DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Washington Trust Bancorp Inc | ' |
Entity Central Index Key | '0000737468 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 16,600,385 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Cash and due from banks | $136,724 | $73,474 | ||
Short-term investments | 3,204 | 19,176 | ||
Mortgage loans held for sale, at fair value | 13,105 | 50,056 | ||
Securities: | ' | ' | ||
Available for sale, at fair value | 388,085 | 375,498 | ||
Held to maturity, at cost | 31,264 | 40,381 | ||
Total securities | 419,349 | 415,879 | ||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||
Loans: | ' | ' | ||
Commercial | 1,297,892 | 1,252,419 | ||
Residential real estate | 731,692 | 717,681 | ||
Consumer | 324,182 | 323,903 | ||
Total loans | 2,353,766 | [1] | 2,294,003 | [1] |
Less allowance for loan losses | 28,008 | 30,873 | ||
Net loans | 2,325,758 | 2,263,130 | ||
Premises and equipment, net | 25,921 | 27,232 | ||
Investment in bank-owned life insurance | 56,214 | 54,823 | ||
Goodwill | 58,114 | 58,114 | ||
Identifiable intangible assets, net | 5,657 | 6,173 | ||
Other assets | 50,182 | 63,409 | ||
Total assets | 3,131,958 | 3,071,884 | ||
Liabilities: | ' | ' | ||
Demand deposits | 420,075 | 379,889 | ||
NOW accounts | 301,250 | 291,174 | ||
Money market accounts | 623,631 | 496,402 | ||
Savings accounts | 292,765 | 274,934 | ||
Time deposits | 817,110 | 870,232 | ||
Total deposits | 2,454,831 | 2,312,631 | ||
Federal Home Loan Bank advances | 288,485 | 361,172 | ||
Junior subordinated debentures | 22,681 | 32,991 | ||
Other borrowings | 797 | 1,212 | ||
Other liabilities | 41,579 | 68,226 | ||
Total liabilities | 2,808,373 | 2,776,232 | ||
Commitments and contingencies | ' | ' | ||
Shareholders' Equity: | ' | ' | ||
Common stock of $.0625 par value; authorized 30,000,000 shares | 1,037 | 1,024 | ||
Paid-in capital | 96,536 | 91,453 | ||
Retained earnings | 227,352 | 213,674 | ||
Accumulated other comprehensive loss | -1,340 | -10,499 | ||
Total shareholders' equity | 323,585 | 295,652 | ||
Total liabilities and shareholders’ equity | $3,131,958 | $3,071,884 | ||
[1] | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Mortgage loans held for sale, amortized cost | $12,772 | $48,370 |
Securities available for sale, amortized cost | 380,994 | 363,408 |
Securities held to maturity, fair value | $31,962 | $41,420 |
Common stock, par value | $0.06 | $0.06 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 16,589,472 | 16,379,771 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Interest and fees on loans | $26,096 | $25,840 | $76,832 | $76,547 |
Interest on securities: Taxable | 2,582 | 3,672 | 8,003 | 12,118 |
Interest on securities: Nontaxable | 629 | 660 | 1,935 | 2,035 |
Dividends on corporate stock and Federal Home Loan Bank stock | 36 | 52 | 113 | 207 |
Other interest income | 47 | 27 | 99 | 64 |
Total interest income | 29,390 | 30,251 | 86,982 | 90,971 |
Interest expense: | ' | ' | ' | ' |
Deposits | 3,064 | 3,391 | 9,354 | 10,210 |
Federal Home Loan Bank advances | 2,693 | 3,726 | 8,109 | 11,809 |
Junior subordinated debentures | 241 | 393 | 1,243 | 1,176 |
Other interest expense | 4 | 5 | 12 | 244 |
Total interest expense | 6,002 | 7,515 | 18,718 | 23,439 |
Net interest income | 23,388 | 22,736 | 68,264 | 67,532 |
Provision for loan losses | 700 | 600 | 2,000 | 2,100 |
Net interest income after provision for loan losses | 22,688 | 22,136 | 66,264 | 65,432 |
Noninterest income: | ' | ' | ' | ' |
Trust and investment advisory fees | 6,291 | 5,877 | 18,587 | 17,474 |
Mutual Funds Fees | 1,075 | 1,024 | 3,174 | 3,051 |
Financial planning, commissions and other service fees | 263 | 292 | 1,254 | 1,326 |
Wealth management services | 7,629 | 7,193 | 23,015 | 21,851 |
Merchant processing fees | 3,359 | 3,207 | 7,949 | 7,927 |
Net gains on loan sales and commissions on loans originated for others | 3,883 | 3,504 | 11,534 | 9,616 |
Service charges on deposit accounts | 855 | 833 | 2,436 | 2,356 |
Card interchange fees | 731 | 675 | 2,013 | 1,844 |
Income from bank-owned life insurance | 464 | 1,006 | 1,392 | 1,969 |
Net realized gains on securities | 0 | 0 | 0 | 299 |
Net gains (losses) on interest rate swap contracts | 54 | 63 | 225 | 87 |
Equity in earnings (losses) of unconsolidated subsidiaries | -47 | 27 | -65 | 114 |
Other income | 472 | 413 | 1,233 | 1,473 |
Noninterest income, excluding other-than-temporary impairment losses | 17,400 | 16,921 | 49,732 | 47,536 |
Total other-than-temporary impairment losses on securities | 0 | 0 | -613 | -85 |
Portion of loss recognized in other comprehensive income (before taxes) | 0 | 0 | -2,159 | -124 |
Net impairment losses recognized in earnings | 0 | 0 | -2,772 | -209 |
Total noninterest income | 17,400 | 16,921 | 46,960 | 47,327 |
Noninterest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 14,640 | 15,214 | 45,624 | 44,125 |
Net occupancy | 1,404 | 1,468 | 4,282 | 4,521 |
Equipment | 1,222 | 1,168 | 3,658 | 3,418 |
Merchant processing costs | 2,862 | 2,707 | 6,746 | 6,690 |
Outsourced services | 878 | 845 | 2,590 | 2,660 |
Legal, audit and professional fees | 529 | 598 | 1,691 | 1,599 |
FDIC deposit insurance costs | 448 | 427 | 1,330 | 1,311 |
Advertising and promotion | 312 | 445 | 1,143 | 1,295 |
Amortization of intangibles | 170 | 182 | 516 | 555 |
Foreclosed property costs | 38 | 136 | 222 | 604 |
Debt prepayment penalties | 1,125 | 1,173 | 1,125 | 2,134 |
Other expenses | 1,920 | 1,927 | 5,810 | 6,005 |
Total noninterest expense | 25,548 | 26,290 | 74,737 | 74,917 |
Income before income taxes | 14,540 | 12,767 | 38,487 | 37,842 |
Income tax expense | 4,580 | 3,867 | 12,123 | 11,791 |
Net income | $9,960 | $8,900 | $26,364 | $26,051 |
Weighted average common shares outstanding - basic | 16,563 | 16,366 | 16,473 | 16,351 |
Weighted average common shares outstanding - diluted | 16,696 | 16,414 | 16,600 | 16,392 |
Per share information: | ' | ' | ' | ' |
Basic earnings per common share | $0.60 | $0.54 | $1.59 | $1.59 |
Diluted earnings per common share | $0.59 | $0.54 | $1.58 | $1.58 |
Cash dividends declared per share | $0.26 | $0.24 | $0.76 | $0.70 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net income | $9,960 | $8,900 | $26,364 | $26,051 | ||||
Securities available for sale: | ' | ' | ' | ' | ||||
Changes in fair value in securities available for sale | -129 | -218 | -5,003 | -676 | ||||
Net losses (gains) on securities reclassified into earnings | 0 | [1] | 0 | [1] | 393 | [1] | -138 | [1] |
Net change in fair value of securities available for sale | -129 | -218 | -4,610 | -814 | ||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 0 | [2] | 0 | [2] | 1,384 | [2] | 80 | [2] |
Cash flow hedges: | ' | ' | ' | ' | ||||
Change in fair value of cash flow hedges | -47 | -127 | -15 | -331 | ||||
Net cash flow hedge losses reclassified into earnings | 91 | [3] | 113 | [3] | 331 | [3] | 336 | [3] |
Net change in fair value of cash flow hedges | 44 | -14 | 316 | 5 | ||||
Defined benefit plan obligation adjustment | 11,440 | [4] | 171 | [4] | 12,069 | [4] | 527 | [4] |
Total other comprehensive (loss) income, net of tax | 11,355 | -61 | 9,159 | -202 | ||||
Total comprehensive income | $21,315 | $8,839 | $35,523 | $25,849 | ||||
[1] | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statement of Income. | |||||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statement of Income. | |||||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statement of Income. | |||||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statement of Income. See Note 12 and the Annual Report on Form 10-K for fiscal year 2012 for additional information. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2011 | $281,351 | $1,018 | $88,030 | $194,198 | ($1,895) |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2011 | ' | 16,292 | ' | ' | ' |
Net income | 26,051 | ' | ' | 26,051 | ' |
Total other comprehensive income (loss), net of tax | -202 | ' | ' | ' | -202 |
Cash dividends declared | -11,610 | ' | ' | -11,610 | ' |
Share-based compensation | 1,404 | ' | 1,404 | ' | ' |
Deferred compensation plan, shares | ' | 10 | ' | ' | ' |
Deferred compensation plan | 146 | 1 | 145 | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | ' | 69 | ' | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 1,254 | 4 | 1,250 | ' | ' |
Stockholders' Equity, Ending Balance at Sep. 30, 2012 | 298,394 | 1,023 | 90,829 | 208,639 | -2,097 |
Common Stock, Shares Outstanding, Ending Balance at Sep. 30, 2012 | ' | 16,371 | ' | ' | ' |
Stockholders' Equity, Beginning Balance at Dec. 31, 2012 | 295,652 | 1,024 | 91,453 | 213,674 | -10,499 |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2012 | ' | 16,380 | ' | ' | ' |
Net income | 26,364 | ' | ' | 26,364 | ' |
Total other comprehensive income (loss), net of tax | 9,159 | ' | ' | ' | 9,159 |
Cash dividends declared | -12,686 | ' | ' | -12,686 | ' |
Share-based compensation | 1,377 | ' | 1,377 | ' | ' |
Deferred compensation plan, shares | ' | 2 | ' | ' | ' |
Deferred compensation plan | 30 | 0 | 30 | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | ' | 207 | ' | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 3,689 | 13 | 3,676 | ' | ' |
Stockholders' Equity, Ending Balance at Sep. 30, 2013 | $323,585 | $1,037 | $96,536 | $227,352 | ($1,340) |
Common Stock, Shares Outstanding, Ending Balance at Sep. 30, 2013 | ' | 16,589 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $26,364 | $26,051 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 2,000 | 2,100 |
Depreciation of premises and equipment | 2,489 | 2,370 |
Foreclosed and repossessed property valuation adjustments | 79 | 298 |
Net gain on sale of bank property | 0 | -358 |
Net amortization of premium and discount | 1,196 | 1,679 |
Net amortization of intangibles | 516 | 555 |
Share-based compensation | 1,377 | 1,404 |
Income from bank-owned life insurance | -1,392 | -1,969 |
Net gains on loan sales and commissions on loans originated for others | -11,534 | -9,616 |
Net realized gains on securities | 0 | -299 |
Net impairment losses recognized in earnings | 2,772 | 209 |
Net losses (gains) on interest rate swap contracts | -225 | -87 |
Equity in (earnings) losses of unconsolidated subsidiaries | 65 | -114 |
Proceeds from sales of loans | 356,932 | 336,919 |
Loans originated for sale | -313,227 | -344,532 |
Decrease (increase) in other assets | 12,388 | -7,567 |
Decrease (increase) in other liabilities | -13,769 | 1,711 |
Net cash provided (used in) by operating activities | 66,031 | 8,754 |
Cash flows from investing activities: | ' | ' |
Purchases of mortgage-backed securities available for sale | -66,569 | 0 |
Purchases of other investment securities available for sale | -25,404 | 0 |
Proceeds from sale of mortgage-backed securities available for sale | 0 | 6,247 |
Proceeds from sale of other investment securities available for sale | 2,660 | 6,338 |
Maturities and principal payments of mortgage-backed securities available for sale | 64,270 | 85,059 |
Maturities and principal payments of other investment securities available for sale | 3,890 | 911 |
Maturities and principal payments of mortgage-backed securities held to maturity | 8,704 | 8,138 |
Remittance of Federal Home Loan Bank stock | 2,688 | 1,590 |
Net increase in loans | -100,655 | -103,402 |
Proceeds from the sale of portfolio loans | 49,588 | 0 |
Purchases of loans, including purchased interest | -9,103 | -5,007 |
Proceeds from the sale of property acquired through foreclosure or repossession | 2,142 | 3,146 |
Purchases of premises and equipment | -1,178 | -4,513 |
Net proceeds from the sale of bank property | 0 | 1,571 |
Proceeds from bank-owed life insurance | 0 | 1,419 |
Net cash provided by (used in) investing activities | -68,967 | 1,497 |
Cash flows from financing activities: | ' | ' |
Net increase (decrease) in deposits | 142,200 | 108,344 |
Net decrease in other borrowings | -415 | -19,529 |
Proceeds from Federal Home Loan Bank advances | 204,000 | 472,930 |
Repayment of Federal Home Loan Bank advances | -276,687 | -595,705 |
Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments | 3,287 | 1,251 |
Tax benefit from stock option exercises and issuance of other compensation-related equity instruments | 432 | 149 |
Redemption of junior subordibated debentures | -10,310 | 0 |
Cash dividends paid | -12,293 | -11,177 |
Net cash provided by (used in) financing activities | 50,214 | -43,737 |
Net increase (decrease) in cash and cash equivalents | 47,278 | -33,486 |
Cash and cash equivalents at beginning of period | 92,650 | 87,020 |
Cash and cash equivalents at end of period | 139,928 | 53,534 |
Noncash Investing and Financing Activities: | ' | ' |
Loans charged off | 5,319 | 1,801 |
Loans transferred to property acquired through foreclosure or repossession | 1,073 | 3,255 |
Supplemental Disclosures: | ' | ' |
Interest payments | 18,401 | 22,869 |
Income tax payments | $11,528 | $12,729 |
General_Information
General Information | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General Information | ' |
General Information | |
Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company and financial holding company. The Bancorp owns all of the outstanding common stock of The Washington Trust Company (the “Bank”), a Rhode Island chartered commercial bank founded in 1800. Through its subsidiaries, the Bancorp offers a complete product line of financial services including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management services through its offices in Rhode Island, eastern Massachusetts and Connecticut. | |
The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. | |
The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses and the review of goodwill, other intangible assets and investments for impairment. The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions. | |
The unaudited consolidated financial statements of the Corporation presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2012. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Balance Sheet - Topic 210 | |
Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), was issued in December 2011 and was intended to enhance current disclosure requirements on offsetting financial assets and liabilities. The requirements of ASU 2011-11 enable users to compare balance sheets prepared under U.S. GAAP and International Financial Reporting Standards (“IFRS”), which are subject to different offsetting models. The requirements affect all entities that have financial instruments that are either offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”), was issued in January 2013 to address implementation issues about the scope of ASU 2011-11. Both ASU 2011-11 and ASU 2013-01 were effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The required disclosures were effective retrospectively for all comparative periods presented. The adoption of ASU 2011-11 and ASU 2013-01 did not have a material impact on the Corporation’s consolidated financial statements. | |
Comprehensive Income - Topic 220 | |
Accounting Standards Update No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”) was issued in February 2013 and requires additional disclosure of the effects of reclassifications out of accumulated other comprehensive income (“AOCI”) in a single location, either on the face of the financial statement that reports net income or in the notes to the financial statements. ASU 2013-02 does not change the current requirements and carries forward the existing requirements that reclassifications out of AOCI be separately presented for each component of other comprehensive income. For items reclassified out of AOCI and into net income in their entirety, the effect of the reclassification on each affected net income line must be disclosed. For AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required disclosures is required. The amendments were effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this standard did not have a material impact on the Corporation’s consolidated financial statements, see Note 15. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 9 Months Ended |
Sep. 30, 2013 | |
Cash and Cash Equivalents [Abstract] | ' |
Cash and Due from Banks | ' |
Cash and Due from Banks | |
The Bank maintains certain average reserve balances to meet the requirements of the Board of Governors of the Federal Reserve System (“FRB”). Some or all of these reserve requirements may be satisfied with vault cash. Reserve balances amounted to $7.7 million at September 30, 2013 and $5.5 million at December 31, 2012 and were included in cash and due from banks in the Consolidated Balance Sheets. | |
As of September 30, 2013 and December 31, 2012, cash and due from banks included interest-bearing deposits in other banks of $87.8 million and $32.2 million, respectively. |
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||||||
The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities by major security type and class of security: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
September 30, 2013 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,461 | $1,208 | $— | $55,669 | |||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 218,598 | 9,943 | (36 | ) | 228,505 | ||||||||||||||||||||||||||||
States and political subdivisions | 64,833 | 2,507 | — | 67,340 | |||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | 30,705 | — | (5,930 | ) | 24,775 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 1,264 | — | (839 | ) | 425 | ||||||||||||||||||||||||||||
Corporate bonds | 11,133 | 254 | (16 | ) | 11,371 | ||||||||||||||||||||||||||||
Total securities available for sale | $380,994 | $13,912 | ($6,821 | ) | $388,085 | ||||||||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $31,264 | $698 | $— | $31,962 | |||||||||||||||||||||||||||||
Total securities held to maturity | $31,264 | $698 | $— | $31,962 | |||||||||||||||||||||||||||||
Total securities | $412,258 | $14,610 | ($6,821 | ) | $420,047 | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
December 31, 2012 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,458 | $2,212 | $— | $31,670 | |||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 217,136 | 14,097 | — | 231,233 | |||||||||||||||||||||||||||||
States and political subdivisions | 68,196 | 4,424 | — | 72,620 | |||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | 30,677 | — | (5,926 | ) | 24,751 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 4,036 | — | (3,193 | ) | 843 | ||||||||||||||||||||||||||||
Corporate bonds | 13,905 | 476 | — | 14,381 | |||||||||||||||||||||||||||||
Total securities available for sale | $363,408 | $21,209 | ($9,119 | ) | $375,498 | ||||||||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $40,381 | $1,039 | $— | $41,420 | |||||||||||||||||||||||||||||
Total securities held to maturity | $40,381 | $1,039 | $— | $41,420 | |||||||||||||||||||||||||||||
Total securities | $403,789 | $22,248 | ($9,119 | ) | $416,918 | ||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, securities available for sale and held to maturity with a fair value of $391.7 million and $386.5 million, respectively, were pledged as collateral for Federal Home Loan Bank of Boston (“FHLBB”) borrowings and letters of credit, potential borrowings with the FRB, certain public deposits and for other purposes. | |||||||||||||||||||||||||||||||||
The schedule of maturities of debt securities available for sale and held to maturity as of September 30, 2013 is presented below. Mortgage-backed securities are included based on weighted average maturities, adjusted for anticipated prepayments. All other debt securities are included based on contractual maturities. Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations with or without call or prepayment penalties. Yields on tax exempt obligations are not computed on a tax equivalent basis. | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Totals | ||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | $54,461 | $— | $— | $— | $54,461 | ||||||||||||||||||||||||||||
Weighted average yield | 4.04 | % | — | % | — | % | — | % | 4.04 | % | |||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | 60,133 | 106,040 | 37,563 | 14,862 | 218,598 | ||||||||||||||||||||||||||||
Weighted average yield | 4.3 | % | 3.76 | % | 2.65 | % | 2.43 | % | 3.63 | % | |||||||||||||||||||||||
State and political subdivisions: | |||||||||||||||||||||||||||||||||
Amortized cost | 12,296 | 52,537 | — | — | 64,833 | ||||||||||||||||||||||||||||
Weighted average yield | 3.89 | % | 3.91 | % | — | % | — | % | 3.91 | % | |||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 31,969 | 31,969 | ||||||||||||||||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.38 | % | 1.38 | % | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||||
Amortized cost | 5,027 | 5,704 | 402 | — | 11,133 | ||||||||||||||||||||||||||||
Weighted average yield | 6.64 | % | 2.82 | % | 2.45 | % | — | % | 4.53 | % | |||||||||||||||||||||||
Total debt securities available for sale: | |||||||||||||||||||||||||||||||||
Amortized cost | $131,917 | $164,281 | $37,965 | $46,831 | $380,994 | ||||||||||||||||||||||||||||
Weighted average yield | 4.25 | % | 3.77 | % | 2.65 | % | 1.71 | % | 3.57 | % | |||||||||||||||||||||||
Fair value | $133,376 | $167,772 | $39,432 | $47,505 | $388,085 | ||||||||||||||||||||||||||||
Securities Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | $6,995 | $15,465 | $6,710 | $2,094 | $31,264 | ||||||||||||||||||||||||||||
Weighted average yield | 2.57 | % | 2.48 | % | 2.37 | % | 0.88 | % | 2.37 | % | |||||||||||||||||||||||
Fair value | $7,151 | $15,810 | $6,860 | $2,141 | $31,962 | ||||||||||||||||||||||||||||
Included in debt securities as of September 30, 2013 were debt securities with an amortized cost balance of $111.4 million and a fair value of $106.7 million that are callable at the discretion of the issuers. Final maturities of these callable securities range from two to twenty-four years, with call features ranging from one month to four years. | |||||||||||||||||||||||||||||||||
Other-Than-Temporary Impairment Assessment | |||||||||||||||||||||||||||||||||
The Corporation assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary. | |||||||||||||||||||||||||||||||||
The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||
September 30, 2013 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | ||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 2 | $969 | ($36 | ) | — | $— | $— | 2 | $969 | ($36 | ) | ||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | — | — | — | 11 | 24,775 | (5,930 | ) | 11 | 24,775 | (5,930 | ) | ||||||||||||||||||||||
Collateralized debt obligations | — | — | — | 1 | 425 | (839 | ) | 1 | 425 | (839 | ) | ||||||||||||||||||||||
Corporate bonds | 2 | 407 | (16 | ) | — | — | — | 2 | 407 | (16 | ) | ||||||||||||||||||||||
Total temporarily impaired securities | 4 | $1,376 | ($52 | ) | 12 | $25,200 | ($6,769 | ) | 16 | $26,576 | ($6,821 | ) | |||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||
December 31, 2012 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | ||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | — | $— | $— | 11 | $24,751 | ($5,926 | ) | 11 | $24,751 | ($5,926 | ) | ||||||||||||||||||||||
Collateralized debt obligations | — | — | — | 2 | 843 | (3,193 | ) | 2 | 843 | (3,193 | ) | ||||||||||||||||||||||
Total temporarily impaired securities | — | $— | $— | 13 | $25,594 | ($9,119 | ) | 13 | $25,594 | ($9,119 | ) | ||||||||||||||||||||||
Further deterioration in credit quality of the underlying issuers of the securities, further deterioration in the condition of the financial services industry, a continuation or worsening of the current economic environment, or additional declines in real estate values, among other things, may further affect the fair value of these securities and increase the potential that certain unrealized losses be designated as other-than-temporary in future periods, and the Corporation may incur additional write-downs. | |||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities of Individual Name Issuers | |||||||||||||||||||||||||||||||||
Included in debt securities in an unrealized loss position at September 30, 2013 and December 31, 2012 were 11 trust preferred security holdings issued by seven individual companies in the financial services industry, specifically, the banking sector. Management believes the decline in fair value of these trust preferred securities primarily reflects investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry. These concerns resulted in increased risk premiums for securities in this sector. Based on the information available through the filing date of this report, all individual name trust preferred debt securities held in our portfolio continue to accrue and make payments as expected with no payment deferrals or defaults on the part of the issuers. As of September 30, 2013, trust preferred debt securities with an amortized cost of $11.9 million and unrealized losses of $2.1 million were rated below investment grade by Standard & Poors, Inc. (“S&P”). Management reviewed the collectibility of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report and other information. We noted no additional downgrades to below investment grade between the reporting period date and the filing date of this report. Based on these analyses, management concluded that it expects to recover the entire amortized cost basis of these securities. Furthermore, Washington Trust does not intend to sell these securities and it is not more likely than not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be at maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations (“CDO”) | |||||||||||||||||||||||||||||||||
Washington Trust has invested in pooled trust preferred holdings in the form of collateralized debt obligations. The pooled trust preferred holdings consist of trust preferred obligations of banking industry companies and, to a lesser extent, insurance industry companies. | |||||||||||||||||||||||||||||||||
Valuations of pooled trust preferred holdings are dependent in part on cash flows from underlying issuers. Unexpected cash flow disruptions could have an adverse impact on the fair value and performance of pooled trust preferred securities. Management believes the unrealized losses primarily reflect investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry and the possibility of further incremental deferrals of or defaults on interest payments on trust preferred debentures by financial institutions participating in these pools. These concerns have resulted in a substantial decrease in market liquidity and increased risk premiums for securities in this sector. Credit spreads for issuers in this sector have remained wide during recent months, causing prices to remain at low levels. | |||||||||||||||||||||||||||||||||
The following table summarizes Washington Trust’s pooled trust preferred holdings: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Amortized Cost (1) | Fair Value | Unrealized Losses | Amortized Cost (1) | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||
Deal Name | |||||||||||||||||||||||||||||||||
Tropic CDO 1, tranche A4L | $— | $— | $— | $2,772 | $613 | ($2,159 | ) | ||||||||||||||||||||||||||
Preferred Term Securities [PreTSL] XXV, tranche C1 | 1,264 | 425 | (839 | ) | 1,264 | 230 | (1,034 | ) | |||||||||||||||||||||||||
Totals | $1,264 | $425 | ($839 | ) | $4,036 | $843 | ($3,193 | ) | |||||||||||||||||||||||||
-1 | Net of other-than-temporary impairment losses recognized in earnings. | ||||||||||||||||||||||||||||||||
On March 22, 2013, the trustee for the Tropic CDO I security issued a notice that liquidation of the CDO entity would take place at the direction of holders of the CDO tranches senior to the subordinate tranche interest held by Washington Trust. Accordingly, Washington Trust recognized an other-than-temporary impairment charge in the first quarter of 2013 on the entire $2.8 million million carrying value of this security, based on the expectation that proceeds from the liquidation would be insufficient to satisfy the amount owed to the subordinate tranche. The liquidation was conducted in August 2013 and was insufficient to satisfy any amount owed on the subordinate tranche. | |||||||||||||||||||||||||||||||||
Washington Trust’s investment in the PreTSL XXV, tranche C1 (“PreTSL”) is subordinate to two senior tranche levels. This investment security has been on nonaccrual status and has been deferring interest payments since December 2008. The September 30, 2013 amortized cost was net of $1.2 million of credit-related impairment losses previously recognized in earnings reflective of payment deferrals and credit deterioration of the underlying collateral. As of September 30, 2013, this security had unrealized losses of $839 thousand and a below investment grade rating of “C” by Moody’s. Through the filing date of this report, there have been no additional rating changes on this security. This credit rating status has been considered by management in its assessment of the impairment status of this security. Based on information available through the filing date of this report, there have been no additional adverse changes in deferral or default status of the underlying issuer institutions. Based on cash flow forecasts for this security, management expects to recover the remaining amortized cost of this security. Furthermore, Washington Trust does not intend to sell this security and it is not more likely than not that Washington Trust will be required to sell this security before recovery of its cost basis, which may be at maturity. Therefore, management does not consider the unrealized losses on this security to be other-than-temporary at September 30, 2013. | |||||||||||||||||||||||||||||||||
Credit-Related Impairment Losses Recognized on Debt Securities | |||||||||||||||||||||||||||||||||
The following table presents a roll forward of the balance of cumulative credit-related impairment losses recognized on debt securities for the periods indicated: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Three months | Nine months | |||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $6,097 | $3,313 | $3,325 | $3,104 | |||||||||||||||||||||||||||||
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | — | — | — | — | |||||||||||||||||||||||||||||
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | — | — | 2,772 | 209 | |||||||||||||||||||||||||||||
Balance at end of period | $6,097 | $3,313 | $6,097 | $3,313 | |||||||||||||||||||||||||||||
The anticipated cash flows expected to be collected from pooled trust preferred debt securities were discounted at the rate equal to the yield used to accrete the current and prospective beneficial interest for each security. Significant inputs included estimated cash flows and prospective defaults and recoveries. Estimated cash flows were generated based on the underlying seniority status and subordination structure of the pooled trust preferred debt tranche at the time of measurement. Prospective default and recovery estimates affecting projected cash flows were based on analysis of the underlying financial condition of individual issuers, and took into account capital adequacy, credit quality, lending concentrations, and other factors. | |||||||||||||||||||||||||||||||||
All cash flow estimates were based on the underlying security’s tranche structure and contractual rate and maturity terms. The present value of the expected cash flows was compared to the current outstanding balance of the tranche to determine the ratio of the estimated present value of expected cash flows to the total current balance for the tranche. This ratio was then multiplied by the principal balance of Washington Trust’s holding to determine the credit-related impairment loss. The estimates used in the determination of the present value of the expected cash flows are susceptible to changes in future periods, which could result in additional credit-related impairment losses. |
Loans
Loans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||
Loans | ||||||||||||||||||||||||
The following is a summary of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $727,375 | 31 | % | $710,813 | 31 | % | ||||||||||||||||||
Construction and development (2) | 51,951 | 2 | 27,842 | 1 | ||||||||||||||||||||
Other (3) | 518,566 | 22 | 513,764 | 23 | ||||||||||||||||||||
Total commercial | 1,297,892 | 55 | 1,252,419 | 55 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages (4) | 711,427 | 30 | 692,798 | 30 | ||||||||||||||||||||
Homeowner construction | 20,265 | 1 | 24,883 | 1 | ||||||||||||||||||||
Total residential real estate | 731,692 | 31 | 717,681 | 31 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines (5) | 227,063 | 10 | 226,861 | 10 | ||||||||||||||||||||
Home equity loans (5) | 41,158 | 2 | 39,329 | 2 | ||||||||||||||||||||
Other (6) | 55,961 | 2 | 57,713 | 2 | ||||||||||||||||||||
Total consumer | 324,182 | 14 | 323,903 | 14 | ||||||||||||||||||||
Total loans (7) | $2,353,766 | 100 | % | $2,294,003 | 100 | % | ||||||||||||||||||
-1 | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of September 30, 2013 and December 31, 2012, $204.1 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-2 | Loans for construction commercial properties, loans to developers for construction of residential properties, and loans for land development. | |||||||||||||||||||||||
-3 | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of September 30, 2013, $47.5 million and $24.3 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||||||||||||||||||||||
-4 | As of September 30, 2013 and December 31, 2012, $647.3 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-5 | As of September 30, 2013 and December 31, 2012, $191.8 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-6 | Fixed-rate consumer installment loans. | |||||||||||||||||||||||
-7 | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||
Nonaccrual Loans | ||||||||||||||||||||||||
Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for a period of time, the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible. | ||||||||||||||||||||||||
The following is a summary of nonaccrual loans, segregated by class of loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, | Dec 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $8,956 | $10,681 | ||||||||||||||||||||||
Construction and development | — | — | ||||||||||||||||||||||
Other | 1,248 | 4,412 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 8,095 | 6,158 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 412 | 840 | ||||||||||||||||||||||
Home equity loans | 768 | 371 | ||||||||||||||||||||||
Other | 24 | 81 | ||||||||||||||||||||||
Total nonaccrual loans | $19,503 | $22,543 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, nonaccrual loans of $2.2 million and $1.6 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
Past Due Loans | ||||||||||||||||||||||||
Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
September 30, 2013 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $730 | $8,226 | $8,956 | $718,419 | $727,375 | ||||||||||||||||||
Construction and development | — | — | — | — | 51,951 | 51,951 | ||||||||||||||||||
Other | 2,648 | 8 | 929 | 3,585 | 514,981 | 518,566 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2,624 | 1,960 | 4,843 | 9,427 | 702,000 | 711,427 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 20,265 | 20,265 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 636 | 220 | 262 | 1,118 | 225,945 | 227,063 | ||||||||||||||||||
Home equity loans | 339 | 104 | 416 | 859 | 40,299 | 41,158 | ||||||||||||||||||
Other | 38 | 4 | 15 | 57 | 55,904 | 55,961 | ||||||||||||||||||
Total loans | $6,285 | $3,026 | $14,691 | $24,002 | $2,329,764 | $2,353,766 | ||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
