DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 30, 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-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 16,625,861 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $401,717,281 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Cash and due from banks | $81,939 | $73,474 | ||
Short-term investments | 3,378 | 19,176 | ||
Mortgage loans held for sale, at fair value | 11,636 | 50,056 | ||
Securities: | ' | ' | ||
Available for sale, at fair value | 392,903 | 375,498 | ||
Held to maturity, at amortized cost (fair value $29,865 in 2013 and $41,420 in 2012) | 29,905 | 40,381 | ||
Total securities | 422,808 | 415,879 | ||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||
Loans: | ' | ' | ||
Commercial | 1,363,335 | 1,252,419 | ||
Residential real estate | 772,674 | 717,681 | ||
Consumer | 326,875 | 323,903 | ||
Total loans | 2,462,884 | [1] | 2,294,003 | [1] |
Less allowance for loan losses | 27,886 | 30,873 | ||
Net loans | 2,434,998 | 2,263,130 | ||
Premises and equipment, net | 25,402 | 27,232 | ||
Investment in bank-owned life insurance | 56,673 | 54,823 | ||
Goodwill | 58,114 | 58,114 | ||
Identifiable intangible assets, net | 5,493 | 6,173 | ||
Other assets | 50,696 | 63,409 | ||
Total assets | 3,188,867 | 3,071,884 | ||
Liabilities: | ' | ' | ||
Demand deposits | 440,785 | 379,889 | ||
NOW accounts | 309,771 | 291,174 | ||
Money market accounts | 666,646 | 496,402 | ||
Savings accounts | 297,357 | 274,934 | ||
Time deposits | 790,762 | 870,232 | ||
Total deposits | 2,505,321 | 2,312,631 | ||
Federal Home Loan Bank advances | 288,082 | 361,172 | ||
Junior subordinated debentures | 22,681 | 32,991 | ||
Other borrowings | 178 | 1,212 | ||
Other liabilities | 42,959 | 68,226 | ||
Total liabilities | 2,859,221 | 2,776,232 | ||
Commitments and contingencies | ' | ' | ||
Shareholders’ Equity: | ' | ' | ||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | ||
Paid-in capital | 97,566 | 91,453 | ||
Retained earnings | 232,595 | 213,674 | ||
Accumulated other comprehensive loss | -1,553 | -10,499 | ||
Total shareholders’ equity | 329,646 | 295,652 | ||
Total liabilities and shareholders’ equity | $3,188,867 | $3,071,884 | ||
[1] | Includes net unamortized loan origination costs of $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Securities held to maturity, fair value | $29,865 | $41,420 |
Common stock, par value (in dollars per share) | $0.06 | $0.06 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,613,561 | 16,379,771 |
Common stock, shares outstanding (in shares) | 16,613,561 | 16,379,771 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Interest and fees on loans | $102,481 | $102,656 | $99,319 |
Interest on securities: Taxable | 11,008 | 15,359 | 18,704 |
Interest on securities: Nontaxable | 2,553 | 2,699 | 3,001 |
Dividends on corporate stock and Federal Home Loan Bank stock | 148 | 256 | 253 |
Other interest income | 158 | 91 | 69 |
Total interest and dividend income | 116,348 | 121,061 | 121,346 |
Interest expense: | ' | ' | ' |
Deposits | 12,420 | 13,590 | 15,692 |
Federal Home Loan Bank advances | 10,643 | 14,957 | 18,158 |
Junior subordinated debentures | 1,484 | 1,570 | 1,568 |
Other interest expense | 16 | 248 | 973 |
Total interest expense | 24,563 | 30,365 | 36,391 |
Net interest income | 91,785 | 90,696 | 84,955 |
Provision for loan losses | 2,400 | 2,700 | 4,700 |
Net interest income after provision for loan losses | 89,385 | 87,996 | 80,255 |
Noninterest income: | ' | ' | ' |
Wealth management revenues | 31,825 | 29,641 | 28,306 |
Service charges on deposit accounts | 3,256 | 3,193 | 3,455 |
Merchant processing fees | 10,220 | 10,159 | 9,905 |
Card interchange fees | 2,788 | 2,480 | 2,249 |
Income from bank-owned life insurance | 1,850 | 2,448 | 1,939 |
Net gains on loan sales and commissions on loans originated for others | 13,085 | 14,092 | 5,074 |
Net realized gains on securities | 0 | 1,223 | 698 |
Net gains on interest rate swap contracts | 951 | 255 | 6 |
Equity in earnings (losses) of unconsolidated subsidiaries | -107 | 196 | -213 |
Other income | 1,701 | 1,748 | 1,536 |
Noninterest income, excluding other-than-temporary impairment losses | 65,569 | 65,435 | 52,955 |
Total other-than-temporary impairment losses on securities | -294 | -28 | -54 |
Portion of loss recognized in other comprehensive income (before tax) | -3,195 | -193 | -137 |
Net impairment losses recognized in earnings | -3,489 | -221 | -191 |
Total noninterest income | 62,080 | 65,214 | 52,764 |
Noninterest expense: | ' | ' | ' |
Salaries and employee benefits | 60,052 | 59,786 | 51,095 |
Net occupancy | 5,769 | 6,039 | 5,295 |
Equipment | 4,847 | 4,640 | 4,344 |
Merchant processing costs | 8,682 | 8,593 | 8,560 |
Outsourced services | 3,662 | 3,560 | 3,530 |
Legal, audit and professional fees | 2,330 | 2,240 | 1,927 |
FDIC deposit insurance costs | 1,761 | 1,730 | 2,043 |
Advertising and promotion | 1,464 | 1,730 | 1,819 |
Amortization of intangibles | 680 | 728 | 951 |
Foreclosed property costs | 258 | 762 | 878 |
Debt prepayment penalties | 1,125 | 3,908 | 694 |
Other expenses | 8,155 | 8,622 | 9,237 |
Total noninterest expense | 98,785 | 102,338 | 90,373 |
Income before income taxes | 52,680 | 50,872 | 42,646 |
Income tax expense | 16,527 | 15,798 | 12,922 |
Net income | $36,153 | $35,074 | $29,724 |
Weighted average common shares outstanding - basic | 16,506 | 16,358 | 16,254 |
Weighted average common shares outstanding - diluted | 16,664 | 16,401 | 16,284 |
Per share information: | ' | ' | ' |
Basic earnings per common share (in dollars per share) | $2.18 | $2.13 | $1.82 |
Diluted earnings per common share (in dollars per share) | $2.16 | $2.13 | $1.82 |
Cash dividends declared per share (in dollars per share) | $1.03 | $0.94 | $0.88 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | |||
Net income | $36,153 | $35,074 | $29,724 | |||
Securities available for sale: | ' | ' | ' | |||
Changes in fair value of securities available for sale | -6,808 | -2,666 | 1,622 | |||
Net losses (gains) on securities classified into earnings | 188 | [1] | -768 | [1] | -415 | [1] |
Net change in fair value of securities available for sale | -6,620 | -3,434 | 1,207 | |||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 2,049 | [2] | 125 | [2] | 88 | [2] |
Cash flow hedges: | ' | ' | ' | |||
Change in fair value of cash flow hedges | -35 | -333 | -942 | |||
Net cash flow hedge losses reclassified into earnings | 423 | [3] | 454 | [3] | 486 | [3] |
Net change in fair value of cash flow hedges | 388 | 121 | -456 | |||
Defined benefit plan obligation adjustment | 13,129 | [4] | -5,416 | [4] | -6,759 | [4] |
Total other comprehensive income (loss), net of tax | 8,946 | -8,604 | -5,920 | |||
Total comprehensive income | $45,099 | $26,470 | $23,804 | |||
[1] | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. | |||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. | |||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data, unless otherwise specified | |||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2010 | $268,864 | $1,011 | $84,889 | $178,939 | $4,025 |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2010 | ' | 16,172,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 29,724 | ' | ' | 29,724 | ' |
Total other comprehensive income (loss), net of tax | -5,920 | ' | ' | ' | -5,920 |
Cash dividends declared | -14,465 | ' | ' | -14,465 | ' |
Share-based compensation | 1,394 | ' | 1,394 | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | ' | 87,000 | ' | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 1,000 | 5 | 995 | ' | ' |
Shares issued - dividend reinvestment plan, shares | ' | 33,000 | ' | ' | ' |
Shares issued - dividend reinvestment plan | 754 | 2 | 752 | ' | ' |
Stockholders' Equity, Ending Balance at Dec. 31, 2011 | 281,351 | 1,018 | 88,030 | 194,198 | -1,895 |
Common Stock, Shares Outstanding, Ending Balance at Dec. 31, 2011 | ' | 16,292,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 35,074 | ' | ' | 35,074 | ' |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | -8,604 |
Total other comprehensive income (loss), net of tax | -8,604 | ' | ' | ' | ' |
Cash dividends declared | -15,598 | ' | ' | -15,598 | ' |
Share-based compensation | 1,962 | ' | 1,962 | ' | ' |
Deferred compensation plan, shares | ' | 10,000 | ' | ' | ' |
Deferred compensation plan | 146 | 1 | 145 | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | ' | 78,000 | ' | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 1,321 | 5 | 1,316 | ' | ' |
Stockholders' Equity, Ending Balance at Dec. 31, 2012 | 295,652 | 1,024 | 91,453 | 213,674 | -10,499 |
Common Stock, Shares Outstanding, Ending Balance at Dec. 31, 2012 | 16,379,771 | 16,380,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 36,153 | ' | ' | 36,153 | ' |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | 8,946 |
Total other comprehensive income (loss), net of tax | 8,946 | ' | ' | ' | ' |
Cash dividends declared | -17,232 | ' | ' | -17,232 | ' |
Share-based compensation | 1,876 | ' | 1,876 | ' | ' |
Deferred compensation plan, shares | ' | 2,000 | ' | ' | ' |
Deferred compensation plan | 30 | 0 | 30 | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | ' | 232,000 | ' | ' | ' |
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 4,221 | 14 | 4,207 | ' | ' |
Stockholders' Equity, Ending Balance at Dec. 31, 2013 | $329,646 | $1,038 | $97,566 | $232,595 | ($1,553) |
Common Stock, Shares Outstanding, Ending Balance at Dec. 31, 2013 | 16,613,561 | 16,614,000 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $36,153 | $35,074 | $29,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 2,400 | 2,700 | 4,700 |
Depreciation of premises and equipment | 3,283 | 3,213 | 3,174 |
Foreclosed and repossessed property valuation adjustments | 79 | 350 | 642 |
Net gain on sale of premises | 0 | -358 | -211 |
Net amortization of premium and discount | 1,401 | 2,127 | 1,768 |
Net amortization of intangibles | 680 | 728 | 951 |
Non–cash charitable contribution | 0 | 0 | 990 |
Share–based compensation | 1,876 | 1,962 | 1,394 |
Deferred income tax expense (benefit) | 2,267 | 1,328 | -863 |
Income from bank-owned life insurance | -1,850 | -2,448 | -1,939 |
Net gains on loan sales and commissions on loans originated for others | -13,085 | -14,092 | -5,074 |
Net realized gains on securities | 0 | -1,223 | -698 |
Net impairment losses recognized in earnings | 3,489 | 221 | 191 |
Net gains on interest rate swap contracts | -951 | -255 | -6 |
Equity in (earnings) losses of unconsolidated subsidiaries | 107 | -196 | 213 |
Proceeds from sales of loans | 415,186 | 479,925 | 208,275 |
Loans originated for sale | -369,045 | -495,271 | -206,242 |
Decrease (increase) in other assets | 2,589 | -7,987 | -2,804 |
(Decrease) increase in other liabilities | -3,729 | -331 | 3,014 |
Net cash provided by operating activities | 80,850 | 5,467 | 37,199 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of mortgage-backed securities available for sale | -91,928 | 0 | -115,208 |
Purchases of other investment securities available for sale | -25,404 | 0 | -5,000 |
Purchases of mortgage-backed securities held to maturity | 0 | 0 | -53,720 |
Proceeds from sales of mortgage-backed securities available for sale | 0 | 40,222 | 46,889 |
Proceeds from sales of other investment securities available for sale | 0 | 6,338 | 9,572 |
Maturities and principal payments of mortgage-backed securities available for sale | 77,644 | 111,906 | 115,500 |
Maturities and principal payments of other investment securities available for sale | 10,720 | 1,411 | 855 |
Maturities and principal payments of mortgage-backed securities held to maturity | 9,993 | 11,177 | 1,489 |
Remittance of Federal Home Loan Bank stock | 2,688 | 1,590 | 0 |
Net increase in loans | -208,125 | -138,084 | -148,652 |
Proceeds from sale of portfolio loans | 49,588 | 0 | 0 |
Purchases of loans, including purchased interest | -10,645 | -10,469 | -9,677 |
Proceeds from the sale of property acquired through foreclosure or repossession | 2,588 | 3,366 | 2,190 |
Purchases of premises and equipment | -1,491 | -5,110 | -3,644 |
Net proceeds from sale of bank property | 0 | 1,571 | 1,279 |
Proceeds from bank-owned life insurance | 0 | 1,419 | 0 |
Repayment of investment in capital trust | 310 | 0 | 0 |
Equity investment in real estate limited partnership | 0 | 0 | -449 |
Net cash (used in) provided by investing activities | -184,062 | 25,337 | -158,576 |
Cash flows from financing activities: | ' | ' | ' |
Net increase in deposits | 192,690 | 186,316 | 89,985 |
Net decrease in other borrowings | -1,034 | -18,546 | -3,601 |
Proceeds from Federal Home Loan Bank advances | 204,000 | 627,179 | 514,475 |
Repayment of Federal Home Loan Bank advances | -277,090 | -806,457 | -472,747 |
Proceeds from issuance of common stock under dividend reinvestment plan | 0 | 0 | 754 |
Proceeds from stock option exercises and issuance of other equity instruments | 3,681 | 1,257 | 885 |
Tax benefit from stock option exercises and other equity instruments | 570 | 210 | 115 |
Cash dividends paid | -16,628 | -15,133 | -14,205 |
Redemption of junior subordinated debentures | -10,310 | 0 | 0 |
Net cash provided by (used in) financing activities | 95,879 | -25,174 | 115,661 |
Net (decrease) increase in cash and cash equivalents | -7,333 | 5,630 | -5,716 |
Cash and cash equivalents at beginning of year | 92,650 | 87,020 | 92,736 |
Cash and cash equivalents at end of year | 85,317 | 92,650 | 87,020 |
Noncash Investing and Financing Activities: | ' | ' | ' |
Loans charged off | 6,022 | 2,335 | 3,834 |
Loans transferred to property acquired through foreclosure or repossession | 1,471 | 3,167 | 2,031 |
OREO proceeds due from attorney | 0 | 132 | 0 |
Supplemental Disclosures: | ' | ' | ' |
Interest payments | 24,194 | 29,657 | 35,594 |
Income tax payments | $13,618 | $14,777 | $13,390 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
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 the assessment of investments for impairment. The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions. | |
Short-term Investments | |
Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be comprised of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and US Treasury bills. | |
Securities | |
Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Management determines the appropriate classification of securities at the time of purchase. | |
Investments not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt and equity securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not have a trading portfolio. | |
Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Dividend and interest income are recognized when earned. Realized gains or losses from sales of equity securities are determined using the average cost method, while other realized gains and losses are determined using the specific identification method. | |
The fair values of securities may be based on either quoted market prices, third party pricing services or third party valuation specialists. When the fair value of an investment security is less than its amortized cost basis, the Corporation assesses whether the decline in value is other-than-temporary. The Corporation considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market condition in the geographic area or industry the issuer operates in. | |
In determining whether an other-than-temporary impairment has occurred for debt securities, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost of the security. If the present value of expected cash flows is less than the amortized cost of the security, then the entire amortized cost of the security will not be recovered; that is, a credit loss exists, and an other-than-temporary impairment shall be considered to have occurred. The credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income provided that the Corporation does not intend to sell the underlying debt security and it is more-likely-than not that the Corporation would not have to sell the debt security prior to recovery of the unrealized loss, which may be to maturity. If the Corporation intended to sell any securities with an unrealized loss or it is more-likely than not that the Corporation would be required to sell the investment securities, before recovery of their amortized cost basis, then the entire unrealized loss would be recorded in earnings. | |
See Note 4 for further discussion on the Corporation’s investment securities portfolio. | |
Federal Home Loan Bank Stock | |
The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Corporation currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Corporation’s FHLBB stock as of December 31, 2013. Further deterioration of the FHLBB’s capital levels may require the Corporation to deem its restricted investment in FHLBB stock to be other-than-temporarily impaired. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Corporation will continue to monitor its investment in FHLBB stock. | |
Mortgage Banking Activities | |
Mortgage Loans Held for Sale - Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. The Corporation has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for closed loans intended for sale. ASC 825 allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. Washington Trust elected the fair value option for its portfolio of residential real estate mortgage loans held for sale pursuant to forward sale commitments in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value relating to forward sale commitments and interest rate lock commitments. Gains and losses on residential loan sales are recorded in noninterest income as net gains on loan sales and commissions on loans originated for others. Commissions received on mortgage loans brokered to various investors are included in net gains on loan sales and commissions on loans originated for others are and are recorded as revenue when received. | |
Loan Servicing Rights - Rights to service mortgage loans for others are recognized as an asset, including rights acquired through both purchases and originations. Upon the sale of mortgage loans, a mortgage servicing asset is established, which represents the current estimated fair value based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Capitalized loan servicing rights are included in other assets and are amortized as an offset to other income over the period of estimated net servicing income. They are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to other income in the Consolidated Statements of Income. | |
Loans | |
Portfolio Loans - Loans held in the portfolio are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based on principal amounts outstanding. Deferred loan origination fees and costs are amortized as an adjustment to yield over the life of the related loans. | |
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. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. 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. Interest previously accrued but not collected is reversed against current period income when the loan is placed on nonaccrual status. 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 collectibility 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 Restructured Loans - Loans are considered to be troubled debt restructurings 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 generally 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 of a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. Troubled debt 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 troubled debt 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 generally 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. | |
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 all 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. Impairment is 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. Impairment is also measured based on the fair value of the collateral less costs to sell if it is determined that foreclosure is probable. Interest income on nonaccrual impaired loans is recognized as described above under the caption “Nonaccrual Loans.” Impaired accruing loans consist of those troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt. | |
Allowance for Loan Losses | |
The allowance for loan losses is management’s best estimate of the probable loan losses inherent 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 (or portions thereof) deemed to be uncollectible. Loan charge-offs are recognized when management believes the collectibility of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. | |
A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology includes three elements: (1) identification of loss allocations for certain specific loans deemed to be impaired, (2) loss allocation factors for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar credit quality indicators, and (3) an additional unallocated allowance maintained 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. | |
The level of the allowance is based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, current economic conditions, analysis of current levels and asset quality and delinquency trends, the performance of individual loans in relation to contract terms and other pertinent factors. | |
The adequacy of the allowance for loan losses is regularly evaluated by management. While management believes that the allowance for loan losses is adequate, future additions to the allowance may be necessary based on changes in assumptions and economic conditions. 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 allowance is an estimate, and ultimate losses may vary from management’s estimate. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. | |
Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from three to forty years. For furniture, fixtures and equipment, the estimated useful lives range from two to twenty years. | |
Goodwill and Other Identifiable Intangible Assets | |
The Corporation allocated the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions consist of advisory contracts. The value attributed to the advisory contracts was based on the time period over which they are expected to generate economic benefits. | |
The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, was recorded as goodwill. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the segment level, at least annually in the fourth quarter or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Corporation has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then we would not be required to perform a two-step impairment test. The Corporation has not opted to perform this qualitative analysis. Goodwill was tested for impairment using the two-step quantitative impairment analysis described below. | |
Step 1 of the quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Step 2 of the analysis is necessary only if a reporting unit’s carrying amount exceeds its fair value. Step 2 is a more detailed analysis, which involves measuring the excess of the fair value of the reporting unit, as determined in Step 1, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. | |
Other intangible assets with definite lives are tested for impairment whenever events or circumstances occur that indicate that the carrying amount may not be recoverable. If applicable, the Corporation tests each of the intangibles by comparing the carrying value of the intangible asset to the sum of undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeded its undiscounted cash flows, then an impairment loss would be recognized for the amount by which the carrying amount exceeds its fair value. | |
Impairment of Long-Lived Assets Other than Goodwill | |
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | |
Property Acquired through Foreclosure or Repossession | |
Property acquired through foreclosure or repossession is stated at the lower of cost or fair value minus estimated costs to sell at the date of acquisition or classification to this status. Fair value of such assets is determined based on independent appraisals and other relevant factors. Any write-down to fair value at the time of foreclosure or repossession is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in foreclosed property costs. | |
Loans that are substantively repossessed include only those loans for which the Corporation has taken possession of the collateral, but has not completed legal foreclosure proceedings. | |
Bank-Owned Life Insurance (“BOLI”) | |
The investment in BOLI represents the cash surrender value of life insurance policies on the lives of certain Bank employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The financial strength of the insurance carrier is reviewed prior to the purchase of BOLI and annually thereafter. | |
Investment in Real Estate Limited Partnership | |
Washington Trust has a 99.9% ownership interest in two real estate limited partnerships that renovate, own and operate two low-income housing complexes. Washington Trust neither actively participates nor has a controlling interest in these limited partnerships and accounts for its investments under the equity method of accounting. The carrying value of the investments is recorded in other assets on the Consolidated Balance Sheet. Net losses generated by the partnership are recorded as a reduction to Washington Trust’s investment and as a reduction of noninterest income in the Consolidated Statements of Income. Tax credits generated by the partnership are recorded as a reduction in the income tax provision in the year they are allowed for tax reporting purposes. | |
The results of operations of the real estate limited partnerships are periodically reviewed to determine if the partnership generates sufficient operating cash flow to fund its current obligations. In addition, the current value of the underlying properties is compared to the outstanding debt obligations. If it is determined that the investment is permanently impaired, the carrying value will be written down to the estimated realizable value. | |
Transfers and Servicing of Assets and Extinguishments of Liabilities | |
The accounting for transfers and servicing of financial assets and extinguishments of liabilities is based on consistent application of a financial components approach that focuses on control. This approach distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. After a transfer of financial assets, the Corporation recognizes all financial and servicing assets it controls and liabilities it has incurred and derecognizes financial assets it no longer controls and liabilities that have been extinguished. This financial components approach focuses on the assets and liabilities that exist after the transfer. Many of these assets and liabilities are components of financial assets that existed prior to the transfer. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with a pledge of collateral. | |
Fee Revenue | |
Wealth management revenues include trust and investment advisory fees and mutual fund fees that are primarily accrued as earned based upon a percentage of asset values under administration. Also included in wealth management revenues are financial planning fees, commissions and other service fees, which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. Fee revenue for merchant processing services is generally recognized as earned. | |
Pension Costs | |
Pension benefits are accounted for using the net periodic benefit cost method, which recognizes the compensation cost of an employee’s pension benefit over that employee’s approximate service period. Pension benefit cost calculations incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. Washington Trust reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to so do. The effect of modifications to those assumptions is recorded in other comprehensive income and amortized to net periodic cost over future periods. Washington Trust believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. | |
The funded status of defined benefit pension plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, is recognized in the Consolidated Balance Sheet. The changes in the funded status of the defined benefit plans, including actuarial gains and losses and prior service costs and credits, are recognized in comprehensive income in the year in which the changes occur. | |
Stock-Based Compensation | |
Stock-based compensation plans provide for awards of share options and other equity incentives including nonvested share units and share awards and nonvested performance shares. | |
Compensation expense for share options and nonvested share units and share awards is recognized over the service period based on the fair value at the date of grant. The Corporation estimates grant date fair value for share options using the Black-Scholes option-pricing model. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. | |
Excess tax benefits (expenses) related to stock option exercises and issuance of other compensation-related equity instruments are reflected on the Consolidated Statements of Cash Flows as financing activity. | |
Income Taxes | |
Income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Corporation recognizes the effect of income tax positions only if those positions are more- likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |
