unrealized holding gains/(losses), tax (expense) or benefit | (1,844) | (271) | (282) |
Reclassification adjustment for (gains)/losses recognized in net income, tax (expense) or benefit | 525 | (42) | (12) |
Defined benefit retirement plans, tax (expense) or benefit | |||
Net change in retirement liability, tax (expense) or benefit | 463 | (241) | (35) |
Total Other Comprehensive Income/(Loss), tax (expense) or benefit | (1,670) | (1,340) | (340) |
Available for sale securities | |||
Unrealized holding gains(losses) | 2,800 | 2,500 | (242) |
Less: reclassification adjustment for (gains)losses realized in net income | (57) | 62 | (2) |
Interest rate swaps designated as cash flow hedges | |||
Unrealized holding gains(losses) | 4,758 | 713 | 720 |
Less: reclassification adjustment for (gains)losses realized in net income | (1,354) | 108 | 31 |
Defined benefit retirement plans | |||
Net change in retirement liability, net-of-tax amount | (1,232) | 623 | 89 |
Other comprehensive income | $ 4,915 | $ 4,006 | $ 596 |
Comprehensive Income - Summar_2
Comprehensive Income - Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains (losses) on available for sale securities | $ 69 | $ (79) | $ 2 | ||||||||
Tax (expense) benefit | $ (4,862) | $ (5,021) | $ 540 | $ (2,061) | $ (2,673) | $ (2,708) | $ (1,540) | $ (1,740) | (11,404) | (8,661) | (7,207) |
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | 31,959 | 25,257 | 23,881 |
Reclassifications out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains (losses) on available for sale securities | 73 | (81) | 2 | ||||||||
Unrealized gains (losses) on derivatives | 1,879 | (150) | (43) | ||||||||
Tax (expense) benefit | (541) | 61 | 12 | ||||||||
Net income | $ 1,411 | $ (170) | $ (29) |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 31,959 | $ 25,257 | $ 23,881 |
Less dividends and undistributed earnings allocated to participating securities | (47) | (210) | (239) | ||||||||
Net income applicable to common shareholders | $ 31,912 | $ 25,047 | $ 23,642 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 6,897,450 | 6,918,692 | 5,912,889 | 5,397,040 | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 6,289,481 | 4,629,255 | 4,061,529 |
Earnings per common share – basic | $ 1.88 | $ 1.94 | $ (0.29) | $ 1.34 | $ 1.43 | $ 1.58 | $ 0.91 | $ 1.51 | $ 5.07 | $ 5.41 | $ 5.82 |
Numerator: | |||||||||||
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 31,959 | $ 25,257 | $ 23,881 |
Less dividends and undistributed earnings allocated to participating securities | (47) | (210) | (239) | ||||||||
Net income applicable to common shareholders | $ 31,912 | $ 25,047 | $ 23,642 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 6,897,450 | 6,918,692 | 5,912,889 | 5,397,040 | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 6,289,481 | 4,629,255 | 4,061,529 |
Dilutive effect of common stock equivalents | 55,000 | 33,000 | 37,000 | ||||||||
Weighted average diluted common shares outstanding | 6,970,542 | 6,954,324 | 5,912,889 | 5,432,099 | 4,980,439 | 4,842,965 | 4,715,724 | 4,106,658 | 6,344,409 | 4,661,720 | 4,098,633 |
Earnings per common share – diluted | $ 1.86 | $ 1.93 | $ (0.29) | $ 1.33 | $ 1.42 | $ 1.57 | $ 0.90 | $ 1.49 | $ 5.03 | $ 5.37 | $ 5.77 |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | $ 46,084 | $ 15,912 |
Derivative Liabilities, Fair value | 38,911 | 13,230 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 7,618 | 2,911 |
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 | 7,618 | 2,911 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 38,466 | 13,001 |
Derivative Liabilities, Fair value | 38,911 | 13,230 |
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 | 409,493 | 241,187 |
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 | 38,415 | 12,980 |
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 | 409,493 | 241,187 |
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 | 38,415 | 12,980 |
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 | 26,580 | 19,000 |
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 | 51 | 21 |
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 | 104,956 | 88,489 |
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 | $ 496 | $ 250 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities - Summary of Cash Flow Hedge Accounting on AOCI (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Income | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI - Included Component | $ 2,074 | |
Amount of Gain or (Loss) Recognized in OCI - Excluded Component | (195) | $ (150) |