December 31, 2012 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $373 | $408 | $10,300 | $11,081 | $699,732 | $710,813 | ||||||||||||||||||
Construction and development | — | — | — | — | 27,842 | 27,842 | ||||||||||||||||||
Other | 260 | 296 | 3,647 | 4,203 | 509,561 | 513,764 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,840 | 1,951 | 3,658 | 10,449 | 682,349 | 692,798 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 24,883 | 24,883 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 753 | 207 | 528 | 1,488 | 225,373 | 226,861 | ||||||||||||||||||
Home equity loans | 252 | 114 | 250 | 616 | 38,713 | 39,329 | ||||||||||||||||||
Other | 129 | 64 | 66 | 259 | 57,454 | 57,713 | ||||||||||||||||||
Total loans | $6,607 | $3,040 | $18,449 | $28,096 | $2,265,907 | $2,294,003 | ||||||||||||||||||
Included in past due loans as of September 30, 2013 and December 31, 2012, were nonaccrual loans of $17.3 million and $21.0 million, respectively. All loans 90 days or more past due at September 30, 2013 and December 31, 2012 were classified as nonaccrual. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Impaired loans are loans for which it is probable that the Corporation will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. Impaired loans do not include large groups of smaller-balance homogeneous loans that are collectively evaluated for impairment, which consist of most residential mortgage loans and consumer loans. | ||||||||||||||||||||||||
The following is a summary of impaired loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | |||||||||||||||||||||
Investment (1) | Principal | Allowance | ||||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $2,913 | $2,357 | $6,940 | $2,360 | $— | $— | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,633 | 1,058 | 1,629 | 1,057 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 182 | 1,294 | 199 | 1,315 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | $4,728 | $4,709 | $8,768 | $4,732 | $— | $— | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,972 | $17,897 | $31,596 | $19,738 | $1,110 | $1,720 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,196 | 9,939 | 1,572 | 10,690 | 331 | 694 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,494 | 2,576 | 3,882 | 2,947 | 569 | 463 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 187 | 174 | 255 | 1 | 1 | ||||||||||||||||||
Home equity loans | 57 | 117 | 57 | 160 | — | — | ||||||||||||||||||
Other | 129 | 137 | 130 | 136 | 2 | 2 | ||||||||||||||||||
Subtotal | $35,021 | $30,853 | $37,411 | $33,926 | $2,013 | $2,880 | ||||||||||||||||||
Total impaired loans | $39,749 | $35,562 | $46,179 | $38,658 | $2,013 | $2,880 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $35,714 | $31,251 | $41,737 | $33,845 | $1,441 | $2,414 | ||||||||||||||||||
Residential real estate | 3,676 | 3,870 | 4,081 | 4,262 | 569 | 463 | ||||||||||||||||||
Consumer | 359 | 441 | 361 | 551 | 3 | 3 | ||||||||||||||||||
Total impaired loans | $39,749 | $35,562 | $46,179 | $38,658 | $2,013 | $2,880 | ||||||||||||||||||
-1 | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table presents the average recorded investment and interest income recognized on impaired loans segregated by loan class for the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,430 | $9,611 | $192 | $71 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 3,536 | 10,176 | 43 | 73 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,818 | 4,400 | 51 | 21 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 121 | 2 | — | ||||||||||||||||||||
Home equity loans | 58 | 120 | 1 | 2 | ||||||||||||||||||||
Other | 131 | 144 | 2 | 2 | ||||||||||||||||||||
Totals | $37,146 | $24,572 | $291 | $169 | ||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $26,110 | $8,795 | $444 | $176 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 7,159 | 10,756 | 157 | 231 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,104 | 4,867 | 100 | 66 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 209 | 167 | 6 | 2 | ||||||||||||||||||||
Home equity loans | 77 | 138 | 5 | 5 | ||||||||||||||||||||
Other | 146 | 151 | 6 | 7 | ||||||||||||||||||||
Totals | $37,805 | $24,874 | $718 | $487 | ||||||||||||||||||||
At September 30, 2013, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
Loans are considered restructured in a troubled debt restructuring when the Corporation 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 Corporation by increasing the ultimate probability of collection. | ||||||||||||||||||||||||
Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectibility of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual 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. | ||||||||||||||||||||||||
Troubled debt restructurings are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. | ||||||||||||||||||||||||
Troubled debt restructurings are classified as impaired loans. The Corporation identifies loss allocations for impaired loans on an individual loan basis. The recorded investment in troubled debt restructurings was $27.2 million and $20.2 million, respectively, at September 30, 2013 and December 31, 2012. These amounts included accrued interest of $44 thousand and $13 thousand, respectively. The allowance for loan losses included specific reserves for these troubled debt restructurings of $381 thousand and $898 thousand, respectively, at September 30, 2013 and December 31, 2012. As of September 30, 2013, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. | ||||||||||||||||||||||||
The following tables present loans modified as a troubled debt restructuring during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | $6,018 | $8,183 | $4,909 | $8,183 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 2 | — | 30 | — | 30 | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | — | — | — | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Totals | 3 | 2 | $6,048 | $8,183 | $4,939 | $8,183 | ||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 6 | 5 | $15,974 | $9,044 | $14,785 | $9,044 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 7 | 7 | 1,198 | 1,625 | 1,198 | 1,625 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 651 | — | 651 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1 | — | 92 | — | 92 | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 2 | — | 5 | — | 5 | ||||||||||||||||||
Totals | 14 | 16 | $17,264 | $11,325 | $16,075 | $11,325 | ||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table provides information on how loans were modified as a troubled debt restructuring during the periods indicated. | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Three months | Nine months | |||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Below market interest rate concession | $ | 6,018 | $ | — | $ | 15,836 | $ | 1,426 | ||||||||||||||||
Payment deferral | — | — | — | 240 | ||||||||||||||||||||
Maturity / amortization concession | 21 | — | 21 | 917 | ||||||||||||||||||||
Interest only payments | 9 | — | 424 | 361 | ||||||||||||||||||||
Combination (1) | — | 8,183 | 983 | 8,381 | ||||||||||||||||||||
Total | $6,048 | $8,183 | $17,264 | $11,325 | ||||||||||||||||||||
-1 | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. | |||||||||||||||||||||||
The following tables present loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded | ||||||||||||||||||||||
Investment (1) | ||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | — | $482 | $— | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | — | 3 | — | 428 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 670 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | 1 | — | 13 | ||||||||||||||||||||
Totals | 1 | 6 | $482 | $1,111 | ||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded | ||||||||||||||||||||||
Investment (1) | ||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 1 | $482 | $195 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | — | 3 | — | 428 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 670 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | 1 | — | 13 | ||||||||||||||||||||
Totals | 1 | 7 | $482 | $1,306 | ||||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, and the adequacy of collateral. As of September 30, 2013 and December 31, 2012, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.69 and 4.77, respectively. | ||||||||||||||||||||||||
For non-impaired loans, the Corporation assigns a loss allocation factor to each loan, based on its risk rating for purposes of establishing an appropriate allowance for loan losses. See Note 6 for additional information. | ||||||||||||||||||||||||
Descriptions of the commercial loan categories are as follows: | ||||||||||||||||||||||||
Pass - Loans with acceptable credit quality, defined as ranging from superior or very strong to a status of lesser stature. Superior or very strong credit quality is characterized by a high degree of cash collateralization or strong balance sheet liquidity. Lesser stature loans have an acceptable level of credit quality but exhibit some weakness in various credit metrics such as collateral adequacy, cash flow, or performance inconsistency or may be in an industry or of a loan type known to have a higher degree of risk. | ||||||||||||||||||||||||
Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate and frequent delinquencies. | ||||||||||||||||||||||||
Classified - Loans identified as “substandard”, “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectibility. A “doubtful” loan is placed on non-accrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined. “Loss” is not intended to imply that the loan has no recovery value but rather it is not practical or desirable to continue to carry the asset. | ||||||||||||||||||||||||
The Corporation’s procedures call for loan ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. An annual loan review program is conducted by a third party to provide an independent evaluation of the creditworthiness of the commercial loan portfolio, the quality of the underwriting and credit risk management practices and the appropriateness of the risk rating classifications. This review is also supplemented with selected targeted internal reviews of the commercial loan portfolio. The criticized loan portfolio, which consists of commercial and commercial real estate loans that are risk rated special mention or worse, are reviewed by management on a quarterly basis, focusing on the current status and strategies to improve the credit. | ||||||||||||||||||||||||
The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Classified | |||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Mortgages | $685,924 | $669,220 | $23,753 | $21,649 | $17,698 | $19,944 | ||||||||||||||||||
Construction and development | 51,951 | 27,842 | — | — | — | — | ||||||||||||||||||
Other | 498,231 | 483,371 | 16,325 | 24,393 | 4,010 | 6,000 | ||||||||||||||||||
Total commercial loans | $1,236,106 | $1,180,433 | $40,078 | $46,042 | $21,708 | $25,944 | ||||||||||||||||||
Residential and Consumer | ||||||||||||||||||||||||
The residential and consumer portfolios are monitored on an ongoing basis by the Corporation using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed on an aggregate basis in these relatively homogeneous portfolios. | ||||||||||||||||||||||||
For non-impaired loans, the Corporation assigns loss allocation factors to each respective loan type and delinquency status. See Note 6 for additional information. | ||||||||||||||||||||||||
Various other techniques are utilized to monitor indicators of credit deterioration in the portfolios of residential real estate mortgages and home equity lines and loans. Among these techniques is the periodic tracking of loans with an updated FICO score and an estimated loan to value (“LTV”) ratio. LTV is determined via statistical modeling analyses. The indicated LTV levels are estimated based on such factors as the location, the original LTV, and the date of origination of the loan and do not reflect actual appraisal amounts. The results of these analyses are taken into consideration in the determination of loss allocation factors for residential mortgage and home equity consumer credits. See Note 6 for additional information. | ||||||||||||||||||||||||
The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator: | ||||||||||||||||||||||||
(Dollars in thousands) | Under 90 Days Past Due | Over 90 Days Past Due | ||||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||||||
Accruing mortgages | $703,332 | $686,640 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 3,252 | 2,500 | 4,843 | 3,658 | ||||||||||||||||||||
Homeowner construction | 20,265 | 24,883 | — | — | ||||||||||||||||||||
Total residential real estate loans | $726,849 | $714,023 | $4,843 | $3,658 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $226,801 | $226,333 | $262 | $528 | ||||||||||||||||||||
Home equity loans | 40,742 | 39,078 | 416 | 251 | ||||||||||||||||||||
Other | 55,946 | 57,648 | 15 | 65 | ||||||||||||||||||||
Total consumer loans | $323,489 | $323,059 | $693 | $844 | ||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes three elements: (1) identification of loss allocations for individual loans deemed to be impaired, (2) loss allocation factors for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar economic indicators, and (3) general loss allocations for other environmental factors, which is classified as “unallocated.” | ||||||||||||||||||||||||||||||||
Periodic assessments and revisions to the loss allocation factors used in the assignment of loss exposure are made to appropriately reflect the analysis of migrational loss experience. The Corporation analyzes historical loss experience in the various portfolios over periods deemed to be relevant to the inherent risk of loss in the respective portfolios as of the balance sheet date. The Corporation adjusts the loss allocations for various factors it believes are not adequately presented in historical loss experience, including trends in real estate values, trends in rental rates on commercial real estate, consideration of general economic conditions and our assessments of credit risk associated with certain industries and an ongoing trend toward larger credit relationships. These factors are also evaluated taking into account the geographic location of the underlying loans. Revisions to loss allocation factors are not retroactively applied. | ||||||||||||||||||||||||||||||||
Loss allocations for loans deemed to be impaired are measured on a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or, if the loan is collateral dependent, at the fair value of the collateral less costs to sell. For collateral dependent loans, management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the property. | ||||||||||||||||||||||||||||||||
Loss allocation factors are used for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar credit quality indicators. Individual commercial loans and commercial mortgage loans not deemed to be impaired are evaluated using the internal rating system described in Note 5 under the caption “Credit Quality Indicators” and the application of loss allocation factors. The loan rating system and the related loss allocation factors take into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, and the adequacy of collateral. Portfolios of more homogeneous populations of loans including the various categories of residential mortgages and consumer loans are analyzed as groups, taking into account delinquency ratios and other indicators and our historical loss experience for each type of credit product. | ||||||||||||||||||||||||||||||||
An additional unallocated allowance is maintained to allow for measurement imprecision attributable to uncertainty in the economic environment and ever changing conditions and to reflect management’s consideration of qualitative and quantitative assessments of other environmental factors, including, but not limited to, conditions that may affect the collateral position such as environmental matters, regulatory changes affecting the foreclosure process, as well as conditions that may affect the ability of borrowers to meet debt service requirements. | ||||||||||||||||||||||||||||||||
Because the methodology is based upon historical experience and trends, current economic data as well as management’s judgment, factors may arise that result in different estimations. Significant factors that could give rise to changes in these estimates may include, but are not limited to, changes in economic conditions in our market area, concentration of risk and declines in local property values. Adversely different conditions or assumptions could lead to increases in the allowance. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. | ||||||||||||||||||||||||||||||||
The following tables present the activity in the allowance for loan losses for the periods presented: | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $6,748 | $277 | $5,442 | $12,467 | $4,691 | $2,455 | $8,271 | $27,884 | ||||||||||||||||||||||||
Charge-offs | (640 | ) | — | (81 | ) | (721 | ) | — | (49 | ) | (770 | ) | ||||||||||||||||||||
Recoveries | 38 | — | 83 | 121 | — | 73 | 194 | |||||||||||||||||||||||||
Provision | 493 | 164 | 126 | 783 | (11 | ) | 16 | (88 | ) | 700 | ||||||||||||||||||||||
Ending Balance | $6,639 | $441 | $5,570 | $12,650 | $4,680 | $2,495 | $8,183 | $28,008 | ||||||||||||||||||||||||
For the three months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $8,945 | $164 | $6,239 | $15,348 | $4,713 | $2,381 | $8,006 | $30,448 | ||||||||||||||||||||||||
Charge-offs | (258 | ) | — | (15 | ) | (273 | ) | (65 | ) | (86 | ) | (424 | ) | |||||||||||||||||||
Recoveries | 46 | — | 37 | 83 | 24 | 21 | 128 | |||||||||||||||||||||||||
Provision | 520 | 54 | 245 | 819 | (408 | ) | 323 | (134 | ) | 600 | ||||||||||||||||||||||
Ending Balance | $9,253 | $218 | $6,506 | $15,977 | $4,264 | $2,639 | $7,872 | $30,752 | ||||||||||||||||||||||||
For the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | ||||||||||||||||||||||||
Charge-offs | (4,754 | ) | — | (259 | ) | (5,013 | ) | (48 | ) | (258 | ) | (5,319 | ) | |||||||||||||||||||
Recoveries | 230 | — | 127 | 357 | 3 | 94 | 454 | |||||||||||||||||||||||||
Provision | 1,756 | 217 | (294 | ) | 1,679 | 456 | (25 | ) | (110 | ) | 2,000 | |||||||||||||||||||||
Ending Balance | $6,639 | $441 | $5,570 | $12,650 | $4,680 | $2,495 | $8,183 | $28,008 | ||||||||||||||||||||||||
For the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | ||||||||||||||||||||||||
Charge-offs | (267 | ) | — | (925 | ) | (1,192 | ) | (315 | ) | (294 | ) | (1,801 | ) | |||||||||||||||||||
Recoveries | 436 | — | 74 | 510 | 97 | 44 | 651 | |||||||||||||||||||||||||
Provision | 889 | 123 | 1,157 | 2,169 | (212 | ) | 437 | (294 | ) | 2,100 | ||||||||||||||||||||||
Ending Balance | $9,253 | $218 | $6,506 | $15,977 | $4,264 | $2,639 | $7,872 | $30,752 | ||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||
Loans | Related Allowance | Loans | Related Allowance | |||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $32,849 | $1,110 | $20,250 | $1,720 | ||||||||||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||||||||||
Other | 2,822 | 331 | 10,989 | 694 | ||||||||||||||||||||||||||||
Residential real estate mortgages | 3,674 | 569 | 3,868 | 463 | ||||||||||||||||||||||||||||
Consumer | 359 | 3 | 440 | 3 | ||||||||||||||||||||||||||||
Subtotal | $39,704 | $2,013 | $35,547 | $2,880 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $694,526 | $5,529 | $690,563 | $7,687 | ||||||||||||||||||||||||||||
Construction & development | 51,951 | 441 | 27,842 | 224 | ||||||||||||||||||||||||||||
Other | 515,744 | 5,239 | 502,775 | 5,302 | ||||||||||||||||||||||||||||
Residential real estate mortgages | 728,018 | 4,111 | 713,813 | 3,806 | ||||||||||||||||||||||||||||
Consumer | 323,823 | 2,492 | 323,463 | 2,681 | ||||||||||||||||||||||||||||
Subtotal | $2,314,062 | $17,812 | $2,258,456 | $19,700 | ||||||||||||||||||||||||||||
Unallocated | — | 8,183 | — | 8,293 | ||||||||||||||||||||||||||||
Total | $2,353,766 | $28,008 | $2,294,003 | $30,873 | ||||||||||||||||||||||||||||
Time_Certificates_of_Deposit
Time Certificates of Deposit | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Deposits [Abstract] | ' | ||||||
Time Certificates of Deposit | ' | ||||||
Time Certificates of Deposit | |||||||
Scheduled maturities and weighted average interest rates paid on time certificates of deposit outstanding at September 30, 2013 were as follows: | |||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | |||||
October 1, 2013 through December 31, 2013 | $257,253 | 0.62 | % | ||||
2014 | 268,853 | 1.18 | % | ||||
2015 | 136,786 | 1.89 | % | ||||
2016 | 82,690 | 1.62 | % | ||||
2017 | 39,730 | 1.57 | % | ||||
Thereafter | 31,798 | 1.28 | % | ||||
$817,110 | |||||||
The following table represents the amount of certificates of deposit of $100 thousand or more at September 30, 2013 maturing during the periods indicated: | |||||||
(Dollars in thousands) | Scheduled Maturity | ||||||
October 1, 2013 to December 31, 2013 | $185,221 | ||||||
January 1, 2014 to March 31, 2014 | 36,355 | ||||||
April 1, 2014 to September 30, 2014 | 42,703 | ||||||
October 1, 2014 and beyond | 119,867 | ||||||
$384,146 | |||||||
Borrowings
Borrowings | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Borrowings | ' | |||||||||||||||||||||
Borrowings | ||||||||||||||||||||||
Federal Home Loan Bank Advances | ||||||||||||||||||||||
Advances payable to the FHLBB amounted to $288.5 million and $361.2 million, respectively, at September 30, 2013 and December 31, 2012. The Bank also has access to an unused line of credit with the FHLBB amounting to $8.0 million. In addition, the FHLBB has issued standby letters of credit to depositor customers of the Bank to collateralize public deposits. The Bank’s FHLBB borrowings, line of credit and letters of credit are collateralized by a blanket pledge agreement on the Bank’s FHLBB stock, certain qualified investment securities and loans, as well as amounts maintained on deposit at the FHLBB. The Bank’s unused remaining available borrowing capacity at the FHLBB was approximately $604.7 million and $536.2 million, respectively, at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
The following table presents maturities and weighted average interest rates paid on FHLBB advances outstanding as of the dates indicated: | ||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||
Scheduled | Redeemed at | Weighted | Scheduled | Redeemed at | Weighted | |||||||||||||||||
Maturity | Call Date (1) | Average Rate (2) | Maturity | Call Date (1) | Average Rate (2) | |||||||||||||||||
2013 | $ | 403 | $403 | 5.01 | % | $ | 48,630 | $ | 48,630 | 0.81 | % | |||||||||||
2014 | 2,519 | 2,519 | 3.54 | % | 2,519 | 2,519 | 3.54 | % | ||||||||||||||
2015 | 1,569 | 1,569 | 4.89 | % | 79,069 | 79,069 | 3.63 | % | ||||||||||||||
2016 | 85,066 | 85,066 | 3.05 | % | 85,066 | 85,066 | 3.05 | % | ||||||||||||||
2017 | 70,875 | 70,875 | 3.04 | % | 80,335 | 80,335 | 2.94 | % | ||||||||||||||
2018 and thereafter | 128,053 | 128,053 | 3.88 | % | 65,553 | 65,553 | 4.58 | % | ||||||||||||||
$ | 288,485 | $288,485 | 3.43 | % | $ | 361,172 | $ | 361,172 | 3.13 | % | ||||||||||||
-1 | Callable FHLBB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date while all other advances are shown in the periods corresponding to their scheduled maturity date. | |||||||||||||||||||||
-2 | Weighted average rate based on scheduled maturity dates. | |||||||||||||||||||||
Redemption of Certain Trust Preferred Securities and Related Junior Subordinated Debentures | ||||||||||||||||||||||
The Bancorp is the sponsor of the Washington Preferred Capital Trust, a statutory trust created for the sole purpose of the April 7, 2008 issuance of trust preferred securities, the proceeds of which were invested in junior subordinated debentures of the Bancorp. On June 17, 2013, the Bancorp redeemed in whole at par the outstanding trust preferred securities and related subordinated debentures totaling $10.0 million in trust preferred securities at an interest rate of three-month LIBOR plus 3.50%. The source of funds used for the redemption was made available from our balance sheet liquidity. The Bancorp also had a related interest rate swap contract designated as a cash flow hedge, which matured at redemption on June 17, 2013. As a result of the redemption, unamortized debit issuance costs of $244 thousand were expensed and classified as interest expense in June 2013. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||
Regulatory Capital Requirements | |||||||||||||||||||||
The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios as well as the corresponding minimum and well capitalized regulatory amounts and ratios: | |||||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $313,239 | 13.44 | % | $186,384 | 8 | % | $232,980 | 10 | % | ||||||||||||
Bank | $308,816 | 13.27 | % | $186,227 | 8 | % | $232,784 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $284,935 | 12.23 | % | $93,192 | 4 | % | $139,788 | 6 | % | ||||||||||||
Bank | $280,512 | 12.05 | % | $93,114 | 4 | % | $139,670 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $284,935 | 9.41 | % | $121,182 | 4 | % | $151,478 | 5 | % | ||||||||||||
Bank | $280,512 | 9.27 | % | $121,013 | 4 | % | $151,267 | 5 | % | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $304,716 | 13.26 | % | $183,876 | 8 | % | $229,845 | 10 | % | ||||||||||||
Bank | $299,503 | 13.05 | % | $183,651 | 8 | % | $229,564 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $275,956 | 12.01 | % | $91,938 | 4 | % | $137,907 | 6 | % | ||||||||||||
Bank | $270,778 | 11.8 | % | $91,826 | 4 | % | $137,738 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $275,956 | 9.3 | % | $118,733 | 4 | % | $148,417 | 5 | % | ||||||||||||
Bank | $270,778 | 9.14 | % | $118,535 | 4 | % | $148,169 | 5 | % | ||||||||||||
(1) Leverage ratio |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||||||||||
The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally to manage the Corporation’s interest rate risk. Additionally, the Corporation enters into interest rate derivatives to accommodate the business requirements of its customers. All 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 derivatives depends on the intended use of the derivative and resulting designation. | ||||||||||||||||||||||||||||
Interest Rate Risk Management Agreements | ||||||||||||||||||||||||||||
Interest rate swaps are used from time to time as part of the Corporation’s interest rate risk management strategy. Swaps are agreements in which the Corporation and another party agree to exchange interest payments (e.g., fixed-rate for variable-rate payments) computed on a notional principal amount. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Corporation 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. | ||||||||||||||||||||||||||||
Cash Flow Hedging Instruments | ||||||||||||||||||||||||||||
As of September 30, 2013, the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $23 million of variable rate junior subordinated debentures, compared to three interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $33 million of variable rate junior subordinated debentures as of December 31, 2012. See additional disclosure in Note 8 regarding the June 2013 redemption of junior subordinated debentures. The effective portion of the changes in fair value of derivatives designated as cash flow hedges is recorded in other comprehensive income and subsequently reclassified to earnings when gains or losses are realized. The ineffective portion of changes in fair value of the derivatives is recognized directly in earnings as interest expense. The Bancorp has pledged collateral to derivative counterparties in the form of cash totaling $1.7 million at September 30, 2013 and $2.0 million at December 31, 2012. The Bancorp may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. | ||||||||||||||||||||||||||||
Customer Related Derivative Contracts | ||||||||||||||||||||||||||||
The Corporation has entered 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 we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter 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. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in making loans. As of September 30, 2013 and December 31, 2012, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $64.9 million and $70.5 million, respectively, and equal amounts of “mirror” swap contracts with third-party financial institutions. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. | ||||||||||||||||||||||||||||
Loan Commitments | ||||||||||||||||||||||||||||
Interest rate lock commitments are extended to borrowers that relate to the origination of residential real estate mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed residential real estate mortgage loans held for sale, best efforts forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgage loans are derivative financial instruments, but do not meet criteria for hedge accounting and as such are treated as derivatives not designated as hedging instruments. These derivative financial instruments are recorded at fair value and changes in fair value of these commitments are reflected in earnings in the period of change. The Corporation has elected to carry newly originated closed residential real estate mortgage loans held for sale at fair value, as changes in fair value in these loans held for sale generally offset changes in interest rate lock and forward sale commitments. | ||||||||||||||||||||||||||||
The following table presents the fair values of derivative instruments in the Corporation’s Consolidated Balance Sheets as of the dates indicated: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||
Balance Sheet Location | Sep 30, 2013 | Dec 31, 2012 | Balance Sheet Location | Sep 30, 2013 | Dec 31, 2012 | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||||
Interest rate swap contracts | Other assets | $— | $— | Other liabilities | $1,125 | $1,619 | ||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Other assets | 867 | 2,513 | Other liabilities | — | — | ||||||||||||||||||||||
Commitments to sell fixed-rate mortgage loans | Other assets | 1 | — | Other liabilities | 1,135 | 4,191 | ||||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||||
Interest rate swaps with customers | Other assets | 2,195 | 3,851 | Other liabilities | 178 | — | ||||||||||||||||||||||
Mirror swaps with counterparties | Other assets | 210 | — | Other liabilities | 2,245 | 3,952 | ||||||||||||||||||||||
Total | $3,273 | $6,364 | $4,683 | $9,762 | ||||||||||||||||||||||||
The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity for the periods indicated: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income (Ineffective Portion) | |||||||||||||||||||||||||
Three months | Nine months | Three months | Nine months | |||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||||
Interest rate swap contracts | $44 | ($14 | ) | $316 | $5 | Interest Expense | $— | $— | $— | $— | ||||||||||||||||||
Total | $44 | ($14 | ) | $316 | $5 | $— | $— | $— | $— | |||||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Income | |||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income | Three months | Nine months | ||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Net gains on loan sales & commissions on loans originated for others | $127 | $1,810 | ($1,646 | ) | $3,009 | ||||||||||||||||||||||
Commitments to sell fixed-rate mortgage loans | Net gains on loan sales & commissions on loans originated for others | (667 | ) | (2,660 | ) | 3,057 | (3,965 | ) | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||||
Interest rate swaps with customers | Net gains (losses) on interest rate swaps | 306 | 340 | (105 | ) | 949 | ||||||||||||||||||||||
Mirror swaps with counterparties | Net gains (losses) on interest rate swaps | (252 | ) | (277 | ) | 330 | (862 | ) | ||||||||||||||||||||
Total | ($486 | ) | ($787 | ) | $1,636 | ($869 | ) | |||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||
The Corporation uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. As of September 30, 2013 and December 31, 2012, securities available for sale, residential real estate mortgage loans held for sale and derivatives were recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. | |||||||||||||||||||||||||||||||
Fair value is a market-based measurement, not an entity-specific measurement. Fair value measurements are determined based on the assumptions the market participants would use in pricing the asset or liability. In addition, GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Corporation’s market assumptions. These two types of inputs have created the following fair value hierarchy: | |||||||||||||||||||||||||||||||
• | Level 1 – Quoted prices for identical assets or liabilities in active markets. | ||||||||||||||||||||||||||||||
• | Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | ||||||||||||||||||||||||||||||
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Corporation’s market assumptions. | ||||||||||||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||||||||||||
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 Corporation 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 Corporation uses unobservable inputs to determine appropriate valuation adjustments using methodologies applied consistently over time. | |||||||||||||||||||||||||||||||
The following is a description of valuation methodologies for assets and liabilities recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. | |||||||||||||||||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||||||||
Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of U.S. government-sponsored enterprises, mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, municipal bonds, trust preferred securities and corporate bonds. | |||||||||||||||||||||||||||||||
In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. Level 3 securities were comprised of pooled trust preferred debt securities, in the form of collateralized debt obligations, which were not actively traded. In the first quarter of 2013, Washington Trust recognized an other-than-temporary impairment charge on one of its pooled trust preferred debt securities, reducing its carrying value to zero. See Note 4 for additional disclosure regarding pooled trust preferred debt securities. As of September 30, 2013 and December 31, 2012, the Corporation concluded that the low level of activity for its Level 3 pooled trust preferred debt securities continued to indicate that quoted market prices are not indicative of fair value. The Corporation obtained valuations including broker quotes and cash flow scenario analyses prepared by a third party valuation consultant. The cash flow scenarios (Level 3) were given substantially more weight than the broker quotes (Level 2) as management believed that the broker quotes reflected highly limited sales evidenced by an inactive market. The cash flow scenarios were prepared using discounted cash flow methodologies based on detailed cash flow and credit analysis of the security. The weighting was then used to determine an overall fair value. Management believes that this approach is most representative of fair value for such securities in current market conditions. | |||||||||||||||||||||||||||||||
Our internal review procedures have confirmed that the fair value provided by the aforementioned third party valuation sources utilized by the Corporation are consistent with GAAP. Our fair value assumed liquidation in an orderly market and not under distressed circumstances. Due to the continued market illiquidity and credit risk for securities in the financial sector, the fair value of such securities is highly sensitive to assumption changes and market volatility. | |||||||||||||||||||||||||||||||
Mortgage Loans Held for Sale | |||||||||||||||||||||||||||||||