The Corporation records interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. | |
Earnings Per Share (“EPS”) | |
The Corporation 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. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. | |
Comprehensive Income | |
Comprehensive income is defined as all changes in equity, except for those resulting from transactions with shareholders. Net income is a component of comprehensive income. All other components are referred to in the aggregate as other comprehensive income. | |
Cash Flows | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and other short-term investments. Generally, federal funds are sold on an overnight basis. | |
Guarantees | |
Standby letters of credit are considered a guarantee of the Corporation. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Under the standby letters of credit, the Corporation is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary contingent upon the customer’s failure to perform under the terms of the underlying contract with the beneficiary. The fair value of standby letters of credit is considered immaterial to the Corporation’s Consolidated Financial Statements. | |
Derivative Instruments and Hedging Activities | |
Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. | |
For derivatives designated as fair value hedges, changes in the fair value of the derivative are recognized in earnings together with the changes in the fair value of the related hedged item (generally fixed-rate financial instruments). The net amount, if any, represents hedge ineffectiveness, is reflected in earnings. | |
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. | |
For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings, in noninterest income. | |
The accrued net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Changes in fair value of derivatives including accrued net settlements that do not qualify for hedge accounting are reported in noninterest income. | |
When hedge accounting is discontinued, the future changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. | |
By using certain derivative financial instruments, the Corporation exposes itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Corporation, which creates credit risk for the Corporation. When the fair value of a derivative contract is negative, the Corporation owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is minimized by entering into transactions with highly rated counterparties that management believes to be creditworthy. | |
Fair Value Measurements | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The required disclosures about fair value measurements have been included in Note 14. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 18. | |
Investments - Equity Method and Joint Ventures - Topic 323 | |
Accounting Standards Update No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” (“ASU 2014-01”), was issued in January 2014 and permits a reporting entity to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments are expected to enable more entities to record the amortization of the investment in income tax expense together with the tax credits and other tax benefits generated from the partnership. ASU 2014-01 is effective retrospectively for public business entities for annual and interim reporting periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of ASU 2014-01 is not expected to have a material impact on the Corporation’s consolidated financial statements. | |
Receivables - Troubled Debt Restructurings by Creditors - Topic 310 | |
Accounting Standards Update No. 2014-04, “Reclassifications of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure” (“ASU 2014-04”), was issued in January 2014 and clarifies when banks and similar institutions (creditors) should reclassify mortgage loans collateralized by residential real estate properties from the loan portfolio to other real estate owned (OREO). ASU 2014-04 is effective for annual periods beginning after December 15, 2014, and interim periods with annual periods beginning after December 15, 2015. An entity can elect either a modified retrospective or prospective transition method, and early adoption is permitted. The adoption of ASU 2014-04 is not expected to have a material impact on the Corporation’s consolidated financial statements. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 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 this reserve requirement may be satisfied with vault cash. Reserve balances amounted to $6.7 million and $5.5 million, respectively, at December 31, 2013 and 2012 and are included in cash and due from banks in the Consolidated Balance Sheets. | |
As of December 31, 2013 and 2012, cash and due from banks includes interest-bearing deposits in other banks of $51.8 million and $32.2 million, respectively. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||||||||
Securities | ||||||||||||||||||||||||||||||||
The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of securities by major security type and class of security: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
December 31, 2013 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,474 | $720 | ($79 | ) | $55,115 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 230,387 | 8,369 | (401 | ) | 238,355 | |||||||||||||||||||||||||||
States and political subdivisions | 60,659 | 2,200 | — | 62,859 | ||||||||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | 30,715 | — | (6,031 | ) | 24,684 | |||||||||||||||||||||||||||
Collateralized debt obligations | 547 | — | — | 547 | ||||||||||||||||||||||||||||
Corporate bonds | 11,128 | 231 | (16 | ) | 11,343 | |||||||||||||||||||||||||||
Total securities available for sale | $387,910 | $11,520 | ($6,527 | ) | $392,903 | |||||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $29,905 | $14 | ($54 | ) | $29,865 | |||||||||||||||||||||||||||
Total securities held to maturity | $29,905 | $14 | ($54 | ) | $29,865 | |||||||||||||||||||||||||||
Total securities | $417,815 | $11,534 | ($6,581 | ) | $422,768 | |||||||||||||||||||||||||||
(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 December 31, 2013 and 2012, securities available for sale and held to maturity with a fair value of $397.5 million and $386.5 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit, potential borrowings with the FRB, certain public deposits and for other purposes. See Note 11 for additional discussion of FHLBB borrowings. | ||||||||||||||||||||||||||||||||
The schedule of maturities of debt securities available for sale and held to maturity 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. | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
(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 | $54,474 | $— | $— | $— | $54,474 | |||||||||||||||||||||||||||
Weighted average yield | 4.04 | % | — | % | — | % | — | % | 4.04 | % | ||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
Amortized cost | 53,902 | 107,955 | 46,983 | 21,547 | 230,387 | |||||||||||||||||||||||||||
Weighted average yield | 4.19 | % | 3.66 | % | 2.73 | % | 2.2 | % | 3.46 | % | ||||||||||||||||||||||
State and political subdivisions: | ||||||||||||||||||||||||||||||||
Amortized cost | 13,977 | 46,682 | — | — | 60,659 | |||||||||||||||||||||||||||
Weighted average yield | 3.84 | % | 3.92 | % | — | % | — | % | 3.91 | % | ||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 31,262 | 31,262 | |||||||||||||||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.57 | % | 1.57 | % | ||||||||||||||||||||||
Corporate bonds: | ||||||||||||||||||||||||||||||||
Amortized cost | 5,023 | 5,703 | 402 | — | 11,128 | |||||||||||||||||||||||||||
Weighted average yield | 6.64 | % | 2.82 | % | 2.45 | % | — | % | 4.53 | % | ||||||||||||||||||||||
Total debt securities available for sale: | ||||||||||||||||||||||||||||||||
Amortized cost | $127,376 | $160,340 | $47,385 | $52,809 | $387,910 | |||||||||||||||||||||||||||
Weighted average yield | 4.19 | % | 3.71 | % | 2.73 | % | 1.83 | % | 3.49 | % | ||||||||||||||||||||||
Fair value | $127,764 | $162,785 | $48,800 | $53,554 | $392,903 | |||||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
Amortized cost | $5,376 | $13,892 | $7,652 | $2,985 | $29,905 | |||||||||||||||||||||||||||
Weighted average yield | 2.85 | % | 2.75 | % | 2.56 | % | 1.11 | % | 2.56 | % | ||||||||||||||||||||||
Fair value | $5,369 | $13,873 | $7,642 | $2,981 | $29,865 | |||||||||||||||||||||||||||
Included in the above table were debt securities with an amortized cost balance of $106.8 million and a fair value of $102.3 million at December 31, 2013 that are callable at the discretion of the issuers. Final maturities of the callable securities range from twenty-one months to twenty-three years, with call features ranging from one month to three 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 summarizes temporarily impaired investment securities at December 31, 2013 and December 31, 2012, segregated by length of time the securities have been continuously in an unrealized loss position. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
December 31, 2013 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 1 | $9,909 | ($79 | ) | — | $— | $— | 1 | $9,909 | ($79 | ) | |||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 7 | 76,748 | (455 | ) | — | — | — | 7 | 76,748 | (455 | ) | |||||||||||||||||||||
Individual name issuer trust preferred securities | — | — | — | 11 | 24,684 | (6,031 | ) | 11 | 24,684 | (6,031 | ) | |||||||||||||||||||||
Corporate bonds | 2 | 11 | 407 | (16 | ) | — | — | — | — | 2 | 407 | (16 | ) | |||||||||||||||||||
Total temporarily impaired securities | 10 | 11 | $87,064 | ($550 | ) | 11 | $24,684 | ($6,031 | ) | 21 | $111,748 | ($6,581 | ) | |||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||
Obligations of U.S. Government-sponsored Enterprises and Mortgage-backed Securities issued by U.S. Government Agencies | ||||||||||||||||||||||||||||||||
The gross unrealized losses on mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises were primarily attributable to relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on the assessment of these factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, the Corporation 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 maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2013. | ||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities of Individual Name Issuers | ||||||||||||||||||||||||||||||||
Included in debt securities in an unrealized loss position at December 31, 2013 were eleven 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 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 December 31, 2013, trust preferred debt securities with an amortized cost of $11.9 million and unrealized losses of $2.2 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 maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2013. | ||||||||||||||||||||||||||||||||
Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations (“CDO”) | ||||||||||||||||||||||||||||||||
Washington Trust had invested in two 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. | ||||||||||||||||||||||||||||||||
On March 22, 2013, the trustee for one of the pooled trust preferred securities 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, we recognized an other-than-temporary impairment charge in the first quarter of 2013 on the entire $2.8 million carrying value of the security, based on the expectation that proceeds from 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 to the subordinate tranche. | ||||||||||||||||||||||||||||||||
In December 2013, Washington Trust changed its intent to hold its other CDO investment until recovery of its cost basis and subsequently sold this security in January 2014. As a result, Washington Trust recognized an other-than-temporary impairment loss of $717 thousand on this CDO in December 2013. The amortized cost and fair value of this CDO amounted to $547 thousand at December 31, 2013, which equaled the January 2014 sales price. | ||||||||||||||||||||||||||||||||
Credit-Related Impairment Losses Recognized on Debt Securities | ||||||||||||||||||||||||||||||||
The following table presents a rollforward of the cumulative credit-related impairment losses on debt securities: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Balance at beginning of period | $3,325 | $3,104 | $2,913 | |||||||||||||||||||||||||||||
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 | 3,489 | 221 | 191 | |||||||||||||||||||||||||||||
Balance at end of period | $6,814 | $3,325 | $3,104 | |||||||||||||||||||||||||||||
The following is a summary of amounts relating to sales of securities: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Proceeds from sales (1) | $— | $46,560 | $56,461 | |||||||||||||||||||||||||||||
Gross realized gains (1) | $— | $1,224 | $919 | |||||||||||||||||||||||||||||
Gross realized losses | — | (1 | ) | (221 | ) | |||||||||||||||||||||||||||
Net realized gains on securities | $— | $1,223 | $698 | |||||||||||||||||||||||||||||
-1 | Includes a contribution of appreciated equity securities to the Corporation’s charitable foundation in 2011. The cost of the contribution, included in noninterest expenses, amounted to $990 thousand in 2011. This transaction resulted in a realized security gain of $331 thousand for the same period. |
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||
Loans | ||||||||||||||||||||||||
The following is a summary of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $796,249 | 32 | % | $710,813 | 31 | % | ||||||||||||||||||
Construction and development (2) | 36,289 | 1 | % | 27,842 | 1 | % | ||||||||||||||||||
Other (3) | 530,797 | 22 | % | 513,764 | 23 | % | ||||||||||||||||||
Total commercial | 1,363,335 | 55 | % | 1,252,419 | 55 | % | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages (4) | 749,163 | 30 | % | 692,798 | 30 | % | ||||||||||||||||||
Homeowner construction | 23,511 | 1 | % | 24,883 | 1 | % | ||||||||||||||||||
Total residential real estate | 772,674 | 31 | % | 717,681 | 31 | % | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines (5) | 231,362 | 9 | % | 226,861 | 10 | % | ||||||||||||||||||
Home equity loans (5) | 40,212 | 2 | % | 39,329 | 2 | % | ||||||||||||||||||
Other (6) | 55,301 | 3 | % | 57,713 | 2 | % | ||||||||||||||||||
Total consumer | 326,875 | 14 | % | 323,903 | 14 | % | ||||||||||||||||||
Total loans (7) | $2,462,884 | 100 | % | $2,294,003 | 100 | % | ||||||||||||||||||
-1 | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of December 31, 2013 and 2012, $190.7 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 December 31, 2013, $44.1 million and $21.2 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the FRB. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||||||||||||||||||||||
-4 | As of December 31, 2013 and 2012, $684.6 million and $627.4 million, respectively were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-5 | As of December 31, 2013 and 2012, $195.3 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 $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. | |||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||
A significant portion of our loan portfolio is concentrated among borrowers in southern New England and a substantial portion of the portfolio is collateralized by real estate in this area. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in the Corporation’s market area. | ||||||||||||||||||||||||
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 collectibility 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: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $7,492 | $10,681 | ||||||||||||||||||||||
Construction and development | — | — | ||||||||||||||||||||||
Other | 1,291 | 4,412 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 8,315 | 6,158 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 469 | 840 | ||||||||||||||||||||||
Home equity loans | 687 | 371 | ||||||||||||||||||||||
Other | 48 | 81 | ||||||||||||||||||||||
Total nonaccrual loans | $18,302 | $22,543 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of December 31, 2013 and 2012, nonaccrual loans of $2.7 million and $1.6 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
Interest income that would have been recognized had nonaccrual loans been current in accordance with their original terms was approximately $1.8 million, $1.8 million and $1.7 million in 2013, 2012 and 2011, respectively. Interest income included in the Consolidated Statements of Income on nonaccrual loans amounted to approximately $400 thousand, $679 thousand and $505 thousand in 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
December 31, 2013 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $— | $7,492 | $7,492 | $788,757 | $796,249 | ||||||||||||||||||
Construction and development | — | — | — | — | 36,289 | 36,289 | ||||||||||||||||||
Other | 276 | 302 | 731 | 1,309 | 529,488 | 530,797 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,040 | 1,285 | 5,633 | 10,958 | 738,205 | 749,163 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 23,511 | 23,511 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 831 | 100 | 269 | 1,200 | 230,162 | 231,362 | ||||||||||||||||||
Home equity loans | 448 | 66 | 349 | 863 | 39,349 | 40,212 | ||||||||||||||||||
Other | 43 | — | 38 | 81 | 55,220 | 55,301 | ||||||||||||||||||
Total loans | $5,638 | $1,753 | $14,512 | $21,903 | $2,440,981 | $2,462,884 | ||||||||||||||||||
(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 December 31, 2013 and 2012, were nonaccrual loans of $15.6 million and $21.0 million, respectively. All loans 90 days or more past due at December 31, 2013 and 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 Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $998 | $2,357 | $998 | $2,360 | $— | $— | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,055 | 1,058 | 1,050 | 1,057 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,167 | 1,294 | 1,259 | 1,315 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | $3,220 | $4,709 | $3,307 | $4,732 | $— | $— | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,335 | $17,897 | $31,731 | $19,738 | $552 | $1,720 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,506 | 9,939 | 1,945 | 10,690 | 463 | 694 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,122 | 2,576 | 3,507 | 2,947 | 463 | 463 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 187 | 174 | 255 | 1 | 1 | ||||||||||||||||||
Home equity loans | 55 | 117 | 54 | 160 | — | — | ||||||||||||||||||
Other | 127 | 137 | 130 | 136 | 2 | 2 | ||||||||||||||||||
Subtotal | $34,318 | $30,853 | $37,541 | $33,926 | $1,481 | $2,880 | ||||||||||||||||||
Total impaired loans | $37,538 | $35,562 | $40,848 | $38,658 | $1,481 | $2,880 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $32,894 | $31,251 | $35,724 | $33,845 | $1,015 | $2,414 | ||||||||||||||||||
Residential real estate | 4,289 | 3,870 | 4,766 | 4,262 | 463 | 463 | ||||||||||||||||||
Consumer | 355 | 441 | 358 | 551 | 3 | 3 | ||||||||||||||||||
Total impaired loans | $37,538 | $35,562 | $40,848 | $38,658 | $1,481 | $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 (those 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 balance of impaired loans and interest income recognized on impaired loans segregated by loan class, for the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $27,496 | $10,785 | $14,923 | $630 | $273 | $539 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 6,029 | 10,661 | 8,226 | 190 | 297 | 388 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,024 | 4,651 | 5,743 | 125 | 88 | 188 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 200 | 172 | 127 | 7 | 3 | 5 | ||||||||||||||||||
Home equity loans | 72 | 131 | 290 | 6 | 7 | 17 | ||||||||||||||||||
Other | 146 | 151 | 235 | 9 | 11 | 15 | ||||||||||||||||||
Totals | $37,967 | $26,551 | $29,544 | $967 | $679 | $1,152 | ||||||||||||||||||
At December 31, 2013 and 2012, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status or had been restructured. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
Loans are considered to be troubled debt restructurings when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. | ||||||||||||||||||||||||
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 $26.4 million and $20.2 million, respectively, at December 31, 2013 and 2012. Included in these amounts was accrued interest of $44 thousand and $13 thousand, respectively. The allowance for loan losses included specific reserves for these troubled debt restructurings of $556 thousand and $898 thousand, respectively, at December 31, 2013 and 2012. | ||||||||||||||||||||||||
The following table presents loans modified as a troubled debt restructuring during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 6 | 6 | $15,974 | $9,525 | $14,785 | $9,525 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 7 | 8 | 1,198 | 1,889 | 1,198 | 1,889 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | 570 | 651 | 570 | 651 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1 | — | 92 | — | 92 | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 2 | — | 5 | — | 5 | ||||||||||||||||||
Totals | 15 | 18 | $17,834 | $12,070 | $16,645 | $12,070 | ||||||||||||||||||
-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 restructurings 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) | ||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | ||||||||||||||||||||||
Below market interest rate concession | $15,836 | $1,426 | ||||||||||||||||||||||
Payment deferral | 570 | 240 | ||||||||||||||||||||||
Maturity / amortization concession | 21 | 917 | ||||||||||||||||||||||
Interest only payments | 424 | 361 | ||||||||||||||||||||||
Combination (1) | 983 | 9,126 | ||||||||||||||||||||||
Total | $17,834 | $12,070 | ||||||||||||||||||||||
-1 | Loans included in this classification had a combination of any two of the concessions included in this table. | |||||||||||||||||||||||
The following table presents 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) | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 1 | $232 | $195 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 2 | 3 | 839 | 866 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | — | — | — | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||
Totals | 3 | 4 | $1,071 | $1,061 | ||||||||||||||||||||
-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 restructurings 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 December 31, 2013 and 2012, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.64 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. | ||||||||||||||||||||||||
A description 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 in 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. 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. 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 supplemented with selected targeted internal reviews of the commercial loan portfolio. | ||||||||||||||||||||||||
The following table presents the commercial loan portfolio, segregated by category of credit quality indicator. | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Pass | Special Mention | Classified | ||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Mortgages | $756,838 | $669,220 | $23,185 | $21,649 | $16,226 | $19,944 | ||||||||||||||||||
Construction and development | 36,289 | 27,842 | — | — | — | — | ||||||||||||||||||
Other | 507,962 | 483,371 | 19,887 | 24,393 | 2,948 | 6,000 | ||||||||||||||||||
Total commercial loans | $1,301,089 | $1,180,433 | $43,072 | $46,042 | $19,174 | $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 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 | Over 90 Days | ||||||||||||||||||||||
Past Due | Past Due | |||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Accruing mortgages | $740,848 | $686,640 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 2,682 | 2,500 | 5,633 | 3,658 | ||||||||||||||||||||
Homeowner construction | 23,511 | 24,883 | — | — | ||||||||||||||||||||
Total residential loans | $767,041 | $714,023 | $5,633 | $3,658 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $231,093 | $226,333 | $269 | $528 | ||||||||||||||||||||
Home equity loans | 39,864 | 39,078 | 348 | 251 | ||||||||||||||||||||
Other | 55,262 | 57,648 | 39 | 65 | ||||||||||||||||||||
Total consumer loans | $326,219 | $323,059 | $656 | $844 | ||||||||||||||||||||
Loan Servicing Activities | ||||||||||||||||||||||||
An analysis of loan servicing rights is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Loan | Valuation | Total | |||||||||||||||||||||
Servicing | Allowance | |||||||||||||||||||||||
Rights | ||||||||||||||||||||||||
Balance at December 31, 2010 | $913 | ($156 | ) | $757 | ||||||||||||||||||||
Loan servicing rights capitalized | 248 | — | 248 | |||||||||||||||||||||
Amortization | (224 | ) | — | (224 | ) | |||||||||||||||||||
Increase in impairment reserve | — | (16 | ) | (16 | ) | |||||||||||||||||||
Balance at December 31, 2011 | 937 | (172 | ) | 765 | ||||||||||||||||||||
Loan servicing rights capitalized | 569 | — | 569 | |||||||||||||||||||||
Amortization | (231 | ) | — | (231 | ) | |||||||||||||||||||
Decrease in impairment reserve | — | 7 | 7 | |||||||||||||||||||||
Balance at December 31, 2012 | 1,275 | (165 | ) | 1,110 | ||||||||||||||||||||
Loan servicing rights capitalized | 1,897 | — | 1,897 | |||||||||||||||||||||
Amortization | (405 | ) | — | (405 | ) | |||||||||||||||||||
Decrease in impairment reserve | — | 96 | 96 | |||||||||||||||||||||
Balance at December 31, 2013 | $2,767 | ($69 | ) | $2,698 | ||||||||||||||||||||
Estimated aggregate amortization expense related to loan servicing assets is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Years ending December 31: | 2014 | $387 | ||||||||||||||||||||||
2015 | 328 | |||||||||||||||||||||||
2016 | 280 | |||||||||||||||||||||||
2017 | 240 | |||||||||||||||||||||||
2018 | 206 | |||||||||||||||||||||||
Thereafter | 1,326 | |||||||||||||||||||||||
Total estimated amortization expense | $2,767 | |||||||||||||||||||||||
Mortgage loans and other loans sold to others are serviced on a fee basis under various agreements. Loans serviced for others are not included in the Consolidated Balance Sheets. The following table presents the balance of loans serviced for others, by type of loan: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Residential mortgages | $310,699 | $144,360 | ||||||||||||||||||||||
Commercial loans | 69,526 | 60,444 | ||||||||||||||||||||||
Total | $380,225 | $204,804 | ||||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 credit quality indicators, and (3) an additional unallocated allowance maintained for measurement imprecision and to reflect management’s consideration of qualitative and quantitative assessments of other environmental factors. | |||||||||||||||||||||||||
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, and 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 indicated: | |||||||||||||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Beginning Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | |||||||||||||||||
Charge-offs | (5,213 | ) | — | (358 | ) | (5,571 | ) | (128 | ) | (323 | ) | (6,022 | ) | ||||||||||||
Recoveries | 380 | — | 153 | 533 | 3 | 99 | 635 | ||||||||||||||||||
Provision | 2,395 | 138 | (358 | ) | 2,175 | 556 | 51 | (382 | ) | 2,400 | |||||||||||||||
Ending Balance | $6,969 | $362 | $5,433 | $12,764 | $4,700 | $2,511 | $7,911 | $27,886 | |||||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Beginning Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | |||||||||||||||||
Charge-offs | (485 | ) | — | (1,179 | ) | (1,664 | ) | (367 | ) | (304 | ) | (2,335 | ) | ||||||||||||
Recoveries | 442 | — | 103 | 545 | 110 | 51 | 706 | ||||||||||||||||||
Provision | 1,255 | 129 | 872 | 2,256 | (168 | ) | 485 | 127 | 2,700 | ||||||||||||||||
Ending Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | |||||||||||||||||
For the year ended December 31, 2011: | |||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Beginning Balance | $7,330 | $723 | $6,495 | $14,548 | $4,129 | $1,903 | $8,003 | $28,583 | |||||||||||||||||
Charge-offs | (960 | ) | — | (1,685 | ) | (2,645 | ) | (641 | ) | (548 | ) | (3,834 | ) | ||||||||||||
Recoveries | 7 | — | 311 | 318 | 4 | 31 | 353 | ||||||||||||||||||
Provision | 1,818 | (628 | ) | 1,079 | 2,269 | 1,202 | 1,066 | 163 | 4,700 | ||||||||||||||||
Ending Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | |||||||||||||||||
The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology. | |||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
Related | Related | ||||||||||||||||||||||||
Loans | Allowance | Loans | Allowance | ||||||||||||||||||||||
Loans Individually Evaluated For Impairment: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Mortgages | $30,292 | $552 | $20,250 | $1,720 | |||||||||||||||||||||
Construction & development | — | — | — | — | |||||||||||||||||||||
Other | 2,556 | 463 | 10,989 | 694 | |||||||||||||||||||||
Residential Real Estate | 4,290 | 463 | 3,868 | 463 | |||||||||||||||||||||