Amount of Gain or (Loss) Reclassified from AOCI into Income | 1,879 | (150) |
Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI | 4,723 | 984 |
Amount of Gain or (Loss) Recognized in OCI - Included Component | 5,650 | 2,120 |
Amount of Gain or (Loss) Recognized in OCI - Excluded Component | $ (927) | $ (1,136) |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Estimated amount will be reclassified out of AOCI in to earnings | $ 2,500,000 | |
Fair value of derivative liability | 38,911,000 | $ 13,230,000 |
Minimum collateral posting threshold of derivative counterparties | 29,900,000 | 10,400,000 |
Termination amount | 30,700,000 | 9.6 |
Minimum | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Minimum collateral posting threshold of derivative counterparties | 29,900,000 | 10.4 |
Accrued Interest | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivative liability | $ 30,700,000 | $ 9.6 |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities - Summary of Derivative Financial Instruments on the Consolidated Statements of Income (Loss) (Details) - Interest Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Total amount of income presented in the statements of income statement in which the effects of cash flow hedges are recorded | $ 1,879 | $ (150) |
Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassed from AOCI into income | 1,879 | (150) |
Amount of loss reclassed from AOCI into income - Included Component | 2,074 | |
Amount of loss reclassed from AOCI into income - Excluded Component | $ (195) | $ (150) |
Derivatives And Hedging Activ_7
Derivatives And Hedging Activities - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other contracts | Other 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 | $ 155 | $ 311 | $ 276 |
Derivatives And Hedging Activ_8
Derivatives And Hedging Activities - Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting [Abstract] | ||
Gross Amounts Recognized, Derivative assets | $ 46,084 | $ 15,912 |
Net Amounts Recognized, Derivative Assets | 46,084 | 15,912 |
Gross Amounts Not Offset, Financial Instruments, Derivative Assets | 7,649 | 3,128 |
Gross Amounts Not Offset, Net amount, Derivative Assets | 38,435 | 12,784 |
Gross Amounts Recognized, Derivative Liabilities | 38,911 | 13,230 |
Net Amounts Recognized, Derivative Liabilities | 38,911 | 13,230 |
Gross Amounts Not Offset, Financial Instruments, Derivative Liabilities | 7,649 | 3,128 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Liabilities | 30,724 | 9,645 |
Gross Amounts Not Offset, Net amount, Derivative Liabilities | $ 538 | $ 457 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Securities available for sale | $ 237,030 | $ 140,330 |
Securities held to maturity | 260,139 | 264,114 |
FHLB Boston stock | 5,734 | 7,854 |
Recurring Basis | Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 75,785 | 61,335 |
Securities available for sale | 237,030 | 140,330 |
Securities held to maturity | 247,672 | 258,172 |
Loans, net | 3,117,632 | 2,208,548 |
Loans held for sale | 6,909 | 1,546 |
FHLB Boston stock | 5,734 | 7,854 |
Accrued interest receivable | 9,514 | 7,052 |
Mortgage servicing rights | 1,219 | 1,321 |
Interest rate contracts | 7,618 | 2,911 |
Loan level interest rate swaps | 38,415 | 12,980 |
Risk participation agreements out to counterparties | 51 | 21 |
Financial liabilities | ||
Deposits | 3,403,083 | 2,358,878 |
Borrowings | 32,992 | 135,691 |
Loan level interest rate swaps | 38,415 | 12,980 |
Risk participation agreements in with counterparties | 496 | 250 |
Recurring Basis | Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 75,785 | 61,335 |
Securities available for sale | 237,030 | 140,330 |
Securities held to maturity | 260,139 | 264,114 |
Loans, net | 3,092,021 | 2,160,087 |
Loans held for sale | 7,101 | 2,051 |
FHLB Boston stock | 5,734 | 7,854 |
Accrued interest receivable | 9,514 | 7,052 |
Mortgage servicing rights | 1,219 | 1,526 |
Interest rate contracts | 7,618 | 2,911 |
Loan level interest rate swaps | 38,415 | 12,980 |
Risk participation agreements out to counterparties | 51 | 21 |
Financial liabilities | ||
Deposits | 3,403,832 | 2,358,089 |
Borrowings | 34,284 | 135,744 |
Loan level interest rate swaps | 38,415 | 12,980 |
Risk participation agreements in with counterparties | $ 496 | $ 250 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Certain Assets Reported at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 237,030 | $ 140,330 |
U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,617 | 37,848 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,783 | |