Washington Trust has elected to carry newly originated closed residential real estate mortgage loans held for sale at fair value pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments.” Level 2 mortgage loans held for sale fair values are estimated based on what secondary markets are currently offering for loans with similar characteristics. In certain cases when quoted market prices are not available, fair value is determined by utilizing a discounted cash flow analysis and these assets are classified as Level 3. Any change in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. | |||||||||||||||||||||||||||||||
The aggregate principal amount of the residential real estate mortgage loans held for sale portfolio was $12.8 million and $48.4 million, respectively, at September 30, 2013 and December 31, 2012. The aggregate fair value of this portfolio as of the same dates was $13.1 million and $50.1 million, respectively. As of September 30, 2013 and December 31, 2012, the aggregate fair value of mortgage loans held for sale exceeded the aggregate principal amount by $333 thousand and $1.7 million, respectively. There were no mortgage loans for sale 90 days or more past due at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
The following table presents the changes in fair value related to mortgage loans held for sale, commitments to originate fixed-rate residential real estate mortgage loans to be sold and commitments to sell fixed-rate residential real estate mortgage loans for the periods indicated. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Three Months | Nine months | ||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Mortgage loans held for sale | $606 | $850 | ($1,353 | ) | $956 | ||||||||||||||||||||||||||
Commitments to originate | 127 | 1,810 | (1,646 | ) | 3,009 | ||||||||||||||||||||||||||
Commitments to sell | (667 | ) | (2,660 | ) | 3,057 | (3,965 | ) | ||||||||||||||||||||||||
Total changes in fair value | $66 | $— | $58 | $— | |||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||
Interest rate swap contracts are traded in over-the-counter markets where quoted market prices are not readily available. Fair value measurements are determined using independent pricing models that utilize primarily market observable inputs, such as swap rates of different maturities and LIBOR rates and, accordingly, are classified as Level 2. Our internal review procedures have confirmed that the fair values determined with independent pricing models and utilized by the Corporation are consistent with GAAP. For purposes of potential valuation adjustments to its interest rate swap contracts, the Corporation evaluates the credit risk of its counterparties as well as that of the Corporation. Accordingly, Washington Trust considers factors such as the likelihood of default by the Corporation and its counterparties, its net exposures and remaining contractual life, among other factors, in determining if any fair value adjustments related to credit risk are required. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position. Additionally, in accordance with fair value measurement guidance in ASU 2011-04, Washington Trust has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. | |||||||||||||||||||||||||||||||
Level 2 fair value measurements of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential mortgages) are estimated using the anticipated market price based on pricing indications provided from syndicate banks. In certain cases when quoted market prices are not available, fair value is determined by utilizing a discounted cash flow analysis and these assets are classified as Level 3. | |||||||||||||||||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||
Collateral Dependent Impaired Loans | |||||||||||||||||||||||||||||||
Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. | |||||||||||||||||||||||||||||||
Property Acquired Through Foreclosure or Repossession | |||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession included in other assets in the Consolidated Balance Sheets is adjusted to fair value less costs to sell upon transfer out of loans through a charge to allowance for loan losses. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Such subsequent valuation charges are charged through earnings. Fair value is generally based upon appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. | |||||||||||||||||||||||||||||||
Items Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
The tables below present the balances of assets and liabilities reported at fair value on a recurring basis: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $55,669 | $— | $55,669 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 228,505 | — | 228,505 | |||||||||||||||||||||||||||
States and political subdivisions | — | 67,340 | — | 67,340 | |||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Individual name issuers | — | 24,775 | — | 24,775 | |||||||||||||||||||||||||||
Collateralized debt obligations | — | — | 425 | 425 | |||||||||||||||||||||||||||
Corporate bonds | — | 11,371 | — | 11,371 | |||||||||||||||||||||||||||
Mortgage loans held for sale | — | 13,105 | — | 13,105 | |||||||||||||||||||||||||||
Derivative assets (1): | |||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 2,405 | — | 2,405 | |||||||||||||||||||||||||||
Forward loan commitments | — | 868 | — | 868 | |||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $404,038 | $425 | $404,463 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities (1): | |||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $2,423 | $— | $2,423 | |||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,125 | — | 1,125 | |||||||||||||||||||||||||||
Forward loan commitments | — | 1,135 | — | 1,135 | |||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $4,683 | $— | $4,683 | |||||||||||||||||||||||||||
-1 | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $31,670 | $— | $31,670 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 231,233 | — | 231,233 | |||||||||||||||||||||||||||
States and political subdivisions | — | 72,620 | — | 72,620 | |||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Individual name issuers | — | 24,751 | — | 24,751 | |||||||||||||||||||||||||||
Collateralized debt obligations | — | — | 843 | 843 | |||||||||||||||||||||||||||
Corporate bonds | — | 14,381 | — | 14,381 | |||||||||||||||||||||||||||
Mortgage loans held for sale | — | 40,243 | 9,813 | 50,056 | |||||||||||||||||||||||||||
Derivative assets (1): | |||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 3,851 | — | 3,851 | |||||||||||||||||||||||||||
Forward loan commitments | — | 2,469 | 44 | 2,513 | |||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $421,218 | $10,700 | $431,918 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities (1): | |||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $3,952 | $— | $3,952 | |||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,619 | — | 1,619 | |||||||||||||||||||||||||||
Forward loan commitments | — | 4,005 | 186 | 4,191 | |||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $9,576 | $186 | $9,762 | |||||||||||||||||||||||||||
-1 | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. During the nine months ended September 30, 2013 and 2012, there were no transfers in and/or out of Level 1, 2 or 3. | |||||||||||||||||||||||||||||||
The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis during the periods indicated: | |||||||||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | ||||||||||||||||||||||||||
Balance at beginning of period | $397 | $767 | — | $— | $767 | ||||||||||||||||||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||||||||||||||||||
Included in earnings (4) | — | — | 55 | (55 | ) | — | |||||||||||||||||||||||||
Included in other comprehensive income | 28 | 163 | — | — | 163 | ||||||||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||||||||||||
Issuances | — | — | 4,178 | — | 4,178 | ||||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at end of period | $425 | $930 | $4,233 | ($55 | ) | $5,108 | |||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | |||||||||||||||||||||||
Balance at beginning of period | $843 | $9,813 | ($142 | ) | $10,514 | $887 | — | $— | $887 | ||||||||||||||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||||||||||||||||||
Included in earnings (4) | (2,772 | ) | (150 | ) | 142 | (2,780 | ) | (209 | ) | — | — | (209 | ) | ||||||||||||||||||
Included in other comprehensive income | 2,487 | — | — | 2,487 | 252 | — | — | 252 | |||||||||||||||||||||||
Purchases | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Issuances | — | 12,692 | — | 12,692 | — | 4,233 | (55 | ) | 4,178 | ||||||||||||||||||||||
Sales | — | (22,355 | ) | — | (22,355 | ) | — | — | — | — | |||||||||||||||||||||
Settlements | (133 | ) | — | — | (133 | ) | — | — | — | — | |||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at end of period | $425 | $— | $— | $425 | $930 | 4,233 | ($55 | ) | $5,108 | ||||||||||||||||||||||
-1 | During the periods indicated, Level 3 securities available for sale were comprised of pooled trust preferred debt securities in the form of collateralized debt obligations. | ||||||||||||||||||||||||||||||
-2 | During the periods indicated, Level 3 mortgage loans held for sale consisted of certain mortgage loans whose fair value was determined utilizing a discounted cash flow analysis. | ||||||||||||||||||||||||||||||
-3 | During the periods indicated, Level 3 derivative assets / liabilities consisted of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgages) whose fair value was determined utilizing a discounted cash flow analysis. | ||||||||||||||||||||||||||||||
-4 | Losses included in earnings for Level 3 securities available for sale were included in net impairment losses recognized in earnings in the Consolidated Income Statement. Losses included in earnings for Level 3 mortgage loans held for sale and derivative assets and liabilities were included in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a recurring basis for which the Corporation has utilized Level 3 inputs to determine fair value as of the dates indicated. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Collateralized debt obligations | $425 | Discounted Cash Flow | Discount Rate | 17.00% | |||||||||||||||||||||||||||
Cumulative Default % | 2.9% - 100% (18.2%) | ||||||||||||||||||||||||||||||
Loss Given Default % | 85% - 100% (91.4%) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | 31-Dec-12 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Collateralized debt obligations | $843 | Discounted Cash Flow | Discount Rate | 16.75% | |||||||||||||||||||||||||||
Cumulative Default % | 3.3% - 100% (25.7%) | ||||||||||||||||||||||||||||||
Loss Given Default % | 85% - 100% (90.9%) | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | $9,813 | Discounted Cash Flow | Interest Rate | 2.875% - 4.95% (3.71%) | |||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Forward loan commitments - assets | $44 | Discounted Cash Flow | Interest Rate | 3.25% - 3.875% (3.56%) | |||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Forward loan commitments - liabilities | ($186 | ) | Discounted Cash Flow | Interest Rate | 3.25% - 3.875% (3.69%) | ||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations | |||||||||||||||||||||||||||||||
Given the low level of market activity for trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement was derived by analyzing current market yields for trust preferred securities of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. | |||||||||||||||||||||||||||||||
Other significant unobservable inputs to the fair value measurement of collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral. As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When the default percentages increase, the fair value decreases. | |||||||||||||||||||||||||||||||
Mortgage Loans Held for Sale and Derivative Assets / Liabilities | |||||||||||||||||||||||||||||||
Significant unobservable inputs to the fair market value measurement for certain mortgage loans held for sale and certain forward loan commitments include interest rate and credit risk. Interest rates approximate the Corporation’s current origination rates for similar loans. Credit risk approximates the Corporation’s current loss exposure factor for similar loans. | |||||||||||||||||||||||||||||||
Items Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets. The valuation methodologies used to measure these fair value adjustments are described above. | |||||||||||||||||||||||||||||||
The following tables present the carrying value of certain assets measured at fair value on a nonrecurring basis as of the dates indicated: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $12,475 | $12,475 | |||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 416 | 416 | |||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $12,891 | $12,891 | |||||||||||||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $633 thousand at September 30, 2013. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $9,550 | $9,550 | |||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 1,073 | 1,073 | |||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $10,623 | $10,623 | |||||||||||||||||||||||||||
The allowance for loan losses allocation on collateral dependent impaired loans amounted to $2.0 million at December 31, 2012. | |||||||||||||||||||||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value for the dates indicated. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $12,475 | Appraisals of collateral | Discount for costs to sell | 1% - 25% (10%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 45% (2%) | ||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $416 | Appraisals of collateral | Discount for costs to sell | 2% - 10% (9%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 6% - 22% (13%) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2012 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $9,550 | Appraisals of collateral | Discount for costs to sell | 0% - 50% (11%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 27% (18%) | ||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $1,073 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (5%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 15% - 34% (21%) | ||||||||||||||||||||||||||||||
-1 | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. | ||||||||||||||||||||||||||||||
Valuation of Other Financial Instruments | |||||||||||||||||||||||||||||||
The methodologies for estimating the fair value of financial instruments that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial instruments are discussed below. | |||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||
Fair values are estimated for categories of loans with similar financial characteristics. Loans are segregated by type and are then further segmented into fixed-rate and adjustable rate interest terms to determine their fair value. The fair value of fixed-rate commercial and consumer loans is calculated by discounting scheduled cash flows through the estimated maturity of the loan using interest rates offered at September 30, 2013 and December 31, 2012 that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using quoted market prices for sales of similar loans on the secondary market. The fair value of floating rate commercial and consumer loans approximates carrying value. Fair value for impaired loans is estimated using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of the collateral less costs to sell. Loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||||||||
Time Deposits | |||||||||||||||||||||||||||||||
The discounted values of cash flows using the rates currently offered for deposits of similar remaining maturities were used to estimate the fair value of time deposits. Time deposits are classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | |||||||||||||||||||||||||||||||
Rates currently available to the Corporation for advances with similar terms and remaining maturities are used to estimate fair value of existing advances. FHLBB advances are categorized as Level 2. | |||||||||||||||||||||||||||||||
Junior Subordinated Debentures | |||||||||||||||||||||||||||||||
The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. | |||||||||||||||||||||||||||||||
The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments as of September 30, 2013 and December 31, 2012. The tables exclude financial instruments for which the carrying value approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB stock, accrued interest receivable and bank-owned life insurance. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, other borrowings and accrued interest payable. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||||||||||||||
September 30, 2013 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||
Securities held to maturity | $31,264 | $31,962 | $— | $31,962 | $— | ||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,325,758 | 2,391,266 | — | — | 2,391,266 | ||||||||||||||||||||||||||
Loan servicing rights (1) | 2,479 | 2,609 | — | — | 2,609 | ||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||
Time deposits | $817,110 | $824,264 | $— | $824,264 | $— | ||||||||||||||||||||||||||
FHLBB advances | 288,485 | 310,158 | — | 310,158 | — | ||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 15,189 | — | 15,189 | — | ||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $130 thousand in reserves as of September 30, 2013. The estimated fair value does not include such adjustment. | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||||||||||||||
December 31, 2012 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||
Securities held to maturity | $40,381 | $41,420 | $— | $41,420 | $— | ||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,263,130 | 2,350,153 | — | — | 2,350,153 | ||||||||||||||||||||||||||
Loan servicing rights (1) | 1,110 | 1,275 | — | — | 1,275 | ||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||
Time deposits | $870,232 | $879,705 | $— | $879,705 | $— | ||||||||||||||||||||||||||
FHLBB advances | 361,172 | 392,805 | — | 392,805 | — | ||||||||||||||||||||||||||
Junior subordinated debentures | 32,991 | 23,371 | — | 23,371 | — | ||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $165 thousand in reserves as of December 31, 2012. The estimated fair value does not include such adjustment. |
Defined_Benefit_Pension_Plans
Defined Benefit Pension Plans | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | ' | |||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | ||||||||||||||||||||||||||||||||
The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. The supplemental retirement plans provide eligible participants with an additional retirement benefit. | ||||||||||||||||||||||||||||||||
Effective September 19, 2013, the Corporation amended its defined benefit pension plans to freeze benefit accruals after a ten-year transition period ending in December 2023. Due to the amendment, a remeasurement of the value of pension plan liabilities was conducted and, as a result, pension plan liabilities were reduced by $17.5 million and the accumulated other comprehensive income component of shareholders' equity was increased by $11.2 million, after tax. The remeasurement impact also reflected an increase in the discount rates used to measure the present value of pension plan liabilities as a result of an increase in market rates of interest and continued asset performance. | ||||||||||||||||||||||||||||||||
The pension plan is funded on a current basis, in compliance with the requirements of ERISA. | ||||||||||||||||||||||||||||||||
The composition of net periodic benefit cost was as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Qualified Pension Plan | Non-Qualified Retirement Plans | ||||||||||||||||||||||||||||||
Three months | Nine months | Three months | Nine months | |||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $710 | $644 | $2,171 | $1,931 | $48 | $38 | $147 | $113 | ||||||||||||||||||||||||
Interest cost | 722 | 705 | 2,160 | 2,117 | 116 | 126 | 346 | 378 | ||||||||||||||||||||||||
Expected return on plan assets | (931 | ) | (746 | ) | (2,780 | ) | (2,239 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of prior service cost | 17 | (8 | ) | — | (25 | ) | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Recognized net actuarial loss | 354 | 246 | 1,182 | 737 | 47 | 29 | 145 | 88 | ||||||||||||||||||||||||
Curtailment | (61 | ) | — | (61 | ) | — | (2 | ) | — | (2 | ) | — | ||||||||||||||||||||
Net periodic benefit cost | $811 | $841 | $2,672 | $2,521 | $209 | $192 | $636 | $578 | ||||||||||||||||||||||||
ShareBased_Compensation_Arrang
Share-Based Compensation Arrangements | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||
Share-Based Compensation Arrangements | ' | ||||
Share-Based Compensation Arrangements | |||||
On April 23, 2013, Bancorp’s shareholders approved the 2013 Stock Option and Incentive Plan (“2013 Plan”). Under the 2013 Plan, the maximum number of shares of the Bancorp’s common stock to be issued is 1,748,250. Under the 2013 Plan, the Corporation is permitted to issue various incentive awards, such as stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance shares, dividend equivalent rights and cash-based awards. The Corporation also has two other share-based compensation plans, the 2003 Stock Incentive Plan, as amended, and the 1997 Equity Incentive Plan, as amended. See our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | |||||
Nonvested Share Units | |||||
During the nine months ended September 30, 2013, the Corporation granted the following nonvested share units to directors. | |||||
Date | Units Granted | Fair Value | Plan | Vesting Period | |
4/23/13 | 12,000 | $26.79 | 2013 Plan | 3 year cliff vesting | |
The nonvested share units awarded were valued at the fair market value as of the award date. | |||||
Nonvested Performance Shares | |||||
During the nine months ended September 30, 2013, the Corporation granted the following performance share award to certain executive officers. | |||||
Date | Share Range | Fair Value | Plan | Vesting Period | |
1/22/13 | 0 to 60,300 | $26.05 | 2003 Stock Incentive Plan | 3 year performance period | |
The performance shares awarded were valued at the fair market value as of the award date. The number of shares earned will range from zero to 200% of the target number of shares dependent upon the Corporation’s core return on equity and core earnings per share growth ranking compared to an industry peer group. The current assumption based on the most recent peer group information available results in shares earned at 150% of the target, or 45,225 shares. |
Business_Segments
Business Segments | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Business Segments | ' | |||||||||||||||||||||||||||
Business Segments | ||||||||||||||||||||||||||||
Washington Trust segregates financial information in assessing its results among its Commercial Banking and Wealth Management Services operating segments. The amounts in the Corporate column include activity not related to the segments, such as the investment securities portfolio, wholesale funding activities and administrative units. The Corporate column is not considered to be an operating segment. The methodologies and organizational hierarchies that define the business segments are periodically reviewed and revised. Results may be restated, when necessary, to reflect changes in organizational structure or allocation methodology. Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of Washington Trust as a whole. | ||||||||||||||||||||||||||||
Management uses certain methodologies to allocate income and expenses to the business lines. A funds transfer pricing methodology is used to assign interest income and interest expense to each interest-earning asset and interest-bearing liability on a matched maturity funding basis. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and processing operations and other support functions. | ||||||||||||||||||||||||||||
Commercial Banking | ||||||||||||||||||||||||||||
The Commercial Banking segment includes commercial, commercial real estate, residential and consumer lending activities; equity in losses of unconsolidated investments in real estate limited partnerships, mortgage banking, secondary market and loan servicing activities; deposit generation; merchant credit card services; cash management activities; and direct banking activities, which include the operation of ATMs, telephone and Internet banking services and customer support and sales. | ||||||||||||||||||||||||||||
Wealth Management Services | ||||||||||||||||||||||||||||
Wealth Management Services includes asset management services provided for individuals, institutions and mutual funds; personal trust services, including services as executor, trustee, administrator, custodian and guardian; institutional trust services, including services as trustee for pension and profit sharing plans; and other financial planning and advisory services. | ||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||
Corporate includes the Treasury Unit, which is responsible for managing the wholesale investment portfolio and wholesale funding needs. It also includes income from bank-owned life insurance as well as administrative and executive expenses not allocated to the business lines and the residual impact of methodology allocations such as funds transfer pricing offsets. | ||||||||||||||||||||||||||||
The following tables present the statement of operations and total assets for Washington Trust’s reportable segments: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net interest income (expense) | $20,364 | $19,946 | ($4 | ) | $— | $3,028 | $2,790 | $23,388 | $22,736 | |||||||||||||||||||
Noninterest income | 8,302 | 8,683 | 7,629 | 7,193 | 1,469 | 1,045 | 17,400 | 16,921 | ||||||||||||||||||||
Total income | 28,666 | 28,629 | 7,625 | 7,193 | 4,497 | 3,835 | 40,788 | 39,657 | ||||||||||||||||||||
Provision for loan losses | 700 | 600 | — | — | — | — | 700 | 600 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 614 | 588 | 316 | 325 | 52 | 55 | 982 | 968 | ||||||||||||||||||||
Other noninterest expenses | 15,840 | 16,538 | 4,944 | 4,850 | 3,782 | 3,934 | 24,566 | 25,322 | ||||||||||||||||||||
Total noninterest expenses | 16,454 | 17,126 | 5,260 | 5,175 | 3,834 | 3,989 | 25,548 | 26,290 | ||||||||||||||||||||
Income before income taxes | 11,512 | 10,903 | 2,365 | 2,018 | 663 | (154 | ) | 14,540 | 12,767 | |||||||||||||||||||
Income tax expense (benefit) | 3,875 | 3,751 | 876 | 755 | (171 | ) | (639 | ) | 4,580 | 3,867 | ||||||||||||||||||
Net income | $7,637 | $7,152 | $1,489 | $1,263 | $834 | $485 | $9,960 | $8,900 | ||||||||||||||||||||
Total assets at period end | $2,460,150 | $2,384,219 | $50,297 | $51,525 | $621,511 | $613,124 | $3,131,958 | $3,048,868 | ||||||||||||||||||||
Expenditures for long-lived assets | $277 | $935 | $39 | $72 | $25 | $53 | $341 | $1,060 | ||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net interest income (expense) | $59,606 | $59,126 | $5 | $1 | $8,653 | $8,405 | $68,264 | $67,532 | ||||||||||||||||||||
Noninterest income | 24,239 | 22,970 | 23,015 | 21,850 | (294 | ) | 2,507 | 46,960 | 47,327 | |||||||||||||||||||
Total income | 83,845 | 82,096 | 23,020 | 21,851 | 8,359 | 10,912 | 115,224 | 114,859 | ||||||||||||||||||||
Provision for loan losses | 2,000 | 2,100 | — | — | — | — | 2,000 | 2,100 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,876 | 1,792 | 968 | 958 | 161 | 175 | 3,005 | 2,925 | ||||||||||||||||||||
Other noninterest expenses | 47,244 | 47,162 | 15,078 | 14,649 | 9,410 | 10,181 | 71,732 | 71,992 | ||||||||||||||||||||
Total noninterest expenses | 49,120 | 48,954 | 16,046 | 15,607 | 9,571 | 10,356 | 74,737 | 74,917 | ||||||||||||||||||||
Income before income taxes | 32,725 | 31,042 | 6,974 | 6,244 | (1,212 | ) | 556 | 38,487 | 37,842 | |||||||||||||||||||
Income tax expense (benefit) | 11,421 | 10,665 | 2,635 | 2,332 | (1,933 | ) | (1,206 | ) | 12,123 | 11,791 | ||||||||||||||||||
Net income | $21,304 | $20,377 | $4,339 | $3,912 | $721 | $1,762 | $26,364 | $26,051 | ||||||||||||||||||||
Total assets at period end | $2,460,150 | $2,384,219 | $50,297 | $51,525 | $621,511 | $613,124 | $3,131,958 | $3,048,868 | ||||||||||||||||||||
Expenditures for long-lived assets | $1,014 | $3,609 | $93 | $785 | $71 | $119 | $1,178 | $4,513 | ||||||||||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Other Comprehensive Income | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
The following table presents the activity in other comprehensive income (loss) and the affected line item in the Consolidated Statement of Income for the periods indicated: | ||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($202 | ) | ($73 | ) | ($129 | ) | ($339 | ) | ($121 | ) | ($218 | ) | ||||||||
Net losses (gains) on securities reclassified into earnings (1) | — | — | — | — | — | — | ||||||||||||||
Net change in fair value of securities available for sale | (202 | ) | (73 | ) | (129 | ) | (339 | ) | (121 | ) | (218 | ) | ||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | — | — | — | — | — | — | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (72 | ) | (25 | ) | (47 | ) | (198 | ) | (71 | ) | (127 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (3) | 141 | 50 | 91 | 176 | 63 | 113 | ||||||||||||||
Net change in fair value of cash flow hedges | 69 | 25 | 44 | (22 | ) | (8 | ) | (14 | ) | |||||||||||
Defined benefit plan obligation adjustment (4) | 17,842 | 6,402 | 11,440 | 266 | 95 | 171 | ||||||||||||||
Total other comprehensive income (loss) | $17,709 | $6,354 | $11,355 | ($95 | ) | ($34 | ) | ($61 | ) | |||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($7,771 | ) | ($2,768 | ) | ($5,003 | ) | ($1,032 | ) | ($356 | ) | ($676 | ) | ||||||||
Net losses (gains) on securities reclassified into earnings (1) | 613 | 220 | 393 | (214 | ) | (76 | ) | (138 | ) | |||||||||||
Net change in fair value of securities available for sale | (7,158 | ) | (2,548 | ) | (4,610 | ) | (1,246 | ) | (432 | ) | (814 | ) | ||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 2,159 | 775 | 1,384 | 124 | 44 | 80 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (27 | ) | (12 | ) | (15 | ) | (518 | ) | (187 | ) | (331 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (3) | 515 | 184 | 331 | 523 | 187 | 336 | ||||||||||||||
Net change in fair value of cash flow hedges | 488 | 172 | 316 | 5 | — | 5 | ||||||||||||||
Defined benefit plan obligation adjustment (4) | 18,751 | 6,682 | 12,069 | 799 | 272 | 527 | ||||||||||||||
Total other comprehensive income (loss) | $14,240 | $5,081 | $9,159 | ($318 | ) | ($116 | ) | ($202 | ) | |||||||||||
-1 | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statement of Income. | |||||||||||||||||||
-2 | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statement of Income. | |||||||||||||||||||
-3 | Included in interest expense on junior subordinated debentures in the Consolidated Statement of Income. | |||||||||||||||||||
-4 | Included in salaries and employee benefits expense in the Consolidated Statement of Income. See Note 12 and the Annual Report on Form 10-K for fiscal year 2012 for additional information. | |||||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2013: | ||||||||||||||||||||
(Dollars in thousands) | Net Unrealized Gains on Available For Sale Securities | Noncredit -related Impairment | Net Unrealized Losses on Cash Flow Hedges | Pension Benefit Adjustment | Total | |||||||||||||||
Balance at December 31, 2012 | $9,711 | ($1,938 | ) | ($1,006 | ) | ($17,266 | ) | ($10,499 | ) | |||||||||||
Other comprehensive income before reclassifications | (5,003 | ) | — | (15 | ) | — | (5,018 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 393 | 1,384 | 331 | 12,069 | 14,177 | |||||||||||||||
Net other comprehensive income (loss) | (4,610 | ) | 1,384 | 316 | 12,069 | 9,159 | ||||||||||||||
Balance at September 30, 2013 | $5,101 | ($554 | ) | ($690 | ) | ($5,197 | ) | ($1,340 | ) | |||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2012: | ||||||||||||||||||||
(Dollars in thousands) | Net Unrealized Gains on Available For Sale Securities | Noncredit -related Impairment | Net Unrealized Losses on Cash Flow Hedges | Pension Benefit Adjustment | Total | |||||||||||||||
Balance at December 31, 2011 | $13,143 | ($2,062 | ) | ($1,127 | ) | ($11,849 | ) | ($1,895 | ) | |||||||||||
Net other comprehensive income (loss) | (814 | ) | 80 | 5 | 527 | (202 | ) | |||||||||||||
Balance at September 30, 2012 | $12,329 | ($1,982 | ) | ($1,122 | ) | ($11,322 | ) | ($2,097 | ) | |||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
Earnings Per Common Share | ||||||||||||||||
Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share-based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available. | ||||||||||||||||
The calculation of earnings per common share is presented below. | ||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||||||||||
Three Months | Nine months | |||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $9,960 | $8,900 | $26,364 | $26,051 | ||||||||||||
Less dividends and undistributed earnings allocated to participating securities | (37 | ) | (42 | ) | (115 | ) | (116 | ) | ||||||||
Net income applicable to common shareholders | $9,923 | $8,858 | $26,249 | $25,935 | ||||||||||||
Weighted average basic common shares | 16,563 | 16,366 | 16,473 | 16,351 | ||||||||||||
Dilutive effect of common stock equivalents | 133 | 48 | 127 | 41 | ||||||||||||
Weighted average diluted common shares | 16,696 | 16,414 | 16,600 | 16,392 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $0.60 | $0.54 | $1.59 | $1.59 | ||||||||||||
Diluted | $0.59 | $0.54 | $1.58 | $1.58 | ||||||||||||
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, were zero and 400 thousand, respectively, for the three months ended September 30, 2013 and 2012. These amounts were 7 thousand and 342 thousand, respectively, for the nine months ended September 30, 2013 and 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate swap agreements and commitments to originate and commitments to sell fixed-rate mortgage loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Corporation’s Consolidated Balance Sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s credit policies with respect to interest rate swap agreements with commercial borrowers, commitments to extend credit, and financial guarantees are similar to those used for loans. The interest rate swaps with other counterparties are generally subject to bilateral collateralization terms. | ||||||||
The contractual and notional amounts of financial instruments with off-balance sheet risk are as follows: | ||||||||
(Dollars in thousands) | Sep 30, | Dec 31, | ||||||
2013 | 2012 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $253,400 | $223,426 | ||||||
Home equity lines | 196,281 | 184,941 | ||||||
Other loans | 33,622 | 30,504 | ||||||
Standby letters of credit | 1,361 | 1,039 | ||||||
Financial instruments whose notional amounts exceed the amount of credit risk: | ||||||||
Forward loan commitments: | ||||||||
Commitments to originate fixed-rate mortgage loans to be sold | 20,750 | 67,792 | ||||||
Commitments to sell fixed-rate mortgage loans | 33,521 | 116,162 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 64,898 | 70,493 | ||||||
Mirror swaps with counterparties | 64,898 | 70,493 | ||||||
Interest rate risk management contract: | ||||||||
Interest rate swap | 22,681 | 32,991 | ||||||
Commitments to Extend Credit | ||||||||
Commitments to extend credit are agreements to lend to a customer as long as there are no violations 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 are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each borrower’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained is based on management’s credit evaluation of the borrower. | ||||||||