Consumer | 355 | 3 | 440 | 3 | |||||||||||||||||||||
Subtotal | $37,493 | $1,481 | $35,547 | $2,880 | |||||||||||||||||||||
Loans Collectively Evaluated For Impairment: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Mortgages | $765,957 | $6,417 | $690,563 | $7,687 | |||||||||||||||||||||
Construction & development | 36,289 | 362 | 27,842 | 224 | |||||||||||||||||||||
Other | 528,241 | 4,970 | 502,775 | 5,302 | |||||||||||||||||||||
Residential Real Estate | 768,384 | 4,237 | 713,813 | 3,806 | |||||||||||||||||||||
Consumer | 326,520 | 2,508 | 323,463 | 2,681 | |||||||||||||||||||||
Subtotal | $2,425,391 | $18,494 | $2,258,456 | $19,700 | |||||||||||||||||||||
Unallocated | — | 7,911 | — | 8,293 | |||||||||||||||||||||
Total | $2,462,884 | $27,886 | $2,294,003 | $30,873 | |||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Premises and Equipment | ' | |||||||
Premises and Equipment | ||||||||
The following is a summary of premises and equipment: | ||||||||
(Dollars in thousands) | ||||||||
December 31, | 2013 | 2012 | ||||||
Land and improvements | $6,020 | $5,974 | ||||||
Premises and improvements | 32,429 | 32,043 | ||||||
Furniture, fixtures and equipment | 24,250 | 24,511 | ||||||
62,699 | 62,528 | |||||||
Less accumulated depreciation | 37,297 | 35,296 | ||||||
Total premises and equipment, net | $25,402 | $27,232 | ||||||
Depreciation of premises and equipment amounted to $3.3 million for the year ended December 31, 2013 and $3.2 million for each of the years ended December 31, 2012, and 2011. |
Goodwill_and_Other_Intangibles
Goodwill and Other Intangibles | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Intangibles | ' | |||||||
Goodwill and Other Intangibles | ||||||||
The carrying value of goodwill was $58.1 million at both December 31, 2013 and 2012. | ||||||||
The following table presents goodwill at the reporting unit (or business segment) level as of December 31, 2013 and 2012. | ||||||||
(Dollars in thousands) | ||||||||
Commercial Banking Segment | $22,591 | |||||||
Wealth Management Service Segment | 35,523 | |||||||
Total | $58,114 | |||||||
Intangible assets consist of wealth management advisory contracts. The components of intangible assets were as follows: | ||||||||
(Dollars in thousands) | ||||||||
December 31, | 2013 | 2012 | ||||||
Gross carrying amount | $13,657 | $13,657 | ||||||
Accumulated amortization | 8,164 | 7,484 | ||||||
Net amount | $5,493 | $6,173 | ||||||
The intangible asset value attributable to wealth management advisory contracts acquired was based on the time period over which the advisory contracts are expected to generate economic benefits. The asset is being amortized over a 20-year life using a declining balance method, based on expected attrition for Weston Financial’s current customer base derived from historical runoff data. The amortization schedule is based on the anticipated future customer runoff rate. | ||||||||
Amortization expense for the years ended December 31, 2013, 2012, and 2011, amounted to $680 thousand, $728 thousand and $951 thousand, respectively. | ||||||||
Estimated annual amortization expense for advisory contracts is as follows: | ||||||||
(Dollars in thousands) | ||||||||
Years ending December 31, | 2014 | $644 | ||||||
2015 | 603 | |||||||
2016 | 562 | |||||||
2017 | 538 | |||||||
2018 | 502 | |||||||
Thereafter | 2,644 | |||||||
Net_Deferred_Tax_Asset_and_Inc
Net Deferred Tax Asset and Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Net Deferred Tax Asset and Income Taxes | ' | |||||||||||
Net Deferred Tax Asset and Income Taxes | ||||||||||||
The components of income tax expense were as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Current tax expense: | ||||||||||||
Federal | $13,518 | $13,937 | $13,227 | |||||||||
State | 742 | 533 | 558 | |||||||||
Total current tax expense | 14,260 | 14,470 | 13,785 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 2,300 | 1,310 | (789 | ) | ||||||||
State | (33 | ) | 18 | (74 | ) | |||||||
Total deferred tax expense (benefit) | 2,267 | 1,328 | (863 | ) | ||||||||
Total income tax expense | $16,527 | $15,798 | $12,922 | |||||||||
Total income tax expense varied from the amount determined by applying the Federal income tax rate to income before income taxes. The reasons for the differences were as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Tax expense at Federal statutory rate | $18,438 | $17,805 | $14,926 | |||||||||
(Decrease) increase in taxes resulting from: | ||||||||||||
Tax-exempt income | (1,408 | ) | (1,220 | ) | (1,220 | ) | ||||||
Dividends received deduction | — | (12 | ) | (32 | ) | |||||||
BOLI | (648 | ) | (857 | ) | (678 | ) | ||||||
Federal tax credits | (364 | ) | (364 | ) | (364 | ) | ||||||
State income tax expense, net of federal income tax benefit | 461 | 358 | 315 | |||||||||
Other | 48 | 88 | (25 | ) | ||||||||
Total income tax expense | $16,527 | $15,798 | $12,922 | |||||||||
The approximate tax effects of temporary differences that give rise to gross deferred tax assets and gross deferred tax liabilities are as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | 2013 | 2012 | ||||||||||
Gross deferred tax assets: | ||||||||||||
Allowance for loan losses | $10,033 | $11,037 | ||||||||||
Defined benefit pension obligations | 3,544 | 11,462 | ||||||||||
Losses on write-downs of securities to fair value | 941 | 1,500 | ||||||||||
Deferred compensation | 2,545 | 2,174 | ||||||||||
Deferred loan origination fees | 1,593 | 1,432 | ||||||||||
Stock based compensation | 1,686 | 1,555 | ||||||||||
Other | 2,650 | 2,680 | ||||||||||
Gross deferred tax assets | 22,992 | 31,840 | ||||||||||
Gross deferred tax liabilities: | ||||||||||||
Net unrealized gains on securities available for sale | (1,791 | ) | (4,318 | ) | ||||||||
Amortization of intangibles | (1,977 | ) | (2,207 | ) | ||||||||
Deferred loan origination costs | (3,697 | ) | (3,176 | ) | ||||||||
Other | (2,776 | ) | (2,255 | ) | ||||||||
Gross deferred tax liabilities | (10,241 | ) | (11,956 | ) | ||||||||
Net deferred tax asset | $12,751 | $19,884 | ||||||||||
The Corporation has determined that a valuation allowance is not required for any of the deferred tax assets since it is more-likely-than-not that these assets will be realized primarily through future reversals of existing taxable temporary differences, carryback to taxable income in prior years or by offsetting projected future taxable income. | ||||||||||||
The Corporation had no unrecognized tax benefits as of December 31, 2013 and 2012. | ||||||||||||
The Corporation files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2010. |
Time_Certificates_of_Deposit
Time Certificates of Deposit | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits [Abstract] | ' | |||||||
Time Certificates of Deposit | ' | |||||||
Time Certificates of Deposit | ||||||||
Scheduled maturities of time certificates of deposit were as follows: | ||||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | ||||||
Years ending December 31: | 2014 | $463,262 | 0.78 | % | ||||
2015 | 146,073 | 1.79 | % | |||||
2016 | 87,242 | 1.56 | % | |||||
2017 | 39,081 | 1.57 | % | |||||
2018 | 54,937 | 1.37 | % | |||||
2019 and thereafter | 167 | 1.44 | % | |||||
Balance at December 31, 2013 | $790,762 | |||||||
The aggregate amount of time certificates of deposit in denominations of $100 thousand or more was $370.2 million and $421.3 million at December 31, 2013 and 2012, respectively. | ||||||||
The following table represents the amount of certificates of deposit of $100 thousand or more at December 31, 2013 maturing during the periods indicated: | ||||||||
(Dollars in thousands) | ||||||||
Maturing: | January 1, 2014 to March 31, 2014 | $171,066 | ||||||
April 1, 2014 to June 30, 2014 | 30,779 | |||||||
July 1, 2014 to December 31, 2014 | 55,420 | |||||||
January 1, 2015 and beyond | 112,954 | |||||||
Balance at December 31, 2013 | $370,219 | |||||||
Borrowings
Borrowings | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Borrowings | ' | |||||||||||
Borrowings | ||||||||||||
Federal Home Loan Bank Advances | ||||||||||||
Advances payable to FHLBB amounted to $288.1 million and $361.2 million, respectively, at December 31, 2013 and 2012. | ||||||||||||
The following table presents maturities and weighted average interest rates paid on FHLBB advances outstanding as of December 31, 2013: | ||||||||||||
(Dollars in thousands) | Scheduled | Redeemed at | Weighted | |||||||||
Maturity | Call Date (1) | Average Rate (2) | ||||||||||
2014 | $2,519 | $2,519 | 3.54 | % | ||||||||
2015 | 1,569 | 1,569 | 4.89 | % | ||||||||
2016 | 85,066 | 85,066 | 3.05 | % | ||||||||
2017 | 70,875 | 70,875 | 3.04 | % | ||||||||
2018 | 77,303 | 77,303 | 3.72 | % | ||||||||
2019 and thereafter | 50,750 | 50,750 | 4.13 | % | ||||||||
$288,082 | $288,082 | 3.43 | % | |||||||||
-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. | |||||||||||
See Note 22 for discussion regarding the prepayment of FHLBB advances in March 2014. | ||||||||||||
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 $564.1 million and $536.2 million, respectively, at December 31, 2013 and December 31, 2012. | ||||||||||||
Advances payable to FHLBB include short-term advances with original maturity due dates of one year or less. The following table sets forth certain information concerning short-term FHLBB advances as of the dates and for the periods indicated: | ||||||||||||
(Dollars in thousands) | ||||||||||||
As of and for the years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Average amount outstanding during the period | $13,901 | $61,936 | $36,870 | |||||||||
Amount outstanding at end of period | — | 40,500 | 102,500 | |||||||||
Highest month end balance during period | 60,000 | 102,929 | 105,500 | |||||||||
Weighted-average interest rate at end of period | — | % | 0.28 | % | 0.18 | % | ||||||
Weighted-average interest rate during the period | 0.3 | % | 0.27 | % | 0.23 | % | ||||||
Junior Subordinated Debentures | ||||||||||||
Junior subordinated debentures amounted to $22.7 million and $33.0 million, respectively, at December 31, 2013 and 2012. | ||||||||||||
The Bancorp has sponsored the creation of WT Capital Trust I (“Trust I”), WT Capital Trust II (“Trust II”) and Washington Preferred Capital Trust (“Washington Preferred”), Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Bancorp. The Bancorp is the owner of all of the common securities of the trusts. In accordance with GAAP, the trusts are treated as unconsolidated subsidiaries. The common stock investment in the statutory trusts is included in “Other Assets” in the Consolidated Balance Sheet. | ||||||||||||
On August 29, 2005, Trust I issued $8.3 million of capital securities (“Trust I Capital Securities”) in a private placement of trust preferred securities. The Trust I Capital Securities mature in September 2035, are redeemable at the Bancorp’s option beginning after five years, and require quarterly distributions by Trust I to the holder of the Trust I Capital Securities, at a rate of 5.965% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45%. The Bancorp has guaranteed the Trust I Capital Securities and, to the extent not paid by Trust I, accrued and unpaid distributions on the Trust I Capital Securities, as well as the redemption price payable to the Trust I Capital Securities holders. The proceeds of the Trust I Capital Securities, along with proceeds from the issuance of common securities by Trust I to the Bancorp, were used to purchase $8.3 million of the Bancorp’s junior subordinated deferrable interest notes (the “Trust I Debentures”) and constitute the primary asset of Trust I. Like the Trust I Capital Securities, the Trust I Debentures bear interest at a rate of 5.965% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45%. The Trust I Debentures mature on September 15, 2035, but may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies, at any time on or after September 15, 2010, or upon the occurrence of certain special qualifying events. | ||||||||||||
On August 29, 2005, Trust II issued $14.4 million of capital securities (“Trust II Capital Securities”) in a private placement of trust preferred securities. The Trust II Capital Securities mature in November 2035, are redeemable at the Bancorp’s option beginning after five years, and require quarterly distributions by Trust II to the holder of the Trust II Capital Securities, at a rate of 5.96% until November 23, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45%. The Bancorp has guaranteed the Trust II Capital Securities and, to the extent not paid by Trust II, accrued and unpaid distributions on the Trust II Capital Securities, as well as the redemption price payable to the Trust II Capital Securities holders. The proceeds of the Trust II Capital Securities, along with proceeds from the issuance of common securities by Trust II to the Bancorp, were used to purchase $14.4 million of the Bancorp’s junior subordinated deferrable interest notes (the “Trust II Debentures”) and constitute the primary asset of Trust II. Like the Trust II Capital Securities, the Trust II Debentures bear interest at a rate of 5.96% until November 23, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45%. The Trust II Debentures mature on November 23, 2035, but may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies, at any time on or after November 23, 2010, or upon the occurrence of certain special qualifying events. | ||||||||||||
On April 7, 2008, Washington Preferred issued $10.0 million 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. 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. Including the cost of the related interest rate swap contract, the rate on this debt was approximately 5.69% at the time of redemption. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||
Shareholders’ Equity | |||||||||||||||||||||
2006 Stock Repurchase Plan | |||||||||||||||||||||
In December 2006, the Bancorp’s Board of Directors approved the 2006 Stock Repurchase Plan authorizing the repurchase of up to 400,000 shares, or approximately 3%, of the Corporation’s common stock in open market transactions. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The Bancorp plans to hold the repurchased shares as treasury stock to be used for general corporate purposes. As of December 31, 2013, a cumulative total of 185,400 shares have been repurchased. All of these shares of stock were repurchased in 2007 at a total cost of $4.8 million. | |||||||||||||||||||||
Shareholder Rights Plan | |||||||||||||||||||||
In August 2006, the Bancorp’s Board of Directors adopted a shareholder rights plan, as set forth in the Shareholders Rights Agreement, dated August 17, 2006 (the “2006 Rights Agreement”). Pursuant to the terms of the 2006 Rights Agreement, the Bancorp declared a dividend distribution of one common share purchase right (a “Right”) for each outstanding share of common stock to shareholders of record on August 31, 2006. Such Rights also apply to new issuances of shares after that date. Each Right entitles the registered holder to purchase from the Corporation one share of its common stock at a price of $100.00 per share, subject to adjustment. | |||||||||||||||||||||
The Rights are not exercisable or separable from the common stock until the earlier of 10 days after a person or group (an “Acquiring Person”) acquires beneficial ownership of 15% or more of the outstanding common shares or announces a tender offer to do so. The Rights, which expire on August 31, 2016, may be redeemed by the Bancorp at any time prior to the acquisition by an Acquiring Person of beneficial ownership of 15% or more of the common stock at a price of $.01 per Right. In the event that any party becomes an Acquiring Person, each holder of a Right, other than Rights owned by the Acquiring Person, will have the right to receive upon exercise that number of common shares having a market value of two times the purchase price of the Right. In the event that, at any time after any party becomes an Acquiring Person, the Corporation is acquired in a merger or other business combination transaction or 50% or more of its assets or earning power are sold, each holder of a Right will have the right to purchase that number of shares of the acquiring company having a market value of two times the purchase price of the Right. | |||||||||||||||||||||
Dividends | |||||||||||||||||||||
The primary source of liquidity for the Bancorp is dividends received from the Bank. The Bancorp and the Bank are regulated enterprises and their abilities to pay dividends are subject to regulatory review and restriction. Certain regulatory and statutory restrictions exist regarding dividends, loans, and advances from the Bank to the Bancorp. Generally, the Bank has the ability to pay dividends to the Bancorp subject to minimum regulatory capital requirements. The FDIC and the FRB have the authority to use their enforcement powers to prohibit a bank or bank holding company, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. In addition, the Rhode Island Division of Banking may also restrict the declaration of dividends if a bank would not be able to pay its debts as they become due in the usual course of business or the bank’s total assets would be less than the sum of its total liabilities. Under the most restrictive of these requirements, the Bank could have declared aggregate additional dividends of $162.6 million as of December 31, 2013. | |||||||||||||||||||||
Dividend Reinvestment | |||||||||||||||||||||
Under the Amended and Restated Dividend Reinvestment and Stock Purchase Plan, 607,500 shares of the Corporation’s common stock were originally reserved to be issued for dividends reinvested and cash payments to the plan. | |||||||||||||||||||||
Reserved Shares | |||||||||||||||||||||
As of December 31, 2013, a total of 2,831,379 common stock shares were reserved for issuance under the 1997 Plan, 2003 Plan, 2013 Plan, the Amended and Restated Dividend Reinvestment and Stock Purchase Plan, the 2006 Stock Repurchase Plan and the Nonqualified Deferred Compensation Plan. | |||||||||||||||||||||
Regulatory Capital Requirements | |||||||||||||||||||||
The Bancorp and the Bank are subject to various regulatory capital requirements administered by the FRB and the FDIC, respectively. These requirements were established to more accurately assess the credit risk inherent in the assets and off-balance sheet activities of financial institutions. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Corporation to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations). Management believes that, as of December 31, 2013, the Corporation meets all capital adequacy requirements to which it is subject. | |||||||||||||||||||||
As of December 31, 2013, the most recent notification from the FDIC categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios. There are no conditions or events since that notification that management believes have changed the Bank’s categorization. | |||||||||||||||||||||
The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios at December 31, 2013 and 2012, as well as the corresponding minimum regulatory amounts and ratios: | |||||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy | To Be “Well Capitalized” | ||||||||||||||||||
Purposes | Under Prompt Corrective | ||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $319,486 | 13.29 | % | $192,306 | 8 | % | $240,382 | 10 | % | ||||||||||||
Bank | $314,458 | 13.09 | % | $192,147 | 8 | % | $240,184 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $291,292 | 12.12 | % | $96,153 | 4 | % | $144,229 | 6 | % | ||||||||||||
Bank | $286,264 | 11.92 | % | $96,074 | 4 | % | $144,111 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $291,292 | 9.41 | % | $123,785 | 4 | % | $154,732 | 5 | % | ||||||||||||
Bank | $286,264 | 9.26 | % | $123,633 | 4 | % | $154,541 | 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 | ||||||||||||||||||||
The Corporation’s capital ratios at December 31, 2013 place the Corporation in the “well-capitalized” category according to regulatory standards. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 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 December 31, 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 debenture as of December 31, 2012. See additional disclosure in Note 11 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 pledged collateral to derivative counterparties in the form of cash totaling $1.6 million and $2.0 million as of December 31, 2013 and 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 also 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 allows 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 inherent in making loans. As of December 31, 2013 and 2012, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $105.6 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 | Dec 31 | Dec 31 | Balance Sheet Location | Dec 31 | Dec 31 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||||||||||
Interest rate risk management contract: | ||||||||||||||||||||||||||
Interest rate swap contracts | $— | $— | Other liabilities | $1,012 | $1,619 | |||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||
Commitments to originate fixed rate mortgage loans to be sold | Other assets | 392 | 2,513 | Other liabilities | — | — | ||||||||||||||||||||
Commitments to sell fixed rate mortgage loans | Other assets | 10 | — | Other liabilities | 583 | 4,191 | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||
Interest rate swaps with customers | Other assets | 2,403 | 3,851 | 297 | — | |||||||||||||||||||||
Mirror swaps with counterparties | 330 | — | Other liabilities | 2,406 | 3,952 | |||||||||||||||||||||
Total | $3,135 | $6,364 | $4,298 | $9,762 | ||||||||||||||||||||||
The following tables present the effect of derivative instruments in the Corporations’ 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 on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||
Interest rate swap contracts | $388 | $121 | ($456 | ) | Interest Expense | $— | $— | $— | ||||||||||||||||||
Total | $388 | $121 | ($456 | ) | $— | $— | $— | |||||||||||||||||||
(Dollars in thousands) | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||||||||||||||||||
Years ended December 31, | Statement of Income Location | 2013 | 2012 | 2011 | ||||||||||||||||||||||
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 | ($2,121 | ) | $649 | $1,968 | |||||||||||||||||||||
Commitments to sell fixed rate mortgage loans | Net gains on loan sales & commissions on loans originated for others | 3,618 | (1,611 | ) | (3,119 | ) | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||
Interest rate swaps with customers | Net gains on interest rate swaps | 396 | 1,147 | 2,658 | ||||||||||||||||||||||
Mirror swaps with counterparties | Net gains on interest rate swaps | 555 | (892 | ) | (2,652 | ) | ||||||||||||||||||||
Total | $2,448 | ($707 | ) | ($1,145 | ) | |||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 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 December 31, 2013 and 2012, securities available for sale, residential real estate mortgage loans held for sale and derivatives are 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 | ||||||||||||||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. When available, the Corporation uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. | ||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
Prior to December 31, 2013, Level 3 securities were comprised of pooled trust preferred debt securities, in the form of collateralized debt obligations, which were not actively traded. See Note 4 for additional disclosures regarding these pooled trust preferred debt securities. The Corporation had concluded that a low level of activity for its Level 3 pooled trust preferred debt securities indicated that quoted market prices were 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 securities. The weighting was then used to determine an overall fair value of the securities. | ||||||||||||||||||||||||||||||||
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 ASC 825. Mortgage loans held for sale fair values are classified as Level 2 and are estimated based on secondary markets rates offered 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 was $11.5 million and $48.4 million, respectively, at December 31, 2013 and 2012. The aggregate fair value of this portfolio was $11.6 million and $50.1 million, respectively, at December 31, 2013 and 2012. As of December 31, 2013 and 2012, the difference between the aggregate fair value and the aggregate principal amount of mortgage loans held for sale amounted to $181 thousand and $1.7 million, respectively. There were no mortgage loans held for sale 90 days or more past due as of December 31, 2013 and 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) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Mortgage loans held for sale | ($1,505 | ) | $970 | $716 | ||||||||||||||||||||||||||||
Commitments to originate | (2,121 | ) | 649 | 1,968 | ||||||||||||||||||||||||||||
Commitments to sell | 3,618 | (1,611 | ) | (3,119 | ) | |||||||||||||||||||||||||||
Total changes in fair value | ($8 | ) | $8 | ($435 | ) | |||||||||||||||||||||||||||
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 on 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 | ||||||||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $55,115 | $— | $55,115 | ||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 238,355 | — | 238,355 | ||||||||||||||||||||||||||||
States and political subdivisions | — | 62,859 | — | 62,859 | ||||||||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | — | 24,684 | — | 24,684 | ||||||||||||||||||||||||||||
Collateralized debt obligations | — | 547 | — | 547 | ||||||||||||||||||||||||||||
Corporate bonds | — | 11,343 | — | 11,343 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | — | 11,636 | — | 11,636 | ||||||||||||||||||||||||||||
Derivative assets (1) | ||||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 2,733 | — | 2,733 | ||||||||||||||||||||||||||||
Forward loan commitments | — | 402 | — | 402 | ||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $407,674 | $— | $407,674 | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities (1) | ||||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $2,703 | $— | $2,703 | ||||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,012 | — | 1,012 | ||||||||||||||||||||||||||||
Forward loan commitments | — | 583 | — | 583 | ||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $4,298 | $— | $4,298 | ||||||||||||||||||||||||||||
-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 | Derivatives 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. There were no transfers in and/or out of Level 1 during the years ended December 31, 2013 and 2012. The Corporation utilized a broker quote to value its pooled trust preferred security at December 31, 2013. As a result, this security was reclassified out of Level 3 and into Level 2. See Note 4 for additional disclosure regarding this pooled trust preferred security. There were no other transfers between Level 2 and Level 3 during the years ended during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis during the periods indicated. | ||||||||||||||||||||||||||||||||
Years ended December 31, | 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) | (3,489 | ) | (150 | ) | 142 | (3,497 | ) | (221 | ) | — | — | (221 | ) | |||||||||||||||||||
Included in other comprehensive income | 3,326 | — | — | 3,326 | 177 | — | — | 177 | ||||||||||||||||||||||||
Purchases | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Issuances | — | 12,692 | — | 12,692 | — | 9,813 | (142 | ) | 9,671 | |||||||||||||||||||||||
Sales | — | (22,355 | ) | — | (22,355 | ) | — | — | — | — | ||||||||||||||||||||||
Settlements | (133 | ) | — | — | (133 | ) | — | — | — | — | ||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 | (547 | ) | — | — | (547 | ) | — | — | — | — | ||||||||||||||||||||||
Balance at end of period | $— | $— | $— | $— | $843 | $9,813 | ($142 | ) | $10,514 | |||||||||||||||||||||||
-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 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 Statements of Income. 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 Corporation had no Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2013. The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Corporation utilized Level 3 inputs to determine fair value at December 31, 2012. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
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 table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value at December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $11,177 | $11,177 | ||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 435 | 435 | ||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $11,612 | $11,612 | ||||||||||||||||||||||||||||
The allowance for loan losses on the collateral dependent impaired loans included above amounted to $453 thousand at December 31, 2013. | ||||||||||||||||||||||||||||||||
The following table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value at December 31, 2012 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