Recurring Basis | U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 23,617 | 37,848 |
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 | 23,617 | 37,848 |
Recurring Basis | Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 210,630 | 102,482 |
Recurring Basis | Mortgage Backed Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 210,630 | 102,482 |
Recurring Basis | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,783 | |
Recurring Basis | Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,783 | |
Recurring Basis | Interest Rate Swaps with Customers | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 38,415 | 12,980 |
Recurring Basis | Interest Rate Swaps with Customers | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 38,415 | 12,980 |
Recurring Basis | Risk Participation Agreements Out to Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 51 | 21 |
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 | 51 | 21 |
Recurring Basis | Interest Rate Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 7,618 | 2,911 |
Recurring Basis | Interest Rate Contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 7,618 | 2,911 |
Recurring Basis | Mirror Swaps with Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 38,415 | 12,980 |
Recurring Basis | Mirror Swaps with Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 38,415 | 12,980 |
Recurring Basis | Risk Participation Agreements in With Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 496 | 250 |
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 | $ 496 | $ 250 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 10,620 | $ 4,250 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 6,909 | 1,546 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 3,711 | 2,704 |
Mortgage Servicing Rights | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,219 | |
Mortgage Servicing Rights | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,219 | |
Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 6,909 | 1,546 |
Loans Held for Sale | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 6,909 | 1,546 |
Individually Evaluated Collateral Dependent Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 672 | 2,541 |
Individually Evaluated Collateral Dependent Loans | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 672 | 2,541 |
Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,820 | 163 |
Other Real Estate Owned | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 1,820 | $ 163 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Transfers between levels | $ 0 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and Dividend Income | $ 35,870 | $ 36,881 | $ 30,531 | $ 26,095 | $ 26,415 | $ 26,336 | $ 24,470 | $ 19,118 | $ 129,378 | $ 96,339 | $ 69,055 |
Interest Expense | 1,789 | 1,919 | 1,742 | 3,695 | 4,807 | 5,285 | 4,694 | 2,857 | 9,145 | 17,643 | 5,467 |
Net interest and dividend income | 34,081 | 34,962 | 28,789 | 22,400 | 21,608 | 21,051 | 19,776 | 16,261 | 120,233 | 78,696 | 63,588 |
Provision for (Release of) Credit Losses | (120) | 2,000 | 14,430 | 2,000 | 331 | 2,170 | 596 | (93) | 18,310 | 3,004 | 1,502 |
Net interest and dividend income after provision for credit losses | 34,201 | 32,962 | 14,359 | 20,400 | 21,277 | 18,881 | 19,180 | 16,354 | 101,923 | 75,692 | 62,086 |
Noninterest Income | 10,802 | 10,933 | 8,972 | 8,818 | 9,933 | 10,366 | 8,145 | 7,957 | 39,525 | 36,401 | 32,989 |
Noninterest Expense | 27,127 | 25,445 | 25,587 | 19,925 | 21,428 | 18,863 | 21,513 | 16,373 | 98,085 | 78,175 | 63,987 |
Income before income taxes | 17,876 | 18,450 | (2,256) | 9,293 | 9,782 | 10,384 | 5,812 | 7,938 | 43,363 | 33,918 | 31,088 |
Income Taxes | 4,862 | 5,021 | (540) | 2,061 | 2,673 | 2,708 | 1,540 | 1,740 | 11,404 | 8,661 | 7,207 |
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 31,959 | $ 25,257 | $ 23,881 |
Share Data: | |||||||||||
Average Shares Outstanding, Basic | 6,897,450 | 6,918,692 | 5,912,889 | 5,397,040 | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 6,289,481 | 4,629,255 | 4,061,529 |
Average Shares Outstanding, Diluted | 6,970,542 | 6,954,324 | 5,912,889 | 5,432,099 | 4,980,439 | 4,842,965 | 4,715,724 | 4,106,658 | 6,344,409 | 4,661,720 | 4,098,633 |
Basic Earnings (Loss) Per Share | $ 1.88 | $ 1.94 | $ (0.29) | $ 1.34 | $ 1.43 | $ 1.58 | $ 0.91 | $ 1.51 | $ 5.07 | $ 5.41 | $ 5.82 |
Diluted Earnings (Loss) Per Share | $ 1.86 | $ 1.93 | $ (0.29) | $ 1.33 | $ 1.42 | $ 1.57 | $ 0.90 | $ 1.49 | $ 5.03 | $ 5.37 | $ 5.77 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 75,785 | $ 61,335 | ||