Standby Letters of Credit | ||||||||
Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support the financing needs of the Bank’s commercial customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments is essentially the same as for other commitments. Most standby letters of credit extend for one year. As of September 30, 2013 and December 31, 2012, the maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered, totaled $1.4 million and $1.0 million, respectively. At September 30, 2013 and December 31, 2012, there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit for the three and nine months ended September 30, 2013 and 2012 was immaterial. | ||||||||
Forward Loan Commitments | ||||||||
Interest rate lock commitments are extended to borrowers that relate to the origination of residential real estate mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed residential real estate mortgage loans held for sale, best efforts forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgage loans are derivative financial instruments. | ||||||||
Leases | ||||||||
As of September 30, 2013 and December 31, 2012, the Corporation was obligated under various non-cancellable operating leases for properties used as banking offices and other office facilities. Rental expense under the operating leases amounted to $699 thousand and $2.0 million, respectively, for the three and nine months ended September 30, 2013, compared to $690 thousand and $2.1 million, respectively, for the same periods in 2012. Rental expense is recorded as a component of net occupancy expense in the accompanying Consolidated Statements of Income. | ||||||||
As of September 30, 2013, the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions, are as follows: | ||||||||
(Dollars in thousands) | ||||||||
October 1, 2013 to December 31, 2013 | $597 | |||||||
2014 | 2,431 | |||||||
2015 | 1,913 | |||||||
2016 | 1,618 | |||||||
2017 | 1,450 | |||||||
Thereafter | 14,612 | |||||||
Total minimum lease payments | $22,621 | |||||||
Lease expiration date ranges have not changed significantly since December 31, 2012. | ||||||||
Other Contingencies | ||||||||
Litigation | ||||||||
The Corporation is involved in various claims and legal proceedings arising out of the ordinary course of business. Management is of the opinion, based on its review with counsel of the development of such matters to date, that the ultimate disposition of such matters will not materially affect the consolidated financial position or results of operations of the Corporation. | ||||||||
Other | ||||||||
When selling a residential real estate mortgage loan or acting as originating agent on behalf of a third party, Washington Trust generally makes various representations and warranties. The specific representations and warranties depend on the nature of the transaction and the requirements of the buyer. Contractual liability may arise when the representations and warranties are breached. In the event of a breach of these representations and warranties, Washington Trust may be required to either repurchase the residential real estate mortgage loan (generally at unpaid principal balance plus accrued interest) with the identified defects or indemnify (“make-whole”) the investor for its losses. | ||||||||
In the case of a repurchase, Washington Trust will bear any subsequent credit loss on the residential real estate mortgage loan. Washington Trust has experienced an insignificant number of repurchase demands over a period of many years. As of September 30, 2013 and December 31, 2012, the unpaid principal balance of loans repurchased due to representation and warranty claims was $683 thousand and $843 thousand, respectively. Washington Trust has recorded a reserve for its exposure to losses from the obligation to repurchase previously sold residential real estate mortgage loans. The reserve balance amounted to $250 thousand at September 30, 2013 and December 31, 2012 and is included in other liabilities in the Consolidated Balance Sheets. Any change in the estimate is recorded in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. |
General_Information_Policies
General Information (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Consolidation Policy | ' |
The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. | |
Use of Estimates Policy | ' |
The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses and the review of goodwill, other intangible assets and investments for impairment. The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions. |
Loans_Policies
Loans (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Nonaccrual Loan Status Policy | ' |
Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for a period of time, the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible. | |
Troubled Debt Restructuring Policy | ' |
Loans are considered restructured in a troubled debt restructuring when the Corporation 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 Corporation by increasing the ultimate probability of collection. | |
Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectibility of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual 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. | |
Troubled debt restructurings are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. | |
Troubled debt restructurings are classified as impaired loans. The Corporation identifies loss allocations for impaired loans on an individual loan basis. | |
Commercial Loan Credit Quality Policy | ' |
Commercial | |
The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, and the adequacy of collateral. As of September 30, 2013 and December 31, 2012, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.69 and 4.77, respectively. | |
For non-impaired loans, the Corporation assigns a loss allocation factor to each loan, based on its risk rating for purposes of establishing an appropriate allowance for loan losses. See Note 6 for additional information. | |
Descriptions of the commercial loan categories are as follows: | |
Pass - Loans with acceptable credit quality, defined as ranging from superior or very strong to a status of lesser stature. Superior or very strong credit quality is characterized by a high degree of cash collateralization or strong balance sheet liquidity. Lesser stature loans have an acceptable level of credit quality but exhibit some weakness in various credit metrics such as collateral adequacy, cash flow, or performance inconsistency or may be in an industry or of a loan type known to have a higher degree of risk. | |
Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate and frequent delinquencies. | |
Classified - Loans identified as “substandard”, “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectibility. A “doubtful” loan is placed on non-accrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined. “Loss” is not intended to imply that the loan has no recovery value but rather it is not practical or desirable to continue to carry the asset. | |
The Corporation’s procedures call for loan ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. An annual loan review program is conducted by a third party to provide an independent evaluation of the creditworthiness of the commercial loan portfolio, the quality of the underwriting and credit risk management practices and the appropriateness of the risk rating classifications. This review is also supplemented with selected targeted internal reviews of the commercial loan portfolio. The criticized loan portfolio, which consists of commercial and commercial real estate loans that are risk rated special mention or worse, are reviewed by management on a quarterly basis, focusing on the current status and strategies to improve the credit. | |
Residential/Consumer Credit Quality Policy | ' |
The residential and consumer portfolios are monitored on an ongoing basis by the Corporation using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed on an aggregate basis in these relatively homogeneous portfolios. | |
For non-impaired loans, the Corporation assigns loss allocation factors to each respective loan type and delinquency status. See Note 6 for additional information. | |
Various other techniques are utilized to monitor indicators of credit deterioration in the portfolios of residential real estate mortgages and home equity lines and loans. Among these techniques is the periodic tracking of loans with an updated FICO score and an estimated loan to value (“LTV”) ratio. LTV is determined via statistical modeling analyses. The indicated LTV levels are estimated based on such factors as the location, the original LTV, and the date of origination of the loan and do not reflect actual appraisal amounts. The results of these analyses are taken into consideration in the determination of loss allocation factors for residential mortgage and home equity consumer credits. See Note 6 for additional information. |
Allowance_for_Loan_Losses_Poli
Allowance for Loan Losses (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Receivables [Abstract] | ' |
Allowance for Loan Losses Policy | ' |
The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes three elements: (1) identification of loss allocations for individual loans deemed to be impaired, (2) loss allocation factors for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar economic indicators, and (3) general loss allocations for other environmental factors, which is classified as “unallocated.” | |
Periodic assessments and revisions to the loss allocation factors used in the assignment of loss exposure are made to appropriately reflect the analysis of migrational loss experience. The Corporation analyzes historical loss experience in the various portfolios over periods deemed to be relevant to the inherent risk of loss in the respective portfolios as of the balance sheet date. The Corporation adjusts the loss allocations for various factors it believes are not adequately presented in historical loss experience, including trends in real estate values, trends in rental rates on commercial real estate, consideration of general economic conditions and our assessments of credit risk associated with certain industries and an ongoing trend toward larger credit relationships. These factors are also evaluated taking into account the geographic location of the underlying loans. Revisions to loss allocation factors are not retroactively applied. | |
Loss allocations for loans deemed to be impaired are measured on a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or, if the loan is collateral dependent, at the fair value of the collateral less costs to sell. For collateral dependent loans, management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the property. | |
Loss allocation factors are used for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar credit quality indicators. Individual commercial loans and commercial mortgage loans not deemed to be impaired are evaluated using the internal rating system described in Note 5 under the caption “Credit Quality Indicators” and the application of loss allocation factors. The loan rating system and the related loss allocation factors take into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, and the adequacy of collateral. Portfolios of more homogeneous populations of loans including the various categories of residential mortgages and consumer loans are analyzed as groups, taking into account delinquency ratios and other indicators and our historical loss experience for each type of credit product. | |
An additional unallocated allowance is maintained to allow for measurement imprecision attributable to uncertainty in the economic environment and ever changing conditions and to reflect management’s consideration of qualitative and quantitative assessments of other environmental factors, including, but not limited to, conditions that may affect the collateral position such as environmental matters, regulatory changes affecting the foreclosure process, as well as conditions that may affect the ability of borrowers to meet debt service requirements. | |
Because the methodology is based upon historical experience and trends, current economic data as well as management’s judgment, factors may arise that result in different estimations. Significant factors that could give rise to changes in these estimates may include, but are not limited to, changes in economic conditions in our market area, concentration of risk and declines in local property values. Adversely different conditions or assumptions could lead to increases in the allowance. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivatives Policy | ' |
Derivative Financial Instruments | |
The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally to manage the Corporation’s interest rate risk. Additionally, the Corporation enters into interest rate derivatives to accommodate the business requirements of its customers. All 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 derivatives depends on the intended use of the derivative and resulting designation. | |
Interest Rate Risk Management Agreements | |
Interest rate swaps are used from time to time as part of the Corporation’s interest rate risk management strategy. Swaps are agreements in which the Corporation and another party agree to exchange interest payments (e.g., fixed-rate for variable-rate payments) computed on a notional principal amount. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Corporation 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. | |
Cash Flow Hedging Instruments | |
As of September 30, 2013, the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $23 million of variable rate junior subordinated debentures, compared to three interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $33 million of variable rate junior subordinated debentures as of December 31, 2012. See additional disclosure in Note 8 regarding the June 2013 redemption of junior subordinated debentures. The effective portion of the changes in fair value of derivatives designated as cash flow hedges is recorded in other comprehensive income and subsequently reclassified to earnings when gains or losses are realized. The ineffective portion of changes in fair value of the derivatives is recognized directly in earnings as interest expense. The Bancorp has pledged collateral to derivative counterparties in the form of cash totaling $1.7 million at September 30, 2013 and $2.0 million at December 31, 2012. The Bancorp may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. | |
Customer Related Derivative Contracts | |
The Corporation has entered 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 we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter 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. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in making loans. As of September 30, 2013 and December 31, 2012, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $64.9 million and $70.5 million, respectively, and equal amounts of “mirror” swap contracts with third-party financial institutions. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. | |
Loan Commitments | |
Interest rate lock commitments are extended to borrowers that relate to the origination of residential real estate mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed residential real estate mortgage loans held for sale, best efforts forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgage loans are derivative financial instruments, but do not meet criteria for hedge accounting and as such are treated as derivatives not designated as hedging instruments. These derivative financial instruments are recorded at fair value and changes in fair value of these commitments are reflected in earnings in the period of change. The Corporation has elected to carry newly originated closed residential real estate mortgage loans held for sale at fair value, as changes in fair value in these loans held for sale generally offset changes in interest rate lock and forward sale commitments. |
Fair_Value_Measurements_Polici
Fair Value Measurements (Policies) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurement Policy | ' | |||||||||||||||
Determination of Fair Value | ||||||||||||||||
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 Corporation 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 Corporation uses unobservable inputs to determine appropriate valuation adjustments using methodologies applied consistently over time. | ||||||||||||||||
The following is a description of valuation methodologies for assets and liabilities recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. | ||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Securities | ||||||||||||||||
Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of U.S. government-sponsored enterprises, mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, municipal bonds, trust preferred securities and corporate bonds. | ||||||||||||||||
In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. Level 3 securities were comprised of pooled trust preferred debt securities, in the form of collateralized debt obligations, which were not actively traded. In the first quarter of 2013, Washington Trust recognized an other-than-temporary impairment charge on one of its pooled trust preferred debt securities, reducing its carrying value to zero. See Note 4 for additional disclosure regarding pooled trust preferred debt securities. As of September 30, 2013 and December 31, 2012, the Corporation concluded that the low level of activity for its Level 3 pooled trust preferred debt securities continued to indicate that quoted market prices are not indicative of fair value. The Corporation obtained valuations including broker quotes and cash flow scenario analyses prepared by a third party valuation consultant. The cash flow scenarios (Level 3) were given substantially more weight than the broker quotes (Level 2) as management believed that the broker quotes reflected highly limited sales evidenced by an inactive market. The cash flow scenarios were prepared using discounted cash flow methodologies based on detailed cash flow and credit analysis of the security. The weighting was then used to determine an overall fair value. Management believes that this approach is most representative of fair value for such securities in current market conditions. | ||||||||||||||||
Our internal review procedures have confirmed that the fair value provided by the aforementioned third party valuation sources utilized by the Corporation are consistent with GAAP. Our fair value assumed liquidation in an orderly market and not under distressed circumstances. Due to the continued market illiquidity and credit risk for securities in the financial sector, the fair value of such securities is highly sensitive to assumption changes and market volatility. | ||||||||||||||||
Mortgage Loans Held for Sale | ||||||||||||||||
Washington Trust has elected to carry newly originated closed residential real estate mortgage loans held for sale at fair value pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments.” Level 2 mortgage loans held for sale fair values are estimated based on what secondary markets are currently offering for loans with similar characteristics. In certain cases when quoted market prices are not available, fair value is determined by utilizing a discounted cash flow analysis and these assets are classified as Level 3. Any change in the valuation of mortgage loans held for sale is based upon the change in market interest rates between closing the loan and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. | ||||||||||||||||
The aggregate principal amount of the residential real estate mortgage loans held for sale portfolio was $12.8 million and $48.4 million, respectively, at September 30, 2013 and December 31, 2012. The aggregate fair value of this portfolio as of the same dates was $13.1 million and $50.1 million, respectively. As of September 30, 2013 and December 31, 2012, the aggregate fair value of mortgage loans held for sale exceeded the aggregate principal amount by $333 thousand and $1.7 million, respectively. There were no mortgage loans for sale 90 days or more past due at September 30, 2013 and December 31, 2012. | ||||||||||||||||
The following table presents the changes in fair value related to mortgage loans held for sale, commitments to originate fixed-rate residential real estate mortgage loans to be sold and commitments to sell fixed-rate residential real estate mortgage loans for the periods indicated. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months | Nine months | |||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Mortgage loans held for sale | $606 | $850 | ($1,353 | ) | $956 | |||||||||||
Commitments to originate | 127 | 1,810 | (1,646 | ) | 3,009 | |||||||||||
Commitments to sell | (667 | ) | (2,660 | ) | 3,057 | (3,965 | ) | |||||||||
Total changes in fair value | $66 | $— | $58 | $— | ||||||||||||
Derivatives | ||||||||||||||||
Interest rate swap contracts are traded in over-the-counter markets where quoted market prices are not readily available. Fair value measurements are determined using independent pricing models that utilize primarily market observable inputs, such as swap rates of different maturities and LIBOR rates and, accordingly, are classified as Level 2. Our internal review procedures have confirmed that the fair values determined with independent pricing models and utilized by the Corporation are consistent with GAAP. For purposes of potential valuation adjustments to its interest rate swap contracts, the Corporation evaluates the credit risk of its counterparties as well as that of the Corporation. Accordingly, Washington Trust considers factors such as the likelihood of default by the Corporation and its counterparties, its net exposures and remaining contractual life, among other factors, in determining if any fair value adjustments related to credit risk are required. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position. Additionally, in accordance with fair value measurement guidance in ASU 2011-04, Washington Trust has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. | ||||||||||||||||
Level 2 fair value measurements of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential mortgages) are estimated using the anticipated market price based on pricing indications provided from syndicate banks. In certain cases when quoted market prices are not available, fair value is determined by utilizing a discounted cash flow analysis and these assets are classified as Level 3. | ||||||||||||||||
Items Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
Collateral Dependent Impaired Loans | ||||||||||||||||
Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. | ||||||||||||||||
Property Acquired Through Foreclosure or Repossession | ||||||||||||||||
Property acquired through foreclosure or repossession included in other assets in the Consolidated Balance Sheets is adjusted to fair value less costs to sell upon transfer out of loans through a charge to allowance for loan losses. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Such subsequent valuation charges are charged through earnings. Fair value is generally based upon appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. | ||||||||||||||||
Fair Value Transfer Policy | ' | |||||||||||||||
It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. During the nine months ended September 30, 2013 and 2012, there were no transfers in and/or out of Level 1, 2 or 3. | ||||||||||||||||
Fair Value of Financial Instruments Policy | ' | |||||||||||||||
Valuation of Other Financial Instruments | ||||||||||||||||
The methodologies for estimating the fair value of financial instruments that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial instruments are discussed below. | ||||||||||||||||
Loans | ||||||||||||||||
Fair values are estimated for categories of loans with similar financial characteristics. Loans are segregated by type and are then further segmented into fixed-rate and adjustable rate interest terms to determine their fair value. The fair value of fixed-rate commercial and consumer loans is calculated by discounting scheduled cash flows through the estimated maturity of the loan using interest rates offered at September 30, 2013 and December 31, 2012 that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using quoted market prices for sales of similar loans on the secondary market. The fair value of floating rate commercial and consumer loans approximates carrying value. Fair value for impaired loans is estimated using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of the collateral less costs to sell. Loans are classified within Level 3 of the fair value hierarchy. | ||||||||||||||||
Time Deposits | ||||||||||||||||
The discounted values of cash flows using the rates currently offered for deposits of similar remaining maturities were used to estimate the fair value of time deposits. Time deposits are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||
Federal Home Loan Bank Advances | ||||||||||||||||
Rates currently available to the Corporation for advances with similar terms and remaining maturities are used to estimate fair value of existing advances. FHLBB advances are categorized as Level 2. | ||||||||||||||||
Junior Subordinated Debentures | ||||||||||||||||
The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. |
Defined_Benefit_Pension_Plans_
Defined Benefit Pension Plans (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' |
Pension and Other Postretirement Plans Policy | ' |
The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. The supplemental retirement plans provide eligible participants with an additional retirement benefit. | |
Effective September 19, 2013, the Corporation amended its defined benefit pension plans to freeze benefit accruals after a ten-year transition period ending in December 2023. Due to the amendment, a remeasurement of the value of pension plan liabilities was conducted and, as a result, pension plan liabilities were reduced by $17.5 million and the accumulated other comprehensive income component of shareholders' equity was increased by $11.2 million, after tax. The remeasurement impact also reflected an increase in the discount rates used to measure the present value of pension plan liabilities as a result of an increase in market rates of interest and continued asset performance. | |
The pension plan is funded on a current basis, in compliance with the requirements of ERISA. | |
Business_Segments_Policies
Business Segments (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Reporting Policy | ' |
Washington Trust segregates financial information in assessing its results among its Commercial Banking and Wealth Management Services operating segments. The amounts in the Corporate column include activity not related to the segments, such as the investment securities portfolio, wholesale funding activities and administrative units. The Corporate column is not considered to be an operating segment. The methodologies and organizational hierarchies that define the business segments are periodically reviewed and revised. Results may be restated, when necessary, to reflect changes in organizational structure or allocation methodology. Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of Washington Trust as a whole. | |
Management uses certain methodologies to allocate income and expenses to the business lines. A funds transfer pricing methodology is used to assign interest income and interest expense to each interest-earning asset and interest-bearing liability on a matched maturity funding basis. Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and processing operations and other support functions. | |
Commercial Banking | |
The Commercial Banking segment includes commercial, commercial real estate, residential and consumer lending activities; equity in losses of unconsolidated investments in real estate limited partnerships, mortgage banking, secondary market and loan servicing activities; deposit generation; merchant credit card services; cash management activities; and direct banking activities, which include the operation of ATMs, telephone and Internet banking services and customer support and sales. | |
Wealth Management Services | |
Wealth Management Services includes asset management services provided for individuals, institutions and mutual funds; personal trust services, including services as executor, trustee, administrator, custodian and guardian; institutional trust services, including services as trustee for pension and profit sharing plans; and other financial planning and advisory services. | |
Corporate | |
Corporate includes the Treasury Unit, which is responsible for managing the wholesale investment portfolio and wholesale funding needs. It also includes income from bank-owned life insurance as well as administrative and executive expenses not allocated to the business lines and the residual impact of methodology allocations such as funds transfer pricing offsets. |
Earnings_Per_Common_Share_Poli
Earnings Per Common Share (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share Policy | ' |
Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share-based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available. |
Commitments_and_Contingencies_
Commitments and Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Off-Balance-Sheet Credit Exposure Policy | ' |
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate swap agreements and commitments to originate and commitments to sell fixed-rate mortgage loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Corporation’s Consolidated Balance Sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s credit policies with respect to interest rate swap agreements with commercial borrowers, commitments to extend credit, and financial guarantees are similar to those used for loans. The interest rate swaps with other counterparties are generally subject to bilateral collateralization terms. |
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Investments | ' | ||||||||||||||||||||||||||||||||
The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities by major security type and class of security: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
September 30, 2013 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,461 | $1,208 | $— | $55,669 | |||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 218,598 | 9,943 | (36 | ) | 228,505 | ||||||||||||||||||||||||||||
States and political subdivisions | 64,833 | 2,507 | — | 67,340 | |||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | 30,705 | — | (5,930 | ) | 24,775 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 1,264 | — | (839 | ) | 425 | ||||||||||||||||||||||||||||
Corporate bonds | 11,133 | 254 | (16 | ) | 11,371 | ||||||||||||||||||||||||||||
Total securities available for sale | $380,994 | $13,912 | ($6,821 | ) | $388,085 | ||||||||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $31,264 | $698 | $— | $31,962 | |||||||||||||||||||||||||||||
Total securities held to maturity | $31,264 | $698 | $— | $31,962 | |||||||||||||||||||||||||||||
Total securities | $412,258 | $14,610 | ($6,821 | ) | $420,047 | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
December 31, 2012 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,458 | $2,212 | $— | $31,670 | |||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 217,136 | 14,097 | — | 231,233 | |||||||||||||||||||||||||||||
States and political subdivisions | 68,196 | 4,424 | — | 72,620 | |||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | 30,677 | — | (5,926 | ) | 24,751 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 4,036 | — | (3,193 | ) | 843 | ||||||||||||||||||||||||||||
Corporate bonds | 13,905 | 476 | — | 14,381 | |||||||||||||||||||||||||||||
Total securities available for sale | $363,408 | $21,209 | ($9,119 | ) | $375,498 | ||||||||||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $40,381 | $1,039 | $— | $41,420 | |||||||||||||||||||||||||||||
Total securities held to maturity | $40,381 | $1,039 | $— | $41,420 | |||||||||||||||||||||||||||||
Total securities | $403,789 | $22,248 | ($9,119 | ) | $416,918 | ||||||||||||||||||||||||||||
Securities by Contractual Maturity | ' | ||||||||||||||||||||||||||||||||
The schedule of maturities of debt securities available for sale and held to maturity as of September 30, 2013 is presented below. Mortgage-backed securities are included based on weighted average maturities, adjusted for anticipated prepayments. All other debt securities are included based on contractual maturities. Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations with or without call or prepayment penalties. Yields on tax exempt obligations are not computed on a tax equivalent basis. | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Totals | ||||||||||||||||||||||||||||
Securities Available for Sale: | |||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | $54,461 | $— | $— | $— | $54,461 | ||||||||||||||||||||||||||||
Weighted average yield | 4.04 | % | — | % | — | % | — | % | 4.04 | % | |||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | 60,133 | 106,040 | 37,563 | 14,862 | 218,598 | ||||||||||||||||||||||||||||
Weighted average yield | 4.3 | % | 3.76 | % | 2.65 | % | 2.43 | % | 3.63 | % | |||||||||||||||||||||||
State and political subdivisions: | |||||||||||||||||||||||||||||||||
Amortized cost | 12,296 | 52,537 | — | — | 64,833 | ||||||||||||||||||||||||||||
Weighted average yield | 3.89 | % | 3.91 | % | — | % | — | % | 3.91 | % | |||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 31,969 | 31,969 | ||||||||||||||||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.38 | % | 1.38 | % | |||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||||
Amortized cost | 5,027 | 5,704 | 402 | — | 11,133 | ||||||||||||||||||||||||||||
Weighted average yield | 6.64 | % | 2.82 | % | 2.45 | % | — | % | 4.53 | % | |||||||||||||||||||||||
Total debt securities available for sale: | |||||||||||||||||||||||||||||||||
Amortized cost | $131,917 | $164,281 | $37,965 | $46,831 | $380,994 | ||||||||||||||||||||||||||||
Weighted average yield | 4.25 | % | 3.77 | % | 2.65 | % | 1.71 | % | 3.57 | % | |||||||||||||||||||||||
Fair value | $133,376 | $167,772 | $39,432 | $47,505 | $388,085 | ||||||||||||||||||||||||||||
Securities Held to Maturity: | |||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||||||||||||||||
Amortized cost | $6,995 | $15,465 | $6,710 | $2,094 | $31,264 | ||||||||||||||||||||||||||||
Weighted average yield | 2.57 | % | 2.48 | % | 2.37 | % | 0.88 | % | 2.37 | % | |||||||||||||||||||||||
Fair value | $7,151 | $15,810 | $6,860 | $2,141 | $31,962 | ||||||||||||||||||||||||||||
Included in debt securities as of September 30, 2013 were debt securities with an amortized cost balance of $111.4 million and a fair value of $106.7 million that are callable at the discretion of the issuers. Final maturities of these callable securities range from two to twenty-four years, with call features ranging from one month to four years. | |||||||||||||||||||||||||||||||||
Securities in a Continuous Unrealized Loss Position | ' | ||||||||||||||||||||||||||||||||
Other-Than-Temporary Impairment Assessment | |||||||||||||||||||||||||||||||||
The Corporation assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary. | |||||||||||||||||||||||||||||||||
The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||
September 30, 2013 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | ||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 2 | $969 | ($36 | ) | — | $— | $— | 2 | $969 | ($36 | ) | ||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | — | — | — | 11 | 24,775 | (5,930 | ) | 11 | 24,775 | (5,930 | ) | ||||||||||||||||||||||