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 on the collateral dependent impaired loans included above 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. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | |||||||||||||||||||||||||||||
Collateral dependent impaired loans | $11,177 | Appraisals of collateral | Discount for costs to sell | 1% - 45% (11%) | ||||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 50% (2%) | |||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $435 | Appraisals of collateral | Discount for costs to sell | 2% - 10% (9%) | ||||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 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 December 31, 2013 and 2012 that reflect the credit and interest rate risk inherent in the loan. The fair value of floating rate commercial and consumer loans approximates carrying value. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans in the secondary market. 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. FHLB 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 December 31, 2013 and 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 | |||||||||||||||||||||||||||||||
December 31, 2013 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Securities held to maturity | $29,905 | $29,865 | $— | $29,865 | $— | |||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,434,998 | 2,479,527 | — | — | 2,479,527 | |||||||||||||||||||||||||||
Loan servicing rights (1) | 2,698 | 2,767 | — | — | 2,767 | |||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $790,762 | $797,748 | $— | $797,748 | $— | |||||||||||||||||||||||||||
FHLBB advances | 288,082 | 308,317 | — | 308,317 | — | |||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 16,282 | — | 16,282 | — | |||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $69 thousand in reserves as of December 31, 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. |
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Employee Benefits | ' | |||||||||||||||||||||||
Employee Benefits | ||||||||||||||||||||||||
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. | ||||||||||||||||||||||||
In September 2013, the Corporation amended its defined benefit pension plans primarily to freeze benefit accruals after a ten-year transition period ending in December 2023. As a result, the plans were remeasured in September 2013 and a curtailment was recognized, which reduced the projected benefit obligations by $4.4 million. The impact of this was primarily recognized in other comprehensive income. | ||||||||||||||||||||||||
The plan is funded on a current basis, in compliance with the requirements of ERISA. | ||||||||||||||||||||||||
The non-qualified retirement plans provide for the designation of assets in rabbi trusts. Securities available for sale and other short-term investments designated for this purpose, with the carrying value of $7.5 million and $8.3 million are included in the Consolidated Balance Sheets at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Pension benefit cost and benefit obligations are developed from actuarial valuations. Two critical assumptions in determining pension expense and obligations are the discount rate and the expected long-term rate of return on plan assets. We evaluate these assumptions at least annually. The discount rate is used to calculate the present value of the expected future cash flows for benefit obligations under our pension plans. Future decreases in discount rates would increase the present value of pension obligations and increase our pension costs. Future decreases in the long-term rate of return assumption on plan assets would increase pension costs and, in general, may increase the requirement to make funding contributions to the plans. | ||||||||||||||||||||||||
The following table sets forth the plans’ projected benefit obligations, fair value of plan assets and funded status as of and for the years ended: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of period | $70,615 | $57,257 | $12,569 | $11,321 | ||||||||||||||||||||
Service cost | 2,720 | 2,574 | 181 | 150 | ||||||||||||||||||||
Interest cost | 2,883 | 2,823 | 462 | 503 | ||||||||||||||||||||
Actuarial (gain) loss | (8,809 | ) | 9,535 | (1,332 | ) | 1,315 | ||||||||||||||||||
Benefits paid | (2,004 | ) | (1,440 | ) | (736 | ) | (720 | ) | ||||||||||||||||
Administrative expenses | (182 | ) | (134 | ) | — | — | ||||||||||||||||||
Curtailments | (4,061 | ) | — | (360 | ) | — | ||||||||||||||||||
Benefit obligation at end of period | $61,162 | $70,615 | $10,784 | $12,569 | ||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $51,078 | $38,330 | $— | $— | ||||||||||||||||||||
Actual return on plan assets | 8,168 | 4,322 | — | — | ||||||||||||||||||||
Employer contributions | 5,000 | 10,000 | 736 | 720 | ||||||||||||||||||||
Benefits paid | (2,004 | ) | (1,440 | ) | (736 | ) | (720 | ) | ||||||||||||||||
Administrative expenses | (182 | ) | (134 | ) | — | — | ||||||||||||||||||
Fair value of plan assets at end of period | $62,060 | $51,078 | $— | $— | ||||||||||||||||||||
Funded (unfunded) status at end of period | $898 | ($19,537 | ) | ($10,784 | ) | ($12,569 | ) | |||||||||||||||||
The funded status of the qualified pension plan has been recognized in other assets in the Consolidated Balance Sheet at December 31, 2013 and in other liabilities in the Consolidated Balance Sheet at December 31, 2012. The funded status of the non-qualified retirement plans has been recognized in other liabilities in the Consolidated Balance Sheets at December 31, 2013 and 2012. | ||||||||||||||||||||||||
The components of accumulated other comprehensive income related to the qualified pension plan and non-qualified retirement plans, on a pre-tax basis, are summarized below: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net actuarial loss | $4,510 | $23,144 | $2,071 | $3,938 | ||||||||||||||||||||
Prior service credit | (130 | ) | (221 | ) | (3 | ) | (5 | ) | ||||||||||||||||
Total pre-tax amounts recognized in accumulated other comprehensive income | $4,380 | $22,923 | $2,068 | $3,933 | ||||||||||||||||||||
The accumulated benefit obligation for the qualified pension plan was $53.1 million and $55.8 million at December 31, 2013 and 2012, respectively. The accumulated benefit obligation for the non-qualified retirement plans amounted to $10.4 million and $11.3 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
The components of net periodic benefit cost and other amounts recognized in other comprehensive income, on a pre-tax basis, were as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||||||||||
Service cost | $2,720 | $2,574 | $2,314 | $181 | $150 | $71 | ||||||||||||||||||
Interest cost | 2,883 | 2,823 | 2,578 | 462 | 503 | 495 | ||||||||||||||||||
Expected return on plan assets | (3,725 | ) | (2,985 | ) | (2,794 | ) | — | — | — | |||||||||||||||
Amortization of prior service (credit) cost | (30 | ) | (33 | ) | (33 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||
Recognized net actuarial loss | 1,321 | 982 | 392 | 175 | 119 | 16 | ||||||||||||||||||
Curtailments | (61 | ) | — | — | (1 | ) | — | — | ||||||||||||||||
Net periodic benefit cost | $3,108 | $3,361 | $2,457 | $816 | $771 | $581 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): | ||||||||||||||||||||||||
Net loss (gain) | ($14,572 | ) | $7,216 | $8,951 | ($1,506 | ) | $1,195 | $1,517 | ||||||||||||||||
Prior service cost (credit) | 30 | 33 | 33 | 1 | 1 | 1 | ||||||||||||||||||
Curtailments | (4,000 | ) | — | — | (359 | ) | — | — | ||||||||||||||||
Recognized in other comprehensive income | ($18,542 | ) | $7,249 | $8,984 | ($1,864 | ) | $1,196 | $1,518 | ||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | ($15,434 | ) | $10,610 | $11,441 | ($1,048 | ) | $1,967 | $2,099 | ||||||||||||||||
The estimated prior service credit and net loss for the qualified pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2014 are ($23) thousand and $461 thousand, respectively. The estimated prior service credit and net loss for the non-qualified retirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2014 are ($1) thousand and $71 thousand, respectively. | ||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
The measurement date and weighted-average assumptions used to determine benefit obligations at December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Qualified Pension Plan | Non-Qualified Retirement Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Measurement date | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | ||||||||||||||||||||
Discount rate | 4.88% | 4.13% | 4.60% | 3.75% | ||||||||||||||||||||
Rate of compensation increase | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||
The measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||
Qualified Pension Plan | Non-Qualified Retirement Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Measurement date | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||||||||||||||||||
Discount rate | 4.13% | 5.00% | 5.63% | 3.80% | 4.63% | 5.13% | ||||||||||||||||||
Expected long-term return on plan assets | 7.25% | 7.75% | 8.00% | —% | —% | —% | ||||||||||||||||||
Rate of compensation increase | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||
The expected long-term rate of return on plan assets is based on what the Corporation believes is realistically achievable based on the types of assets held by the plan and the plan’s investment practices. The assumption is updated at least annually, taking into account the asset allocation, historical asset return trends on the types of assets held and the current and expected economic conditions. At December 31, 2012, the measurement date used in the determination of net periodic benefit cost for 2013, the Corporation determined that a reduction to 7.25% in the expected long-term rate of return was necessary, based upon expected market performance. | ||||||||||||||||||||||||
The discount rate assumption for defined benefit pension plans is reset on the measurement date. A discount rate was selected for each plan by matching expected future benefit payments stream to a yield curve based on a selection of high-quality fixed-income debt securities. | ||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
The following table presents the fair values of the qualified pension plan’s assets at December 31, 2013: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fair Value Measurements Using | Assets at | |||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $2,236 | $— | $— | $2,236 | ||||||||||||||||||||
Obligations of U.S. government agencies and U.S. government-sponsored enterprises | — | 2,025 | — | 2,025 | ||||||||||||||||||||
States and political subdivisions | — | 2,218 | — | 2,218 | ||||||||||||||||||||
Corporate bonds | — | 11,069 | — | 11,069 | ||||||||||||||||||||
Common stocks | 24,406 | — | — | 24,406 | ||||||||||||||||||||
Mutual funds | 20,106 | — | — | 20,106 | ||||||||||||||||||||
Total plan assets | $46,748 | $15,312 | $— | $62,060 | ||||||||||||||||||||
The following table presents the fair values of the qualified pension plan’s assets at December 31, 2012: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fair Value Measurements Using | Assets at | |||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $7,274 | $— | $— | $7,274 | ||||||||||||||||||||
Obligations of U.S. government agencies and U.S. government-sponsored enterprises | — | 1,059 | — | 1,059 | ||||||||||||||||||||
States and political subdivisions | — | 2,218 | — | 2,218 | ||||||||||||||||||||
Corporate bonds | — | 10,378 | — | 10,378 | ||||||||||||||||||||
Common stocks | 15,892 | — | — | 15,892 | ||||||||||||||||||||
Mutual funds | 14,750 | — | — | 14,750 | ||||||||||||||||||||
Total plan assets | $37,916 | $13,655 | $— | $51,571 | ||||||||||||||||||||
The qualified pension plan uses fair value measurements to record fair value adjustments to the securities held in its investment portfolio. | ||||||||||||||||||||||||
When available, the qualified pension plan uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. This category includes cash equivalents, common stock and mutual funds which are exchange-traded. | ||||||||||||||||||||||||
Level 2 securities in the qualified pension plan include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose values are 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 includes corporate bonds, municipal bonds, obligations of U.S. government agencies and U.S. government-sponsored enterprises and mortgage backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises. | ||||||||||||||||||||||||
In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. As of December 31, 2013 and 2012, the qualified pension plan did not have any securities in the Level 3 category. | ||||||||||||||||||||||||
The asset allocations of the qualified pension plan at December 31, 2013 and 2012, by asset category were as follows: | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Equity securities | 63.8 | % | 55 | % | ||||||||||||||||||||
Fixed securities | 32.6 | % | 30.9 | % | ||||||||||||||||||||
Cash and cash equivalents | 3.6 | % | 14.1 | % | ||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||
The assets of the qualified defined benefit pension plan trust (the “Pension Trust”) are managed to balance the needs of cash flow requirements and long-term rate of return. Cash inflow is typically comprised of invested income from portfolio holdings and Bank contributions, while cash outflow is for the purpose of paying plan benefits and certain plan expenses. As early as possible each year, the trustee is advised of the projected schedule of employer contributions and estimations of benefit payments. As a general rule, the trustee shall invest the funds so as to produce sufficient income to cover benefit payments and maintain a funded status that exceeds the regulatory requirements for tax-qualified defined benefit plans. | ||||||||||||||||||||||||
The investment philosophy used for the Pension Trust emphasizes consistency of results over an extended market cycle, while reducing the impact of the volatility of the security markets upon investment results. The assets of the Pension Trust should be protected by substantial diversification of investments, providing exposure to a wide range of quality investment opportunities in various asset classes, with a high degree of liquidity. | ||||||||||||||||||||||||
The investment objective with respect to the Pension Trust assets is to provide capital appreciation with a current income component. At any time, the portfolio will typically be invested in the following ranges: 50% to 70% in equities; 30% to 50% in fixed income; and 0% to 10% in cash and cash equivalents. The trustee investment manager will have authorization to invest within these ranges, making decisions based upon market conditions. | ||||||||||||||||||||||||
Fixed income bond investments should be limited to those in the top four categories used by the major credit rating agencies. High yield bond funds may be used to provide exposure to this asset class as a diversification tool provided they do not exceed 10% of the portfolio. In order to reduce the volatility of the annual rate of return of the bond portfolio, attention will be given to the maturity structure of the portfolio in the light of money market conditions and interest rate forecasts. The assets of the Pension Trust will typically have a laddered maturity structure, avoiding large concentrations in any single year. Common stock and equity holdings provide opportunities for dividend and capital appreciation returns. Holdings will be appropriately diversified by maintaining broad exposure to large-, mid- and small-cap stocks as well as international equities. Concentration in small-cap, mid-cap and international equities is limited to 20%, 20% and 30% of the equity portfolio, respectively. Investment selection and mix of equity holdings should be influenced by forecasts of economic activity, corporate profits and allocation among different segments of the economy while ensuring efficient diversification. The fair value of equity securities of any one issuer will not be permitted to exceed 10% of the total fair value of equity holdings of the Pension Trust. Investments in publicly traded real estate investment trust securities and low-risk derivatives securities such as callable securities, floating rate notes, mortgage backed securities and treasury inflation protected securities, are permitted. | ||||||||||||||||||||||||
Cash Flows | ||||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||
The Internal Revenue Code permits flexibility in plan contributions so that normally a range of contributions is possible. The Corporation’s current funding policy has been generally to contribute the minimum required contribution and additional amounts up to the maximum deductible contribution. The Corporation expects to contribute $3.0 million to the qualified pension plan in 2014. In addition, the Corporation expects to contribute $751 thousand in benefit payments to the non-qualified retirement plans in 2014. | ||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Plans | |||||||||||||||||||||||
2014 | $3,832 | $751 | ||||||||||||||||||||||
2015 | 3,276 | 770 | ||||||||||||||||||||||
2016 | 3,550 | 770 | ||||||||||||||||||||||
2017 | 3,029 | 764 | ||||||||||||||||||||||
2018 | 3,077 | 757 | ||||||||||||||||||||||
Years 2019 - 2022 | 18,244 | 3,801 | ||||||||||||||||||||||
401(k) Plan | ||||||||||||||||||||||||
The Corporation’s 401(k) Plan provides a specified match of employee contributions for substantially all employees. In addition, substantially all employees hired after September 30, 2007, who are ineligible for participation in the qualified defined benefit pension plan, will receive a non-elective employer contribution of 4%. Total employer matching contributions under this plan amounted to $1.6 million, $1.4 million and $1.2 million in 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Other Incentive Plans | ||||||||||||||||||||||||
The Corporation maintains several non-qualified incentive compensation plans. Substantially all employees participate in one of the incentive compensation plans. Incentive plans provide for annual or more frequent payments based on individual, business line and/or corporate performance targets (measured in terms of the Corporation’s net income, earnings per share and return on equity). Total incentive based compensation amounted to $13.4 million, $13.5 million and $10.7 million in 2013, 2012 and 2011, respectively. In general, the terms of incentive plans are subject to annual renewal and may be terminated at any time by the Board of Directors. | ||||||||||||||||||||||||
Deferred Compensation Plan | ||||||||||||||||||||||||
The Amended and Restated Nonqualified Deferred Compensation Plan provides supplemental retirement and tax benefits to directors and certain officers. The plan is funded primarily through pre-tax contributions made by the participants. The assets and liabilities of the Deferred Compensation Plan are recorded at fair value in the Corporation’s Consolidated Balance Sheets. The participants in the plan bear the risk of market fluctuations of the underlying assets. The accrued liability related to this plan amounted to $7.1 million and $6.2 million at December 31, 2013 and 2012, respectively, and is included in other liabilities on the accompanying Consolidated Balance Sheets. The corresponding invested assets are reported in other assets. |
ShareBased_Compensation_Arrang
Share-Based Compensation Arrangements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-Based Compensation Arrangements | ' | |||||||||||||||
Share-Based Compensation Arrangements | ||||||||||||||||
Washington Trust’s share-based compensation plans are described below. | ||||||||||||||||
The 2013 Stock Option and Incentive Plan (“2013 Plan”) was approved on April 23, 2013. Under the 2013 Plan, the maximum number of shares of the Bancorp’s common stock to be issued is 1,748,250. The 2013 Plan permits the granting of stock options and other equity incentives to officers, employees, directors and other key persons. | ||||||||||||||||
The 2003 Stock Incentive Plan (the “2003 Plan”) was amended and restated and approved by shareholders in April 2009. The 2003 Plan amendments included increasing the maximum number of shares of Bancorp’s common stock to be issued under the 2003 Plan from 600,000 shares to 1,200,000 shares and increasing the number of shares that can be issued in the form of awards other than share options or stock appreciation rights from 200,000 to 400,000. The 2003 Plan permits the granting of stock options and other equity incentives to officers, employees, directors and other key persons. | ||||||||||||||||
The 1997 Equity Incentive Plan, as amended (the “1997 Plan”), was approved by shareholders in April 1997 and provided for the granting of stock options and other equity incentives to key employees, directors, advisors and consultants. The 1997 Plan permitted share options and other equity incentives to be granted at any time until April 29, 2007. | ||||||||||||||||
The exercise price of each stock option may not be less than the fair market value of the Bancorp’s common stock on the date of grant, and options shall have a term of no more than ten years. Stock options are designated as either non-qualified or incentive stock options. In general, the stock option price is payable in cash, by the delivery of shares of common stock already owned by the grantee, or a combination thereof. With respect only to non-qualified stock option grants issued under the 2013 Plan, the exercise may also be accomplished by withholding the exercise price from the number of shares that would otherwise be delivered upon a cash exercise of the option. The fair value of stock options on the date of grant is estimated using the Black-Scholes Option-Pricing Model. | ||||||||||||||||
Awards of nonvested share units, nonvested shares and nonvested performance shares are valued at the fair market value of the Bancorp’s common stock as of the award date. Performance share awards are granted in order to provide certain officers of the Corporation the opportunity to earn shares of common stock the number of which is determined pursuant to, and subject to the attainment of, performance goals during a specified measurement period. 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. | ||||||||||||||||
Vesting of stock options and share awards may accelerate or may be subject to proportional vesting if there is a change in control, disability, retirement or death (as defined in the Plans). | ||||||||||||||||
Amounts recognized in the consolidated financial statements for stock options, nonvested share awards and nonvested performance shares are as follows: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||
Share-based compensation expense | $1,876 | $1,962 | $1,394 | |||||||||||||
Related income tax benefit | $673 | $700 | $497 | |||||||||||||
Compensation expense for stock options and nonvested shares is recognized over the service period based on the fair value at the date of grant. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. | ||||||||||||||||
Stock Options | ||||||||||||||||
During 2013, the Corporation granted to certain key employees 54,600 non-qualified stock options with three-year cliff vesting. During 2012, the Corporation granted to certain key employees 106,775 non-qualified stock options with three- to five-year cliff vesting. During 2011, the Corporation granted to certain key employees 57,450 non-qualified stock options with three-year cliff vesting. | ||||||||||||||||
The following assumptions were used in determining the grant date fair value of the stock option awards granted: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (years) | 8 | 9 | 9 | |||||||||||||
Expected dividend yield | 3.77 | % | 3.45 | % | 3.33 | % | ||||||||||
Weighted average expected volatility | 42.85 | % | 42.97 | % | 41.9 | % | ||||||||||
Weighted average risk-free interest rate | 2.46 | % | 1.53 | % | 3.05 | % | ||||||||||
Weighted average grant-date fair value | $10.35 | $7.46 | $7.46 | |||||||||||||
Washington Trust uses historical data to estimate stock option exercise and employee departure behavior used in the option-pricing model; groups of employees that have similar historical behavior are considered separately for valuation purposes. The expected term of options granted was derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Expected volatility was based on historical volatility of Washington Trust shares. The risk-free rate for periods within the contractual life of the stock option was based on the U.S. Treasury yield curve in effect at the date of grant. | ||||||||||||||||
A summary of the status of Washington Trust’s stock options outstanding as of and the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (000’s) | |||||||||||||
Beginning of period | 645,797 | $23.58 | ||||||||||||||
Granted | 54,600 | 32.77 | ||||||||||||||
Exercised | (258,351 | ) | 23.97 | |||||||||||||
Forfeited or expired | (13,658 | ) | 24.46 | |||||||||||||
End of period | 428,388 | $24.50 | 5.9 | $5,451 | ||||||||||||
At end of period; | ||||||||||||||||
Options exercisable | 206,938 | $24.20 | 3.4 | $2,694 | ||||||||||||
Options expected to vest in future periods | 221,450 | $24.77 | 8.3 | $2,757 | ||||||||||||
The total intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. | ||||||||||||||||
Additional information concerning options outstanding and options exercisable at December 31, 2013 is summarized as follows: | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Exercise Price Ranges | Number of | Weighted Average | Weighted Average | Number of Shares | Weighted Average | |||||||||||
Shares | Remaining Life (Years) | Exercise Price | Exercise Price | |||||||||||||
$16.39 to $19.66 | 65,282 | 6 | $17.59 | 44,282 | $17.44 | |||||||||||
$19.67 to $22.94 | 55,700 | 7.3 | 21.71 | 1,500 | 21.71 | |||||||||||
$22.95 to $26.22 | 159,192 | 6.6 | 23.7 | 67,542 | 24.12 | |||||||||||
$26.23 to $29.49 | 93,614 | 1.6 | 27.5 | 93,614 | 27.5 | |||||||||||
$29.50 to $32.77 | 54,600 | 9.8 | 32.77 | — | — | |||||||||||
428,388 | 5.9 | $24.50 | 206,938 | $25.20 | ||||||||||||
The total intrinsic value of stock options exercised during the years ended December 31, 2013, 2012 and 2011 was $1.7 million, $812 thousand and $493 thousand, respectively. | ||||||||||||||||
Nonvested Shares | ||||||||||||||||
During 2013 and 2012, the Corporation granted to directors and certain key employees 24,400 and 29,725 nonvested share units, respectively, with three- to five-years cliff vesting. During 2011, the Corporation granted to certain key employees 31,950 nonvested share units with three-year cliff vesting. | ||||||||||||||||
A summary of the status of Washington Trust’s nonvested shares as of and for the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Beginning of period | 108,775 | $20.82 | ||||||||||||||
Granted | 24,400 | 29.9 | ||||||||||||||
Vested | (40,089 | ) | 18.3 | |||||||||||||
Forfeited | (2,561 | ) | 22.14 | |||||||||||||
End of period | 90,525 | $24.34 | ||||||||||||||
Nonvested Performance Shares | ||||||||||||||||
During 2013, performance share awards were granted to certain executive officers providing the opportunity to earn shares of common stock of the Corporation. The performance shares awarded were valued at $26.05 and will be earned over a three-year performance period. The current assumption based on the most recent peer group information results in the shares earned at 150% of the target, or 45,225 shares. | ||||||||||||||||
During 2012, performance share awards were granted to certain executive officers providing the opportunity to earn shares of common stock of the Corporation. The performance shares awarded were valued at $23.65 and will be earned over a three-year performance period. The current assumption based on the most recent peer group information results in the shares earned at 154% of the target, or 38,654 shares. | ||||||||||||||||
During 2011, a performance share award was granted to an executive officer providing the opportunity to earn shares of common stock of the Corporation. The performance shares awarded were valued at $21.62 and will be earned over a three-year performance period. The current assumption based on the most recent peer group information results in the shares earned at 150% of the target, or 40,238 shares. | ||||||||||||||||
A summary of the status of Washington Trust’s performance share awards as of and for the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Beginning of period | 119,020 | $21.45 | ||||||||||||||
Granted | 49,138 | 26.37 | ||||||||||||||
Vested | (17,975 | ) | 15.11 | |||||||||||||
Forfeited | (26,066 | ) | 23.59 | |||||||||||||
End of period | 124,117 | $23.87 | ||||||||||||||
As of December 31, 2013, there was $3.2 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including share options, nonvested share awards and performance share awards) granted under the Plans. That cost is expected to be recognized over a weighted average period of 2.1 years. |
Business_Segments
Business Segments | 12 Months Ended | |||||||||||||||