Goodwill | 51,912 | 31,206 | ||
Other assets | 83,239 | 42,291 | ||
Total assets | 3,949,297 | 2,855,563 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | 401,732 | 286,561 | $ 167,026 | $ 147,957 |
Cambridge Bancorp [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,920 | 1,680 | ||
Goodwill | 33 | |||
Other assets | 260 | 13 | ||
Investment in subsidiary | 399,519 | 284,868 | ||
Total assets | 401,732 | 286,561 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | $ 401,732 | $ 286,561 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest expense | |||||||||||
Total interest expense | $ 1,789 | $ 1,919 | $ 1,742 | $ 3,695 | $ 4,807 | $ 5,285 | $ 4,694 | $ 2,857 | $ 9,145 | $ 17,643 | $ 5,467 |
Income tax benefit | 4,862 | 5,021 | (540) | 2,061 | 2,673 | 2,708 | 1,540 | 1,740 | 11,404 | 8,661 | 7,207 |
Income of parent company | 31,959 | 25,257 | 23,881 | ||||||||
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | 31,959 | 25,257 | 23,881 |
Cambridge Bancorp [Member] | |||||||||||
Interest and dividend income | |||||||||||
Dividends from subsidiary | 21,639 | 10,732 | 8,615 | ||||||||
Total income | 21,639 | 10,732 | 8,615 | ||||||||
Interest expense | |||||||||||
Interest expense | 444 | ||||||||||
Other expenses | 110 | 132 | 116 | ||||||||
Total interest expense | 554 | 132 | 116 | ||||||||
Income before income taxes and equity in undistributed income of subsidiary | 21,085 | 10,600 | 8,499 | ||||||||
Income tax benefit | (153) | (36) | (32) | ||||||||
Income of parent company | 21,238 | 10,636 | 8,531 | ||||||||
Equity in undistributed income of subsidiary | 10,721 | 14,621 | 15,350 | ||||||||
Net income | $ 31,959 | $ 25,257 | $ 23,881 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 13,014 | $ 13,429 | $ (1,716) | $ 7,232 | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 31,959 | $ 25,257 | $ 23,881 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred income tax (benefit)/expense | (665) | 110 | (721) | ||||||||
Change in other assets, net | (22,863) | (11,667) | (12,231) | ||||||||
Change in other liabilities, net | 20,332 | 11,166 | 7,455 | ||||||||
Net cash provided by operating activities | 36,797 | 28,793 | 24,022 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Net cash used in investing activities | (58,928) | (113,472) | (226,883) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from the issuance of common stock | 38,202 | ||||||||||
Redemption of subordinated debt | (10,000) | ||||||||||
Cash dividends paid on common stock | (13,083) | (9,517) | (8,041) | ||||||||
Net cash provided by financing activities | 36,581 | 127,541 | 117,743 | ||||||||
Net change in cash and cash equivalents | 14,450 | 42,862 | (85,118) | ||||||||
Cash and cash equivalents at beginning of period | 61,335 | 18,473 | 61,335 | 18,473 | 103,591 | ||||||
Cash and cash equivalents at end of period | 75,785 | 61,335 | 75,785 | 61,335 | 18,473 | ||||||
Significant non-cash transactions | |||||||||||
Common Stock issued to shareholders due to merger | 87,163 | 59,417 | |||||||||
Cambridge Bancorp [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 31,959 | 25,257 | 23,881 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred income tax (benefit)/expense | (153) | ||||||||||
Change in other assets, net | 3,032 | (13) | |||||||||
Change in other liabilities, net | 444 | ||||||||||
Undistributed income of subsidiary | (10,721) | (14,621) | (15,350) | ||||||||
Net cash provided by operating activities | 24,561 | 10,623 | 8,531 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Cash paid in business combinations | (534) | (3,525) | |||||||||
Investment in subsidiary | (38,202) | ||||||||||
Net cash used in investing activities | (534) | (41,727) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from the issuance of common stock | 452 | 38,576 | 761 | ||||||||
Repurchase of common stock | (556) | (687) | (574) | ||||||||
Redemption of subordinated debt | (10,600) | ||||||||||
Cash dividends paid on common stock | (13,083) | (9,517) | (8,041) | ||||||||
Net cash provided by financing activities | (23,787) | 28,372 | (7,854) | ||||||||
Net change in cash and cash equivalents | 240 | (2,732) | 677 | ||||||||
Cash and cash equivalents at beginning of period | $ 1,680 | $ 4,412 | 1,680 | 4,412 | 3,735 | ||||||
Cash and cash equivalents at end of period | $ 1,920 | $ 1,680 | 1,920 | 1,680 | $ 4,412 | ||||||
Significant non-cash transactions | |||||||||||
Common Stock issued to shareholders due to merger | $ 87,163 | $ 59,417 |