Collateralized debt obligations | — | — | — | 1 | 425 | (839 | ) | 1 | 425 | (839 | ) | ||||||||||||||||||||||
Corporate bonds | 2 | 407 | (16 | ) | — | — | — | 2 | 407 | (16 | ) | ||||||||||||||||||||||
Total temporarily impaired securities | 4 | $1,376 | ($52 | ) | 12 | $25,200 | ($6,769 | ) | 16 | $26,576 | ($6,821 | ) | |||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||
December 31, 2012 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | ||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||||
Individual name issuers | — | $— | $— | 11 | $24,751 | ($5,926 | ) | 11 | $24,751 | ($5,926 | ) | ||||||||||||||||||||||
Collateralized debt obligations | — | — | — | 2 | 843 | (3,193 | ) | 2 | 843 | (3,193 | ) | ||||||||||||||||||||||
Total temporarily impaired securities | — | $— | $— | 13 | $25,594 | ($9,119 | ) | 13 | $25,594 | ($9,119 | ) | ||||||||||||||||||||||
Further deterioration in credit quality of the underlying issuers of the securities, further deterioration in the condition of the financial services industry, a continuation or worsening of the current economic environment, or additional declines in real estate values, among other things, may further affect the fair value of these securities and increase the potential that certain unrealized losses be designated as other-than-temporary in future periods, and the Corporation may incur additional write-downs. | |||||||||||||||||||||||||||||||||
Pooled Trust Preferred Securities Unrealized Losses Details | ' | ||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities of Individual Name Issuers | |||||||||||||||||||||||||||||||||
Included in debt securities in an unrealized loss position at September 30, 2013 and December 31, 2012 were 11 trust preferred security holdings issued by seven individual companies in the financial services industry, specifically, the banking sector. Management believes the decline in fair value of these trust preferred securities primarily reflects investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry. These concerns resulted in increased risk premiums for securities in this sector. Based on the information available through the filing date of this report, all individual name trust preferred debt securities held in our portfolio continue to accrue and make payments as expected with no payment deferrals or defaults on the part of the issuers. As of September 30, 2013, trust preferred debt securities with an amortized cost of $11.9 million and unrealized losses of $2.1 million were rated below investment grade by Standard & Poors, Inc. (“S&P”). Management reviewed the collectibility of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report and other information. We noted no additional downgrades to below investment grade between the reporting period date and the filing date of this report. Based on these analyses, management concluded that it expects to recover the entire amortized cost basis of these securities. Furthermore, Washington Trust does not intend to sell these securities and it is not more likely than not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be at maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations (“CDO”) | |||||||||||||||||||||||||||||||||
Washington Trust has invested in pooled trust preferred holdings in the form of collateralized debt obligations. The pooled trust preferred holdings consist of trust preferred obligations of banking industry companies and, to a lesser extent, insurance industry companies. | |||||||||||||||||||||||||||||||||
Valuations of pooled trust preferred holdings are dependent in part on cash flows from underlying issuers. Unexpected cash flow disruptions could have an adverse impact on the fair value and performance of pooled trust preferred securities. Management believes the unrealized losses primarily reflect investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry and the possibility of further incremental deferrals of or defaults on interest payments on trust preferred debentures by financial institutions participating in these pools. These concerns have resulted in a substantial decrease in market liquidity and increased risk premiums for securities in this sector. Credit spreads for issuers in this sector have remained wide during recent months, causing prices to remain at low levels. | |||||||||||||||||||||||||||||||||
The following table summarizes Washington Trust’s pooled trust preferred holdings: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||
Amortized Cost (1) | Fair Value | Unrealized Losses | Amortized Cost (1) | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||
Deal Name | |||||||||||||||||||||||||||||||||
Tropic CDO 1, tranche A4L | $— | $— | $— | $2,772 | $613 | ($2,159 | ) | ||||||||||||||||||||||||||
Preferred Term Securities [PreTSL] XXV, tranche C1 | 1,264 | 425 | (839 | ) | 1,264 | 230 | (1,034 | ) | |||||||||||||||||||||||||
Totals | $1,264 | $425 | ($839 | ) | $4,036 | $843 | ($3,193 | ) | |||||||||||||||||||||||||
-1 | Net of other-than-temporary impairment losses recognized in earnings. | ||||||||||||||||||||||||||||||||
On March 22, 2013, the trustee for the Tropic CDO I security issued a notice that liquidation of the CDO entity would take place at the direction of holders of the CDO tranches senior to the subordinate tranche interest held by Washington Trust. Accordingly, Washington Trust recognized an other-than-temporary impairment charge in the first quarter of 2013 on the entire $2.8 million million carrying value of this security, based on the expectation that proceeds from the liquidation would be insufficient to satisfy the amount owed to the subordinate tranche. The liquidation was conducted in August 2013 and was insufficient to satisfy any amount owed on the subordinate tranche. | |||||||||||||||||||||||||||||||||
Washington Trust’s investment in the PreTSL XXV, tranche C1 (“PreTSL”) is subordinate to two senior tranche levels. This investment security has been on nonaccrual status and has been deferring interest payments since December 2008. The September 30, 2013 amortized cost was net of $1.2 million of credit-related impairment losses previously recognized in earnings reflective of payment deferrals and credit deterioration of the underlying collateral. As of September 30, 2013, this security had unrealized losses of $839 thousand and a below investment grade rating of “C” by Moody’s. Through the filing date of this report, there have been no additional rating changes on this security. This credit rating status has been considered by management in its assessment of the impairment status of this security. Based on information available through the filing date of this report, there have been no additional adverse changes in deferral or default status of the underlying issuer institutions. Based on cash flow forecasts for this security, management expects to recover the remaining amortized cost of this security. Furthermore, Washington Trust does not intend to sell this security and it is not more likely than not that Washington Trust will be required to sell this security before recovery of its cost basis, which may be at maturity. Therefore, management does not consider the unrealized losses on this security to be other-than-temporary at September 30, 2013. | |||||||||||||||||||||||||||||||||
Rollforward of OTTI Recognized in Earnings | ' | ||||||||||||||||||||||||||||||||
The following table presents a roll forward of the balance of cumulative credit-related impairment losses recognized on debt securities for the periods indicated: | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Three months | Nine months | |||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at beginning of period | $6,097 | $3,313 | $3,325 | $3,104 | |||||||||||||||||||||||||||||
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | — | — | — | — | |||||||||||||||||||||||||||||
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | — | — | 2,772 | 209 | |||||||||||||||||||||||||||||
Balance at end of period | $6,097 | $3,313 | $6,097 | $3,313 | |||||||||||||||||||||||||||||
The anticipated cash flows expected to be collected from pooled trust preferred debt securities were discounted at the rate equal to the yield used to accrete the current and prospective beneficial interest for each security. Significant inputs included estimated cash flows and prospective defaults and recoveries. Estimated cash flows were generated based on the underlying seniority status and subordination structure of the pooled trust preferred debt tranche at the time of measurement. Prospective default and recovery estimates affecting projected cash flows were based on analysis of the underlying financial condition of individual issuers, and took into account capital adequacy, credit quality, lending concentrations, and other factors. | |||||||||||||||||||||||||||||||||
All cash flow estimates were based on the underlying security’s tranche structure and contractual rate and maturity terms. The present value of the expected cash flows was compared to the current outstanding balance of the tranche to determine the ratio of the estimated present value of expected cash flows to the total current balance for the tranche. This ratio was then multiplied by the principal balance of Washington Trust’s holding to determine the credit-related impairment loss. The estimates used in the determination of the present value of the expected cash flows are susceptible to changes in future periods, which could result in additional credit-related impairment losses. |
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Summary of Loans | ' | |||||||||||||||||||||||
The following is a summary of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $727,375 | 31 | % | $710,813 | 31 | % | ||||||||||||||||||
Construction and development (2) | 51,951 | 2 | 27,842 | 1 | ||||||||||||||||||||
Other (3) | 518,566 | 22 | 513,764 | 23 | ||||||||||||||||||||
Total commercial | 1,297,892 | 55 | 1,252,419 | 55 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages (4) | 711,427 | 30 | 692,798 | 30 | ||||||||||||||||||||
Homeowner construction | 20,265 | 1 | 24,883 | 1 | ||||||||||||||||||||
Total residential real estate | 731,692 | 31 | 717,681 | 31 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines (5) | 227,063 | 10 | 226,861 | 10 | ||||||||||||||||||||
Home equity loans (5) | 41,158 | 2 | 39,329 | 2 | ||||||||||||||||||||
Other (6) | 55,961 | 2 | 57,713 | 2 | ||||||||||||||||||||
Total consumer | 324,182 | 14 | 323,903 | 14 | ||||||||||||||||||||
Total loans (7) | $2,353,766 | 100 | % | $2,294,003 | 100 | % | ||||||||||||||||||
-1 | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of September 30, 2013 and December 31, 2012, $204.1 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-2 | Loans for construction commercial properties, loans to developers for construction of residential properties, and loans for land development. | |||||||||||||||||||||||
-3 | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of September 30, 2013, $47.5 million and $24.3 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||||||||||||||||||||||
-4 | As of September 30, 2013 and December 31, 2012, $647.3 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-5 | As of September 30, 2013 and December 31, 2012, $191.8 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-6 | Fixed-rate consumer installment loans. | |||||||||||||||||||||||
-7 | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||
Nonaccrual Loans | ' | |||||||||||||||||||||||
The following is a summary of nonaccrual loans, segregated by class of loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Sep 30, | Dec 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $8,956 | $10,681 | ||||||||||||||||||||||
Construction and development | — | — | ||||||||||||||||||||||
Other | 1,248 | 4,412 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 8,095 | 6,158 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 412 | 840 | ||||||||||||||||||||||
Home equity loans | 768 | 371 | ||||||||||||||||||||||
Other | 24 | 81 | ||||||||||||||||||||||
Total nonaccrual loans | $19,503 | $22,543 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, nonaccrual loans of $2.2 million and $1.6 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
Past Due Loans | ' | |||||||||||||||||||||||
Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
September 30, 2013 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $730 | $8,226 | $8,956 | $718,419 | $727,375 | ||||||||||||||||||
Construction and development | — | — | — | — | 51,951 | 51,951 | ||||||||||||||||||
Other | 2,648 | 8 | 929 | 3,585 | 514,981 | 518,566 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2,624 | 1,960 | 4,843 | 9,427 | 702,000 | 711,427 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 20,265 | 20,265 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 636 | 220 | 262 | 1,118 | 225,945 | 227,063 | ||||||||||||||||||
Home equity loans | 339 | 104 | 416 | 859 | 40,299 | 41,158 | ||||||||||||||||||
Other | 38 | 4 | 15 | 57 | 55,904 | 55,961 | ||||||||||||||||||
Total loans | $6,285 | $3,026 | $14,691 | $24,002 | $2,329,764 | $2,353,766 | ||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
December 31, 2012 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $373 | $408 | $10,300 | $11,081 | $699,732 | $710,813 | ||||||||||||||||||
Construction and development | — | — | — | — | 27,842 | 27,842 | ||||||||||||||||||
Other | 260 | 296 | 3,647 | 4,203 | 509,561 | 513,764 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,840 | 1,951 | 3,658 | 10,449 | 682,349 | 692,798 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 24,883 | 24,883 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 753 | 207 | 528 | 1,488 | 225,373 | 226,861 | ||||||||||||||||||
Home equity loans | 252 | 114 | 250 | 616 | 38,713 | 39,329 | ||||||||||||||||||
Other | 129 | 64 | 66 | 259 | 57,454 | 57,713 | ||||||||||||||||||
Total loans | $6,607 | $3,040 | $18,449 | $28,096 | $2,265,907 | $2,294,003 | ||||||||||||||||||
Included in past due loans as of September 30, 2013 and December 31, 2012, were nonaccrual loans of $17.3 million and $21.0 million, respectively. All loans 90 days or more past due at September 30, 2013 and December 31, 2012 were classified as nonaccrual. | ||||||||||||||||||||||||
Impaired Loans | ' | |||||||||||||||||||||||
The following is a summary of impaired loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | |||||||||||||||||||||
Investment (1) | Principal | Allowance | ||||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $2,913 | $2,357 | $6,940 | $2,360 | $— | $— | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,633 | 1,058 | 1,629 | 1,057 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 182 | 1,294 | 199 | 1,315 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | $4,728 | $4,709 | $8,768 | $4,732 | $— | $— | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,972 | $17,897 | $31,596 | $19,738 | $1,110 | $1,720 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,196 | 9,939 | 1,572 | 10,690 | 331 | 694 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,494 | 2,576 | 3,882 | 2,947 | 569 | 463 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 187 | 174 | 255 | 1 | 1 | ||||||||||||||||||
Home equity loans | 57 | 117 | 57 | 160 | — | — | ||||||||||||||||||
Other | 129 | 137 | 130 | 136 | 2 | 2 | ||||||||||||||||||
Subtotal | $35,021 | $30,853 | $37,411 | $33,926 | $2,013 | $2,880 | ||||||||||||||||||
Total impaired loans | $39,749 | $35,562 | $46,179 | $38,658 | $2,013 | $2,880 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $35,714 | $31,251 | $41,737 | $33,845 | $1,441 | $2,414 | ||||||||||||||||||
Residential real estate | 3,676 | 3,870 | 4,081 | 4,262 | 569 | 463 | ||||||||||||||||||
Consumer | 359 | 441 | 361 | 551 | 3 | 3 | ||||||||||||||||||
Total impaired loans | $39,749 | $35,562 | $46,179 | $38,658 | $2,013 | $2,880 | ||||||||||||||||||
-1 | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table presents the average recorded investment and interest income recognized on impaired loans segregated by loan class for the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,430 | $9,611 | $192 | $71 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 3,536 | 10,176 | 43 | 73 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,818 | 4,400 | 51 | 21 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 121 | 2 | — | ||||||||||||||||||||
Home equity loans | 58 | 120 | 1 | 2 | ||||||||||||||||||||
Other | 131 | 144 | 2 | 2 | ||||||||||||||||||||
Totals | $37,146 | $24,572 | $291 | $169 | ||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $26,110 | $8,795 | $444 | $176 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 7,159 | 10,756 | 157 | 231 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,104 | 4,867 | 100 | 66 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 209 | 167 | 6 | 2 | ||||||||||||||||||||
Home equity loans | 77 | 138 | 5 | 5 | ||||||||||||||||||||
Other | 146 | 151 | 6 | 7 | ||||||||||||||||||||
Totals | $37,805 | $24,874 | $718 | $487 | ||||||||||||||||||||
At September 30, 2013, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ' | |||||||||||||||||||||||
The following tables present loans modified as a troubled debt restructuring during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | $6,018 | $8,183 | $4,909 | $8,183 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 2 | — | 30 | — | 30 | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | — | — | — | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Totals | 3 | 2 | $6,048 | $8,183 | $4,939 | $8,183 | ||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 6 | 5 | $15,974 | $9,044 | $14,785 | $9,044 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 7 | 7 | 1,198 | 1,625 | 1,198 | 1,625 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 651 | — | 651 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1 | — | 92 | — | 92 | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 2 | — | 5 | — | 5 | ||||||||||||||||||
Totals | 14 | 16 | $17,264 | $11,325 | $16,075 | $11,325 | ||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Troubled Debt Restructurings Type of Modification | ' | |||||||||||||||||||||||
The following table provides information on how loans were modified as a troubled debt restructuring during the periods indicated. | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Three months | Nine months | |||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Below market interest rate concession | $ | 6,018 | $ | — | $ | 15,836 | $ | 1,426 | ||||||||||||||||
Payment deferral | — | — | — | 240 | ||||||||||||||||||||
Maturity / amortization concession | 21 | — | 21 | 917 | ||||||||||||||||||||
Interest only payments | 9 | — | 424 | 361 | ||||||||||||||||||||
Combination (1) | — | 8,183 | 983 | 8,381 | ||||||||||||||||||||
Total | $6,048 | $8,183 | $17,264 | $11,325 | ||||||||||||||||||||
-1 | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. | |||||||||||||||||||||||
Troubled Debt Restructurings Subsequent Default | ' | |||||||||||||||||||||||
The following tables present loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded | ||||||||||||||||||||||
Investment (1) | ||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | — | $482 | $— | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | — | 3 | — | 428 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 670 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | 1 | — | 13 | ||||||||||||||||||||
Totals | 1 | 6 | $482 | $1,111 | ||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded | ||||||||||||||||||||||
Investment (1) | ||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 1 | $482 | $195 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | — | 3 | — | 428 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | 2 | — | 670 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | 1 | — | 13 | ||||||||||||||||||||
Totals | 1 | 7 | $482 | $1,306 | ||||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Credit Quality Indicators - Commercial | ' | |||||||||||||||||||||||
The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Classified | |||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Mortgages | $685,924 | $669,220 | $23,753 | $21,649 | $17,698 | $19,944 | ||||||||||||||||||
Construction and development | 51,951 | 27,842 | — | — | — | — | ||||||||||||||||||
Other | 498,231 | 483,371 | 16,325 | 24,393 | 4,010 | 6,000 | ||||||||||||||||||
Total commercial loans | $1,236,106 | $1,180,433 | $40,078 | $46,042 | $21,708 | $25,944 | ||||||||||||||||||
Credit Quality Indicators Residential & Consumer | ' | |||||||||||||||||||||||
The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator: | ||||||||||||||||||||||||
(Dollars in thousands) | Under 90 Days Past Due | Over 90 Days Past Due | ||||||||||||||||||||||
Sep 30, | Dec 31, | Sep 30, | Dec 31, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Residential Real Estate: | ||||||||||||||||||||||||
Accruing mortgages | $703,332 | $686,640 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 3,252 | 2,500 | 4,843 | 3,658 | ||||||||||||||||||||
Homeowner construction | 20,265 | 24,883 | — | — | ||||||||||||||||||||
Total residential real estate loans | $726,849 | $714,023 | $4,843 | $3,658 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $226,801 | $226,333 | $262 | $528 | ||||||||||||||||||||
Home equity loans | 40,742 | 39,078 | 416 | 251 | ||||||||||||||||||||
Other | 55,946 | 57,648 | 15 | 65 | ||||||||||||||||||||
Total consumer loans | $323,489 | $323,059 | $693 | $844 | ||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||
Allowance for Loan Losses Rollforward Analysis | ' | |||||||||||||||||||||||||||||||
The following tables present the activity in the allowance for loan losses for the periods presented: | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $6,748 | $277 | $5,442 | $12,467 | $4,691 | $2,455 | $8,271 | $27,884 | ||||||||||||||||||||||||
Charge-offs | (640 | ) | — | (81 | ) | (721 | ) | — | (49 | ) | (770 | ) | ||||||||||||||||||||
Recoveries | 38 | — | 83 | 121 | — | 73 | 194 | |||||||||||||||||||||||||
Provision | 493 | 164 | 126 | 783 | (11 | ) | 16 | (88 | ) | 700 | ||||||||||||||||||||||
Ending Balance | $6,639 | $441 | $5,570 | $12,650 | $4,680 | $2,495 | $8,183 | $28,008 | ||||||||||||||||||||||||
For the three months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $8,945 | $164 | $6,239 | $15,348 | $4,713 | $2,381 | $8,006 | $30,448 | ||||||||||||||||||||||||
Charge-offs | (258 | ) | — | (15 | ) | (273 | ) | (65 | ) | (86 | ) | (424 | ) | |||||||||||||||||||
Recoveries | 46 | — | 37 | 83 | 24 | 21 | 128 | |||||||||||||||||||||||||
Provision | 520 | 54 | 245 | 819 | (408 | ) | 323 | (134 | ) | 600 | ||||||||||||||||||||||
Ending Balance | $9,253 | $218 | $6,506 | $15,977 | $4,264 | $2,639 | $7,872 | $30,752 | ||||||||||||||||||||||||
For the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | ||||||||||||||||||||||||
Charge-offs | (4,754 | ) | — | (259 | ) | (5,013 | ) | (48 | ) | (258 | ) | (5,319 | ) | |||||||||||||||||||
Recoveries | 230 | — | 127 | 357 | 3 | 94 | 454 | |||||||||||||||||||||||||
Provision | 1,756 | 217 | (294 | ) | 1,679 | 456 | (25 | ) | (110 | ) | 2,000 | |||||||||||||||||||||
Ending Balance | $6,639 | $441 | $5,570 | $12,650 | $4,680 | $2,495 | $8,183 | $28,008 | ||||||||||||||||||||||||
For the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | ||||||||||||||||||||||||
Charge-offs | (267 | ) | — | (925 | ) | (1,192 | ) | (315 | ) | (294 | ) | (1,801 | ) | |||||||||||||||||||
Recoveries | 436 | — | 74 | 510 | 97 | 44 | 651 | |||||||||||||||||||||||||
Provision | 889 | 123 | 1,157 | 2,169 | (212 | ) | 437 | (294 | ) | 2,100 | ||||||||||||||||||||||
Ending Balance | $9,253 | $218 | $6,506 | $15,977 | $4,264 | $2,639 | $7,872 | $30,752 | ||||||||||||||||||||||||
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | ' | |||||||||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||
Loans | Related Allowance | Loans | Related Allowance | |||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $32,849 | $1,110 | $20,250 | $1,720 | ||||||||||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||||||||||
Other | 2,822 | 331 | 10,989 | 694 | ||||||||||||||||||||||||||||
Residential real estate mortgages | 3,674 | 569 | 3,868 | 463 | ||||||||||||||||||||||||||||
Consumer | 359 | 3 | 440 | 3 | ||||||||||||||||||||||||||||
Subtotal | $39,704 | $2,013 | $35,547 | $2,880 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $694,526 | $5,529 | $690,563 | $7,687 | ||||||||||||||||||||||||||||
Construction & development | 51,951 | 441 | 27,842 | 224 | ||||||||||||||||||||||||||||
Other | 515,744 | 5,239 | 502,775 | 5,302 | ||||||||||||||||||||||||||||
Residential real estate mortgages | 728,018 | 4,111 | 713,813 | 3,806 | ||||||||||||||||||||||||||||
Consumer | 323,823 | 2,492 | 323,463 | 2,681 | ||||||||||||||||||||||||||||
Subtotal | $2,314,062 | $17,812 | $2,258,456 | $19,700 | ||||||||||||||||||||||||||||
Unallocated | — | 8,183 | — | 8,293 | ||||||||||||||||||||||||||||
Total | $2,353,766 | $28,008 | $2,294,003 | $30,873 | ||||||||||||||||||||||||||||
Time_Certificates_of_Deposit_T
Time Certificates of Deposit (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Deposits [Abstract] | ' | ||||||
Schedule of Time Certificates of Deposit Maturities | ' | ||||||
Scheduled maturities and weighted average interest rates paid on time certificates of deposit outstanding at September 30, 2013 were as follows: | |||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | |||||
October 1, 2013 through December 31, 2013 | $257,253 | 0.62 | % | ||||
2014 | 268,853 | 1.18 | % | ||||
2015 | 136,786 | 1.89 | % | ||||
2016 | 82,690 | 1.62 | % | ||||
2017 | 39,730 | 1.57 | % | ||||
Thereafter | 31,798 | 1.28 | % | ||||
$817,110 | |||||||
Schedule of Time Certificates of Deposit $100 Thousand or More Maturities | ' | ||||||
The following table represents the amount of certificates of deposit of $100 thousand or more at September 30, 2013 maturing during the periods indicated: | |||||||
(Dollars in thousands) | Scheduled Maturity | ||||||
October 1, 2013 to December 31, 2013 | $185,221 | ||||||
January 1, 2014 to March 31, 2014 | 36,355 | ||||||
April 1, 2014 to September 30, 2014 | 42,703 | ||||||
October 1, 2014 and beyond | 119,867 | ||||||
$384,146 | |||||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | ' | |||||||||||||||||||||
The following table presents maturities and weighted average interest rates paid on FHLBB advances outstanding as of the dates indicated: | ||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||
Scheduled | Redeemed at | Weighted | Scheduled | Redeemed at | Weighted | |||||||||||||||||
Maturity | Call Date (1) | Average Rate (2) | Maturity | Call Date (1) | Average Rate (2) | |||||||||||||||||
2013 | $ | 403 | $403 | 5.01 | % | $ | 48,630 | $ | 48,630 | 0.81 | % | |||||||||||
2014 | 2,519 | 2,519 | 3.54 | % | 2,519 | 2,519 | 3.54 | % | ||||||||||||||
2015 | 1,569 | 1,569 | 4.89 | % | 79,069 | 79,069 | 3.63 | % | ||||||||||||||
2016 | 85,066 | 85,066 | 3.05 | % | 85,066 | 85,066 | 3.05 | % | ||||||||||||||
2017 | 70,875 | 70,875 | 3.04 | % | 80,335 | 80,335 | 2.94 | % | ||||||||||||||
2018 and thereafter | 128,053 | 128,053 | 3.88 | % | 65,553 | 65,553 | 4.58 | % | ||||||||||||||
$ | 288,485 | $288,485 | 3.43 | % | $ | 361,172 | $ | 361,172 | 3.13 | % | ||||||||||||
-1 | Callable FHLBB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date while all other advances are shown in the periods corresponding to their scheduled maturity date. | |||||||||||||||||||||
-2 | Weighted average rate based on scheduled maturity dates. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||||||
The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios as well as the corresponding minimum and well capitalized regulatory amounts and ratios: | |||||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be “Well Capitalized” Under Prompt Corrective Action Provisions | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $313,239 | 13.44 | % | $186,384 | 8 | % | $232,980 | 10 | % | ||||||||||||
Bank | $308,816 | 13.27 | % | $186,227 | 8 | % | $232,784 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $284,935 | 12.23 | % | $93,192 | 4 | % | $139,788 | 6 | % | ||||||||||||
Bank | $280,512 | 12.05 | % | $93,114 | 4 | % | $139,670 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $284,935 | 9.41 | % | $121,182 | 4 | % | $151,478 | 5 | % | ||||||||||||
Bank | $280,512 | 9.27 | % | $121,013 | 4 | % | $151,267 | 5 | % | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $304,716 | 13.26 | % | $183,876 | 8 | % | $229,845 | 10 | % | ||||||||||||
Bank | $299,503 | 13.05 | % | $183,651 | 8 | % | $229,564 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $275,956 | 12.01 | % | $91,938 | 4 | % | $137,907 | 6 | % | ||||||||||||
Bank | $270,778 | 11.8 | % | $91,826 | 4 | % | $137,738 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $275,956 | 9.3 | % | $118,733 | 4 | % | $148,417 | 5 | % | ||||||||||||
Bank | $270,778 | 9.14 | % | $118,535 | 4 | % | $148,169 | 5 | % | ||||||||||||
(1) Leverage ratio |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Fair Value of Derivatives by Balance Sheet Location | ' | |||||||||||||||||||||||||||
The following table presents the fair values of derivative instruments in the Corporation’s Consolidated Balance Sheets as of the dates indicated: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||||||
Balance Sheet Location | Sep 30, 2013 | Dec 31, 2012 | Balance Sheet Location | Sep 30, 2013 | Dec 31, 2012 | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||||
Interest rate swap contracts | Other assets | $— | $— | Other liabilities | $1,125 | $1,619 | ||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Other assets | 867 | 2,513 | Other liabilities | — | — | ||||||||||||||||||||||
Commitments to sell fixed-rate mortgage loans | Other assets | 1 | — | Other liabilities | 1,135 | 4,191 | ||||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||||
Interest rate swaps with customers | Other assets | 2,195 | 3,851 | Other liabilities | 178 | — | ||||||||||||||||||||||
Mirror swaps with counterparties | Other assets | 210 | — | Other liabilities | 2,245 | 3,952 | ||||||||||||||||||||||
Total | $3,273 | $6,364 | $4,683 | $9,762 | ||||||||||||||||||||||||
Derivative Instruments Effect in Statements of Income and Changes in Shareholders' Equity | ' | |||||||||||||||||||||||||||
The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity for the periods indicated: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income (Ineffective Portion) | |||||||||||||||||||||||||
Three months | Nine months | Three months | Nine months | |||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||||
Interest rate swap contracts | $44 | ($14 | ) | $316 | $5 | Interest Expense | $— | $— | $— | $— | ||||||||||||||||||
Total | $44 | ($14 | ) | $316 | $5 | $— | $— | $— | $— | |||||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Income | |||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income | Three months | Nine months | ||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Net gains on loan sales & commissions on loans originated for others | $127 | $1,810 | ($1,646 | ) | $3,009 | ||||||||||||||||||||||
Commitments to sell fixed-rate mortgage loans | Net gains on loan sales & commissions on loans originated for others | (667 | ) | (2,660 | ) | 3,057 | (3,965 | ) | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||||
Interest rate swaps with customers | Net gains (losses) on interest rate swaps | 306 | 340 | (105 | ) | 949 | ||||||||||||||||||||||
Mirror swaps with counterparties | Net gains (losses) on interest rate swaps | (252 | ) | (277 | ) | 330 | (862 | ) | ||||||||||||||||||||
Total | ($486 | ) | ($787 | ) | $1,636 | ($869 | ) | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||
Fair Value Mortgage Loans Held For Sale, Commitments to Originate and Commitments to Sell Disclosures | ' | ||||||||||||||||||||||||||||||
The following table presents the changes in fair value related to mortgage loans held for sale, commitments to originate fixed-rate residential real estate mortgage loans to be sold and commitments to sell fixed-rate residential real estate mortgage loans for the periods indicated. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Three Months | Nine months | ||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Mortgage loans held for sale | $606 | $850 | ($1,353 | ) | $956 | ||||||||||||||||||||||||||
Commitments to originate | 127 | 1,810 | (1,646 | ) | 3,009 | ||||||||||||||||||||||||||
Commitments to sell | (667 | ) | (2,660 | ) | 3,057 | (3,965 | ) | ||||||||||||||||||||||||
Total changes in fair value | $66 | $— | $58 | $— | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||||
Items Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
The tables below present the balances of assets and liabilities reported at fair value on a recurring basis: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $55,669 | $— | $55,669 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 228,505 | — | 228,505 | |||||||||||||||||||||||||||
States and political subdivisions | — | 67,340 | — | 67,340 | |||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Individual name issuers | — | 24,775 | — | 24,775 | |||||||||||||||||||||||||||
Collateralized debt obligations | — | — | 425 | 425 | |||||||||||||||||||||||||||
Corporate bonds | — | 11,371 | — | 11,371 | |||||||||||||||||||||||||||
Mortgage loans held for sale | — | 13,105 | — | 13,105 | |||||||||||||||||||||||||||
Derivative assets (1): | |||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 2,405 | — | 2,405 | |||||||||||||||||||||||||||
Forward loan commitments | — | 868 | — | 868 | |||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $404,038 | $425 | $404,463 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities (1): | |||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $2,423 | $— | $2,423 | |||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,125 | — | 1,125 | |||||||||||||||||||||||||||
Forward loan commitments | — | 1,135 | — | 1,135 | |||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $4,683 | $— | $4,683 | |||||||||||||||||||||||||||
-1 | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $31,670 | $— | $31,670 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 231,233 | — | 231,233 | |||||||||||||||||||||||||||
States and political subdivisions | — | 72,620 | — | 72,620 | |||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Individual name issuers | — | 24,751 | — | 24,751 | |||||||||||||||||||||||||||
Collateralized debt obligations | — | — | 843 | 843 | |||||||||||||||||||||||||||
Corporate bonds | — | 14,381 | — | 14,381 | |||||||||||||||||||||||||||
Mortgage loans held for sale | — | 40,243 | 9,813 | 50,056 | |||||||||||||||||||||||||||
Derivative assets (1): | |||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 3,851 | — | 3,851 | |||||||||||||||||||||||||||
Forward loan commitments | — | 2,469 | 44 | 2,513 | |||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $421,218 | $10,700 | $431,918 | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities (1): | |||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $3,952 | $— | $3,952 | |||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,619 | — | 1,619 | |||||||||||||||||||||||||||
Forward loan commitments | — | 4,005 | 186 | 4,191 | |||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $9,576 | $186 | $9,762 | |||||||||||||||||||||||||||
-1 | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
Schedule of Changes in Level Three Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||||