Dec. 31, 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) | ||||||||||||||||
Year ended December 31, 2013 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income | $79,633 | $7 | $12,145 | $91,785 | ||||||||||||
Noninterest income | 30,769 | 31,825 | (514 | ) | 62,080 | |||||||||||
Total income | 110,402 | 31,832 | 11,631 | 153,865 | ||||||||||||
Provision for loan losses | 2,400 | — | — | 2,400 | ||||||||||||
Depreciation and amortization expense | 2,473 | 1,277 | 213 | 3,963 | ||||||||||||
Other noninterest expenses | 61,976 | 20,494 | 12,352 | 94,822 | ||||||||||||
Total noninterest expenses | 64,449 | 21,771 | 12,565 | 98,785 | ||||||||||||
Income (loss) before income taxes | 43,553 | 10,061 | (934 | ) | 52,680 | |||||||||||
Income tax expense (benefit) | 14,598 | 3,724 | (1,795 | ) | 16,527 | |||||||||||
Net income | $28,955 | $6,337 | $861 | $36,153 | ||||||||||||
Total assets at period end | $2,517,059 | $50,297 | $621,511 | $3,188,867 | ||||||||||||
Expenditures for long-lived assets | $1,286 | $112 | $93 | $1,491 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year ended December 31, 2012 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income | $79,505 | $17 | $11,174 | $90,696 | ||||||||||||
Noninterest income | 31,727 | 29,640 | 3,847 | 65,214 | ||||||||||||
Total income | 111,232 | 29,657 | 15,021 | 155,910 | ||||||||||||
Provision for loan losses | 2,700 | — | — | 2,700 | ||||||||||||
Depreciation and amortization expense | 2,384 | 1,272 | 285 | 3,941 | ||||||||||||
Other noninterest expenses | 62,963 | 19,584 | 15,850 | 98,397 | ||||||||||||
Total noninterest expenses | 65,347 | 20,856 | 16,135 | 102,338 | ||||||||||||
Income (loss) before income taxes | 43,185 | 8,801 | (1,114 | ) | 50,872 | |||||||||||
Income tax expense (benefit) | 14,670 | 3,296 | (2,168 | ) | 15,798 | |||||||||||
Net income | $28,515 | $5,505 | $1,054 | $35,074 | ||||||||||||
Total assets at period end | $2,436,280 | $51,730 | $583,874 | $3,071,884 | ||||||||||||
Expenditures for long-lived assets | $4,082 | $877 | $151 | $5,110 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year ended December 31, 2011 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income (expense) | $75,967 | ($1 | ) | $8,989 | $84,955 | |||||||||||
Noninterest income | 21,806 | 28,306 | 2,652 | 52,764 | ||||||||||||
Total income | 97,773 | 28,305 | 11,641 | 137,719 | ||||||||||||
Provision for loan losses | 4,700 | — | — | 4,700 | ||||||||||||
Depreciation and amortization expense | 2,512 | 1,330 | 283 | 4,125 | ||||||||||||
Other noninterest expenses | 55,543 | 19,041 | 11,664 | 86,248 | ||||||||||||
Total noninterest expenses | 58,055 | 20,371 | 11,947 | 90,373 | ||||||||||||
Income (loss) before income taxes | 35,018 | 7,934 | (306 | ) | 42,646 | |||||||||||
Income tax expense (benefit) | 11,781 | 2,957 | (1,816 | ) | 12,922 | |||||||||||
Net income | $23,237 | $4,977 | $1,510 | $29,724 | ||||||||||||
Total assets at period end | $2,257,326 | $51,104 | $755,668 | $3,064,098 | ||||||||||||
Expenditures for long-lived assets | $2,982 | $493 | $169 | $3,644 | ||||||||||||
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||
The following tables present the activity in other comprehensive income (loss): | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2013 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($10,586 | ) | ($3,778 | ) | ($6,808 | ) | ||||||||||||||
Net (gains) losses on securities classified into earnings (1) | 294 | 106 | 188 | |||||||||||||||||
Net change in fair value of securities available for sale | (10,292 | ) | (3,672 | ) | (6,620 | ) | ||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 3,195 | 1,146 | 2,049 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (58 | ) | (23 | ) | (35 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 657 | 234 | 423 | |||||||||||||||||
Change in the fair value of cash flow hedges | 599 | 211 | 388 | |||||||||||||||||
Defined benefit plan obligation adjustment (4) | 20,406 | 7,277 | 13,129 | |||||||||||||||||
Total other comprehensive income | $13,908 | $4,962 | $8,946 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($4,125 | ) | ($1,459 | ) | ($2,666 | ) | ||||||||||||||
Net (gains) losses on securities classified into earnings (1) | (1,195 | ) | (427 | ) | (768 | ) | ||||||||||||||
Net change in fair value of securities available for sale | (5,320 | ) | (1,886 | ) | (3,434 | ) | ||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 193 | 68 | 125 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (521 | ) | (188 | ) | (333 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 706 | 252 | 454 | |||||||||||||||||
Change in the fair value of cash flow hedges | 185 | 64 | 121 | |||||||||||||||||
Defined benefit plan obligation adjustment (4) | (8,445 | ) | (3,029 | ) | (5,416 | ) | ||||||||||||||
Total other comprehensive income | ($13,387 | ) | ($4,783 | ) | ($8,604 | ) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2011 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | $2,620 | $998 | $1,622 | |||||||||||||||||
Net (gains) losses on securities classified into earnings (1) | (644 | ) | (229 | ) | (415 | ) | ||||||||||||||
Net change in fair value of securities available for sale | 1,976 | 769 | 1,207 | |||||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 137 | 49 | 88 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (1,464 | ) | (522 | ) | (942 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 755 | 269 | 486 | |||||||||||||||||
Net change in the fair value of cash flow hedges | (709 | ) | (253 | ) | (456 | ) | ||||||||||||||
Defined benefit plan obligation adjustment (4) | (10,502 | ) | (3,743 | ) | (6,759 | ) | ||||||||||||||
Total other comprehensive income | ($9,098 | ) | ($3,178 | ) | ($5,920 | ) | ||||||||||||||
(1) Reported as total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. | ||||||||||||||||||||
(2) Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. | ||||||||||||||||||||
(3) Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | ||||||||||||||||||||
(4) Included in salaries and employee benefits expense in the Consolidated Statements of Income. | ||||||||||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the year ended December 31, 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 | $9,709 | ($1,937 | ) | ($1,006 | ) | ($17,265 | ) | ($10,499 | ) | |||||||||||
Other comprehensive income before reclassifications | (6,808 | ) | — | (35 | ) | — | (6,843 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 188 | 2,049 | 423 | 13,129 | 15,789 | |||||||||||||||
Net other comprehensive income (loss) | (6,620 | ) | 2,049 | 388 | 13,129 | 8,946 | ||||||||||||||
Balance at December 31, 2013 | $3,089 | $112 | ($618 | ) | ($4,136 | ) | ($1,553 | ) | ||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2011 and 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 January 1, 2011 | $11,936 | ($2,150 | ) | ($671 | ) | ($5,090 | ) | $4,025 | ||||||||||||
Period change, net of tax | 1,207 | 88 | (456 | ) | (6,759 | ) | (5,920 | ) | ||||||||||||
Balance at December 31, 2011 | $13,143 | ($2,062 | ) | ($1,127 | ) | ($11,849 | ) | ($1,895 | ) | |||||||||||
Period change, net of tax | (3,434 | ) | 125 | 121 | (5,416 | ) | (8,604 | ) | ||||||||||||
Balance at December 31, 2012 | $9,709 | ($1,937 | ) | ($1,006 | ) | ($17,265 | ) | ($10,499 | ) | |||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 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) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Net income | $36,153 | $35,074 | $29,724 | |||||||||
Less: | ||||||||||||
Dividends and undistributed earnings allocated to participating securities | (155 | ) | (160 | ) | (112 | ) | ||||||
Net income applicable to common shareholders | 35,998 | 34,914 | 29,612 | |||||||||
Weighted average basic common shares | 16,506 | 16,358 | 16,254 | |||||||||
Dilutive effect of: | ||||||||||||
Common stock equivalents | 158 | 43 | 30 | |||||||||
Weighted average diluted common shares | 16,664 | 16,401 | 16,284 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $2.18 | $2.13 | $1.82 | |||||||||
Diluted | $2.16 | $2.13 | $1.82 | |||||||||
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 23 thousand, 357 thousand and 371 thousand for 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
Commitments and Contingencies | ||||||||
Financial Instruments with Off-Balance 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) | ||||||||
December 31, | 2013 | 2012 | ||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $259,061 | $223,426 | ||||||
Home equity lines | 198,432 | 184,941 | ||||||
Other loans | 35,175 | 30,504 | ||||||
Standby letters of credit | 1,363 | 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 | 17,910 | 67,792 | ||||||
Commitments to sell fixed rate mortgage loans | 29,364 | 116,162 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 105,582 | 70,493 | ||||||
Mirror swaps with counterparties | 105,582 | 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. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Under the standby letters of credit, the Corporation is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary contingent upon the customer’s failure to perform under the terms of the underlying contract with the beneficiary. Standby letters of credit extend up to five years. At December 31, 2013 and 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 December 31, 2013 and 2012, there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit totaled $23 thousand in 2013, compared to $94 thousand in 2012 and $153 thousand in 2011. | ||||||||
At December 31, 2013 and 2012, a substantial portion of the standby letters of credit were supported by pledged collateral. The collateral obtained is determined based on management’s credit evaluation of the customer. Should the Corporation be required to make payments to the beneficiary, repayment from the customer to the Corporation is required. | ||||||||
Forward Loan Commitments | ||||||||
Interest rate lock commitments are extended to borrowers that relate to the origination of readily marketable mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed mortgage loans held for sale, best efforts forward commitments are established to sell individual mortgage loans. Both interest rate lock commitments and commitments to sell fixed rate residential mortgage loans are derivative financial instruments. | ||||||||
Leases | ||||||||
At December 31, 2013, the Corporation was committed to rent premises used in banking operations under non-cancelable operating leases. Rental expense under the operating leases amounted to $2.8 million, $2.8 million and $1.9 million for December 31, 2013, 2012 and 2011, respectively. The minimum annual lease payments under the terms of these leases, exclusive of renewal provisions, are as follows: | ||||||||
(Dollars in thousands) | ||||||||
Years ending December 31: | 2014 | $2,542 | ||||||
2015 | 1,944 | |||||||
2016 | 1,604 | |||||||
2017 | 1,462 | |||||||
2018 | 1,143 | |||||||
2019 and thereafter | 13,490 | |||||||
Total minimum lease payments | $22,185 | |||||||
Lease expiration dates range from five months to 25 years, with renewal options on certain leases of six months to 25 years. | ||||||||
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, the Corporation 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. The unpaid principal balance of loans repurchased due to representation and warranty claims as of December 31, 2013 was $682 thousand compared to $843 thousand at December 31, 2012. In 2013 and 2012, rebates of premiums for loans sold that were paid off within a contractually agreed upon of period of time were insignificant. Washington Trust has recorded a reserve for its exposure to losses for premium recapture and the obligation to repurchase previously sold residential real estate mortgage loans. The reserve balance amounted to $275 thousand and $250 thousand at December 31, 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. |
Parent_Company_Financial_State
Parent Company Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Parent Company Financial Statements | ' | ||||||||||||
Parent Company Financial Statements | |||||||||||||
The following are parent company only financial statements of Washington Trust Bancorp, Inc. reflecting the investment in the Bank on the equity basis of accounting. The Statements of Changes in Shareholders’ Equity for the parent company only are identical to the Consolidated Statements of Changes in Shareholders’ Equity and are therefore not presented. | |||||||||||||
Balance Sheets | (Dollars in thousands, except par value) | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash on deposit with bank subsidiary | $2,126 | $1,694 | |||||||||||
Interest-bearing balances due from banks | 1,569 | 1,970 | |||||||||||
Investment in subsidiaries at equity value | 349,342 | 325,717 | |||||||||||
Dividends receivable from subsidiaries | 4,606 | 4,198 | |||||||||||
Other assets | 494 | 891 | |||||||||||
Total assets | $358,137 | $334,470 | |||||||||||
Liabilities: | |||||||||||||
Junior subordinated debentures | $22,681 | $32,991 | |||||||||||
Dividends payable | 4,756 | 4,152 | |||||||||||
Other liabilities | 1,054 | 1,675 | |||||||||||
Total liabilities | 28,491 | 38,818 | |||||||||||
Shareholders’ Equity: | |||||||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | |||||||||||
Paid-in capital | 97,566 | 91,453 | |||||||||||
Retained earnings | 232,595 | 213,674 | |||||||||||
Accumulated other comprehensive loss | (1,553 | ) | (10,499 | ) | |||||||||
Total shareholders’ equity | 329,646 | 295,652 | |||||||||||
Total liabilities and shareholders’ equity | $358,137 | $334,470 | |||||||||||
Statements of Income | (Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $24,481 | $16,188 | $14,439 | ||||||||||
Other income | 20 | 3 | 2 | ||||||||||
Total income | 24,501 | 16,191 | 14,441 | ||||||||||
Expenses: | |||||||||||||
Interest on junior subordinated debentures | 1,484 | 1,570 | 1,568 | ||||||||||
Legal and professional fees | 145 | 127 | 118 | ||||||||||
Other | 279 | 279 | 257 | ||||||||||
Total expenses | 1,908 | 1,976 | 1,943 | ||||||||||
Income before income taxes | 22,593 | 14,215 | 12,498 | ||||||||||
Income tax benefit | 661 | 682 | 669 | ||||||||||
Income before equity in undistributed earnings of subsidiaries | 23,254 | 14,897 | 13,167 | ||||||||||
Equity in undistributed earnings of subsidiaries | 12,899 | 20,177 | 16,557 | ||||||||||
Net income | $36,153 | $35,074 | $29,724 | ||||||||||
Statements of Cash Flows | (Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash flow from operating activities: | |||||||||||||
Net income | $36,153 | $35,074 | $29,724 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiary | (12,899 | ) | (20,177 | ) | (16,557 | ) | |||||||
Increase in dividend receivable | (408 | ) | (298 | ) | (660 | ) | |||||||
Decrease (increase) in other assets | 397 | 77 | (246 | ) | |||||||||
(Decrease) increase in accrued expenses and other liabilities | (621 | ) | (215 | ) | 281 | ||||||||
Other, net | (214 | ) | (237 | ) | (115 | ) | |||||||
Net cash provided by operating activities | 22,408 | 14,224 | 12,427 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Repayment of equity investment in capital trust | 310 | — | — | ||||||||||
Net cash used in investing activities | 310 | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Issuance of treasury stock, including net deferred compensation plan activity | 30 | — | — | ||||||||||
Proceeds from issuance of common stock under dividend reinvestment plan | — | — | 754 | ||||||||||
Proceeds from stock option exercises and issuance of other equity instruments | 3,651 | 1,257 | 885 | ||||||||||
Tax benefit from stock option exercises and other equity instrument issuances | 570 | 210 | 115 | ||||||||||
Repayment of junior subordinated debentures | (10,310 | ) | — | — | |||||||||
Cash dividends paid | (16,628 | ) | (15,133 | ) | (14,205 | ) | |||||||
Net cash used in financing activities | (22,687 | ) | (13,666 | ) | (12,451 | ) | |||||||
Net increase (decrease) in cash | 31 | 558 | (24 | ) | |||||||||
Cash at beginning of year | 3,664 | 3,106 | 3,130 | ||||||||||
Cash at end of year | $3,695 | $3,664 | $3,106 | ||||||||||
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
Subsequent Event | |
On March 1, 2014, the Corporation sold its merchant processing service business line to a third party. The sale resulted in a gain of approximately $6.3 million; after-tax $4.0 million, or $0.24 per diluted share. In addition, Washington Trust expects to incur divestiture related costs of approximately $359 thousand; after-tax $230 thousand, or $0.01 per diluted share, in the first quarter of 2014. The Corporation will also have the opportunity to earn additional referral revenues during the ten-year period following the transaction. | |
Washington Trust has also entered into transactions in March 2014 involving the prepayment of FHLBB advances totaling approximately $99.3 million, resulting in debt prepayment penalty expense of approximately $6.3 million; after-tax $4.0 million, or $0.24 per diluted share. The weighted average rate of these FHLBB advances was 3.01% with a weighted average remaining term of thirty-six months. The funding was primarily replaced with lower cost borrowings from other wholesale funding sources and existing on balance sheet liquidity. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation | ' |
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. | |
Basis of Accounting | ' |
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. | |
Use of Estimates | ' |
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 the assessment of investments for impairment. The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions. | |
Cash and Cash Equivalents | ' |
Short-term Investments | |
Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be comprised of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and US Treasury bills. | |
Cash Flows | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and other short-term investments. Generally, federal funds are sold on an overnight basis. | |
Securities | ' |
Securities | |
Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Management determines the appropriate classification of securities at the time of purchase. | |
Investments not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt and equity securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not have a trading portfolio. | |
Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Dividend and interest income are recognized when earned. Realized gains or losses from sales of equity securities are determined using the average cost method, while other realized gains and losses are determined using the specific identification method. | |
The fair values of securities may be based on either quoted market prices, third party pricing services or third party valuation specialists. When the fair value of an investment security is less than its amortized cost basis, the Corporation assesses whether the decline in value is other-than-temporary. The Corporation considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market condition in the geographic area or industry the issuer operates in. | |
In determining whether an other-than-temporary impairment has occurred for debt securities, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost of the security. If the present value of expected cash flows is less than the amortized cost of the security, then the entire amortized cost of the security will not be recovered; that is, a credit loss exists, and an other-than-temporary impairment shall be considered to have occurred. The credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income provided that the Corporation does not intend to sell the underlying debt security and it is more-likely-than not that the Corporation would not have to sell the debt security prior to recovery of the unrealized loss, which may be to maturity. If the Corporation intended to sell any securities with an unrealized loss or it is more-likely than not that the Corporation would be required to sell the investment securities, before recovery of their amortized cost basis, then the entire unrealized loss would be recorded in earnings. | |
Federal Home Loan Bank Stock | ' |
Federal Home Loan Bank Stock | |
The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Corporation currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Corporation’s FHLBB stock as of December 31, 2013. Further deterioration of the FHLBB’s capital levels may require the Corporation to deem its restricted investment in FHLBB stock to be other-than-temporarily impaired. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Corporation will continue to monitor its investment in FHLBB stock. | |
Mortgage Banking Activities | ' |
Mortgage Banking Activities | |
Mortgage Loans Held for Sale - Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. The Corporation has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for closed loans intended for sale. ASC 825 allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. Washington Trust elected the fair value option for its portfolio of residential real estate mortgage loans held for sale pursuant to forward sale commitments in order to reduce certain timing differences and better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value relating to forward sale commitments and interest rate lock commitments. Gains and losses on residential loan sales are recorded in noninterest income as net gains on loan sales and commissions on loans originated for others. Commissions received on mortgage loans brokered to various investors are included in net gains on loan sales and commissions on loans originated for others are and are recorded as revenue when received. | |
Loan Servicing Rights - Rights to service mortgage loans for others are recognized as an asset, including rights acquired through both purchases and originations. Upon the sale of mortgage loans, a mortgage servicing asset is established, which represents the current estimated fair value based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Capitalized loan servicing rights are included in other assets and are amortized as an offset to other income over the period of estimated net servicing income. They are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to other income in the Consolidated Statements of Income. | |
Loans | ' |
Loans | |
Portfolio Loans - Loans held in the portfolio are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based on principal amounts outstanding. Deferred loan origination fees and costs are amortized as an adjustment to yield over the life of the related loans. | |
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. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. 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. Interest previously accrued but not collected is reversed against current period income when the loan is placed on nonaccrual status. 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 collectibility 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 Restructured Loans - Loans are considered to be troubled debt restructurings 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 generally 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 of a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. Troubled debt 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 troubled debt 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 generally 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. | |
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 all 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. Impairment is 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. Impairment is also measured based on the fair value of the collateral less costs to sell if it is determined that foreclosure is probable. Interest income on nonaccrual impaired loans is recognized as described above under the caption “Nonaccrual Loans.” Impaired accruing loans consist of those troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses | |
The allowance for loan losses is management’s best estimate of the probable loan losses inherent 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 (or portions thereof) deemed to be uncollectible. Loan charge-offs are recognized when management believes the collectibility of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. | |
A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology includes three elements: (1) identification of loss allocations for certain specific loans deemed to be impaired, (2) loss allocation factors for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar credit quality indicators, and (3) an additional unallocated allowance maintained 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. | |
The level of the allowance is based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, current economic conditions, analysis of current levels and asset quality and delinquency trends, the performance of individual loans in relation to contract terms and other pertinent factors. | |
The adequacy of the allowance for loan losses is regularly evaluated by management. While management believes that the allowance for loan losses is adequate, future additions to the allowance may be necessary based on changes in assumptions and economic conditions. 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 allowance is an estimate, and ultimate losses may vary from management’s estimate. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. | |
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 credit quality indicators, and (3) an additional unallocated allowance maintained for measurement imprecision and to reflect management’s consideration of qualitative and quantitative assessments of other environmental factors. | |
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, and 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. | |
Premises and Equipment | ' |
Premises and Equipment | |
Premises and equipment are stated at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from three to forty years. For furniture, fixtures and equipment, the estimated useful lives range from two to twenty years. | |
Goodwill and Other Identifiable Intangible Assets | ' |
Goodwill and Other Identifiable Intangible Assets | |
The Corporation allocated the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions consist of advisory contracts. The value attributed to the advisory contracts was based on the time period over which they are expected to generate economic benefits. | |
The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, was recorded as goodwill. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the segment level, at least annually in the fourth quarter or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Corporation has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then we would not be required to perform a two-step impairment test. The Corporation has not opted to perform this qualitative analysis. Goodwill was tested for impairment using the two-step quantitative impairment analysis described below. | |
Step 1 of the quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Step 2 of the analysis is necessary only if a reporting unit’s carrying amount exceeds its fair value. Step 2 is a more detailed analysis, which involves measuring the excess of the fair value of the reporting unit, as determined in Step 1, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. | |
Other intangible assets with definite lives are tested for impairment whenever events or circumstances occur that indicate that the carrying amount may not be recoverable. If applicable, the Corporation tests each of the intangibles by comparing the carrying value of the intangible asset to the sum of undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeded its undiscounted cash flows, then an impairment loss would be recognized for the amount by which the carrying amount exceeds its fair value. | |
Impairment of Long-Lived Assets Other than Goodwill | |
Long-lived assets are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. | |
Property Acquired through Foreclosure or Repossession | ' |
Property Acquired through Foreclosure or Repossession | |
Property acquired through foreclosure or repossession is stated at the lower of cost or fair value minus estimated costs to sell at the date of acquisition or classification to this status. Fair value of such assets is determined based on independent appraisals and other relevant factors. Any write-down to fair value at the time of foreclosure or repossession is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in foreclosed property costs. | |
Loans that are substantively repossessed include only those loans for which the Corporation has taken possession of the collateral, but has not completed legal foreclosure proceedings. | |
Bank Owned Life Insurance (BOLI) | ' |
Bank-Owned Life Insurance (“BOLI”) | |
The investment in BOLI represents the cash surrender value of life insurance policies on the lives of certain Bank employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The financial strength of the insurance carrier is reviewed prior to the purchase of BOLI and annually thereafter. | |
Investment in Real Estate Limited Partnership | ' |
Investment in Real Estate Limited Partnership | |
Washington Trust has a 99.9% ownership interest in two real estate limited partnerships that renovate, own and operate two low-income housing complexes. Washington Trust neither actively participates nor has a controlling interest in these limited partnerships and accounts for its investments under the equity method of accounting. The carrying value of the investments is recorded in other assets on the Consolidated Balance Sheet. Net losses generated by the partnership are recorded as a reduction to Washington Trust’s investment and as a reduction of noninterest income in the Consolidated Statements of Income. Tax credits generated by the partnership are recorded as a reduction in the income tax provision in the year they are allowed for tax reporting purposes. | |
The results of operations of the real estate limited partnerships are periodically reviewed to determine if the partnership generates sufficient operating cash flow to fund its current obligations. In addition, the current value of the underlying properties is compared to the outstanding debt obligations. If it is determined that the investment is permanently impaired, the carrying value will be written down to the estimated realizable value. | |
Transfers and Servicing of Assets and Extinguishments of Liabilities | ' |
Transfers and Servicing of Assets and Extinguishments of Liabilities | |
The accounting for transfers and servicing of financial assets and extinguishments of liabilities is based on consistent application of a financial components approach that focuses on control. This approach distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. After a transfer of financial assets, the Corporation recognizes all financial and servicing assets it controls and liabilities it has incurred and derecognizes financial assets it no longer controls and liabilities that have been extinguished. This financial components approach focuses on the assets and liabilities that exist after the transfer. Many of these assets and liabilities are components of financial assets that existed prior to the transfer. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with a pledge of collateral. | |
Fee Revenue | ' |
Fee Revenue | |
Wealth management revenues include trust and investment advisory fees and mutual fund fees that are primarily accrued as earned based upon a percentage of asset values under administration. Also included in wealth management revenues are financial planning fees, commissions and other service fees, which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. Fee revenue for merchant processing services is generally recognized as earned. | |
Pension Costs | ' |
Pension Costs | |
Pension benefits are accounted for using the net periodic benefit cost method, which recognizes the compensation cost of an employee’s pension benefit over that employee’s approximate service period. Pension benefit cost calculations incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases, and turnover rates. Washington Trust reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to so do. The effect of modifications to those assumptions is recorded in other comprehensive income and amortized to net periodic cost over future periods. Washington Trust believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. | |
The funded status of defined benefit pension plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, is recognized in the Consolidated Balance Sheet. The changes in the funded status of the defined benefit plans, including actuarial gains and losses and prior service costs and credits, are recognized in comprehensive income in the year in which the changes occur. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Stock-based compensation plans provide for awards of share options and other equity incentives including nonvested share units and share awards and nonvested performance shares. | |
Compensation expense for share options and nonvested share units and share awards is recognized over the service period based on the fair value at the date of grant. The Corporation estimates grant date fair value for share options using the Black-Scholes option-pricing model. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. | |
Excess tax benefits (expenses) related to stock option exercises and issuance of other compensation-related equity instruments are reflected on the Consolidated Statements of Cash Flows as financing activity. | |
Compensation expense for stock options and nonvested shares is recognized over the service period based on the fair value at the date of grant. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. | |
Income Taxes | ' |
Income Taxes | |
Income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Corporation recognizes the effect of income tax positions only if those positions are more- likely-than-not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |
The Corporation records interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. | |
Earnings Per Share (EPS) | ' |
Earnings Per Share (“EPS”) | |
The Corporation 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. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. | |
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. | |
Comprehensive Income | ' |
Comprehensive Income | |
Comprehensive income is defined as all changes in equity, except for those resulting from transactions with shareholders. Net income is a component of comprehensive income. All other components are referred to in the aggregate as other comprehensive income. | |
Guarantees | ' |
Guarantees | |
Standby letters of credit are considered a guarantee of the Corporation. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Under the standby letters of credit, the Corporation is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary contingent upon the customer’s failure to perform under the terms of the underlying contract with the beneficiary. The fair value of standby letters of credit is considered immaterial to the Corporation’s Consolidated Financial Statements. | |
Derivative Insturments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities | |
Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. | |
For derivatives designated as fair value hedges, changes in the fair value of the derivative are recognized in earnings together with the changes in the fair value of the related hedged item (generally fixed-rate financial instruments). The net amount, if any, represents hedge ineffectiveness, is reflected in earnings. | |
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. | |
For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings, in noninterest income. | |
The accrued net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Changes in fair value of derivatives including accrued net settlements that do not qualify for hedge accounting are reported in noninterest income. | |
When hedge accounting is discontinued, the future changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. | |
By using certain derivative financial instruments, the Corporation exposes itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Corporation, which creates credit risk for the Corporation. When the fair value of a derivative contract is negative, the Corporation owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is minimized by entering into transactions with highly rated counterparties that management believes to be creditworthy. | |
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 December 31, 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 debenture as of December 31, 2012. See additional disclosure in Note 11 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 pledged collateral to derivative counterparties in the form of cash totaling $1.6 million and $2.0 million as of December 31, 2013 and 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 also 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 allows 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 inherent in making loans. As of December 31, 2013 and 2012, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $105.6 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 | ' |
Fair Value Measurements | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value and expands disclosures about fair value measurements. | |
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 December 31, 2013 and 2012 that reflect the credit and interest rate risk inherent in the loan. The fair value of floating rate commercial and consumer loans approximates carrying value. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans in the secondary market. 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. FHLB 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. |
Loans_Policies
Loans (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Nonaccrual Loan Status Policy | ' |
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 collectibility 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 | ' |
Troubled Debt Restructurings | |
Loans are considered to be troubled debt restructurings when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. | |
Commercial Loan Credit Quality Policy | ' |
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 December 31, 2013 and 2012, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.64 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. | |
A description 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 in 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. 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. 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 supplemented with selected targeted internal reviews of the commercial loan portfolio. | |
Residential/Consumer Credit Quality Policy | ' |
esidential 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. | |
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 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) | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Allowance for Loan Losses | ' |
Allowance for Loan Losses | |
The allowance for loan losses is management’s best estimate of the probable loan losses inherent 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 (or portions thereof) deemed to be uncollectible. Loan charge-offs are recognized when management believes the collectibility of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. | |
A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology includes three elements: (1) identification of loss allocations for certain specific loans deemed to be impaired, (2) loss allocation factors for non-impaired loans based on credit grade, loss experience, delinquency factors and other similar credit quality indicators, and (3) an additional unallocated allowance maintained 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. | |
The level of the allowance is based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, current economic conditions, analysis of current levels and asset quality and delinquency trends, the performance of individual loans in relation to contract terms and other pertinent factors. | |
The adequacy of the allowance for loan losses is regularly evaluated by management. While management believes that the allowance for loan losses is adequate, future additions to the allowance may be necessary based on changes in assumptions and economic conditions. 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 allowance is an estimate, and ultimate losses may vary from management’s estimate. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. | |
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 credit quality indicators, and (3) an additional unallocated allowance maintained for measurement imprecision and to reflect management’s consideration of qualitative and quantitative assessments of other environmental factors. | |
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, and 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) | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Insturments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities | |
Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. | |
For derivatives designated as fair value hedges, changes in the fair value of the derivative are recognized in earnings together with the changes in the fair value of the related hedged item (generally fixed-rate financial instruments). The net amount, if any, represents hedge ineffectiveness, is reflected in earnings. | |
For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. | |
For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings, in noninterest income. | |
The accrued net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Changes in fair value of derivatives including accrued net settlements that do not qualify for hedge accounting are reported in noninterest income. | |
When hedge accounting is discontinued, the future changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. | |
By using certain derivative financial instruments, the Corporation exposes itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Corporation, which creates credit risk for the Corporation. When the fair value of a derivative contract is negative, the Corporation owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is minimized by entering into transactions with highly rated counterparties that management believes to be creditworthy. | |
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 December 31, 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 debenture as of December 31, 2012. See additional disclosure in Note 11 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 pledged collateral to derivative counterparties in the form of cash totaling $1.6 million and $2.0 million as of December 31, 2013 and 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 also 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 allows 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 inherent in making loans. As of December 31, 2013 and 2012, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $105.6 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) | 12 Months Ended | |||||||||||
Dec. 31, 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 | ||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. When available, the Corporation uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. | ||||||||||||
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. | ||||||||||||
Prior to December 31, 2013, Level 3 securities were comprised of pooled trust preferred debt securities, in the form of collateralized debt obligations, which were not actively traded. See Note 4 for additional disclosures regarding these pooled trust preferred debt securities. The Corporation had concluded that a low level of activity for its Level 3 pooled trust preferred debt securities indicated that quoted market prices were 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 securities. The weighting was then used to determine an overall fair value of the securities. | ||||||||||||
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 ASC 825. Mortgage loans held for sale fair values are classified as Level 2 and are estimated based on secondary markets rates offered 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 was $11.5 million and $48.4 million, respectively, at December 31, 2013 and 2012. The aggregate fair value of this portfolio was $11.6 million and $50.1 million, respectively, at December 31, 2013 and 2012. As of December 31, 2013 and 2012, the difference between the aggregate fair value and the aggregate principal amount of mortgage loans held for sale amounted to $181 thousand and $1.7 million, respectively. There were no mortgage loans held for sale 90 days or more past due as of December 31, 2013 and 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) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Mortgage loans held for sale | ($1,505 | ) | $970 | $716 | ||||||||
Commitments to originate | (2,121 | ) | 649 | 1,968 | ||||||||
Commitments to sell | 3,618 | (1,611 | ) | (3,119 | ) | |||||||
Total changes in fair value | ($8 | ) | $8 | ($435 | ) | |||||||
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 on 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. There were no transfers in and/or out of Level 1 during the years ended December 31, 2013 and 2012. The Corporation utilized a broker quote to value its pooled trust preferred security at December 31, 2013. As a result, this security was reclassified out of Level 3 and into Level 2. See Note 4 for additional disclosure regarding this pooled trust preferred security. There were no other transfers between Level 2 and Level 3 during the years ended during the years ended December 31, 2013 and 2012. | ||||||||||||
Valuation of Other Financial Instruments Policy | ' | |||||||||||
Fair Value Measurements | ||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value and expands disclosures about fair value measurements. | ||||||||||||
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 December 31, 2013 and 2012 that reflect the credit and interest rate risk inherent in the loan. The fair value of floating rate commercial and consumer loans approximates carrying value. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans in the secondary market. 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. FHLB 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. |
Employee_Benefits_Policies
Employee Benefits (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Plans Policy | ' |
The discount rate assumption for defined benefit pension plans is reset on the measurement date. A discount rate was selected for each plan by matching expected future benefit payments stream to a yield curve based on a selection of high-quality fixed-income debt securities. | |
Pension benefit cost and benefit obligations are developed from actuarial valuations. Two critical assumptions in determining pension expense and obligations are the discount rate and the expected long-term rate of return on plan assets. We evaluate these assumptions at least annually. The discount rate is used to calculate the present value of the expected future cash flows for benefit obligations under our pension plans. Future decreases in discount rates would increase the present value of pension obligations and increase our pension costs. Future decreases in the long-term rate of return assumption on plan assets would increase pension costs and, in general, may increase the requirement to make funding contributions to the plans. | |
Other Incentive Plans | |
The Corporation maintains several non-qualified incentive compensation plans. Substantially all employees participate in one of the incentive compensation plans. Incentive plans provide for annual or more frequent payments based on individual, business line and/or corporate performance targets (measured in terms of the Corporation’s net income, earnings per share and return on equity). Total incentive based compensation amounted to $13.4 million, $13.5 million and $10.7 million in 2013, 2012 and 2011, respectively. In general, the terms of incentive plans are subject to annual renewal and may be terminated at any time by the Board of Directors. | |
Deferred Compensation Plan | |
The Amended and Restated Nonqualified Deferred Compensation Plan provides supplemental retirement and tax benefits to directors and certain officers. The plan is funded primarily through pre-tax contributions made by the participants. The assets and liabilities of the Deferred Compensation Plan are recorded at fair value in the Corporation’s Consolidated Balance Sheets. The participants in the plan bear the risk of market fluctuations of the underlying assets. | |
The qualified pension plan uses fair value measurements to record fair value adjustments to the securities held in its investment portfolio. | |
When available, the qualified pension plan uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. This category includes cash equivalents, common stock and mutual funds which are exchange-traded. | |
Level 2 securities in the qualified pension plan include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose values are 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 includes corporate bonds, municipal bonds, obligations of U.S. government agencies and U.S. government-sponsored enterprises and mortgage backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises. | |
In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. | |
The expected long-term rate of return on plan assets is based on what the Corporation believes is realistically achievable based on the types of assets held by the plan and the plan’s investment practices. The assumption is updated at least annually, taking into account the asset allocation, historical asset return trends on the types of assets held and the current and expected economic conditions. | |
Fixed income bond investments should be limited to those in the top four categories used by the major credit rating agencies. High yield bond funds may be used to provide exposure to this asset class as a diversification tool provided they do not exceed 10% of the portfolio. In order to reduce the volatility of the annual rate of return of the bond portfolio, attention will be given to the maturity structure of the portfolio in the light of money market conditions and interest rate forecasts. The assets of the Pension Trust will typically have a laddered maturity structure, avoiding large concentrations in any single year. Common stock and equity holdings provide opportunities for dividend and capital appreciation returns. Holdings will be appropriately diversified by maintaining broad exposure to large-, mid- and small-cap stocks as well as international equities. Concentration in small-cap, mid-cap and international equities is limited to 20%, 20% and 30% of the equity portfolio, respectively. Investment selection and mix of equity holdings should be influenced by forecasts of economic activity, corporate profits and allocation among different segments of the economy while ensuring efficient diversification. The fair value of equity securities of any one issuer will not be permitted to exceed 10% of the total fair value of equity holdings of the Pension Trust. Investments in publicly traded real estate investment trust securities and low-risk derivatives securities such as callable securities, floating rate notes, mortgage backed securities and treasury inflation protected securities, are permitted. | |
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. | |
In September 2013, the Corporation amended its defined benefit pension plans primarily to freeze benefit accruals after a ten-year transition period ending in December 2023. As a result, the plans were remeasured in September 2013 and a curtailment was recognized, which reduced the projected benefit obligations by $4.4 million. The impact of this was primarily recognized in other comprehensive income. | |
The plan is funded on a current basis, in compliance with the requirements of ERISA. | |
Contributions | |
The Internal Revenue Code permits flexibility in plan contributions so that normally a range of contributions is possible. The Corporation’s current funding policy has been generally to contribute the minimum required contribution and additional amounts up to the maximum deductible contribution. | |
401(k) Plan | |
The Corporation’s 401(k) Plan provides a specified match of employee contributions for substantially all employees. In addition, substantially all employees hired after September 30, 2007, who are ineligible for participation in the qualified defined benefit pension plan, will receive a non-elective employer contribution of 4%. | |
The assets of the qualified defined benefit pension plan trust (the “Pension Trust”) are managed to balance the needs of cash flow requirements and long-term rate of return. Cash inflow is typically comprised of invested income from portfolio holdings and Bank contributions, while cash outflow is for the purpose of paying plan benefits and certain plan expenses. As early as possible each year, the trustee is advised of the projected schedule of employer contributions and estimations of benefit payments. As a general rule, the trustee shall invest the funds so as to produce sufficient income to cover benefit payments and maintain a funded status that exceeds the regulatory requirements for tax-qualified defined benefit plans. | |
The investment philosophy used for the Pension Trust emphasizes consistency of results over an extended market cycle, while reducing the impact of the volatility of the security markets upon investment results. The assets of the Pension Trust should be protected by substantial diversification of investments, providing exposure to a wide range of quality investment opportunities in various asset classes, with a high degree of liquidity. | |
The investment objective with respect to the Pension Trust assets is to provide capital appreciation with a current income component. At any time, the portfolio will typically be invested in the following ranges: 50% to 70% in equities; 30% to 50% in fixed income; and 0% to 10% in cash and cash equivalents. The trustee investment manager will have authorization to invest within these ranges, making decisions based upon market conditions. |
ShareBased_Compensation_Arrang1
Share-Based Compensation Arrangements (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Stock-based compensation plans provide for awards of share options and other equity incentives including nonvested share units and share awards and nonvested performance shares. | |
Compensation expense for share options and nonvested share units and share awards is recognized over the service period based on the fair value at the date of grant. The Corporation estimates grant date fair value for share options using the Black-Scholes option-pricing model. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. | |
Excess tax benefits (expenses) related to stock option exercises and issuance of other compensation-related equity instruments are reflected on the Consolidated Statements of Cash Flows as financing activity. | |
Compensation expense for stock options and nonvested shares is recognized over the service period based on the fair value at the date of grant. Nonvested performance share compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. |
Business_Segments_Policies
Business Segments (Policies) | 12 Months Ended |
Dec. 31, 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) | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share (EPS) | ' |
Earnings Per Share (“EPS”) | |
The Corporation 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. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. | |
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) | 12 Months Ended |
Dec. 31, 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) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Investments | ' | |||||||||||||||||||||||||||||||
The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value of securities by major security type and class of security: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
December 31, 2013 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,474 | $720 | ($79 | ) | $55,115 | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 230,387 | 8,369 | (401 | ) | 238,355 | |||||||||||||||||||||||||||
States and political subdivisions | 60,659 | 2,200 | — | 62,859 | ||||||||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | 30,715 | — | (6,031 | ) | 24,684 | |||||||||||||||||||||||||||
Collateralized debt obligations | 547 | — | — | 547 | ||||||||||||||||||||||||||||
Corporate bonds | 11,128 | 231 | (16 | ) | 11,343 | |||||||||||||||||||||||||||
Total securities available for sale | $387,910 | $11,520 | ($6,527 | ) | $392,903 | |||||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $29,905 | $14 | ($54 | ) | $29,865 | |||||||||||||||||||||||||||
Total securities held to maturity | $29,905 | $14 | ($54 | ) | $29,865 | |||||||||||||||||||||||||||
Total securities | $417,815 | $11,534 | ($6,581 | ) | $422,768 | |||||||||||||||||||||||||||
(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 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. | ||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
(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 | $54,474 | $— | $— | $— | $54,474 | |||||||||||||||||||||||||||
Weighted average yield | 4.04 | % | — | % | — | % | — | % | 4.04 | % | ||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
Amortized cost | 53,902 | 107,955 | 46,983 | 21,547 | 230,387 | |||||||||||||||||||||||||||
Weighted average yield | 4.19 | % | 3.66 | % | 2.73 | % | 2.2 | % | 3.46 | % | ||||||||||||||||||||||
State and political subdivisions: | ||||||||||||||||||||||||||||||||
Amortized cost | 13,977 | 46,682 | — | — | 60,659 | |||||||||||||||||||||||||||