The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis during the periods indicated: | |||||||||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | ||||||||||||||||||||||||||
Balance at beginning of period | $397 | $767 | — | $— | $767 | ||||||||||||||||||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||||||||||||||||||
Included in earnings (4) | — | — | 55 | (55 | ) | — | |||||||||||||||||||||||||
Included in other comprehensive income | 28 | 163 | — | — | 163 | ||||||||||||||||||||||||||
Purchases | — | — | — | — | — | ||||||||||||||||||||||||||
Issuances | — | — | 4,178 | — | 4,178 | ||||||||||||||||||||||||||
Sales | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at end of period | $425 | $930 | $4,233 | ($55 | ) | $5,108 | |||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | Securities Available for Sale (1) | Mortgage Loans Held for Sale (2) | Derivative Assets / (Liabilities) (3) | Total | |||||||||||||||||||||||
Balance at beginning of period | $843 | $9,813 | ($142 | ) | $10,514 | $887 | — | $— | $887 | ||||||||||||||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||||||||||||||||||
Included in earnings (4) | (2,772 | ) | (150 | ) | 142 | (2,780 | ) | (209 | ) | — | — | (209 | ) | ||||||||||||||||||
Included in other comprehensive income | 2,487 | — | — | 2,487 | 252 | — | — | 252 | |||||||||||||||||||||||
Purchases | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Issuances | — | 12,692 | — | 12,692 | — | 4,233 | (55 | ) | 4,178 | ||||||||||||||||||||||
Sales | — | (22,355 | ) | — | (22,355 | ) | — | — | — | — | |||||||||||||||||||||
Settlements | (133 | ) | — | — | (133 | ) | — | — | — | — | |||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at end of period | $425 | $— | $— | $425 | $930 | 4,233 | ($55 | ) | $5,108 | ||||||||||||||||||||||
-1 | During the periods indicated, Level 3 securities available for sale were comprised of pooled trust preferred debt securities in the form of collateralized debt obligations. | ||||||||||||||||||||||||||||||
-2 | During the periods indicated, Level 3 mortgage loans held for sale consisted of certain mortgage loans whose fair value was determined utilizing a discounted cash flow analysis. | ||||||||||||||||||||||||||||||
-3 | During the periods indicated, Level 3 derivative assets / liabilities consisted of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgages) whose fair value was determined utilizing a discounted cash flow analysis. | ||||||||||||||||||||||||||||||
-4 | Losses included in earnings for Level 3 securities available for sale were included in net impairment losses recognized in earnings in the Consolidated Income Statement. Losses included in earnings for Level 3 mortgage loans held for sale and derivative assets and liabilities were included in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a recurring basis for which the Corporation has utilized Level 3 inputs to determine fair value as of the dates indicated. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Collateralized debt obligations | $425 | Discounted Cash Flow | Discount Rate | 17.00% | |||||||||||||||||||||||||||
Cumulative Default % | 2.9% - 100% (18.2%) | ||||||||||||||||||||||||||||||
Loss Given Default % | 85% - 100% (91.4%) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | 31-Dec-12 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Trust preferred securities: | |||||||||||||||||||||||||||||||
Collateralized debt obligations | $843 | Discounted Cash Flow | Discount Rate | 16.75% | |||||||||||||||||||||||||||
Cumulative Default % | 3.3% - 100% (25.7%) | ||||||||||||||||||||||||||||||
Loss Given Default % | 85% - 100% (90.9%) | ||||||||||||||||||||||||||||||
Mortgage loans held for sale | $9,813 | Discounted Cash Flow | Interest Rate | 2.875% - 4.95% (3.71%) | |||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Forward loan commitments - assets | $44 | Discounted Cash Flow | Interest Rate | 3.25% - 3.875% (3.56%) | |||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Forward loan commitments - liabilities | ($186 | ) | Discounted Cash Flow | Interest Rate | 3.25% - 3.875% (3.69%) | ||||||||||||||||||||||||||
Credit Risk Adjustment | 0.25% | ||||||||||||||||||||||||||||||
Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations | |||||||||||||||||||||||||||||||
Given the low level of market activity for trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement was derived by analyzing current market yields for trust preferred securities of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. | |||||||||||||||||||||||||||||||
Other significant unobservable inputs to the fair value measurement of collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral. As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When the default percentages increase, the fair value decreases. | |||||||||||||||||||||||||||||||
Mortgage Loans Held for Sale and Derivative Assets / Liabilities | |||||||||||||||||||||||||||||||
Significant unobservable inputs to the fair market value measurement for certain mortgage loans held for sale and certain forward loan commitments include interest rate and credit risk. Interest rates approximate the Corporation’s current origination rates for similar loans. Credit risk approximates the Corporation’s current loss exposure factor for similar loans. | |||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||||||||||||||||
Items Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets. The valuation methodologies used to measure these fair value adjustments are described above. | |||||||||||||||||||||||||||||||
The following tables present the carrying value of certain assets measured at fair value on a nonrecurring basis as of the dates indicated: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $12,475 | $12,475 | |||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 416 | 416 | |||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $12,891 | $12,891 | |||||||||||||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $633 thousand at September 30, 2013. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $9,550 | $9,550 | |||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 1,073 | 1,073 | |||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $10,623 | $10,623 | |||||||||||||||||||||||||||
The allowance for loan losses allocation on collateral dependent impaired loans amounted to $2.0 million at December 31, 2012. | |||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||||||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value for the dates indicated. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, 2013 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $12,475 | Appraisals of collateral | Discount for costs to sell | 1% - 25% (10%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 45% (2%) | ||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $416 | Appraisals of collateral | Discount for costs to sell | 2% - 10% (9%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 6% - 22% (13%) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2012 | ||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||||||||||||||
Collateral dependent impaired loans | $9,550 | Appraisals of collateral | Discount for costs to sell | 0% - 50% (11%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 27% (18%) | ||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $1,073 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (5%) | |||||||||||||||||||||||||||
Appraisal adjustments (1) | 15% - 34% (21%) | ||||||||||||||||||||||||||||||
-1 | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. | ||||||||||||||||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||||||||||||
The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments as of September 30, 2013 and December 31, 2012. The tables exclude financial instruments for which the carrying value approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB stock, accrued interest receivable and bank-owned life insurance. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, other borrowings and accrued interest payable. | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||||||||||||||
September 30, 2013 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||
Securities held to maturity | $31,264 | $31,962 | $— | $31,962 | $— | ||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,325,758 | 2,391,266 | — | — | 2,391,266 | ||||||||||||||||||||||||||
Loan servicing rights (1) | 2,479 | 2,609 | — | — | 2,609 | ||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||
Time deposits | $817,110 | $824,264 | $— | $824,264 | $— | ||||||||||||||||||||||||||
FHLBB advances | 288,485 | 310,158 | — | 310,158 | — | ||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 15,189 | — | 15,189 | — | ||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $130 thousand in reserves as of September 30, 2013. The estimated fair value does not include such adjustment. | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||||||||||||||
December 31, 2012 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||||
Securities held to maturity | $40,381 | $41,420 | $— | $41,420 | $— | ||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,263,130 | 2,350,153 | — | — | 2,350,153 | ||||||||||||||||||||||||||
Loan servicing rights (1) | 1,110 | 1,275 | — | — | 1,275 | ||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||||
Time deposits | $870,232 | $879,705 | $— | $879,705 | $— | ||||||||||||||||||||||||||
FHLBB advances | 361,172 | 392,805 | — | 392,805 | — | ||||||||||||||||||||||||||
Junior subordinated debentures | 32,991 | 23,371 | — | 23,371 | — | ||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $165 thousand in reserves as of December 31, 2012. The estimated fair value does not include such adjustment. |
Defined_Benefit_Pension_Plans_1
Defined Benefit Pension Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||||||||||
The composition of net periodic benefit cost was as follows for the periods indicated: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Qualified Pension Plan | Non-Qualified Retirement Plans | ||||||||||||||||||||||||||||||
Three months | Nine months | Three months | Nine months | |||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $710 | $644 | $2,171 | $1,931 | $48 | $38 | $147 | $113 | ||||||||||||||||||||||||
Interest cost | 722 | 705 | 2,160 | 2,117 | 116 | 126 | 346 | 378 | ||||||||||||||||||||||||
Expected return on plan assets | (931 | ) | (746 | ) | (2,780 | ) | (2,239 | ) | — | — | — | — | ||||||||||||||||||||
Amortization of prior service cost | 17 | (8 | ) | — | (25 | ) | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Recognized net actuarial loss | 354 | 246 | 1,182 | 737 | 47 | 29 | 145 | 88 | ||||||||||||||||||||||||
Curtailment | (61 | ) | — | (61 | ) | — | (2 | ) | — | (2 | ) | — | ||||||||||||||||||||
Net periodic benefit cost | $811 | $841 | $2,672 | $2,521 | $209 | $192 | $636 | $578 | ||||||||||||||||||||||||
ShareBased_Compensation_Arrang1
Share-Based Compensation Arrangements (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||
Schedule of Nonvested Share Units Granted | ' | ||||
Nonvested Share Units | |||||
During the nine months ended September 30, 2013, the Corporation granted the following nonvested share units to directors. | |||||
Date | Units Granted | Fair Value | Plan | Vesting Period | |
4/23/13 | 12,000 | $26.79 | 2013 Plan | 3 year cliff vesting | |
The nonvested share units awarded were valued at the fair market value as of the award date. | |||||
Schedule of Nonvested Performance Shares Granted | ' | ||||
Nonvested Performance Shares | |||||
During the nine months ended September 30, 2013, the Corporation granted the following performance share award to certain executive officers. | |||||
Date | Share Range | Fair Value | Plan | Vesting Period | |
1/22/13 | 0 to 60,300 | $26.05 | 2003 Stock Incentive Plan | 3 year performance period | |
The performance shares awarded were valued at the fair market value as of the award date. The number of shares earned will range from zero to 200% of the target number of shares dependent upon the Corporation’s core return on equity and core earnings per share growth ranking compared to an industry peer group. The current assumption based on the most recent peer group information available results in shares earned at 150% of the target, or 45,225 shares. |
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Statement of Operations and Total Assets by Reportable Segment | ' | |||||||||||||||||||||||||||
The following tables present the statement of operations and total assets for Washington Trust’s reportable segments: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net interest income (expense) | $20,364 | $19,946 | ($4 | ) | $— | $3,028 | $2,790 | $23,388 | $22,736 | |||||||||||||||||||
Noninterest income | 8,302 | 8,683 | 7,629 | 7,193 | 1,469 | 1,045 | 17,400 | 16,921 | ||||||||||||||||||||
Total income | 28,666 | 28,629 | 7,625 | 7,193 | 4,497 | 3,835 | 40,788 | 39,657 | ||||||||||||||||||||
Provision for loan losses | 700 | 600 | — | — | — | — | 700 | 600 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 614 | 588 | 316 | 325 | 52 | 55 | 982 | 968 | ||||||||||||||||||||
Other noninterest expenses | 15,840 | 16,538 | 4,944 | 4,850 | 3,782 | 3,934 | 24,566 | 25,322 | ||||||||||||||||||||
Total noninterest expenses | 16,454 | 17,126 | 5,260 | 5,175 | 3,834 | 3,989 | 25,548 | 26,290 | ||||||||||||||||||||
Income before income taxes | 11,512 | 10,903 | 2,365 | 2,018 | 663 | (154 | ) | 14,540 | 12,767 | |||||||||||||||||||
Income tax expense (benefit) | 3,875 | 3,751 | 876 | 755 | (171 | ) | (639 | ) | 4,580 | 3,867 | ||||||||||||||||||
Net income | $7,637 | $7,152 | $1,489 | $1,263 | $834 | $485 | $9,960 | $8,900 | ||||||||||||||||||||
Total assets at period end | $2,460,150 | $2,384,219 | $50,297 | $51,525 | $621,511 | $613,124 | $3,131,958 | $3,048,868 | ||||||||||||||||||||
Expenditures for long-lived assets | $277 | $935 | $39 | $72 | $25 | $53 | $341 | $1,060 | ||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Nine months ended September 30, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net interest income (expense) | $59,606 | $59,126 | $5 | $1 | $8,653 | $8,405 | $68,264 | $67,532 | ||||||||||||||||||||
Noninterest income | 24,239 | 22,970 | 23,015 | 21,850 | (294 | ) | 2,507 | 46,960 | 47,327 | |||||||||||||||||||
Total income | 83,845 | 82,096 | 23,020 | 21,851 | 8,359 | 10,912 | 115,224 | 114,859 | ||||||||||||||||||||
Provision for loan losses | 2,000 | 2,100 | — | — | — | — | 2,000 | 2,100 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,876 | 1,792 | 968 | 958 | 161 | 175 | 3,005 | 2,925 | ||||||||||||||||||||
Other noninterest expenses | 47,244 | 47,162 | 15,078 | 14,649 | 9,410 | 10,181 | 71,732 | 71,992 | ||||||||||||||||||||
Total noninterest expenses | 49,120 | 48,954 | 16,046 | 15,607 | 9,571 | 10,356 | 74,737 | 74,917 | ||||||||||||||||||||
Income before income taxes | 32,725 | 31,042 | 6,974 | 6,244 | (1,212 | ) | 556 | 38,487 | 37,842 | |||||||||||||||||||
Income tax expense (benefit) | 11,421 | 10,665 | 2,635 | 2,332 | (1,933 | ) | (1,206 | ) | 12,123 | 11,791 | ||||||||||||||||||
Net income | $21,304 | $20,377 | $4,339 | $3,912 | $721 | $1,762 | $26,364 | $26,051 | ||||||||||||||||||||
Total assets at period end | $2,460,150 | $2,384,219 | $50,297 | $51,525 | $621,511 | $613,124 | $3,131,958 | $3,048,868 | ||||||||||||||||||||
Expenditures for long-lived assets | $1,014 | $3,609 | $93 | $785 | $71 | $119 | $1,178 | $4,513 | ||||||||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||||||||||
Activity in Other Comprehensive Income | ' | |||||||||||||||||||
The following table presents the activity in other comprehensive income (loss) and the affected line item in the Consolidated Statement of Income for the periods indicated: | ||||||||||||||||||||
Three months ended September 30, | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($202 | ) | ($73 | ) | ($129 | ) | ($339 | ) | ($121 | ) | ($218 | ) | ||||||||
Net losses (gains) on securities reclassified into earnings (1) | — | — | — | — | — | — | ||||||||||||||
Net change in fair value of securities available for sale | (202 | ) | (73 | ) | (129 | ) | (339 | ) | (121 | ) | (218 | ) | ||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | — | — | — | — | — | — | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (72 | ) | (25 | ) | (47 | ) | (198 | ) | (71 | ) | (127 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (3) | 141 | 50 | 91 | 176 | 63 | 113 | ||||||||||||||
Net change in fair value of cash flow hedges | 69 | 25 | 44 | (22 | ) | (8 | ) | (14 | ) | |||||||||||
Defined benefit plan obligation adjustment (4) | 17,842 | 6,402 | 11,440 | 266 | 95 | 171 | ||||||||||||||
Total other comprehensive income (loss) | $17,709 | $6,354 | $11,355 | ($95 | ) | ($34 | ) | ($61 | ) | |||||||||||
Nine months ended September 30, | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($7,771 | ) | ($2,768 | ) | ($5,003 | ) | ($1,032 | ) | ($356 | ) | ($676 | ) | ||||||||
Net losses (gains) on securities reclassified into earnings (1) | 613 | 220 | 393 | (214 | ) | (76 | ) | (138 | ) | |||||||||||
Net change in fair value of securities available for sale | (7,158 | ) | (2,548 | ) | (4,610 | ) | (1,246 | ) | (432 | ) | (814 | ) | ||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 2,159 | 775 | 1,384 | 124 | 44 | 80 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (27 | ) | (12 | ) | (15 | ) | (518 | ) | (187 | ) | (331 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (3) | 515 | 184 | 331 | 523 | 187 | 336 | ||||||||||||||
Net change in fair value of cash flow hedges | 488 | 172 | 316 | 5 | — | 5 | ||||||||||||||
Defined benefit plan obligation adjustment (4) | 18,751 | 6,682 | 12,069 | 799 | 272 | 527 | ||||||||||||||
Total other comprehensive income (loss) | $14,240 | $5,081 | $9,159 | ($318 | ) | ($116 | ) | ($202 | ) | |||||||||||
-1 | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statement of Income. | |||||||||||||||||||
-2 | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statement of Income. | |||||||||||||||||||
-3 | Included in interest expense on junior subordinated debentures in the Consolidated Statement of Income. | |||||||||||||||||||
-4 | Included in salaries and employee benefits expense in the Consolidated Statement of Income. See Note 12 and the Annual Report on Form 10-K for fiscal year 2012 for additional information. | |||||||||||||||||||
Components of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2013: | ||||||||||||||||||||
(Dollars in thousands) | Net Unrealized Gains on Available For Sale Securities | Noncredit -related Impairment | Net Unrealized Losses on Cash Flow Hedges | Pension Benefit Adjustment | Total | |||||||||||||||
Balance at December 31, 2012 | $9,711 | ($1,938 | ) | ($1,006 | ) | ($17,266 | ) | ($10,499 | ) | |||||||||||
Other comprehensive income before reclassifications | (5,003 | ) | — | (15 | ) | — | (5,018 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 393 | 1,384 | 331 | 12,069 | 14,177 | |||||||||||||||
Net other comprehensive income (loss) | (4,610 | ) | 1,384 | 316 | 12,069 | 9,159 | ||||||||||||||
Balance at September 30, 2013 | $5,101 | ($554 | ) | ($690 | ) | ($5,197 | ) | ($1,340 | ) | |||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended September 30, 2012: | ||||||||||||||||||||
(Dollars in thousands) | Net Unrealized Gains on Available For Sale Securities | Noncredit -related Impairment | Net Unrealized Losses on Cash Flow Hedges | Pension Benefit Adjustment | Total | |||||||||||||||
Balance at December 31, 2011 | $13,143 | ($2,062 | ) | ($1,127 | ) | ($11,849 | ) | ($1,895 | ) | |||||||||||
Net other comprehensive income (loss) | (814 | ) | 80 | 5 | 527 | (202 | ) | |||||||||||||
Balance at September 30, 2012 | $12,329 | ($1,982 | ) | ($1,122 | ) | ($11,322 | ) | ($2,097 | ) | |||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Calculation of Earnings Per Share | ' | |||||||||||||||
The calculation of earnings per common share is presented below. | ||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||||||||||
Three Months | Nine months | |||||||||||||||
Periods ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $9,960 | $8,900 | $26,364 | $26,051 | ||||||||||||
Less dividends and undistributed earnings allocated to participating securities | (37 | ) | (42 | ) | (115 | ) | (116 | ) | ||||||||
Net income applicable to common shareholders | $9,923 | $8,858 | $26,249 | $25,935 | ||||||||||||
Weighted average basic common shares | 16,563 | 16,366 | 16,473 | 16,351 | ||||||||||||
Dilutive effect of common stock equivalents | 133 | 48 | 127 | 41 | ||||||||||||
Weighted average diluted common shares | 16,696 | 16,414 | 16,600 | 16,392 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $0.60 | $0.54 | $1.59 | $1.59 | ||||||||||||
Diluted | $0.59 | $0.54 | $1.58 | $1.58 | ||||||||||||
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, were zero and 400 thousand, respectively, for the three months ended September 30, 2013 and 2012. These amounts were 7 thousand and 342 thousand, respectively, for the nine months ended September 30, 2013 and 2012. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Financial Instruments with Off Balance Sheet Risk | ' | |||||||
The contractual and notional amounts of financial instruments with off-balance sheet risk are as follows: | ||||||||
(Dollars in thousands) | Sep 30, | Dec 31, | ||||||
2013 | 2012 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $253,400 | $223,426 | ||||||
Home equity lines | 196,281 | 184,941 | ||||||
Other loans | 33,622 | 30,504 | ||||||
Standby letters of credit | 1,361 | 1,039 | ||||||
Financial instruments whose notional amounts exceed the amount of credit risk: | ||||||||
Forward loan commitments: | ||||||||
Commitments to originate fixed-rate mortgage loans to be sold | 20,750 | 67,792 | ||||||
Commitments to sell fixed-rate mortgage loans | 33,521 | 116,162 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 64,898 | 70,493 | ||||||
Mirror swaps with counterparties | 64,898 | 70,493 | ||||||
Interest rate risk management contract: | ||||||||
Interest rate swap | 22,681 | 32,991 | ||||||
Schedule of Future Minimum Operating Lease Payments | ' | |||||||
Leases | ||||||||
As of September 30, 2013 and December 31, 2012, the Corporation was obligated under various non-cancellable operating leases for properties used as banking offices and other office facilities. Rental expense under the operating leases amounted to $699 thousand and $2.0 million, respectively, for the three and nine months ended September 30, 2013, compared to $690 thousand and $2.1 million, respectively, for the same periods in 2012. Rental expense is recorded as a component of net occupancy expense in the accompanying Consolidated Statements of Income. | ||||||||
As of September 30, 2013, the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions, are as follows: | ||||||||
(Dollars in thousands) | ||||||||
October 1, 2013 to December 31, 2013 | $597 | |||||||
2014 | 2,431 | |||||||
2015 | 1,913 | |||||||
2016 | 1,618 | |||||||
2017 | 1,450 | |||||||
Thereafter | 14,612 | |||||||
Total minimum lease payments | $22,621 | |||||||
Lease expiration date ranges have not changed significantly since December 31, 2012. |
Cash_and_Due_from_Banks_Narrat
Cash and Due from Banks (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ' | ' |
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $7.70 | $5.50 |
Interest-bearing deposits in other banks | $87.80 | $32.20 |
Securities_Narrative_Details
Securities (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | Nonaccrual Investment Security [Member] | ||
Preferred Term Security [PreTSL] XXV, tranche C1 [Member] | |||||
Trust preferred securities: Collateralized debt obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' |
Other Than Temporary Impairment Credit Losses Previously Recognized In Earnings | ' | ' | ' | ' | $1.20 |
Securities in unrealized loss position, number of companies issuing securities | 7 | ' | ' | ' | ' |
Fair Value of Available for Sale and Held to Maturity securities pledged as collateral | 391.7 | 386.5 | ' | ' | ' |
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | 11.9 | ' | ' | ' | ' |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 2.1 | ' | ' | ' | ' |
Amortized cost of callable debt securities | 111.4 | ' | ' | ' | ' |
Fair value of callable debt securities | $106.70 | ' | ' | ' | ' |
Callable Debt Securities, Maturity Period | ' | ' | '2 years | '24 years | ' |
Securities_Summary_of_Investme
Securities (Summary of Investments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale securities unrealized gains | $13,912 | $21,209 |
Available for sale securities unrealized losses | -6,821 | -9,119 |
Available for sale debt securities fair value | 388,085 | ' |
Available-for-sale Securities, Amortized Cost Basis | 380,994 | 363,408 |
Total securities available for sale fair value | 388,085 | 375,498 |
Held to maturity securities | 31,264 | 40,381 |
Held to maturity securities unrealized gains | 698 | 1,039 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 31,962 | 41,420 |
Total available for sale and held to maturity securities amortized cost | 412,258 | 403,789 |
Total available for sale and held to maturity securities unrealized gains | 14,610 | 22,248 |
Total available for sale and held to maturity securities unrealized losses | -6,821 | -9,119 |
Total available for sale and held to maturity securities fair value | 420,047 | 416,918 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 54,461 | 29,458 |
Available for sale securities unrealized gains | 1,208 | 2,212 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale debt securities fair value | 55,669 | 31,670 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 218,598 | 217,136 |
Available for sale securities unrealized gains | 9,943 | 14,097 |
Available for sale securities unrealized losses | -36 | 0 |
Available for sale debt securities fair value | 228,505 | 231,233 |
Held to maturity securities | 31,264 | 40,381 |
Held to maturity securities unrealized gains | 698 | 1,039 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 31,962 | 41,420 |
States and political subdivisions [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 64,833 | 68,196 |
Available for sale securities unrealized gains | 2,507 | 4,424 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale debt securities fair value | 67,340 | 72,620 |
Trust preferred securities: Individual name issuers [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 30,705 | 30,677 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | -5,930 | -5,926 |
Available for sale debt securities fair value | 24,775 | 24,751 |
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 1,264 | 4,036 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | -839 | -3,193 |
Available for sale debt securities fair value | 425 | 843 |
Corporate bonds [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ' | ' |
Available for sale debt securities amortized cost | 11,133 | 13,905 |
Available for sale securities unrealized gains | 254 | 476 |
Available for sale securities unrealized losses | -16 | 0 |
Available for sale debt securities fair value | $11,371 | $14,381 |
Securities_Securities_by_Contr
Securities (Securities by Contractual Maturity) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | $131,917 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 164,281 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 37,965 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 46,831 | ' |
Available for sale debt securities maturities total amortized cost | 380,994 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 4.25% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.77% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.65% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 1.71% | ' |
Available for sale debt securities maturities total weighted average yield | 3.57% | ' |
Available for sale debt securities maturities within 1 year fair value | 133,376 | ' |
Available for sale debt securities maturities 1-5 years fair value | 167,772 | ' |
Available for sale debt securities maturities 5-10 years fair value | 39,432 | ' |
Available for sale debt securities maturities after 10 years fair value | 47,505 | ' |
Available for sale debt securities fair value | 388,085 | ' |
Held to maturity debt securities maturities total amortized cost | 31,264 | 40,381 |
Held to maturity debt securities maturities within 1 year fair value | 7,151 | ' |
Held to maturity debt securities maturities 1-5 years fair value | 15,810 | ' |
Held to maturity debt securities maturities 5-10 years fair value | 6,860 | ' |
Held to maturity debt securities maturities after 10 years fair value | 2,141 | ' |
Held to maturity securities fair value | 31,962 | 41,420 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | 5,027 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 5,704 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 402 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 0 | ' |
Available for sale debt securities maturities total amortized cost | 11,133 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 6.64% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 2.82% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.45% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities total weighted average yield | 4.53% | ' |
Available for sale debt securities fair value | 11,371 | 14,381 |
Trust Preferred Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | 0 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 0 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 0 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 31,969 | ' |
Available for sale debt securities maturities total amortized cost | 31,969 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 0.00% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 1.38% | ' |
Available for sale debt securities maturities total weighted average yield | 1.38% | ' |
States and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | 12,296 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 52,537 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 0 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 0 | ' |
Available for sale debt securities maturities total amortized cost | 64,833 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 3.89% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.91% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities total weighted average yield | 3.91% | ' |
Available for sale debt securities fair value | 67,340 | 72,620 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | 60,133 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 106,040 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 37,563 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 14,862 | ' |
Available for sale debt securities maturities total amortized cost | 218,598 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 4.30% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.76% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.65% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 2.43% | ' |
Available for sale debt securities maturities total weighted average yield | 3.63% | ' |
Available for sale debt securities fair value | 228,505 | 231,233 |
Held to maturity debt securities maturities within 1 year amortized cost | 6,995 | ' |
Held to maturity debt securities maturities 1-5 years amortized cost | 15,465 | ' |
Held to maturity debt securities maturities 5-10 years amortized cost | 6,710 | ' |
Held to maturity debt securities maturities after 10 years amortized cost | 2,094 | ' |
Held to maturity debt securities maturities total amortized cost | 31,264 | 40,381 |
Held to maturity debt securities maturities within 1 year weighted average yield | 2.57% | ' |
Held to maturity debt securities maturities 1-5 years weighted average yield | 2.48% | ' |
Held to maturity debt securities maturities 5-10 years weighted average yield | 2.37% | ' |
Held to maturity debt securities maturities after 10 years weighted average yield | 0.88% | ' |
Held to maturity debt securities maturities total weighted average yield | 2.37% | ' |
Held to maturity securities fair value | 31,962 | 41,420 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available for sale debt securities maturities within 1 year amortized cost | 54,461 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 0 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 0 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 0 | ' |
Available for sale debt securities maturities total amortized cost | 54,461 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 4.04% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | ' |
Available for sale debt securities maturities total weighted average yield | 4.04% | ' |
Available for sale debt securities fair value | $55,669 | $31,670 |
Securities_Securities_in_a_Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 4 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $1,376 | $0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -52 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 12 | 13 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 25,200 | 25,594 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -6,769 | -9,119 |
Number of securities in a continuous unrealized loss position total | 16 | 13 |
Fair value of securities in a continuous unrealized loss position total | 26,576 | 25,594 |
Unrealized losses of securities in a continuous unrealized loss position total | -6,821 | -9,119 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 2 | ' |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 969 | ' |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -36 | ' |
Number of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Number of securities in a continuous unrealized loss position total | 2 | ' |
Fair value of securities in a continuous unrealized loss position total | 969 | ' |
Unrealized losses of securities in a continuous unrealized loss position total | -36 | ' |
Trust preferred securities: Individual name issuers [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 11 | 11 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 24,775 | 24,751 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -5,930 | -5,926 |
Number of securities in a continuous unrealized loss position total | 11 | 11 |
Fair value of securities in a continuous unrealized loss position total | 24,775 | 24,751 |
Unrealized losses of securities in a continuous unrealized loss position total | -5,930 | -5,926 |
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 1 | 2 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 425 | 843 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -839 | -3,193 |
Number of securities in a continuous unrealized loss position total | 1 | 2 |
Fair value of securities in a continuous unrealized loss position total | 425 | 843 |
Unrealized losses of securities in a continuous unrealized loss position total | -839 | -3,193 |
Corporate bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 2 | ' |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 407 | ' |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -16 | ' |
Number of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | 0 | ' |
Number of securities in a continuous unrealized loss position total | 2 | ' |
Fair value of securities in a continuous unrealized loss position total | 407 | ' |
Unrealized losses of securities in a continuous unrealized loss position total | ($16) | ' |
Securities_Securities_Pooled_T
Securities (Securities Pooled Trust Preferred Unrealized Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis | $380,994 | ' | $380,994 | ' | $363,408 | |||
Securities available for sale | 388,085 | ' | 388,085 | ' | 375,498 | |||
Available for sale debt securities fair value | 388,085 | ' | 388,085 | ' | ' | |||
Available for sale securities unrealized losses | -6,821 | ' | -6,821 | ' | -9,119 | |||
Additional increases to the amount of credit-related impairment loss on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 2,772 | 209 | ' | |||
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available for sale debt securities amortized cost | 1,264 | ' | 1,264 | ' | 4,036 | |||
Available for sale debt securities fair value | 425 | ' | 425 | ' | 843 | |||
Available for sale securities unrealized losses | -839 | ' | -839 | ' | -3,193 | |||
Nonaccrual Investment Security [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available for sale debt securities amortized cost | 1,264 | [1] | ' | 1,264 | [1] | ' | 4,036 | [1] |
Available for sale debt securities fair value | 425 | ' | 425 | ' | 843 | |||
Available for sale securities unrealized losses | -839 | ' | -839 | ' | -3,193 | |||
Tropic CDO1, tranche A4L [Member] | Nonaccrual Investment Security [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis | 0 | [1] | ' | 0 | [1] | ' | 2,772 | [1] |
Securities available for sale | 0 | ' | 0 | ' | 613 | |||
Available for sale securities unrealized losses | 0 | ' | 0 | ' | -2,159 | |||
Additional increases to the amount of credit-related impairment loss on debt securities for which other-than-temporary impairment was previously recognized | ' | ' | 2,800 | ' | ' | |||
Preferred Term Security [PreTSL] XXV, tranche C1 [Member] | Nonaccrual Investment Security [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ' | ' | ' | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis | 1,264 | [1] | ' | 1,264 | [1] | ' | 1,264 | [1] |
Securities available for sale | 425 | ' | 425 | ' | 230 | |||
Available for sale securities unrealized losses | ($839) | ' | ($839) | ' | ($1,034) | |||
[1] | Net of other-than-temporary impairment losses recognized in earnings. |
Securities_Rollfoward_of_OTTI_
Securities (Rollfoward of OTTI Recognized in Earnings) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Credit related impairment losses on debt securities, beginning balance | $6,097 | $3,313 | $3,325 | $3,104 |
Credit-related impairment losses on debt securities for which other-than-temporary impairment was not previously recognized | 0 | 0 | 0 | 0 |
Additional increases to the amount of credit-related impairment loss on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 2,772 | 209 |
Credit related impairment losses on debt securities, ending balance | $6,097 | $3,313 | $6,097 | $3,313 |
Loans_Narrative_Troubled_Debt_
Loans (Narrative - Troubled Debt Restructurings) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ' | ' |
Financing Receivable, Modifications, Recorded Investment | $27,200,000 | $20,200,000 |
Interest Receivable | 44,000 | 13,000 |
Specific Reserves on Troubled Debt Restructurings | $381,000 | $898,000 |
Loans_Narrative_Credit_Quality
Loans (Narrative - Credit Quality Indicators) (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
rating | rating | |
Receivables [Abstract] | ' | ' |
Weighted Average Risk Rating, Commercial Loans | 4.69 | 4.77 |
Loans_Summary_of_Loans_Details
Loans (Summary of Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | $1,297,892,000 | $1,252,419,000 | ||
Residential real estate | 731,692,000 | 717,681,000 | ||
Consumer | 324,182,000 | 323,903,000 | ||
Total loans | 2,353,766,000 | [1] | 2,294,003,000 | [1] |
Percent of Total Loans | 100.00% | [1] | 100.00% | [1] |
Net unamortized loan orgination costs | 531,000 | 39,000 | ||
Net unamortized premiums on pruchased loans | 100,000 | 83,000 | ||
Commercial Mortgages [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 727,375,000 | [2] | 710,813,000 | [2] |
Total loans | 727,375,000 | 710,813,000 | ||
Percent of Total Loans | 31.00% | [2] | 31.00% | [2] |
Loans pledged as collateral, FHLBB and letters of credit | 204,100,000 | 238,600,000 | ||
Commercial Construction and Development [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 51,951,000 | [3] | 27,842,000 | [3] |
Total loans | 51,951,000 | 27,842,000 | ||
Percent of Total Loans | 2.00% | [3] | 1.00% | [3] |
Commercial Other [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 518,566,000 | [4] | 513,764,000 | [4] |
Total loans | 518,566,000 | 513,764,000 | ||
Percent of Total Loans | 22.00% | [4] | 23.00% | [4] |
Loans pledged as collateral, FHLBB and letters of credit | 47,500,000 | 51,800,000 | ||
Loans Pledged as Collateral, Federal Reserve Bank | 24,300,000 | 29,500,000 | ||
Commercial Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 1,297,892,000 | 1,252,419,000 | ||
Percent of Total Loans | 55.00% | 55.00% | ||
Residential Mortgage [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Residential real estate | 711,427,000 | [5] | 692,798,000 | [5] |
Total loans | 711,427,000 | 692,798,000 | ||
Percent of Total Loans | 30.00% | [5] | 30.00% | [5] |
Loans pledged as collateral, FHLBB and letters of credit | 647,300,000 | 627,400,000 | ||
Homeowner Construction [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Residential real estate | 20,265,000 | 24,883,000 | ||
Total loans | 20,265,000 | 24,883,000 | ||
Percent of Total Loans | 1.00% | 1.00% | ||
Residential Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Residential real estate | 731,692,000 | 717,681,000 | ||
Percent of Total Loans | 31.00% | 31.00% | ||
Home Equity Lines [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | 227,063,000 | [6] | 226,861,000 | [6] |
Total loans | 227,063,000 | 226,861,000 | ||
Percent of Total Loans | 10.00% | [6] | 10.00% | [6] |
Loans pledged as collateral, FHLBB and letters of credit | 191,800,000 | 189,400,000 | ||
Home Equity Loans [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | 41,158,000 | [6] | 39,329,000 | [6] |
Total loans | 41,158,000 | 39,329,000 | ||
Percent of Total Loans | 2.00% | [6] | 2.00% | [6] |
Other Consumer [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | 55,961,000 | [7] | 57,713,000 | [7] |
Total loans | 55,961,000 | 57,713,000 | ||
Percent of Total Loans | 2.00% | [7] | 2.00% | [7] |
Consumer Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | $324,182,000 | $323,903,000 | ||
Percent of Total Loans | 14.00% | 14.00% | ||
[1] | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. | |||
[2] | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of September 30, 2013 and December 31, 2012, $204.1 million and $238.6 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||
[3] | Loans for construction commercial properties, loans to developers for construction of residential properties, and loans for land development. | |||
[4] | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of September 30, 2013, $47.5 million and $24.3 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||
[5] | As of September 30, 2013 and December 31, 2012, $647.3 million and $627.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||
[6] | As of September 30, 2013 and December 31, 2012, $191.8 million and $189.4 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit. | |||
[7] | Fixed-rate consumer installment loans. |
Loans_Nonaccrual_Loans_Details
Loans (Nonaccrual Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $19,503 | $22,543 |
Accruing loans 90 days or more past due | 0 | 0 |
Current Payment Status [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 2,200 | 1,600 |
Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 8,956 | 10,681 |
Commercial Construction and Development [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 0 | 0 |
Commercial Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 1,248 | 4,412 |
Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 8,095 | 6,158 |
Homeowner Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 0 | 0 |
Home Equity Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 412 | 840 |
Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 768 | 371 |
Other Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $24 | $81 |
Loans_Past_Due_Loans_Details
Loans (Past Due Loans) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans Receivable, Past Due, Nonaccrual | $17,300,000 | $21,000,000 | ||
Loans 30 to 59 Days Past Due | 6,285,000 | 6,607,000 | ||
Loans 60 to 89 Days Past Due | 3,026,000 | 3,040,000 | ||
Loans Over 90 Days Past Due | 14,691,000 | 18,449,000 | ||
Total Loans Past Due | 24,002,000 | 28,096,000 | ||
Current Loans | 2,329,764,000 | 2,265,907,000 | ||
Total loans | 2,353,766,000 | [1] | 2,294,003,000 | [1] |
Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 0 | 373,000 | ||
Loans 60 to 89 Days Past Due | 730,000 | 408,000 | ||
Loans Over 90 Days Past Due | 8,226,000 | 10,300,000 | ||
Total Loans Past Due | 8,956,000 | 11,081,000 | ||
Current Loans | 718,419,000 | 699,732,000 | ||
Total loans | 727,375,000 | 710,813,000 | ||
Commercial Construction and Development [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 0 | 0 | ||
Loans 60 to 89 Days Past Due | 0 | 0 | ||
Loans Over 90 Days Past Due | 0 | 0 | ||
Total Loans Past Due | 0 | 0 | ||
Current Loans | 51,951,000 | 27,842,000 | ||
Total loans | 51,951,000 | 27,842,000 | ||
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 2,648,000 | 260,000 | ||
Loans 60 to 89 Days Past Due | 8,000 | 296,000 | ||
Loans Over 90 Days Past Due | 929,000 | 3,647,000 | ||
Total Loans Past Due | 3,585,000 | 4,203,000 | ||
Current Loans | 514,981,000 | 509,561,000 | ||
Total loans | 518,566,000 | 513,764,000 | ||
Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 2,624,000 | 4,840,000 | ||
Loans 60 to 89 Days Past Due | 1,960,000 | 1,951,000 | ||
Loans Over 90 Days Past Due | 4,843,000 | 3,658,000 | ||
Total Loans Past Due | 9,427,000 | 10,449,000 | ||
Current Loans | 702,000,000 | 682,349,000 | ||
Total loans | 711,427,000 | 692,798,000 | ||
Homeowner Construction [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 0 | 0 | ||
Loans 60 to 89 Days Past Due | 0 | 0 | ||
Loans Over 90 Days Past Due | 0 | 0 | ||
Total Loans Past Due | 0 | 0 | ||
Current Loans | 20,265,000 | 24,883,000 | ||
Total loans | 20,265,000 | 24,883,000 | ||
Home Equity Lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 636,000 | 753,000 | ||
Loans 60 to 89 Days Past Due | 220,000 | 207,000 | ||
Loans Over 90 Days Past Due | 262,000 | 528,000 | ||
Total Loans Past Due | 1,118,000 | 1,488,000 | ||
Current Loans | 225,945,000 | 225,373,000 | ||
Total loans | 227,063,000 | 226,861,000 | ||
Home Equity Loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 339,000 | 252,000 | ||
Loans 60 to 89 Days Past Due | 104,000 | 114,000 | ||
Loans Over 90 Days Past Due | 416,000 | 250,000 | ||
Total Loans Past Due | 859,000 | 616,000 | ||
Current Loans | 40,299,000 | 38,713,000 | ||
Total loans | 41,158,000 | 39,329,000 | ||
Other Consumer [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 38,000 | 129,000 | ||
Loans 60 to 89 Days Past Due | 4,000 | 64,000 | ||
Loans Over 90 Days Past Due | 15,000 | 66,000 | ||
Total Loans Past Due | 57,000 | 259,000 | ||
Current Loans | 55,904,000 | 57,454,000 | ||
Total loans | $55,961,000 | $57,713,000 | ||
[1] | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. |
Loans_Impaired_Loans_Details
Loans (Impaired Loans) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | $4,728,000 | [1] | ' | $4,728,000 | [1] | ' | $4,709,000 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 35,021,000 | [1] | ' | 35,021,000 | [1] | ' | 30,853,000 | [1] |
Total Recorded Investment of Impaired Loans | 39,749,000 | [1] | ' | 39,749,000 | [1] | ' | 35,562,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 8,768,000 | ' | 8,768,000 | ' | 4,732,000 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 37,411,000 | ' | 37,411,000 | ' | 33,926,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Total Unpaid Principal of Impaired Loans | 46,179,000 | ' | 46,179,000 | ' | 38,658,000 | |||
Related Allowance on Impaired Loans | 2,013,000 | ' | 2,013,000 | ' | 2,880,000 | |||
Average Recorded Investment of Impaired Loans | 37,146,000 | 24,572,000 | 37,805,000 | 24,874,000 | ' | |||
Interest Income Recognized on Impaired Loans | 291,000 | 169,000 | 718,000 | 487,000 | ' | |||
Commercial Mortgages [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 2,913,000 | [1] | ' | 2,913,000 | [1] | ' | 2,357,000 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 29,972,000 | [1] | ' | 29,972,000 | [1] | ' | 17,897,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 6,940,000 | ' | 6,940,000 | ' | 2,360,000 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 31,596,000 | ' | 31,596,000 | ' | 19,738,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 1,110,000 | ' | 1,110,000 | ' | 1,720,000 | |||
Average Recorded Investment of Impaired Loans | 29,430,000 | 9,611,000 | 26,110,000 | 8,795,000 | ' | |||
Interest Income Recognized on Impaired Loans | 192,000 | 71,000 | 444,000 | 176,000 | ' | |||
Commercial Construction and Development [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | ' | 0 | ' | 0 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 0 | ' | 0 | ' | 0 | |||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | 0 | ' | |||
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | ' | |||
Commercial Other [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 1,633,000 | [1] | ' | 1,633,000 | [1] | ' | 1,058,000 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 1,196,000 | [1] | ' | 1,196,000 | [1] | ' | 9,939,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,629,000 | ' | 1,629,000 | ' | 1,057,000 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 1,572,000 | ' | 1,572,000 | ' | 10,690,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 331,000 | ' | 331,000 | ' | 694,000 | |||
Average Recorded Investment of Impaired Loans | 3,536,000 | 10,176,000 | 7,159,000 | 10,756,000 | ' | |||
Interest Income Recognized on Impaired Loans | 43,000 | 73,000 | 157,000 | 231,000 | ' | |||
Residential Mortgage [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 182,000 | [1] | ' | 182,000 | [1] | ' | 1,294,000 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 3,494,000 | [1] | ' | 3,494,000 | [1] | ' | 2,576,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 199,000 | ' | 199,000 | ' | 1,315,000 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 3,882,000 | ' | 3,882,000 | ' | 2,947,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 569,000 | ' | 569,000 | ' | 463,000 | |||
Average Recorded Investment of Impaired Loans | 3,818,000 | 4,400,000 | 4,104,000 | 4,867,000 | ' | |||
Interest Income Recognized on Impaired Loans | 51,000 | 21,000 | 100,000 | 66,000 | ' | |||
Homeowner Construction [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | ' | 0 | ' | 0 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 0 | ' | 0 | ' | 0 | |||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | 0 | ' | |||
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | ' | |||
Home Equity Lines [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 173,000 | [1] | ' | 173,000 | [1] | ' | 187,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 174,000 | ' | 174,000 | ' | 255,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 1,000 | ' | 1,000 | ' | 1,000 | |||
Average Recorded Investment of Impaired Loans | 173,000 | 121,000 | 209,000 | 167,000 | ' | |||
Interest Income Recognized on Impaired Loans | 2,000 | 0 | 6,000 | 2,000 | ' | |||
Home Equity Loans [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 57,000 | [1] | ' | 57,000 | [1] | ' | 117,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 57,000 | ' | 57,000 | ' | 160,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 0 | ' | 0 | ' | 0 | |||
Average Recorded Investment of Impaired Loans | 58,000 | 120,000 | 77,000 | 138,000 | ' | |||
Interest Income Recognized on Impaired Loans | 1,000 | 2,000 | 5,000 | 5,000 | ' | |||
Other Consumer [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | ' | 0 | [1] | ' | 0 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 129,000 | [1] | ' | 129,000 | [1] | ' | 137,000 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Unpaid Principal of Impaired Loans with Related Allowance | 130,000 | ' | 130,000 | ' | 136,000 | |||
Impaired Financing Receivable, No Related Allowance | 0 | ' | 0 | ' | 0 | |||
Related Allowance on Impaired Loans | 2,000 | ' | 2,000 | ' | 2,000 | |||
Average Recorded Investment of Impaired Loans | 131,000 | 144,000 | 146,000 | 151,000 | ' | |||
Interest Income Recognized on Impaired Loans | 2,000 | 2,000 | 6,000 | 7,000 | ' | |||
Commercial Segment [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Total Recorded Investment of Impaired Loans | 35,714,000 | [1] | ' | 35,714,000 | [1] | ' | 31,251,000 | [1] |
Total Unpaid Principal of Impaired Loans | 41,737,000 | ' | 41,737,000 | ' | 33,845,000 | |||
Related Allowance on Impaired Loans | 1,441,000 | ' | 1,441,000 | ' | 2,414,000 | |||
Residential Segment [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Total Recorded Investment of Impaired Loans | 3,676,000 | [1] | ' | 3,676,000 | [1] | ' | 3,870,000 | [1] |
Total Unpaid Principal of Impaired Loans | 4,081,000 | ' | 4,081,000 | ' | 4,262,000 | |||
Related Allowance on Impaired Loans | 569,000 | ' | 569,000 | ' | 463,000 | |||
Consumer Segment [Member] | ' | ' | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |||
Total Recorded Investment of Impaired Loans | 359,000 | [1] | ' | 359,000 | [1] | ' | 441,000 | [1] |
Total Unpaid Principal of Impaired Loans | 361,000 | ' | 361,000 | ' | 551,000 | |||
Related Allowance on Impaired Loans | $3,000 | ' | $3,000 | ' | $3,000 | |||
[1] | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur
Loans (Troubled Debt Restructurings) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
loan | loan | loan | loan | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 2 | 14 | 16 | ||||
Pre-Modification Recorded Investment | $6,048 | [1] | $8,183 | [1] | $17,264 | [1] | $11,325 | [1] |
Post-Modification Recorded Investment | 4,939 | [1] | 8,183 | [1] | 16,075 | [1] | 11,325 | [1] |
Commercial Mortgages [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | 6 | 5 | ||||
Pre-Modification Recorded Investment | 6,018 | [1] | 8,183 | [1] | 15,974 | [1] | 9,044 | [1] |
Post-Modification Recorded Investment | 4,909 | [1] | 8,183 | [1] | 14,785 | [1] | 9,044 | [1] |
Commercial Construction and Development [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Commercial Other [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 0 | 7 | 7 | ||||
Pre-Modification Recorded Investment | 30 | [1] | 0 | [1] | 1,198 | [1] | 1,625 | [1] |
Post-Modification Recorded Investment | 30 | [1] | 0 | [1] | 1,198 | [1] | 1,625 | [1] |
Residential Mortgage [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 2 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 651 | [1] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 651 | [1] |
Homeowner Construction [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Home Equity Lines [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 1 | 0 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 92 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] | 92 | [1] | 0 | [1] |
Home Equity Loans [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Other Consumer [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 2 | ||||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 5 | [1] |
Post-Modification Recorded Investment | $0 | [1] | $0 | [1] | $0 | [1] | $5 | [1] |
[1] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur1
Loans (Troubled Debt Restructurings Type of Modification) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Receivables [Abstract] | ' | ' | ' | ' | ||||
Below Market Interest Rate Concession | $6,018 | $0 | $15,836 | $1,426 | ||||
Payment Deferral | 0 | 0 | 0 | 240 | ||||
Maturity/Amortization Concession | 21 | 0 | 21 | 917 | ||||
Interest Only Payments | 9 | 0 | 424 | 361 | ||||
Combination | 0 | [1] | 8,183 | [1] | 983 | [1] | 8,381 | [1] |
Pre-Modification Recorded Investment | $6,048 | [2] | $8,183 | [2] | $17,264 | [2] | $11,325 | [2] |
[1] | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. | |||||||
[2] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur2
Loans (Troubled Debt Restructurings Subsequent Default) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
loan | loan | loan | loan | |||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 2 | 14 | 16 | ||||
Commercial Mortgages [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | 6 | 5 | ||||
Commercial Construction and Development [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Commercial Other [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 0 | 7 | 7 | ||||
Residential Mortgage [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 2 | ||||
Homeowner Construction [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Home Equity Lines [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 1 | 0 | ||||
Home Equity Loans [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Other Consumer [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 2 | ||||
Payment Default [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 6 | 1 | 7 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 482 | [1] | 1,111 | [1] | 482 | [1] | 1,306 | [1] |
Payment Default [Member] | Commercial Mortgages [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | 1 | 1 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 482 | [1] | 0 | [1] | 482 | [1] | 195 | [1] |
Payment Default [Member] | Commercial Construction and Development [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Payment Default [Member] | Commercial Other [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 3 | 0 | 3 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 428 | [1] | 0 | [1] | 428 | [1] |
Payment Default [Member] | Residential Mortgage [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 2 | 0 | 2 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 670 | [1] | 0 | [1] | 670 | [1] |
Payment Default [Member] | Homeowner Construction [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Payment Default [Member] | Home Equity Lines [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Payment Default [Member] | Home Equity Loans [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | 0 | 0 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Payment Default [Member] | Other Consumer [Member] | ' | ' | ' | ' | ||||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 1 | 0 | 1 | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 13 | [1] | 0 | [1] | 13 | [1] |
[1] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. |
Loans_Credit_Quality_Indicator
Loans (Credit Quality Indicators - Commercial) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $1,236,106 | $1,180,433 |
Pass [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 685,924 | 669,220 |
Pass [Member] | Commercial Construction and Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 51,951 | 27,842 |
Pass [Member] | Commercial Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 498,231 | 483,371 |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 40,078 | 46,042 |
Special Mention [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 23,753 | 21,649 |
Special Mention [Member] | Commercial Construction and Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 0 | 0 |
Special Mention [Member] | Commercial Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 16,325 | 24,393 |
Classified [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 21,708 | 25,944 |
Classified [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 17,698 | 19,944 |
Classified [Member] | Commercial Construction and Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 0 | 0 |
Classified [Member] | Commercial Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $4,010 | $6,000 |
Loans_Credit_Quality_Indicator1
Loans (Credit Quality Indicators - Residential, Consumer) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Under 90 Days Past Due [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $726,849 | $714,023 |
Under 90 Days Past Due [Member] | Consumer Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 323,489 | 323,059 |
Over 90 Days Past Due [Member] | Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 4,843 | 3,658 |
Over 90 Days Past Due [Member] | Consumer Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 693 | 844 |
Consumer Segment [Member] | Under 90 Days Past Due [Member] | Home Equity Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 226,801 | 226,333 |
Consumer Segment [Member] | Under 90 Days Past Due [Member] | Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 40,742 | 39,078 |
Consumer Segment [Member] | Under 90 Days Past Due [Member] | Other Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 55,946 | 57,648 |
Consumer Segment [Member] | Over 90 Days Past Due [Member] | Home Equity Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 262 | 528 |
Consumer Segment [Member] | Over 90 Days Past Due [Member] | Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 416 | 251 |
Consumer Segment [Member] | Over 90 Days Past Due [Member] | Other Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 15 | 65 |
Residential Mortgage [Member] | Under 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 703,332 | 686,640 |
Residential Mortgage [Member] | Under 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 3,252 | 2,500 |
Residential Mortgage [Member] | Under 90 Days Past Due [Member] | Homeowner Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 20,265 | 24,883 |
Residential Mortgage [Member] | Over 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 0 | 0 |
Residential Mortgage [Member] | Over 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 4,843 | 3,658 |
Residential Mortgage [Member] | Over 90 Days Past Due [Member] | Homeowner Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $0 | $0 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | $27,884 | $30,448 | $30,873 | $29,802 |
Charge-offs | -770 | -424 | -5,319 | -1,801 |
Recoveries | 194 | 128 | 454 | 651 |
Provision | 700 | 600 | 2,000 | 2,100 |
Allowance, Ending Balance | 28,008 | 30,752 | 28,008 | 30,752 |
Commercial Mortgages [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 6,748 | 8,945 | 9,407 | 8,195 |
Charge-offs | -640 | -258 | -4,754 | -267 |
Recoveries | 38 | 46 | 230 | 436 |
Provision | 493 | 520 | 1,756 | 889 |
Allowance, Ending Balance | 6,639 | 9,253 | 6,639 | 9,253 |
Commercial Construction and Development [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 277 | 164 | 224 | 95 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 164 | 54 | 217 | 123 |
Allowance, Ending Balance | 441 | 218 | 441 | 218 |
Commercial Other [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 5,442 | 6,239 | 5,996 | 6,200 |
Charge-offs | -81 | -15 | -259 | -925 |
Recoveries | 83 | 37 | 127 | 74 |
Provision | 126 | 245 | -294 | 1,157 |
Allowance, Ending Balance | 5,570 | 6,506 | 5,570 | 6,506 |
Commercial Segment [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 12,467 | 15,348 | 15,627 | 14,490 |
Charge-offs | -721 | -273 | -5,013 | -1,192 |
Recoveries | 121 | 83 | 357 | 510 |
Provision | 783 | 819 | 1,679 | 2,169 |
Allowance, Ending Balance | 12,650 | 15,977 | 12,650 | 15,977 |
Residential Segment [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 4,691 | 4,713 | 4,269 | 4,694 |
Charge-offs | 0 | -65 | -48 | -315 |
Recoveries | 0 | 24 | 3 | 97 |
Provision | -11 | -408 | 456 | -212 |
Allowance, Ending Balance | 4,680 | 4,264 | 4,680 | 4,264 |
Consumer Segment [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 2,455 | 2,381 | 2,684 | 2,452 |
Charge-offs | -49 | -86 | -258 | -294 |
Recoveries | 73 | 21 | 94 | 44 |
Provision | 16 | 323 | -25 | 437 |
Allowance, Ending Balance | 2,495 | 2,639 | 2,495 | 2,639 |
Unallocated [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Allowance, Beginning Balance | 8,271 | 8,006 | 8,293 | 8,166 |
Charge-offs | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' |
Provision | -88 | -134 | -110 | -294 |
Allowance, Ending Balance | $8,183 | $7,872 | $8,183 | $7,872 |
Allowance_for_Loan_Losses_Allo1
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | $39,704 | $35,547 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,013 | 2,880 | ||
Financing Receivable, Collectively Evaluated for Impairment | 2,314,062 | 2,258,456 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 17,812 | 19,700 | ||
Total loans | 2,353,766 | [1] | 2,294,003 | [1] |
Financing Receivable, Allowance for Credit Losses | 28,008 | 30,873 | ||
Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 32,849 | 20,250 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,110 | 1,720 | ||
Financing Receivable, Collectively Evaluated for Impairment | 694,526 | 690,563 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,529 | 7,687 | ||
Total loans | 727,375 | 710,813 | ||
Commercial Construction and Development [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 51,951 | 27,842 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 441 | 224 | ||
Total loans | 51,951 | 27,842 | ||
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 2,822 | 10,989 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 331 | 694 | ||
Financing Receivable, Collectively Evaluated for Impairment | 515,744 | 502,775 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,239 | 5,302 | ||
Total loans | 518,566 | 513,764 | ||
Residential Segment [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 3,674 | 3,868 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 569 | 463 | ||
Financing Receivable, Collectively Evaluated for Impairment | 728,018 | 713,813 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,111 | 3,806 | ||
Consumer Segment [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 359 | 440 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 3 | 3 | ||
Financing Receivable, Collectively Evaluated for Impairment | 323,823 | 323,463 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,492 | 2,681 | ||
Unallocated [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total loans | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses | $8,183 | $8,293 | ||
[1] | Includes net unamortized loan origination costs of $531 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $83 thousand, respectively, at September 30, 2013 and December 31, 2012. |
Time_Certificates_of_Deposit_S
Time Certificates of Deposit (Schedule of Time Certifcates of Deposit Maturities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Time deposits amounts scheduled to mature through the end of the current year | $257,253 | ' |
Time deposits weighted average rate for maturities through the end of the current year | 0.62% | ' |
Time deposits amounts scheduled to mature in year two | 268,853 | ' |
Time deposits weighted average rate for maturities in year two | 1.18% | ' |
Time deposits amounts scheduled to mature in year three | 136,786 | ' |
Time deposits weighted average rate for maturities in year three | 1.89% | ' |
Time deposits amounts scheduled to mature in year four | 82,690 | ' |
Time deposits weighted average rate for maturities in year four | 1.62% | ' |
Time deposits amounts scheduled to mature in year five | 39,730 | ' |
Time deposits weighted average rate for maturities in year five | 1.57% | ' |
Time deposits amounts schedule to mature after year five | 31,798 | ' |
Time deposits weighted average rate for maturities after year five | 1.28% | ' |
Time deposits | $817,110 | $870,232 |
Time_Certificates_of_Deposit_S1
Time Certificates of Deposit (Schedule of Time Certificates of Deposit $100 Thousand or More Maturities) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Deposits [Abstract] | ' |
Time deposits $100,000 or more scheduled to mature within 3 months | $185,221 |
Time deposits $100,000 or more scheduled to mature 3 to 6 months | 36,355 |
Time deposits $100,000 or more scheduled to mature 6 to 12 months | 42,703 |
Time deposits $100,000 or more scheduled to mature one year and beyond | 119,867 |
Time Deposits, $100,000 or More | $384,146 |
Borrowings_Narrative_Federal_H
Borrowings (Narrative Federal Home Loan Bank Advances) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Federal Home Loan Bank advances | $288,485,000 | $361,172,000 |
Unused line of credit with FHLB | 8,000,000 | ' |
Federal Home Loan Bank of Boston [Member] | ' | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Federal Home Loan Bank advances | 288,485,000 | 361,172,000 |
Remaining available borrowing capacity at FHLB | $604,700,000 | $536,200,000 |
Borrowings_Narrative_Redemptio
Borrowings (Narrative Redemption of Junior Subordinated Debentures) (Details) (USD $) | 9 Months Ended | 60 Months Ended | |
Sep. 30, 2013 | Jun. 17, 2013 | Apr. 07, 2008 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||
Private Placement [Member] | Private Placement [Member] | ||
Capital Securities [Member] | Capital Securities [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' | ' |
Basis spread on variable rate | ' | 3.50% | ' |
Description of variable rate basis | ' | 'three-month LIBOR | ' |
Amount of capital securities issued | ' | ' | $10,000,000 |
Unamortized debt issuance costs | $244,000 | ' | ' |
Borrowings_Federal_Home_Loan_B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Federal Home Loan Bank advances | $288,485 | $361,172 |
Federal Home Loan Bank of Boston [Member] | ' | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Scheduled maturity due in year one | 403 | 48,630 |
Redeemed at call date due in year one | 403 | 48,630 |
Weighted average rate in year one | 5.01% | 0.81% |
Scheduled maturity due in year two | 2,519 | 2,519 |
Redeemed at call date due from one to two years | 2,519 | 2,519 |
Weigted average rate from one to two years | 3.54% | 3.54% |
Scheduled maturity due in year three | 1,569 | 79,069 |
Redeemed at call date due from two to thee years | 1,569 | 79,069 |
Weighted average rate from two to three years | 4.89% | 3.63% |
Scheduled maturity due in year four | 85,066 | 85,066 |
Redeemed at call date due from three to four years | 85,066 | 85,066 |
Weighted average rate from three to four years | 3.05% | 3.05% |
Scheduled maturities due in year five | 70,875 | 80,335 |
Redeemed at call date due from four to five years | 70,875 | 80,335 |
Weighted average rate from four to five years | 3.04% | 2.94% |
Scheduled maturity due after year five | 128,053 | 65,553 |
Redeemed at call date due after five years | 128,053 | 65,553 |
Weighted average rate after five years | 3.88% | 4.58% |
Federal Home Loan Bank advances | 288,485 | 361,172 |
Total redemption at call date | $288,485 | $361,172 |
Total weighted average rate | 3.43% | 3.13% |
Shareholders_Equity_Regulatory
Shareholders' Equity (Regulatory Captial Requirements) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Corporation [Member] | ' | ' | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ||
Total Capital | $313,239 | $304,716 | ||
Total Capital to Risk-Weighted Assets | 13.44% | 13.26% | ||
Total Capital for Capital Adequacy Purposes | 186,384 | 183,876 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 232,980 | 229,845 | ||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||
Tier 1 Capital | 284,935 | 275,956 | ||
Tier 1 Capital to Risk Weighted-Assets | 12.23% | 12.01% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 93,192 | 91,938 | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 4.00% | 4.00% | ||
Tier 1 Capital Required To Be Well Capitalized | 139,788 | 137,907 | ||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||
Tier 1 Leverage Capital | 284,935 | [1] | 275,956 | [1] |
Tier 1 Leverage Capital to Average Assets | 9.41% | [1] | 9.30% | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 121,182 | [1] | 118,733 | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | [1] | 4.00% | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized | 151,478 | [1] | 148,417 | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] |