Weighted average yield | 3.84 | % | 3.92 | % | — | % | — | % | 3.91 | % | ||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 31,262 | 31,262 | |||||||||||||||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.57 | % | 1.57 | % | ||||||||||||||||||||||
Corporate bonds: | ||||||||||||||||||||||||||||||||
Amortized cost | 5,023 | 5,703 | 402 | — | 11,128 | |||||||||||||||||||||||||||
Weighted average yield | 6.64 | % | 2.82 | % | 2.45 | % | — | % | 4.53 | % | ||||||||||||||||||||||
Total debt securities available for sale: | ||||||||||||||||||||||||||||||||
Amortized cost | $127,376 | $160,340 | $47,385 | $52,809 | $387,910 | |||||||||||||||||||||||||||
Weighted average yield | 4.19 | % | 3.71 | % | 2.73 | % | 1.83 | % | 3.49 | % | ||||||||||||||||||||||
Fair value | $127,764 | $162,785 | $48,800 | $53,554 | $392,903 | |||||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||||
Amortized cost | $5,376 | $13,892 | $7,652 | $2,985 | $29,905 | |||||||||||||||||||||||||||
Weighted average yield | 2.85 | % | 2.75 | % | 2.56 | % | 1.11 | % | 2.56 | % | ||||||||||||||||||||||
Fair value | $5,369 | $13,873 | $7,642 | $2,981 | $29,865 | |||||||||||||||||||||||||||
Included in the above table were debt securities with an amortized cost balance of $106.8 million and a fair value of $102.3 million at December 31, 2013 that are callable at the discretion of the issuers. Final maturities of the callable securities range from twenty-one months to twenty-three years, with call features ranging from one month to three years. | ||||||||||||||||||||||||||||||||
Summary of Amounts Related to Sales of Securities | ' | |||||||||||||||||||||||||||||||
The following is a summary of amounts relating to sales of securities: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Proceeds from sales (1) | $— | $46,560 | $56,461 | |||||||||||||||||||||||||||||
Gross realized gains (1) | $— | $1,224 | $919 | |||||||||||||||||||||||||||||
Gross realized losses | — | (1 | ) | (221 | ) | |||||||||||||||||||||||||||
Net realized gains on securities | $— | $1,223 | $698 | |||||||||||||||||||||||||||||
-1 | Includes a contribution of appreciated equity securities to the Corporation’s charitable foundation in 2011. The cost of the contribution, included in noninterest expenses, amounted to $990 thousand in 2011. This transaction resulted in a realized security gain of $331 thousand for the same period. | |||||||||||||||||||||||||||||||
Rollforward of OTTI Recognized in Earnings | ' | |||||||||||||||||||||||||||||||
Credit-Related Impairment Losses Recognized on Debt Securities | ||||||||||||||||||||||||||||||||
The following table presents a rollforward of the cumulative credit-related impairment losses on debt securities: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Balance at beginning of period | $3,325 | $3,104 | $2,913 | |||||||||||||||||||||||||||||
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 | 3,489 | 221 | 191 | |||||||||||||||||||||||||||||
Balance at end of period | $6,814 | $3,325 | $3,104 | |||||||||||||||||||||||||||||
Securities in a Continuous Unrealized Loss Position | ' | |||||||||||||||||||||||||||||||
The following tables summarizes temporarily impaired investment securities at December 31, 2013 and December 31, 2012, segregated by length of time the securities have been continuously in an unrealized loss position. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
December 31, 2013 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 1 | $9,909 | ($79 | ) | — | $— | $— | 1 | $9,909 | ($79 | ) | |||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 7 | 76,748 | (455 | ) | — | — | — | 7 | 76,748 | (455 | ) | |||||||||||||||||||||
Individual name issuer trust preferred securities | — | — | — | 11 | 24,684 | (6,031 | ) | 11 | 24,684 | (6,031 | ) | |||||||||||||||||||||
Corporate bonds | 2 | 11 | 407 | (16 | ) | — | — | — | — | 2 | 407 | (16 | ) | |||||||||||||||||||
Total temporarily impaired securities | 10 | 11 | $87,064 | ($550 | ) | 11 | $24,684 | ($6,031 | ) | 21 | $111,748 | ($6,581 | ) | |||||||||||||||||||
(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 | ) | |||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||
Summary of Loans | ' | |||||||||||||||||||||||
The following is a summary of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $796,249 | 32 | % | $710,813 | 31 | % | ||||||||||||||||||
Construction and development (2) | 36,289 | 1 | % | 27,842 | 1 | % | ||||||||||||||||||
Other (3) | 530,797 | 22 | % | 513,764 | 23 | % | ||||||||||||||||||
Total commercial | 1,363,335 | 55 | % | 1,252,419 | 55 | % | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages (4) | 749,163 | 30 | % | 692,798 | 30 | % | ||||||||||||||||||
Homeowner construction | 23,511 | 1 | % | 24,883 | 1 | % | ||||||||||||||||||
Total residential real estate | 772,674 | 31 | % | 717,681 | 31 | % | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines (5) | 231,362 | 9 | % | 226,861 | 10 | % | ||||||||||||||||||
Home equity loans (5) | 40,212 | 2 | % | 39,329 | 2 | % | ||||||||||||||||||
Other (6) | 55,301 | 3 | % | 57,713 | 2 | % | ||||||||||||||||||
Total consumer | 326,875 | 14 | % | 323,903 | 14 | % | ||||||||||||||||||
Total loans (7) | $2,462,884 | 100 | % | $2,294,003 | 100 | % | ||||||||||||||||||
-1 | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of December 31, 2013 and 2012, $190.7 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 December 31, 2013, $44.1 million and $21.2 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the FRB. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||||||||||||||||||||||
-4 | As of December 31, 2013 and 2012, $684.6 million and $627.4 million, respectively were pledged as collateral for FHLBB borrowings and letters of credit. | |||||||||||||||||||||||
-5 | As of December 31, 2013 and 2012, $195.3 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 $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. | |||||||||||||||||||||||
Nonaccrual Loans | ' | |||||||||||||||||||||||
The following is a summary of nonaccrual loans, segregated by class of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $7,492 | $10,681 | ||||||||||||||||||||||
Construction and development | — | — | ||||||||||||||||||||||
Other | 1,291 | 4,412 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 8,315 | 6,158 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 469 | 840 | ||||||||||||||||||||||
Home equity loans | 687 | 371 | ||||||||||||||||||||||
Other | 48 | 81 | ||||||||||||||||||||||
Total nonaccrual loans | $18,302 | $22,543 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of December 31, 2013 and 2012, nonaccrual loans of $2.7 million and $1.6 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
Interest income that would have been recognized had nonaccrual loans been current in accordance with their original terms was approximately $1.8 million, $1.8 million and $1.7 million in 2013, 2012 and 2011, respectively. Interest income included in the Consolidated Statements of Income on nonaccrual loans amounted to approximately $400 thousand, $679 thousand and $505 thousand in 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Past Due Loans | ' | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
December 31, 2013 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $— | $7,492 | $7,492 | $788,757 | $796,249 | ||||||||||||||||||
Construction and development | — | — | — | — | 36,289 | 36,289 | ||||||||||||||||||
Other | 276 | 302 | 731 | 1,309 | 529,488 | 530,797 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,040 | 1,285 | 5,633 | 10,958 | 738,205 | 749,163 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 23,511 | 23,511 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 831 | 100 | 269 | 1,200 | 230,162 | 231,362 | ||||||||||||||||||
Home equity loans | 448 | 66 | 349 | 863 | 39,349 | 40,212 | ||||||||||||||||||
Other | 43 | — | 38 | 81 | 55,220 | 55,301 | ||||||||||||||||||
Total loans | $5,638 | $1,753 | $14,512 | $21,903 | $2,440,981 | $2,462,884 | ||||||||||||||||||
(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 December 31, 2013 and 2012, were nonaccrual loans of $15.6 million and $21.0 million, respectively. All loans 90 days or more past due at December 31, 2013 and 2012 were classified as nonaccrual. | ||||||||||||||||||||||||
Impaired Loans | ' | |||||||||||||||||||||||
The following is a summary of impaired loans, as of the dates indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Recorded Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $998 | $2,357 | $998 | $2,360 | $— | $— | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,055 | 1,058 | 1,050 | 1,057 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,167 | 1,294 | 1,259 | 1,315 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | $3,220 | $4,709 | $3,307 | $4,732 | $— | $— | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $29,335 | $17,897 | $31,731 | $19,738 | $552 | $1,720 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 1,506 | 9,939 | 1,945 | 10,690 | 463 | 694 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,122 | 2,576 | 3,507 | 2,947 | 463 | 463 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 173 | 187 | 174 | 255 | 1 | 1 | ||||||||||||||||||
Home equity loans | 55 | 117 | 54 | 160 | — | — | ||||||||||||||||||
Other | 127 | 137 | 130 | 136 | 2 | 2 | ||||||||||||||||||
Subtotal | $34,318 | $30,853 | $37,541 | $33,926 | $1,481 | $2,880 | ||||||||||||||||||
Total impaired loans | $37,538 | $35,562 | $40,848 | $38,658 | $1,481 | $2,880 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $32,894 | $31,251 | $35,724 | $33,845 | $1,015 | $2,414 | ||||||||||||||||||
Residential real estate | 4,289 | 3,870 | 4,766 | 4,262 | 463 | 463 | ||||||||||||||||||
Consumer | 355 | 441 | 358 | 551 | 3 | 3 | ||||||||||||||||||
Total impaired loans | $37,538 | $35,562 | $40,848 | $38,658 | $1,481 | $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 (those 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 balance of impaired loans and interest income recognized on impaired loans segregated by loan class, for the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $27,496 | $10,785 | $14,923 | $630 | $273 | $539 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 6,029 | 10,661 | 8,226 | 190 | 297 | 388 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,024 | 4,651 | 5,743 | 125 | 88 | 188 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 200 | 172 | 127 | 7 | 3 | 5 | ||||||||||||||||||
Home equity loans | 72 | 131 | 290 | 6 | 7 | 17 | ||||||||||||||||||
Other | 146 | 151 | 235 | 9 | 11 | 15 | ||||||||||||||||||
Totals | $37,967 | $26,551 | $29,544 | $967 | $679 | $1,152 | ||||||||||||||||||
At December 31, 2013 and 2012, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status or had been restructured. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ' | |||||||||||||||||||||||
The following table presents loans modified as a troubled debt restructuring during the periods indicated: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 6 | 6 | $15,974 | $9,525 | $14,785 | $9,525 | ||||||||||||||||||
Construction and development | — | — | — | — | — | — | ||||||||||||||||||
Other | 7 | 8 | 1,198 | 1,889 | 1,198 | 1,889 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | 570 | 651 | 570 | 651 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1 | — | 92 | — | 92 | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 2 | — | 5 | — | 5 | ||||||||||||||||||
Totals | 15 | 18 | $17,834 | $12,070 | $16,645 | $12,070 | ||||||||||||||||||
-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 restructurings 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) | ||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | ||||||||||||||||||||||
Below market interest rate concession | $15,836 | $1,426 | ||||||||||||||||||||||
Payment deferral | 570 | 240 | ||||||||||||||||||||||
Maturity / amortization concession | 21 | 917 | ||||||||||||||||||||||
Interest only payments | 424 | 361 | ||||||||||||||||||||||
Combination (1) | 983 | 9,126 | ||||||||||||||||||||||
Total | $17,834 | $12,070 | ||||||||||||||||||||||
-1 | Loans included in this classification had a combination of any two of the concessions included in this table. | |||||||||||||||||||||||
Troubled Debt Restructurings, Subsequent Default | ' | |||||||||||||||||||||||
he following table presents 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) | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | 1 | 1 | $232 | $195 | ||||||||||||||||||||
Construction and development | — | — | — | — | ||||||||||||||||||||
Other | 2 | 3 | 839 | 866 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | — | — | — | — | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||
Totals | 3 | 4 | $1,071 | $1,061 | ||||||||||||||||||||
-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 restructurings 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 | ||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Mortgages | $756,838 | $669,220 | $23,185 | $21,649 | $16,226 | $19,944 | ||||||||||||||||||
Construction and development | 36,289 | 27,842 | — | — | — | — | ||||||||||||||||||
Other | 507,962 | 483,371 | 19,887 | 24,393 | 2,948 | 6,000 | ||||||||||||||||||
Total commercial loans | $1,301,089 | $1,180,433 | $43,072 | $46,042 | $19,174 | $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 | Over 90 Days | ||||||||||||||||||||||
Past Due | Past Due | |||||||||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Accruing mortgages | $740,848 | $686,640 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 2,682 | 2,500 | 5,633 | 3,658 | ||||||||||||||||||||
Homeowner construction | 23,511 | 24,883 | — | — | ||||||||||||||||||||
Total residential loans | $767,041 | $714,023 | $5,633 | $3,658 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $231,093 | $226,333 | $269 | $528 | ||||||||||||||||||||
Home equity loans | 39,864 | 39,078 | 348 | 251 | ||||||||||||||||||||
Other | 55,262 | 57,648 | 39 | 65 | ||||||||||||||||||||
Total consumer loans | $326,219 | $323,059 | $656 | $844 | ||||||||||||||||||||
Analysis of Loan Servicing Rights | ' | |||||||||||||||||||||||
Loan Servicing Activities | ||||||||||||||||||||||||
An analysis of loan servicing rights is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Loan | Valuation | Total | |||||||||||||||||||||
Servicing | Allowance | |||||||||||||||||||||||
Rights | ||||||||||||||||||||||||
Balance at December 31, 2010 | $913 | ($156 | ) | $757 | ||||||||||||||||||||
Loan servicing rights capitalized | 248 | — | 248 | |||||||||||||||||||||
Amortization | (224 | ) | — | (224 | ) | |||||||||||||||||||
Increase in impairment reserve | — | (16 | ) | (16 | ) | |||||||||||||||||||
Balance at December 31, 2011 | 937 | (172 | ) | 765 | ||||||||||||||||||||
Loan servicing rights capitalized | 569 | — | 569 | |||||||||||||||||||||
Amortization | (231 | ) | — | (231 | ) | |||||||||||||||||||
Decrease in impairment reserve | — | 7 | 7 | |||||||||||||||||||||
Balance at December 31, 2012 | 1,275 | (165 | ) | 1,110 | ||||||||||||||||||||
Loan servicing rights capitalized | 1,897 | — | 1,897 | |||||||||||||||||||||
Amortization | (405 | ) | — | (405 | ) | |||||||||||||||||||
Decrease in impairment reserve | — | 96 | 96 | |||||||||||||||||||||
Balance at December 31, 2013 | $2,767 | ($69 | ) | $2,698 | ||||||||||||||||||||
Loan Servicing Assets Estimated Future Amortization [Table Text Block] | ' | |||||||||||||||||||||||
Estimated aggregate amortization expense related to loan servicing assets is as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Years ending December 31: | 2014 | $387 | ||||||||||||||||||||||
2015 | 328 | |||||||||||||||||||||||
2016 | 280 | |||||||||||||||||||||||
2017 | 240 | |||||||||||||||||||||||
2018 | 206 | |||||||||||||||||||||||
Thereafter | 1,326 | |||||||||||||||||||||||
Total estimated amortization expense | $2,767 | |||||||||||||||||||||||
Loans Serviced for Others, by Type of Loan | ' | |||||||||||||||||||||||
alance of loans serviced for others, by type of loan: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Residential mortgages | $310,699 | $144,360 | ||||||||||||||||||||||
Commercial loans | 69,526 | 60,444 | ||||||||||||||||||||||
Total | $380,225 | $204,804 | ||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses Rollforward Analysis | ' | ' | |||||||||||||||||||||||||||||||||||||||
The following tables present the activity in the allowance for loan losses for the periods indicated: | |||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||
Beginning Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | |||||||||||||||||||||||||||||||||
Charge-offs | (5,213 | ) | — | (358 | ) | (5,571 | ) | (128 | ) | (323 | ) | (6,022 | ) | ||||||||||||||||||||||||||||
Recoveries | 380 | — | 153 | 533 | 3 | 99 | 635 | ||||||||||||||||||||||||||||||||||
Provision | 2,395 | 138 | (358 | ) | 2,175 | 556 | 51 | (382 | ) | 2,400 | |||||||||||||||||||||||||||||||
Ending Balance | $6,969 | $362 | $5,433 | $12,764 | $4,700 | $2,511 | $7,911 | $27,886 | |||||||||||||||||||||||||||||||||
For the year ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||
Beginning Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | |||||||||||||||||||||||||||||||||
Charge-offs | (485 | ) | — | (1,179 | ) | (1,664 | ) | (367 | ) | (304 | ) | (2,335 | ) | ||||||||||||||||||||||||||||
Recoveries | 442 | — | 103 | 545 | 110 | 51 | 706 | ||||||||||||||||||||||||||||||||||
Provision | 1,255 | 129 | 872 | 2,256 | (168 | ) | 485 | 127 | 2,700 | ||||||||||||||||||||||||||||||||
Ending Balance | $9,407 | $224 | $5,996 | $15,627 | $4,269 | $2,684 | $8,293 | $30,873 | |||||||||||||||||||||||||||||||||
For the year ended December 31, 2011: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||||||||||||||||
Beginning Balance | $7,330 | $723 | $6,495 | $14,548 | $4,129 | $1,903 | $8,003 | $28,583 | |||||||||||||||||||||||||||||||||
Charge-offs | (960 | ) | — | (1,685 | ) | (2,645 | ) | (641 | ) | (548 | ) | (3,834 | ) | ||||||||||||||||||||||||||||
Recoveries | 7 | — | 311 | 318 | 4 | 31 | 353 | ||||||||||||||||||||||||||||||||||
Provision | 1,818 | (628 | ) | 1,079 | 2,269 | 1,202 | 1,066 | 163 | 4,700 | ||||||||||||||||||||||||||||||||
Ending Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | |||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | ' | ' | |||||||||||||||||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology. | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Related | Related | ||||||||||||||||||||||||||||||||||||||||
Loans | Allowance | Loans | Allowance | ||||||||||||||||||||||||||||||||||||||
Loans Individually Evaluated For Impairment: | |||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Mortgages | $30,292 | $552 | $20,250 | $1,720 | |||||||||||||||||||||||||||||||||||||
Construction & development | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | 2,556 | 463 | 10,989 | 694 | |||||||||||||||||||||||||||||||||||||
Residential Real Estate | 4,290 | 463 | 3,868 | 463 | |||||||||||||||||||||||||||||||||||||
Consumer | 355 | 3 | 440 | 3 | |||||||||||||||||||||||||||||||||||||
Subtotal | $37,493 | $1,481 | $35,547 | $2,880 | |||||||||||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment: | |||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||
Mortgages | $765,957 | $6,417 | $690,563 | $7,687 | |||||||||||||||||||||||||||||||||||||
Construction & development | 36,289 | 362 | 27,842 | 224 | |||||||||||||||||||||||||||||||||||||
Other | 528,241 | 4,970 | 502,775 | 5,302 | |||||||||||||||||||||||||||||||||||||
Residential Real Estate | 768,384 | 4,237 | 713,813 | 3,806 | |||||||||||||||||||||||||||||||||||||
Consumer | 326,520 | 2,508 | 323,463 | 2,681 | |||||||||||||||||||||||||||||||||||||
Subtotal | $2,425,391 | $18,494 | $2,258,456 | $19,700 | |||||||||||||||||||||||||||||||||||||
Unallocated | — | 7,911 | — | 8,293 | |||||||||||||||||||||||||||||||||||||
Total | $2,462,884 | $27,886 | $2,294,003 | $30,873 | |||||||||||||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Premises and Equipment | ' | |||||||
The following is a summary of premises and equipment: | ||||||||
(Dollars in thousands) | ||||||||
December 31, | 2013 | 2012 | ||||||
Land and improvements | $6,020 | $5,974 | ||||||
Premises and improvements | 32,429 | 32,043 | ||||||
Furniture, fixtures and equipment | 24,250 | 24,511 | ||||||
62,699 | 62,528 | |||||||
Less accumulated depreciation | 37,297 | 35,296 | ||||||
Total premises and equipment, net | $25,402 | $27,232 | ||||||
Depreciation of premises and equipment amounted to $3.3 million for the year ended December 31, 2013 and $3.2 million for each of the years ended December 31, 2012, and 2011. |
Goodwill_and_Other_Intangibles1
Goodwill and Other Intangibles (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Carrying Value of Goodwill | ' | |||||||
The carrying value of goodwill was $58.1 million at both December 31, 2013 and 2012. | ||||||||
The following table presents goodwill at the reporting unit (or business segment) level as of December 31, 2013 and 2012. | ||||||||
(Dollars in thousands) | ||||||||
Commercial Banking Segment | $22,591 | |||||||
Wealth Management Service Segment | 35,523 | |||||||
Total | $58,114 | |||||||
Schedule of Carrying Value of Other Intangible Assets | ' | |||||||
The components of intangible assets were as follows: | ||||||||
(Dollars in thousands) | ||||||||
December 31, | 2013 | 2012 | ||||||
Gross carrying amount | $13,657 | $13,657 | ||||||
Accumulated amortization | 8,164 | 7,484 | ||||||
Net amount | $5,493 | $6,173 | ||||||
Schedule of Estimated Annual Amortization Expense | ' | |||||||
Estimated annual amortization expense for advisory contracts is as follows: | ||||||||
(Dollars in thousands) | ||||||||
Years ending December 31, | 2014 | $644 | ||||||
2015 | 603 | |||||||
2016 | 562 | |||||||
2017 | 538 | |||||||
2018 | 502 | |||||||
Thereafter | 2,644 | |||||||
Net_Deferred_Tax_Asset_and_Inc1
Net Deferred Tax Asset and Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
The components of income tax expense were as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Current tax expense: | ||||||||||||
Federal | $13,518 | $13,937 | $13,227 | |||||||||
State | 742 | 533 | 558 | |||||||||
Total current tax expense | 14,260 | 14,470 | 13,785 | |||||||||
Deferred tax expense (benefit): | ||||||||||||
Federal | 2,300 | 1,310 | (789 | ) | ||||||||
State | (33 | ) | 18 | (74 | ) | |||||||
Total deferred tax expense (benefit) | 2,267 | 1,328 | (863 | ) | ||||||||
Total income tax expense | $16,527 | $15,798 | $12,922 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
Total income tax expense varied from the amount determined by applying the Federal income tax rate to income before income taxes. The reasons for the differences were as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Tax expense at Federal statutory rate | $18,438 | $17,805 | $14,926 | |||||||||
(Decrease) increase in taxes resulting from: | ||||||||||||
Tax-exempt income | (1,408 | ) | (1,220 | ) | (1,220 | ) | ||||||
Dividends received deduction | — | (12 | ) | (32 | ) | |||||||
BOLI | (648 | ) | (857 | ) | (678 | ) | ||||||
Federal tax credits | (364 | ) | (364 | ) | (364 | ) | ||||||
State income tax expense, net of federal income tax benefit | 461 | 358 | 315 | |||||||||
Other | 48 | 88 | (25 | ) | ||||||||
Total income tax expense | $16,527 | $15,798 | $12,922 | |||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The approximate tax effects of temporary differences that give rise to gross deferred tax assets and gross deferred tax liabilities are as follows: | ||||||||||||
(Dollars in thousands) | ||||||||||||
December 31, | 2013 | 2012 | ||||||||||
Gross deferred tax assets: | ||||||||||||
Allowance for loan losses | $10,033 | $11,037 | ||||||||||
Defined benefit pension obligations | 3,544 | 11,462 | ||||||||||
Losses on write-downs of securities to fair value | 941 | 1,500 | ||||||||||
Deferred compensation | 2,545 | 2,174 | ||||||||||
Deferred loan origination fees | 1,593 | 1,432 | ||||||||||
Stock based compensation | 1,686 | 1,555 | ||||||||||
Other | 2,650 | 2,680 | ||||||||||
Gross deferred tax assets | 22,992 | 31,840 | ||||||||||
Gross deferred tax liabilities: | ||||||||||||
Net unrealized gains on securities available for sale | (1,791 | ) | (4,318 | ) | ||||||||
Amortization of intangibles | (1,977 | ) | (2,207 | ) | ||||||||
Deferred loan origination costs | (3,697 | ) | (3,176 | ) | ||||||||
Other | (2,776 | ) | (2,255 | ) | ||||||||
Gross deferred tax liabilities | (10,241 | ) | (11,956 | ) | ||||||||
Net deferred tax asset | $12,751 | $19,884 | ||||||||||
Time_Certificates_of_Deposit_T
Time Certificates of Deposit (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits [Abstract] | ' | |||||||
Schedule of Time Certificates of Deposit Maturities | ' | |||||||
Scheduled maturities of time certificates of deposit were as follows: | ||||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | ||||||
Years ending December 31: | 2014 | $463,262 | 0.78 | % | ||||
2015 | 146,073 | 1.79 | % | |||||
2016 | 87,242 | 1.56 | % | |||||
2017 | 39,081 | 1.57 | % | |||||
2018 | 54,937 | 1.37 | % | |||||
2019 and thereafter | 167 | 1.44 | % | |||||
Balance at December 31, 2013 | $790,762 | |||||||
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 December 31, 2013 maturing during the periods indicated: | ||||||||
(Dollars in thousands) | ||||||||
Maturing: | January 1, 2014 to March 31, 2014 | $171,066 | ||||||
April 1, 2014 to June 30, 2014 | 30,779 | |||||||
July 1, 2014 to December 31, 2014 | 55,420 | |||||||
January 1, 2015 and beyond | 112,954 | |||||||
Balance at December 31, 2013 | $370,219 | |||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Federal Home Loan Bank, Advances, Maturity Summary | ' | |||||||||||
The following table presents maturities and weighted average interest rates paid on FHLBB advances outstanding as of December 31, 2013: | ||||||||||||
(Dollars in thousands) | Scheduled | Redeemed at | Weighted | |||||||||
Maturity | Call Date (1) | Average Rate (2) | ||||||||||
2014 | $2,519 | $2,519 | 3.54 | % | ||||||||
2015 | 1,569 | 1,569 | 4.89 | % | ||||||||
2016 | 85,066 | 85,066 | 3.05 | % | ||||||||
2017 | 70,875 | 70,875 | 3.04 | % | ||||||||
2018 | 77,303 | 77,303 | 3.72 | % | ||||||||
2019 and thereafter | 50,750 | 50,750 | 4.13 | % | ||||||||
$288,082 | $288,082 | 3.43 | % | |||||||||
-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. | |||||||||||
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | ' | |||||||||||
The following table sets forth certain information concerning short-term FHLBB advances as of the dates and for the periods indicated: | ||||||||||||
(Dollars in thousands) | ||||||||||||
As of and for the years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Average amount outstanding during the period | $13,901 | $61,936 | $36,870 | |||||||||
Amount outstanding at end of period | — | 40,500 | 102,500 | |||||||||
Highest month end balance during period | 60,000 | 102,929 | 105,500 | |||||||||
Weighted-average interest rate at end of period | — | % | 0.28 | % | 0.18 | % | ||||||
Weighted-average interest rate during the period | 0.3 | % | 0.27 | % | 0.23 | % |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||||||
The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios at December 31, 2013 and 2012, as well as the corresponding minimum regulatory amounts and ratios: | |||||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy | To Be “Well Capitalized” | ||||||||||||||||||
Purposes | Under Prompt Corrective | ||||||||||||||||||||
Action Provisions | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $319,486 | 13.29 | % | $192,306 | 8 | % | $240,382 | 10 | % | ||||||||||||
Bank | $314,458 | 13.09 | % | $192,147 | 8 | % | $240,184 | 10 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | |||||||||||||||||||||
Corporation | $291,292 | 12.12 | % | $96,153 | 4 | % | $144,229 | 6 | % | ||||||||||||
Bank | $286,264 | 11.92 | % | $96,074 | 4 | % | $144,111 | 6 | % | ||||||||||||
Tier 1 Capital (to Average Assets): (1) | |||||||||||||||||||||
Corporation | $291,292 | 9.41 | % | $123,785 | 4 | % | $154,732 | 5 | % | ||||||||||||
Bank | $286,264 | 9.26 | % | $123,633 | 4 | % | $154,541 | 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) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 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 | Dec 31 | Dec 31 | Balance Sheet Location | Dec 31 | Dec 31 | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||||||||||
Interest rate risk management contract: | ||||||||||||||||||||||||||
Interest rate swap contracts | $— | $— | Other liabilities | $1,012 | $1,619 | |||||||||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||||||||||
Commitments to originate fixed rate mortgage loans to be sold | Other assets | 392 | 2,513 | Other liabilities | — | — | ||||||||||||||||||||
Commitments to sell fixed rate mortgage loans | Other assets | 10 | — | Other liabilities | 583 | 4,191 | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||
Interest rate swaps with customers | Other assets | 2,403 | 3,851 | 297 | — | |||||||||||||||||||||
Mirror swaps with counterparties | 330 | — | Other liabilities | 2,406 | 3,952 | |||||||||||||||||||||