Bank [Member] | ' | ' | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ||
Total Capital | 308,816 | 299,503 | ||
Total Capital to Risk-Weighted Assets | 13.27% | 13.05% | ||
Total Capital for Capital Adequacy Purposes | 186,227 | 183,651 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 232,784 | 229,564 | ||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||
Tier 1 Capital | 280,512 | 270,778 | ||
Tier 1 Capital to Risk Weighted-Assets | 12.05% | 11.80% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 93,114 | 91,826 | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 4.00% | 4.00% | ||
Tier 1 Capital Required To Be Well Capitalized | 139,670 | 137,738 | ||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||
Tier 1 Leverage Capital | 280,512 | [1] | 270,778 | [1] |
Tier 1 Leverage Capital to Average Assets | 9.27% | [1] | 9.14% | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 121,013 | [1] | 118,535 | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | [1] | 4.00% | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized | $151,267 | [1] | $148,169 | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] |
[1] | Leverage ratio |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
derivative_instrument | derivative_instrument | |
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Number of Instruments Held | 2 | 3 |
Derivative asset notional amount | $23,000,000 | $33,000,000 |
Pledged collateral to derivative counterparties | 1,700,000 | 2,000,000 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset notional amount | 64,898,000 | 70,493,000 |
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset notional amount | $64,898,000 | $70,493,000 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $3,273 | $6,364 |
Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 4,683 | 9,762 |
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 0 | 0 |
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 1,125 | 1,619 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 867 | 2,513 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 0 | 0 |
Commitments to sell fixed rate mortgage loans [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 1 | 0 |
Commitments to sell fixed rate mortgage loans [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 1,135 | 4,191 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 178 | 0 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 2,195 | 3,851 |
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 210 | 0 |
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | $2,245 | $3,952 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships, Effect in Statements of Income and Changes in Shareholders' Equity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | $0 | $0 | $0 | $0 |
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 44 | -14 | 316 | 5 |
Interest rate swap contracts [Member] | Cash Flow Hedge [Member] | Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | 0 | 0 | 0 | 0 |
Interest rate swap contracts [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $44 | ($14) | $316 | $5 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | $0 | $0 | $0 | $0 |
Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | -486 | -787 | 1,636 | -869 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | 127 | 1,810 | -1,646 | 3,009 |
Commitments to sell fixed rate mortgage loans [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | -667 | -2,660 | 3,057 | -3,965 |
Interest rate swaps with customers [Member] | Net gains (losses) on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | 306 | 340 | -105 | 949 |
Mirror swaps with counterparties [Member] | Net gains (losses) on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in Income | ($252) | ($277) | $330 | ($862) |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (Nonrecurring [Member], Level 3 [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Allowance For Loan Loss Allocation on Collateral Dependent Impaired Loans | $633 | $2,000 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale Disclosures) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Mortgage loans held for sale, amortized cost | $12,772 | $48,370 |
Mortgage loans held for sale, at fair value | 13,105 | 50,056 |
Mortgage Loans Held for Sale Difference between Fair Value and Principal Amount | $333 | $1,700 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Commitments to Originate And Commitments to Sell Changes in Fair Value Disclosures) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' |
Mortgage loans held for sale | $606 | $850 | ($1,353) | $956 |
Commitments to originate | 127 | 1,810 | -1,646 | 3,009 |
Commitments to sell | -667 | -2,660 | 3,057 | -3,965 |
Total change in fair value | $66 | $0 | $58 | $0 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | $388,085 | $375,498 | ||
Recurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Mortgage loans held for sale | 13,105 | 50,056 | ||
Total assets at fair value on a recurring basis | 404,463 | 431,918 | ||
Total liabilities at fair value on a recurring basis | 4,683 | 9,762 | ||
Recurring [Member] | Interest rate swaps with customers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 2,405 | [1] | 3,851 | [1] |
Derivative liabilities | 2,423 | [1] | 3,952 | [1] |
Recurring [Member] | Interest rate swap contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 1,125 | [1] | 1,619 | [1] |
Recurring [Member] | Forward Loan Commitments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 868 | [1] | 2,513 | [1] |
Recurring [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 1,135 | [1] | 4,191 | [1] |
Recurring [Member] | Obligations of U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 55,669 | 31,670 | ||
Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 228,505 | 231,233 | ||
Recurring [Member] | States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 67,340 | 72,620 | ||
Recurring [Member] | Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 24,775 | 24,751 | ||
Recurring [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 425 | 843 | ||
Recurring [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 11,371 | 14,381 | ||
Recurring [Member] | Level 1 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Mortgage loans held for sale | 0 | 0 | ||
Total assets at fair value on a recurring basis | 0 | 0 | ||
Total liabilities at fair value on a recurring basis | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Interest rate swaps with customers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 0 | [1] | 0 | [1] |
Derivative liabilities | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 1 [Member] | Interest rate swap contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 1 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 1 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 1 [Member] | Obligations of U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Mortgage loans held for sale | 13,105 | 40,243 | ||
Total assets at fair value on a recurring basis | 404,038 | 421,218 | ||
Total liabilities at fair value on a recurring basis | 4,683 | 9,576 | ||
Recurring [Member] | Level 2 [Member] | Interest rate swaps with customers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 2,405 | [1] | 3,851 | [1] |
Derivative liabilities | 2,423 | [1] | 3,952 | [1] |
Recurring [Member] | Level 2 [Member] | Interest rate swap contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 1,125 | [1] | 1,619 | [1] |
Recurring [Member] | Level 2 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 868 | [1] | 2,469 | [1] |
Recurring [Member] | Level 2 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 1,135 | [1] | 4,005 | [1] |
Recurring [Member] | Level 2 [Member] | Obligations of U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 55,669 | 31,670 | ||
Recurring [Member] | Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 228,505 | 231,233 | ||
Recurring [Member] | Level 2 [Member] | States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 67,340 | 72,620 | ||
Recurring [Member] | Level 2 [Member] | Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 24,775 | 24,751 | ||
Recurring [Member] | Level 2 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 11,371 | 14,381 | ||
Recurring [Member] | Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Mortgage loans held for sale | 0 | 9,813 | ||
Total assets at fair value on a recurring basis | 425 | 10,700 | ||
Total liabilities at fair value on a recurring basis | 0 | 186 | ||
Recurring [Member] | Level 3 [Member] | Interest rate swaps with customers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 0 | [1] | 0 | [1] |
Derivative liabilities | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 3 [Member] | Interest rate swap contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 0 | [1] | 0 | [1] |
Recurring [Member] | Level 3 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 0 | [1] | 44 | [1] |
Recurring [Member] | Level 3 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 0 | [1] | 186 | [1] |
Recurring [Member] | Level 3 [Member] | Obligations of U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | 425 | 843 | ||
Recurring [Member] | Level 3 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities available for sale | $0 | $0 | ||
[1] | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | $767 | $10,514 | $887 | ||||
Gains and losses (realized and unrealized): included in earnings | ' | 0 | [1] | -2,780 | [1] | -209 | [1] | |
Gains and losses (realized and unrealized): Included in other comprehensive income | ' | 163 | 2,487 | 252 | ||||
Purchases | ' | 0 | ' | 0 | ||||
Purchases | ' | ' | 0 | ' | ||||
Issuances | ' | 4,178 | ' | ' | ||||
Issuances | ' | ' | 12,692 | 4,178 | ||||
Sales | ' | 0 | ' | 0 | ||||
Sales | ' | ' | -22,355 | ' | ||||
Settlements | ' | 0 | ' | 0 | ||||
Settlements | ' | ' | -133 | ' | ||||
Transfers into level 3 | ' | 0 | ' | 0 | ||||
Transfers into level 3 | ' | ' | 0 | ' | ||||
Transfers out of Level 3 | ' | 0 | ' | ' | ||||
Transfers out of Level 3 | ' | ' | 0 | 0 | ||||
Balance at end of period | 425 | 5,108 | 425 | 5,108 | ||||
Securities Available for Sale [Member] | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | 397 | [2] | 767 | [2] | 843 | [2] | 887 | [2] |
Gains and losses (realized and unrealized): Included in earnings | 0 | [1],[2] | 0 | [1],[2] | -2,772 | [1],[2] | -209 | [1],[2] |
Gains and losses (realized and unrealized): Included in other comprehensive income | 28 | [2] | 163 | [2] | 2,487 | [2] | 252 | [2] |
Purchases | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Issuances | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Sales | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Settlements | 0 | [2] | 0 | [2] | -133 | [2] | 0 | [2] |
Transfers into level 3 | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Transfers out of Level 3 | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Balance at end of period | 425 | [2] | 930 | [2] | 425 | [2] | 930 | [2] |
Mortgage loans held for sale [Member] | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | 0 | [3] | 9,813 | [3] | 0 | [3] | |
Gains and losses (realized and unrealized): Included in earnings | ' | 55 | [1],[3] | -150 | [1],[3] | 0 | [1],[3] | |
Gains and losses (realized and unrealized): Included in other comprehensive income | ' | 0 | [3] | 0 | [3] | 0 | [3] | |
Purchases | ' | 0 | [3] | 0 | [3] | 0 | [3] | |
Issuances | ' | 4,178 | [3] | 12,692 | [3] | 4,233 | [3] | |
Sales | ' | 0 | [3] | -22,355 | [3] | 0 | [3] | |
Settlements | ' | 0 | [3] | 0 | [3] | 0 | [3] | |
Transfers into level 3 | ' | 0 | [3] | 0 | [3] | 0 | [3] | |
Transfers out of Level 3 | ' | 0 | [3] | 0 | [3] | 0 | [3] | |
Balance at end of period | 0 | [3] | 4,233 | [3] | 0 | [3] | 4,233 | [3] |
Derivative Assets / Liabilities [Member] | ' | ' | ' | ' | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ||||
Balance at beginning of period | ' | 0 | [4] | -142 | [4] | 0 | [4] | |
Gains and losses (realized and unrealized): included in earnings | ' | -55 | [1],[4] | 142 | [1],[4] | 0 | [1],[4] | |
Gains and losses (realized and unrealized): Included in other comprehensive income | ' | 0 | [4] | 0 | [4] | 0 | [4] | |
Purchases | ' | 0 | [4] | ' | 0 | [4] | ||
Purchases | ' | ' | 0 | [4] | ' | |||
Issuances | ' | 0 | [4] | ' | ' | |||
Issuances | ' | ' | 0 | [4] | -55 | [4] | ||
Sales | ' | 0 | [4] | ' | 0 | [4] | ||
Sales | ' | ' | 0 | [4] | ' | |||
Settlements | ' | 0 | [4] | ' | 0 | [4] | ||
Settlements | ' | ' | 0 | [4] | ' | |||
Transfers into level 3 | ' | 0 | [4] | ' | 0 | [4] | ||
Transfers into level 3 | ' | ' | 0 | [4] | ' | |||
Transfers out of Level 3 | ' | 0 | [4] | ' | ' | |||
Transfers out of Level 3 | ' | ' | 0 | [4] | 0 | [4] | ||
Balance at end of period | $0 | [4] | ($55) | [4] | $0 | [4] | ($55) | [4] |
[1] | Losses included in earnings for Level 3 securities available for sale were included in net impairment losses recognized in earnings in the Consolidated Income Statement. Losses included in earnings for Level 3 mortgage loans held for sale and derivative assets and liabilities were included in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | |||||||
[2] | During the periods indicated, Level 3 securities available for sale were comprised of pooled trust preferred debt securities in the form of collateralized debt obligations. | |||||||
[3] | During the periods indicated, Level 3 mortgage loans held for sale consisted of certain mortgage loans whose fair value was determined utilizing a discounted cash flow analysis. | |||||||
[4] | During the periods indicated, Level 3 derivative assets / liabilities consisted of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential real estate mortgages) whose fair value was determined utilizing a discounted cash flow analysis. |
Fair_Value_Measurements_Quanti
Fair Value Measurements (Quantitative Information About Level 3 Assets Measured at Fair Value on a Recurring Basis) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Securities available for sale | 388,085 | 375,498 |
Recurring [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Mortgage loans held for sale | 13,105 | 50,056 |
Recurring [Member] | Level 3 [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Mortgage loans held for sale | 0 | 9,813 |
Recurring [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Derivative liabilities | ' | -186 |
Recurring [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Securities available for sale | 425 | 843 |
Recurring [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Mortgage loans held for sale [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Mortgage loans held for sale | ' | 9,813 |
Recurring [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Derivative Assets | ' | 44 |
Recurring [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.25% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Discount Rate | 17.00% | 16.75% |
Cummulative Default Percentage | 2.90% | 3.30% |
Loss Given Default Percentage | 85.00% | 85.00% |
Recurring [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Mortgage loans held for sale [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 2.88% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.25% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.88% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Discount Rate | 17.00% | 16.75% |
Cummulative Default Percentage | 100.00% | 100.00% |
Loss Given Default Percentage | 100.00% | 100.00% |
Recurring [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Mortgage loans held for sale [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 4.95% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.88% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.69% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Discount Rate | 17.00% | 16.75% |
Cummulative Default Percentage | 18.20% | 25.70% |
Loss Given Default Percentage | 91.40% | 90.90% |
Recurring [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Mortgage loans held for sale [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.71% |
Credit Risk Adjustment | ' | 0.25% |
Recurring [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | Forward Loan Commitments, Assets [Member] | ' | ' |
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' |
Interest Rate | ' | 3.56% |
Credit Risk Adjustment | ' | 0.25% |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) (Nonrecurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | $12,475 | $9,550 |
Property acquired through foreclosure or repossession | 416 | 1,073 |
Total sssets at fair value on a nonrecurring basis | 12,891 | 10,623 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | 0 | 0 |
Property acquired through foreclosure or repossession | 0 | 0 |
Total sssets at fair value on a nonrecurring basis | 0 | 0 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | 0 | 0 |
Property acquired through foreclosure or repossession | 0 | 0 |
Total sssets at fair value on a nonrecurring basis | 0 | 0 |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | 12,475 | 9,550 |
Property acquired through foreclosure or repossession | 416 | 1,073 |
Total sssets at fair value on a nonrecurring basis | $12,891 | $10,623 |
Fair_Value_Measurements_Quanti1
Fair Value Measurements (Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) (Nonrecurring [Member], USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 12,475 | 9,550 | ||
Property acquired through foreclosure or repossession | 416 | 1,073 | ||
Level 3 [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 12,475 | 9,550 | ||
Property acquired through foreclosure or repossession | 416 | 1,073 | ||
Appraisals Of Collateral [Member] | Minimum [Member] | Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 1.00% | 0.00% | ||
Appraisal Adjustments | 0.00% | [1] | 0.00% | [1] |
Appraisals Of Collateral [Member] | Minimum [Member] | Level 3 [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 2.00% | 0.00% | ||
Appraisal Adjustments | 6.00% | [1] | 15.00% | [1] |
Appraisals Of Collateral [Member] | Maximum [Member] | Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 25.00% | 50.00% | ||
Appraisal Adjustments | 45.00% | [1] | 27.00% | [1] |
Appraisals Of Collateral [Member] | Maximum [Member] | Level 3 [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 10.00% | 10.00% | ||
Appraisal Adjustments | 22.00% | [1] | 34.00% | [1] |
Appraisals Of Collateral [Member] | Weighted Average [Member] | Level 3 [Member] | Collateral Dependent Impaired Loans [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 10.00% | 11.00% | ||
Appraisal Adjustments | 2.00% | [1] | 18.00% | [1] |
Appraisals Of Collateral [Member] | Weighted Average [Member] | Level 3 [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 9.00% | 5.00% | ||
Appraisal Adjustments | 13.00% | [1] | 21.00% | [1] |
[1] | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | $31,264 | $40,381 | ||
Loans, net of allowance of loan losses | 2,325,758 | 2,263,130 | ||
Time deposits | 817,110 | 870,232 | ||
Federal Home Loan Bank advances | 288,485 | 361,172 | ||
Junior subordinated debentures | 22,681 | 32,991 | ||
Loan servicing rights reserve | 130 | 165 | ||
Carrying Amount [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | 31,264 | 40,381 | ||
Loans, net of allowance of loan losses | 2,325,758 | 2,263,130 | ||
Loan servicing rights | 2,479 | [1] | 1,110 | [2] |
Time deposits | 817,110 | 870,232 | ||
Federal Home Loan Bank advances | 288,485 | 361,172 | ||
Junior subordinated debentures | 22,681 | 32,991 | ||
Estimated Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | 31,962 | 41,420 | ||
Loans, net of allowance of loan losses | 2,391,266 | 2,350,153 | ||
Loan servicing rights | 2,609 | [1] | 1,275 | [2] |
Time deposits | 824,264 | 879,705 | ||
Federal Home Loan Bank advances | 310,158 | 392,805 | ||
Junior subordinated debentures | 15,189 | 23,371 | ||
Level 1 [Member] | Estimated Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | 0 | 0 | ||
Loans, net of allowance of loan losses | 0 | 0 | ||
Loan servicing rights | 0 | [1] | 0 | [2] |
Time deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Junior subordinated debentures | 0 | 0 | ||
Level 2 [Member] | Estimated Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | 31,962 | 41,420 | ||
Loans, net of allowance of loan losses | 0 | 0 | ||
Loan servicing rights | 0 | [1] | 0 | [2] |
Time deposits | 824,264 | 879,705 | ||
Federal Home Loan Bank advances | 310,158 | 392,805 | ||
Junior subordinated debentures | 15,189 | 23,371 | ||
Level 3 [Member] | Estimated Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Held to maturity securities | 0 | 0 | ||
Loans, net of allowance of loan losses | 2,391,266 | 2,350,153 | ||
Loan servicing rights | 2,609 | [1] | 1,275 | [2] |
Time deposits | 0 | 0 | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Junior subordinated debentures | $0 | $0 | ||
[1] | The carrying value of loan servicing rights is net of $130 thousand in reserves as of September 30, 2013. The estimated fair value does not include such adjustment. | |||
[2] | The carrying value of loan servicing rights is net of $165 thousand in reserves as of December 31, 2012. The estimated fair value does not include such adjustment. |
Defined_Benefit_Pension_Plans_2
Defined Benefit Pension Plans (Narrative) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' |
Defined Benefit Pension Plan Amendment, Pension Liability Reduction | $17.50 |
Defined Benefit Pension Plan Amendment, Accumulated Other Comprehensive Income Increase | $11.20 |
Defined_Benefit_Pension_Plans_3
Defined Benefit Pension Plans (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Qualified Pension Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service Cost | $710 | $644 | $2,171 | $1,931 |
Interest Cost | 722 | 705 | 2,160 | 2,117 |
Expected Return on Plan Assets | -931 | -746 | -2,780 | -2,239 |
Amortization of Prior Service Cost | 17 | -8 | 0 | -25 |
Recognized Net Actuarial Loss | 354 | 246 | 1,182 | 737 |
Defined Benefit Plan, Curtailments | -61 | 0 | -61 | 0 |
Net Periodic Benefit Cost | 811 | 841 | 2,672 | 2,521 |
Non-Qualified Retirement Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service Cost | 48 | 38 | 147 | 113 |
Interest Cost | 116 | 126 | 346 | 378 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service Cost | 0 | -1 | 0 | -1 |
Recognized Net Actuarial Loss | 47 | 29 | 145 | 88 |
Defined Benefit Plan, Curtailments | -2 | 0 | -2 | 0 |
Net Periodic Benefit Cost | $209 | $192 | $636 | $578 |
ShareBased_Compensation_Arrang2
Share-Based Compensation Arrangements (Narrative) (Details) (2013 Stock Option and Incentive Plan [Member]) | Apr. 23, 2013 |
2013 Stock Option and Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Maximum Number of Shares Authorized | 1,748,250 |
ShareBased_Compensation_Arrang3
Share-Based Compensation Arrangements (Nonvested Share Units) (Details) (2013 Stock Option and Incentive Plan [Member], Time Based Nonvested Shares [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
2013 Stock Option and Incentive Plan [Member] | Time Based Nonvested Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Equity Instruments Other than Options Granted | 12,000 |
Grant Date Fair Value | $26.79 |
Award Vesting Period | '3 years |
ShareBased_Compensation_Arrang4
Share-Based Compensation Arrangements (Nonvested Performance Shares) (Details) (Amended and Restated Two Thousand Three Stock Incentive Plan [Member], Performance Based Nonvested Shares [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Date Fair Value | $26.05 |
Equity Instruments Other than Options Minimum Shares Earned | 0 |
Equity Instruments Other than Options Maximum Shares Earned | 60,300 |
Award Vesting Period | '3 years |
Equity Instruments Other than Options Shares Vesting Percentage | 150.00% |
Equity Instruments Other than Options Granted | 45,225 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Equity Instruments Other than Options Shares Earned to Target Percentage Minimum | 0.00% |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Equity Instruments Other than Options Shares Earned to Target Percentage Maximum | 200.00% |
Business_Segments_Statement_of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | $23,388 | $22,736 | $68,264 | $67,532 | ' |
Noninterest income | 17,400 | 16,921 | 46,960 | 47,327 | ' |
Total income | 40,788 | 39,657 | 115,224 | 114,859 | ' |
Provision for loan losses | 700 | 600 | 2,000 | 2,100 | ' |
Depreciation and amortization | 982 | 968 | 3,005 | 2,925 | ' |
Other Noninterest Expenses Related to Segments | 24,566 | 25,322 | 71,732 | 71,992 | ' |
Total noninterest expense | 25,548 | 26,290 | 74,737 | 74,917 | ' |
Income before income taxes | 14,540 | 12,767 | 38,487 | 37,842 | ' |
Income tax expense | 4,580 | 3,867 | 12,123 | 11,791 | ' |
Net income | 9,960 | 8,900 | 26,364 | 26,051 | ' |
Total assets | 3,131,958 | 3,048,868 | 3,131,958 | 3,048,868 | 3,071,884 |
Expenditures for long-lived assets | 341 | 1,060 | 1,178 | 4,513 | ' |
Commercial Banking [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | 20,364 | 19,946 | 59,606 | 59,126 | ' |
Noninterest income | 8,302 | 8,683 | 24,239 | 22,970 | ' |
Total income | 28,666 | 28,629 | 83,845 | 82,096 | ' |
Provision for loan losses | 700 | 600 | 2,000 | 2,100 | ' |
Depreciation and amortization | 614 | 588 | 1,876 | 1,792 | ' |
Other Noninterest Expenses Related to Segments | 15,840 | 16,538 | 47,244 | 47,162 | ' |
Total noninterest expense | 16,454 | 17,126 | 49,120 | 48,954 | ' |
Income before income taxes | 11,512 | 10,903 | 32,725 | 31,042 | ' |
Income tax expense | 3,875 | 3,751 | 11,421 | 10,665 | ' |
Net income | 7,637 | 7,152 | 21,304 | 20,377 | ' |
Total assets | 2,460,150 | 2,384,219 | 2,460,150 | 2,384,219 | ' |
Expenditures for long-lived assets | 277 | 935 | 1,014 | 3,609 | ' |
Wealth Management Services [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | -4 | 0 | 5 | 1 | ' |
Noninterest income | 7,629 | 7,193 | 23,015 | 21,850 | ' |
Total income | 7,625 | 7,193 | 23,020 | 21,851 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 316 | 325 | 968 | 958 | ' |
Other Noninterest Expenses Related to Segments | 4,944 | 4,850 | 15,078 | 14,649 | ' |
Total noninterest expense | 5,260 | 5,175 | 16,046 | 15,607 | ' |
Income before income taxes | 2,365 | 2,018 | 6,974 | 6,244 | ' |
Income tax expense | 876 | 755 | 2,635 | 2,332 | ' |
Net income | 1,489 | 1,263 | 4,339 | 3,912 | ' |
Total assets | 50,297 | 51,525 | 50,297 | 51,525 | ' |
Expenditures for long-lived assets | 39 | 72 | 93 | 785 | ' |
Corporate Segment [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net interest income | 3,028 | 2,790 | 8,653 | 8,405 | ' |
Noninterest income | 1,469 | 1,045 | -294 | 2,507 | ' |
Total income | 4,497 | 3,835 | 8,359 | 10,912 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 52 | 55 | 161 | 175 | ' |
Other Noninterest Expenses Related to Segments | 3,782 | 3,934 | 9,410 | 10,181 | ' |
Total noninterest expense | 3,834 | 3,989 | 9,571 | 10,356 | ' |
Income before income taxes | 663 | -154 | -1,212 | 556 | ' |
Income tax expense | -171 | -639 | -1,933 | -1,206 | ' |
Net income | 834 | 485 | 721 | 1,762 | ' |
Total assets | 621,511 | 613,124 | 621,511 | 613,124 | ' |
Expenditures for long-lived assets | $25 | $53 | $71 | $119 | ' |
Other_Comprehensive_Income_Act
Other Comprehensive Income (Activity in Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' | ' | ||||
Changes in fair value of securities available for sale, before tax | ($202) | ($339) | ($7,771) | ($1,032) | ||||
Changes in fair value of securities available for sale, tax | -73 | -121 | -2,768 | -356 | ||||
Changes in fair value in securities available for sale | -129 | -218 | -5,003 | -676 | ||||
Net losses (gains) on securities reclassified into earnings, before tax | 0 | [1] | 0 | [1] | 613 | [1] | -214 | [1] |
Net losses (gains) on securities reclassified into earnings, tax | 0 | [1] | 0 | [1] | 220 | [1] | -76 | [1] |
Net losses (gains) on securities reclassified into earnings | 0 | [1] | 0 | [1] | 393 | [1] | -138 | [1] |
Net change in fair value of securities available for sale, before tax | -202 | -339 | -7,158 | -1,246 | ||||
Net change in fair value of securities available for sale, tax | -73 | -121 | -2,548 | -432 | ||||
Net change in fair value of securities available for sale | -129 | -218 | -4,610 | -814 | ||||
Reclassification adjustment for other-than-temporary impariment losses transferred into earnings, before tax | 0 | [2] | 0 | [2] | 2,159 | [2] | 124 | [2] |
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings, tax | 0 | [2] | 0 | [2] | 775 | [2] | 44 | [2] |
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 0 | [2] | 0 | [2] | 1,384 | [2] | 80 | [2] |
Change in fair value of cash flow hedges, before tax | -72 | -198 | -27 | -518 | ||||
Change in fair value of cash flow hedges, tax | -25 | -71 | -12 | -187 | ||||
Change in fair value of cash flow hedges | -47 | -127 | -15 | -331 | ||||
Net cash flow hedge losses reclassified into earnings, before tax | 141 | [3] | 176 | [3] | 515 | [3] | 523 | [3] |
Net cash flow hedge losses reclassified into earnings, tax | 50 | [3] | 63 | [3] | 184 | [3] | 187 | [3] |
Net cash flow hedge losses reclassified into earnings | 91 | [3] | 113 | [3] | 331 | [3] | 336 | [3] |
Net change in fair value of cash flow hedges, before tax | 69 | -22 | 488 | 5 | ||||
Net change in fair value of cash flow hedges, tax | 25 | -8 | 172 | 0 | ||||
Net change in fair value of cash flow hedges | 44 | -14 | 316 | 5 | ||||
Defined benefit plan obligation adjustment, before tax | 17,842 | [4] | 266 | [4] | 18,751 | [4] | 799 | [4] |
Defined benefit plan obligation adjustment, tax | 6,402 | [4] | 95 | [4] | 6,682 | [4] | 272 | [4] |
Defined benefit plan obligation adjustment, net of tax | 11,440 | [4] | 171 | [4] | 12,069 | [4] | 527 | [4] |
Total other comprehensive (loss) income, before tax | 17,709 | -95 | 14,240 | -318 | ||||
Total other comprehensive (loss) income, tax | 6,354 | -34 | 5,081 | -116 | ||||
Total other comprehensive (loss) income, net of tax | $11,355 | ($61) | $9,159 | ($202) | ||||
[1] | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statement of Income. | |||||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statement of Income. | |||||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statement of Income. | |||||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statement of Income. See Note 12 and the Annual Report on Form 10-K for fiscal year 2012 for additional information. |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accumulated other comprehensive income, beginning balance | ' | ' | ($10,499) | ($1,895) | |
Other Comprehensive Income Before Reclassifcations | ' | ' | -5,018 | ' | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | ' | 14,177 | ' | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 11,355 | -61 | 9,159 | -202 | |
Accumulated other comprehensive income, ending balance | -1,340 | -2,097 | -1,340 | -2,097 | |
Net Unrealized Gains on AFS Securities [Member] | ' | ' | ' | ' | |
Accumulated other comprehensive income, beginning balance | ' | ' | 9,711 | 13,143 | |
Other Comprehensive Income Before Reclassifcations | ' | ' | -5,003 | ' | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | ' | 393 | [1] | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | ' | -4,610 | -814 | |
Accumulated other comprehensive income, ending balance | 5,101 | 12,329 | 5,101 | 12,329 | |
Noncredit-related Impairment [Member] | ' | ' | ' | ' | |
Accumulated other comprehensive income, beginning balance | ' | ' | -1,938 | -2,062 | |
Other Comprehensive Income Before Reclassifcations | ' | ' | 0 | ' | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | ' | 1,384 | ' | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | ' | 1,384 | 80 | |
Accumulated other comprehensive income, ending balance | -554 | -1,982 | -554 | -1,982 | |
Net Unrealized Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | |
Accumulated other comprehensive income, beginning balance | ' | ' | -1,006 | -1,127 | |
Other Comprehensive Income Before Reclassifcations | ' | ' | -15 | ' | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | ' | 331 | ' | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | ' | 316 | 5 | |
Accumulated other comprehensive income, ending balance | -690 | -1,122 | -690 | -1,122 | |
Pension Benefit Adjustment [Member] | ' | ' | ' | ' | |
Accumulated other comprehensive income, beginning balance | ' | ' | -17,266 | -11,849 | |
Other Comprehensive Income Before Reclassifcations | ' | ' | 0 | ' | |
Amounts Reclassified From Accumulated Other Comprehensive Income | ' | ' | 12,069 | ' | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | ' | 12,069 | 527 | |
Accumulated other comprehensive income, ending balance | ($5,197) | ($11,322) | ($5,197) | ($11,322) | |
[1] | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statement of Income. |
Earnings_Per_Common_Share_Calc
Earnings Per Common Share (Calculation of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $9,960 | $8,900 | $26,364 | $26,051 |
Dividends and undistributed earnings allocated to participating securities | -37 | -42 | -115 | -116 |
Net income applicable to common shareholders | $9,923 | $8,858 | $26,249 | $25,935 |
Weighted average common shares outstanding - basic | 16,563 | 16,366 | 16,473 | 16,351 |
Dilutive effect of common stock equivalents | 133 | 48 | 127 | 41 |
Weighted average common shares outstanding - diluted | 16,696 | 16,414 | 16,600 | 16,392 |
Basic earnings per common share | $0.60 | $0.54 | $1.59 | $1.59 |
Diluted earnings per common share | $0.59 | $0.54 | $1.58 | $1.58 |
Antidilutive common stock equivalents | 0 | 400 | 7 | 342 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Reserve For Loan Repurchases | $250 | ' | $250 | ' | $250 |
Operating leases rental expense | 699 | 690 | 2,000 | 2,100 | ' |
Unpaid Principal Balance of Loans Repurchased | $683 | ' | $683 | ' | $843 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to originate fixed rate mortgage loans to be sold [Member] | Forward Contracts [Member] | Notional or Principal Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | $20,750 | $67,792 |
Commitments to sell fixed rate mortgage loans [Member] | Forward Contracts [Member] | Notional or Principal Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risk, Liability | 33,521 | 116,162 |
Interest rate swaps with customers [Member] | Interest Rate Swap [Member] | Notional or Principal Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | 64,898 | 70,493 |
Mirror swaps with counterparties [Member] | Interest Rate Swap [Member] | Notional or Principal Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risk, Liability | 64,898 | 70,493 |
Interest rate swap contracts [Member] | Interest Rate Swap [Member] | Notional or Principal Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risk, Liability | 22,681 | 32,991 |
Commitments to extend credit on commerical loans [Member] | Commitments to Extend Credit [Member] | Contract Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | 253,400 | 223,426 |
Commitments to extend credit on home equity lines [Member] | Commitments to Extend Credit [Member] | Contract Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | 196,281 | 184,941 |
Commitments to extend credit on other loans [Member] | Commitments to Extend Credit [Member] | Contract Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | 33,622 | 30,504 |
Commitments to extend credit on standby letters of credit [Member] | Commitments to Extend Credit [Member] | Contract Amount [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Off-balance Sheet Risks, Asset | $1,361 | $1,039 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | ' |
Due in current year | $597 |
Due in year two | 2,431 |
Due in year three | 1,913 |
Due in year four | 1,618 |
Due in year five | 1,450 |
Due thereafter | 14,612 |
Total minimum lease payments | $22,621 |