Total | $3,135 | $6,364 | $4,298 | $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 Corporations’ 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 on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||||||||||
Interest rate swap contracts | $388 | $121 | ($456 | ) | Interest Expense | $— | $— | $— | ||||||||||||||||||
Total | $388 | $121 | ($456 | ) | $— | $— | $— | |||||||||||||||||||
(Dollars in thousands) | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||||||||||||||||||
Years ended December 31, | Statement of Income Location | 2013 | 2012 | 2011 | ||||||||||||||||||||||
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 | ($2,121 | ) | $649 | $1,968 | |||||||||||||||||||||
Commitments to sell fixed rate mortgage loans | Net gains on loan sales & commissions on loans originated for others | 3,618 | (1,611 | ) | (3,119 | ) | ||||||||||||||||||||
Customer related derivative contracts: | ||||||||||||||||||||||||||
Interest rate swaps with customers | Net gains on interest rate swaps | 396 | 1,147 | 2,658 | ||||||||||||||||||||||
Mirror swaps with counterparties | Net gains on interest rate swaps | 555 | (892 | ) | (2,652 | ) | ||||||||||||||||||||
Total | $2,448 | ($707 | ) | ($1,145 | ) | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value Related to Mortgage Loans Held For Sale, Commitments to Originate and Commitments to Sell Disclosures | ' | |||||||||||||||||||||||||||||||
The aggregate principal amount of the residential real estate mortgage loans held for sale was $11.5 million and $48.4 million, respectively, at December 31, 2013 and 2012. The aggregate fair value of this portfolio was $11.6 million and $50.1 million, respectively, at December 31, 2013 and 2012. As of December 31, 2013 and 2012, the difference between the aggregate fair value and the aggregate principal amount of mortgage loans held for sale amounted to $181 thousand and $1.7 million, respectively. There were no mortgage loans held for sale 90 days or more past due as of December 31, 2013 and 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) | ||||||||||||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
Mortgage loans held for sale | ($1,505 | ) | $970 | $716 | ||||||||||||||||||||||||||||
Commitments to originate | (2,121 | ) | 649 | 1,968 | ||||||||||||||||||||||||||||
Commitments to sell | 3,618 | (1,611 | ) | (3,119 | ) | |||||||||||||||||||||||||||
Total changes in fair value | ($8 | ) | $8 | ($435 | ) | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $55,115 | $— | $55,115 | ||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 238,355 | — | 238,355 | ||||||||||||||||||||||||||||
States and political subdivisions | — | 62,859 | — | 62,859 | ||||||||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | — | 24,684 | — | 24,684 | ||||||||||||||||||||||||||||
Collateralized debt obligations | — | 547 | — | 547 | ||||||||||||||||||||||||||||
Corporate bonds | — | 11,343 | — | 11,343 | ||||||||||||||||||||||||||||
Mortgage loans held for sale | — | 11,636 | — | 11,636 | ||||||||||||||||||||||||||||
Derivative assets (1) | ||||||||||||||||||||||||||||||||
Interest rate swap contracts with customers | — | 2,733 | — | 2,733 | ||||||||||||||||||||||||||||
Forward loan commitments | — | 402 | — | 402 | ||||||||||||||||||||||||||||
Total assets at fair value on a recurring basis | $— | $407,674 | $— | $407,674 | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative liabilities (1) | ||||||||||||||||||||||||||||||||
Mirror swap contracts with customers | $— | $2,703 | $— | $2,703 | ||||||||||||||||||||||||||||
Interest rate risk management swap contracts | — | 1,012 | — | 1,012 | ||||||||||||||||||||||||||||
Forward loan commitments | — | 583 | — | 583 | ||||||||||||||||||||||||||||
Total liabilities at fair value on a recurring basis | $— | $4,298 | $— | $4,298 | ||||||||||||||||||||||||||||
-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 | Derivatives 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 table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis during the periods indicated. | ||||||||||||||||||||||||||||||||
Years ended December 31, | 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) | (3,489 | ) | (150 | ) | 142 | (3,497 | ) | (221 | ) | — | — | (221 | ) | |||||||||||||||||||
Included in other comprehensive income | 3,326 | — | — | 3,326 | 177 | — | — | 177 | ||||||||||||||||||||||||
Purchases | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Issuances | — | 12,692 | — | 12,692 | — | 9,813 | (142 | ) | 9,671 | |||||||||||||||||||||||
Sales | — | (22,355 | ) | — | (22,355 | ) | — | — | — | — | ||||||||||||||||||||||
Settlements | (133 | ) | — | — | (133 | ) | — | — | — | — | ||||||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers out of Level 3 | (547 | ) | — | — | (547 | ) | — | — | — | — | ||||||||||||||||||||||
Balance at end of period | $— | $— | $— | $— | $843 | $9,813 | ($142 | ) | $10,514 | |||||||||||||||||||||||
-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 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 Statements of Income. 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 table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Corporation utilized Level 3 inputs to determine fair value at December 31, 2012. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | |||||||||||||||||||||||||||||||
The following table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value at December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Collateral dependent impaired loans | $— | $— | $11,177 | $11,177 | ||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | — | — | 435 | 435 | ||||||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $11,612 | $11,612 | ||||||||||||||||||||||||||||
The allowance for loan losses on the collateral dependent impaired loans included above amounted to $453 thousand at December 31, 2013. | ||||||||||||||||||||||||||||||||
The following table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Carrying Value at December 31, 2012 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | |||||||||||||||||||||||||||||
Collateral dependent impaired loans | $11,177 | Appraisals of collateral | Discount for costs to sell | 1% - 45% (11%) | ||||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 50% (2%) | |||||||||||||||||||||||||||||||
Property acquired through foreclosure or repossession | $435 | Appraisals of collateral | Discount for costs to sell | 2% - 10% (9%) | ||||||||||||||||||||||||||||
Appraisal adjustments (1) | 0% - 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 December 31, 2013 and 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 | |||||||||||||||||||||||||||||||
December 31, 2013 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Securities held to maturity | $29,905 | $29,865 | $— | $29,865 | $— | |||||||||||||||||||||||||||
Loans, net of allowance for loan losses | 2,434,998 | 2,479,527 | — | — | 2,479,527 | |||||||||||||||||||||||||||
Loan servicing rights (1) | 2,698 | 2,767 | — | — | 2,767 | |||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $790,762 | $797,748 | $— | $797,748 | $— | |||||||||||||||||||||||||||
FHLBB advances | 288,082 | 308,317 | — | 308,317 | — | |||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 16,282 | — | 16,282 | — | |||||||||||||||||||||||||||
-1 | The carrying value of loan servicing rights is net of $69 thousand in reserves as of December 31, 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. |
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Projected Benefit Obligations, Fair Value of Plan Assets and Funded Status | ' | |||||||||||||||||||||||
The following table sets forth the plans’ projected benefit obligations, fair value of plan assets and funded status as of and for the years ended: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of period | $70,615 | $57,257 | $12,569 | $11,321 | ||||||||||||||||||||
Service cost | 2,720 | 2,574 | 181 | 150 | ||||||||||||||||||||
Interest cost | 2,883 | 2,823 | 462 | 503 | ||||||||||||||||||||
Actuarial (gain) loss | (8,809 | ) | 9,535 | (1,332 | ) | 1,315 | ||||||||||||||||||
Benefits paid | (2,004 | ) | (1,440 | ) | (736 | ) | (720 | ) | ||||||||||||||||
Administrative expenses | (182 | ) | (134 | ) | — | — | ||||||||||||||||||
Curtailments | (4,061 | ) | — | (360 | ) | — | ||||||||||||||||||
Benefit obligation at end of period | $61,162 | $70,615 | $10,784 | $12,569 | ||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $51,078 | $38,330 | $— | $— | ||||||||||||||||||||
Actual return on plan assets | 8,168 | 4,322 | — | — | ||||||||||||||||||||
Employer contributions | 5,000 | 10,000 | 736 | 720 | ||||||||||||||||||||
Benefits paid | (2,004 | ) | (1,440 | ) | (736 | ) | (720 | ) | ||||||||||||||||
Administrative expenses | (182 | ) | (134 | ) | — | — | ||||||||||||||||||
Fair value of plan assets at end of period | $62,060 | $51,078 | $— | $— | ||||||||||||||||||||
Funded (unfunded) status at end of period | $898 | ($19,537 | ) | ($10,784 | ) | ($12,569 | ) | |||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income (Loss) Related to Retirements Plans | ' | |||||||||||||||||||||||
The components of accumulated other comprehensive income related to the qualified pension plan and non-qualified retirement plans, on a pre-tax basis, are summarized below: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net actuarial loss | $4,510 | $23,144 | $2,071 | $3,938 | ||||||||||||||||||||
Prior service credit | (130 | ) | (221 | ) | (3 | ) | (5 | ) | ||||||||||||||||
Total pre-tax amounts recognized in accumulated other comprehensive income | $4,380 | $22,923 | $2,068 | $3,933 | ||||||||||||||||||||
Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income | ' | |||||||||||||||||||||||
The components of net periodic benefit cost and other amounts recognized in other comprehensive income, on a pre-tax basis, were as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Retirement Plans | |||||||||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||||||||||
Service cost | $2,720 | $2,574 | $2,314 | $181 | $150 | $71 | ||||||||||||||||||
Interest cost | 2,883 | 2,823 | 2,578 | 462 | 503 | 495 | ||||||||||||||||||
Expected return on plan assets | (3,725 | ) | (2,985 | ) | (2,794 | ) | — | — | — | |||||||||||||||
Amortization of prior service (credit) cost | (30 | ) | (33 | ) | (33 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||
Recognized net actuarial loss | 1,321 | 982 | 392 | 175 | 119 | 16 | ||||||||||||||||||
Curtailments | (61 | ) | — | — | (1 | ) | — | — | ||||||||||||||||
Net periodic benefit cost | $3,108 | $3,361 | $2,457 | $816 | $771 | $581 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): | ||||||||||||||||||||||||
Net loss (gain) | ($14,572 | ) | $7,216 | $8,951 | ($1,506 | ) | $1,195 | $1,517 | ||||||||||||||||
Prior service cost (credit) | 30 | 33 | 33 | 1 | 1 | 1 | ||||||||||||||||||
Curtailments | (4,000 | ) | — | — | (359 | ) | — | — | ||||||||||||||||
Recognized in other comprehensive income | ($18,542 | ) | $7,249 | $8,984 | ($1,864 | ) | $1,196 | $1,518 | ||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | ($15,434 | ) | $10,610 | $11,441 | ($1,048 | ) | $1,967 | $2,099 | ||||||||||||||||
Schedule of Assumptions Used | ' | |||||||||||||||||||||||
The measurement date and weighted-average assumptions used to determine benefit obligations at December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Qualified Pension Plan | Non-Qualified Retirement Plans | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Measurement date | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | ||||||||||||||||||||
Discount rate | 4.88% | 4.13% | 4.60% | 3.75% | ||||||||||||||||||||
Rate of compensation increase | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||
The measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||||||||||||||||
Qualified Pension Plan | Non-Qualified Retirement Plans | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Measurement date | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||||||||||||||||||
Discount rate | 4.13% | 5.00% | 5.63% | 3.80% | 4.63% | 5.13% | ||||||||||||||||||
Expected long-term return on plan assets | 7.25% | 7.75% | 8.00% | —% | —% | —% | ||||||||||||||||||
Rate of compensation increase | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||
Schedule of Allocation of Plan Assets | ' | |||||||||||||||||||||||
The asset allocations of the qualified pension plan at December 31, 2013 and 2012, by asset category were as follows: | ||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||
Asset Category: | ||||||||||||||||||||||||
Equity securities | 63.8 | % | 55 | % | ||||||||||||||||||||
Fixed securities | 32.6 | % | 30.9 | % | ||||||||||||||||||||
Cash and cash equivalents | 3.6 | % | 14.1 | % | ||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||
The following table presents the fair values of the qualified pension plan’s assets at December 31, 2013: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fair Value Measurements Using | Assets at | |||||||||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $2,236 | $— | $— | $2,236 | ||||||||||||||||||||
Obligations of U.S. government agencies and U.S. government-sponsored enterprises | — | 2,025 | — | 2,025 | ||||||||||||||||||||
States and political subdivisions | — | 2,218 | — | 2,218 | ||||||||||||||||||||
Corporate bonds | — | 11,069 | — | 11,069 | ||||||||||||||||||||
Common stocks | 24,406 | — | — | 24,406 | ||||||||||||||||||||
Mutual funds | 20,106 | — | — | 20,106 | ||||||||||||||||||||
Total plan assets | $46,748 | $15,312 | $— | $62,060 | ||||||||||||||||||||
The following table presents the fair values of the qualified pension plan’s assets at December 31, 2012: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fair Value Measurements Using | Assets at | |||||||||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $7,274 | $— | $— | $7,274 | ||||||||||||||||||||
Obligations of U.S. government agencies and U.S. government-sponsored enterprises | — | 1,059 | — | 1,059 | ||||||||||||||||||||
States and political subdivisions | — | 2,218 | — | 2,218 | ||||||||||||||||||||
Corporate bonds | — | 10,378 | — | 10,378 | ||||||||||||||||||||
Common stocks | 15,892 | — | — | 15,892 | ||||||||||||||||||||
Mutual funds | 14,750 | — | — | 14,750 | ||||||||||||||||||||
Total plan assets | $37,916 | $13,655 | $— | $51,571 | ||||||||||||||||||||
Schedule of Expected Future Benefit Payments | ' | |||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows: | ||||||||||||||||||||||||
(Dollars in thousands) | Qualified | Non-Qualified | ||||||||||||||||||||||
Pension Plan | Plans | |||||||||||||||||||||||
2014 | $3,832 | $751 | ||||||||||||||||||||||
2015 | 3,276 | 770 | ||||||||||||||||||||||
2016 | 3,550 | 770 | ||||||||||||||||||||||
2017 | 3,029 | 764 | ||||||||||||||||||||||
2018 | 3,077 | 757 | ||||||||||||||||||||||
Years 2019 - 2022 | 18,244 | 3,801 | ||||||||||||||||||||||
ShareBased_Compensation_Arrang2
Share-Based Compensation Arrangements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Compensation Cost for Share-based Compensation Arrangements | ' | |||||||||||||||
Amounts recognized in the consolidated financial statements for stock options, nonvested share awards and nonvested performance shares are as follows: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||||||
Share-based compensation expense | $1,876 | $1,962 | $1,394 | |||||||||||||
Related income tax benefit | $673 | $700 | $497 | |||||||||||||
Share Options Fair Value Assumptions | ' | |||||||||||||||
assumptions were used in determining the grant date fair value of the stock option awards granted: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (years) | 8 | 9 | 9 | |||||||||||||
Expected dividend yield | 3.77 | % | 3.45 | % | 3.33 | % | ||||||||||
Weighted average expected volatility | 42.85 | % | 42.97 | % | 41.9 | % | ||||||||||
Weighted average risk-free interest rate | 2.46 | % | 1.53 | % | 3.05 | % | ||||||||||
Weighted average grant-date fair value | $10.35 | $7.46 | $7.46 | |||||||||||||
Washington Trust uses historical data to estimate stock option exercise and employee departure behavior used in the option-pricing model; groups of employees that have similar historical behavior are considered separately for valuation purposes. The expected term of options granted was derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Expected volatility was based on historical volatility of Washington Trust shares. The risk-free rate for periods within the contractual life of the stock option was based on the U.S. Treasury yield curve in effect at the date of grant. | ||||||||||||||||
Share Options Activity | ' | |||||||||||||||
A summary of the status of Washington Trust’s stock options outstanding as of and the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (000’s) | |||||||||||||
Beginning of period | 645,797 | $23.58 | ||||||||||||||
Granted | 54,600 | 32.77 | ||||||||||||||
Exercised | (258,351 | ) | 23.97 | |||||||||||||
Forfeited or expired | (13,658 | ) | 24.46 | |||||||||||||
End of period | 428,388 | $24.50 | 5.9 | $5,451 | ||||||||||||
At end of period; | ||||||||||||||||
Options exercisable | 206,938 | $24.20 | 3.4 | $2,694 | ||||||||||||
Options expected to vest in future periods | 221,450 | $24.77 | 8.3 | $2,757 | ||||||||||||
Schedule of Stock Options Outstanding and Options Exercisable | ' | |||||||||||||||
Additional information concerning options outstanding and options exercisable at December 31, 2013 is summarized as follows: | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Exercise Price Ranges | Number of | Weighted Average | Weighted Average | Number of Shares | Weighted Average | |||||||||||
Shares | Remaining Life (Years) | Exercise Price | Exercise Price | |||||||||||||
$16.39 to $19.66 | 65,282 | 6 | $17.59 | 44,282 | $17.44 | |||||||||||
$19.67 to $22.94 | 55,700 | 7.3 | 21.71 | 1,500 | 21.71 | |||||||||||
$22.95 to $26.22 | 159,192 | 6.6 | 23.7 | 67,542 | 24.12 | |||||||||||
$26.23 to $29.49 | 93,614 | 1.6 | 27.5 | 93,614 | 27.5 | |||||||||||
$29.50 to $32.77 | 54,600 | 9.8 | 32.77 | — | — | |||||||||||
428,388 | 5.9 | $24.50 | 206,938 | $25.20 | ||||||||||||
Nonvested Share Units Activity | ' | |||||||||||||||
A summary of the status of Washington Trust’s nonvested shares as of and for the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Beginning of period | 108,775 | $20.82 | ||||||||||||||
Granted | 24,400 | 29.9 | ||||||||||||||
Vested | (40,089 | ) | 18.3 | |||||||||||||
Forfeited | (2,561 | ) | 22.14 | |||||||||||||
End of period | 90,525 | $24.34 | ||||||||||||||
Nonvested Performance Shares Activity | ' | |||||||||||||||
A summary of the status of Washington Trust’s performance share awards as of and for the year ended December 31, 2013 is presented below: | ||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | |||||||||||||||
Beginning of period | 119,020 | $21.45 | ||||||||||||||
Granted | 49,138 | 26.37 | ||||||||||||||
Vested | (17,975 | ) | 15.11 | |||||||||||||
Forfeited | (26,066 | ) | 23.59 | |||||||||||||
End of period | 124,117 | $23.87 | ||||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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) | ||||||||||||||||
Year ended December 31, 2013 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income | $79,633 | $7 | $12,145 | $91,785 | ||||||||||||
Noninterest income | 30,769 | 31,825 | (514 | ) | 62,080 | |||||||||||
Total income | 110,402 | 31,832 | 11,631 | 153,865 | ||||||||||||
Provision for loan losses | 2,400 | — | — | 2,400 | ||||||||||||
Depreciation and amortization expense | 2,473 | 1,277 | 213 | 3,963 | ||||||||||||
Other noninterest expenses | 61,976 | 20,494 | 12,352 | 94,822 | ||||||||||||
Total noninterest expenses | 64,449 | 21,771 | 12,565 | 98,785 | ||||||||||||
Income (loss) before income taxes | 43,553 | 10,061 | (934 | ) | 52,680 | |||||||||||
Income tax expense (benefit) | 14,598 | 3,724 | (1,795 | ) | 16,527 | |||||||||||
Net income | $28,955 | $6,337 | $861 | $36,153 | ||||||||||||
Total assets at period end | $2,517,059 | $50,297 | $621,511 | $3,188,867 | ||||||||||||
Expenditures for long-lived assets | $1,286 | $112 | $93 | $1,491 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year ended December 31, 2012 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income | $79,505 | $17 | $11,174 | $90,696 | ||||||||||||
Noninterest income | 31,727 | 29,640 | 3,847 | 65,214 | ||||||||||||
Total income | 111,232 | 29,657 | 15,021 | 155,910 | ||||||||||||
Provision for loan losses | 2,700 | — | — | 2,700 | ||||||||||||
Depreciation and amortization expense | 2,384 | 1,272 | 285 | 3,941 | ||||||||||||
Other noninterest expenses | 62,963 | 19,584 | 15,850 | 98,397 | ||||||||||||
Total noninterest expenses | 65,347 | 20,856 | 16,135 | 102,338 | ||||||||||||
Income (loss) before income taxes | 43,185 | 8,801 | (1,114 | ) | 50,872 | |||||||||||
Income tax expense (benefit) | 14,670 | 3,296 | (2,168 | ) | 15,798 | |||||||||||
Net income | $28,515 | $5,505 | $1,054 | $35,074 | ||||||||||||
Total assets at period end | $2,436,280 | $51,730 | $583,874 | $3,071,884 | ||||||||||||
Expenditures for long-lived assets | $4,082 | $877 | $151 | $5,110 | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year ended December 31, 2011 | Commercial | Wealth | Corporate | Consolidated | ||||||||||||
Banking | Management | Total | ||||||||||||||
Services | ||||||||||||||||
Net interest income (expense) | $75,967 | ($1 | ) | $8,989 | $84,955 | |||||||||||
Noninterest income | 21,806 | 28,306 | 2,652 | 52,764 | ||||||||||||
Total income | 97,773 | 28,305 | 11,641 | 137,719 | ||||||||||||
Provision for loan losses | 4,700 | — | — | 4,700 | ||||||||||||
Depreciation and amortization expense | 2,512 | 1,330 | 283 | 4,125 | ||||||||||||
Other noninterest expenses | 55,543 | 19,041 | 11,664 | 86,248 | ||||||||||||
Total noninterest expenses | 58,055 | 20,371 | 11,947 | 90,373 | ||||||||||||
Income (loss) before income taxes | 35,018 | 7,934 | (306 | ) | 42,646 | |||||||||||
Income tax expense (benefit) | 11,781 | 2,957 | (1,816 | ) | 12,922 | |||||||||||
Net income | $23,237 | $4,977 | $1,510 | $29,724 | ||||||||||||
Total assets at period end | $2,257,326 | $51,104 | $755,668 | $3,064,098 | ||||||||||||
Expenditures for long-lived assets | $2,982 | $493 | $169 | $3,644 | ||||||||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Activity in Other Comprehensive Income | ' | |||||||||||||||||||
The following tables present the activity in other comprehensive income (loss): | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2013 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($10,586 | ) | ($3,778 | ) | ($6,808 | ) | ||||||||||||||
Net (gains) losses on securities classified into earnings (1) | 294 | 106 | 188 | |||||||||||||||||
Net change in fair value of securities available for sale | (10,292 | ) | (3,672 | ) | (6,620 | ) | ||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 3,195 | 1,146 | 2,049 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (58 | ) | (23 | ) | (35 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 657 | 234 | 423 | |||||||||||||||||
Change in the fair value of cash flow hedges | 599 | 211 | 388 | |||||||||||||||||
Defined benefit plan obligation adjustment (4) | 20,406 | 7,277 | 13,129 | |||||||||||||||||
Total other comprehensive income | $13,908 | $4,962 | $8,946 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2012 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | ($4,125 | ) | ($1,459 | ) | ($2,666 | ) | ||||||||||||||
Net (gains) losses on securities classified into earnings (1) | (1,195 | ) | (427 | ) | (768 | ) | ||||||||||||||
Net change in fair value of securities available for sale | (5,320 | ) | (1,886 | ) | (3,434 | ) | ||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 193 | 68 | 125 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (521 | ) | (188 | ) | (333 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 706 | 252 | 454 | |||||||||||||||||
Change in the fair value of cash flow hedges | 185 | 64 | 121 | |||||||||||||||||
Defined benefit plan obligation adjustment (4) | (8,445 | ) | (3,029 | ) | (5,416 | ) | ||||||||||||||
Total other comprehensive income | ($13,387 | ) | ($4,783 | ) | ($8,604 | ) | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Year ended December 31, 2011 | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Changes in fair value of securities available for sale | $2,620 | $998 | $1,622 | |||||||||||||||||
Net (gains) losses on securities classified into earnings (1) | (644 | ) | (229 | ) | (415 | ) | ||||||||||||||
Net change in fair value of securities available for sale | 1,976 | 769 | 1,207 | |||||||||||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) | 137 | 49 | 88 | |||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Changes in fair value of cash flow hedges | (1,464 | ) | (522 | ) | (942 | ) | ||||||||||||||
Net cash flow hedge losses reclassified into earnings (3) | 755 | 269 | 486 | |||||||||||||||||
Net change in the fair value of cash flow hedges | (709 | ) | (253 | ) | (456 | ) | ||||||||||||||
Defined benefit plan obligation adjustment (4) | (10,502 | ) | (3,743 | ) | (6,759 | ) | ||||||||||||||
Total other comprehensive income | ($9,098 | ) | ($3,178 | ) | ($5,920 | ) | ||||||||||||||
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 year ended December 31, 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 | $9,709 | ($1,937 | ) | ($1,006 | ) | ($17,265 | ) | ($10,499 | ) | |||||||||||
Other comprehensive income before reclassifications | (6,808 | ) | — | (35 | ) | — | (6,843 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 188 | 2,049 | 423 | 13,129 | 15,789 | |||||||||||||||
Net other comprehensive income (loss) | (6,620 | ) | 2,049 | 388 | 13,129 | 8,946 | ||||||||||||||
Balance at December 31, 2013 | $3,089 | $112 | ($618 | ) | ($4,136 | ) | ($1,553 | ) | ||||||||||||
The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2011 and 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 January 1, 2011 | $11,936 | ($2,150 | ) | ($671 | ) | ($5,090 | ) | $4,025 | ||||||||||||
Period change, net of tax | 1,207 | 88 | (456 | ) | (6,759 | ) | (5,920 | ) | ||||||||||||
Balance at December 31, 2011 | $13,143 | ($2,062 | ) | ($1,127 | ) | ($11,849 | ) | ($1,895 | ) | |||||||||||
Period change, net of tax | (3,434 | ) | 125 | 121 | (5,416 | ) | (8,604 | ) | ||||||||||||
Balance at December 31, 2012 | $9,709 | ($1,937 | ) | ($1,006 | ) | ($17,265 | ) | ($10,499 | ) | |||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | |||||||||
Net income | $36,153 | $35,074 | $29,724 | |||||||||
Less: | ||||||||||||
Dividends and undistributed earnings allocated to participating securities | (155 | ) | (160 | ) | (112 | ) | ||||||
Net income applicable to common shareholders | 35,998 | 34,914 | 29,612 | |||||||||
Weighted average basic common shares | 16,506 | 16,358 | 16,254 | |||||||||
Dilutive effect of: | ||||||||||||
Common stock equivalents | 158 | 43 | 30 | |||||||||
Weighted average diluted common shares | 16,664 | 16,401 | 16,284 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $2.18 | $2.13 | $1.82 | |||||||||
Diluted | $2.16 | $2.13 | $1.82 | |||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 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) | ||||||||
December 31, | 2013 | 2012 | ||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $259,061 | $223,426 | ||||||
Home equity lines | 198,432 | 184,941 | ||||||
Other loans | 35,175 | 30,504 | ||||||
Standby letters of credit | 1,363 | 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 | 17,910 | 67,792 | ||||||
Commitments to sell fixed rate mortgage loans | 29,364 | 116,162 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 105,582 | 70,493 | ||||||
Mirror swaps with counterparties | 105,582 | 70,493 | ||||||
Interest rate risk management contract: | ||||||||
Interest rate swap | 22,681 | 32,991 | ||||||
Schedule of Future Minimum Operating Lease Payments | ' | |||||||
The minimum annual lease payments under the terms of these leases, exclusive of renewal provisions, are as follows: | ||||||||
(Dollars in thousands) | ||||||||
Years ending December 31: | 2014 | $2,542 | ||||||
2015 | 1,944 | |||||||
2016 | 1,604 | |||||||
2017 | 1,462 | |||||||
2018 | 1,143 | |||||||
2019 and thereafter | 13,490 | |||||||
Total minimum lease payments | $22,185 | |||||||
Parent_Company_Financial_State1
Parent Company Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Parent Company Only Balance Sheet | ' | ||||||||||||
Balance Sheets | (Dollars in thousands, except par value) | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash on deposit with bank subsidiary | $2,126 | $1,694 | |||||||||||
Interest-bearing balances due from banks | 1,569 | 1,970 | |||||||||||
Investment in subsidiaries at equity value | 349,342 | 325,717 | |||||||||||
Dividends receivable from subsidiaries | 4,606 | 4,198 | |||||||||||
Other assets | 494 | 891 | |||||||||||
Total assets | $358,137 | $334,470 | |||||||||||
Liabilities: | |||||||||||||
Junior subordinated debentures | $22,681 | $32,991 | |||||||||||
Dividends payable | 4,756 | 4,152 | |||||||||||
Other liabilities | 1,054 | 1,675 | |||||||||||
Total liabilities | 28,491 | 38,818 | |||||||||||
Shareholders’ Equity: | |||||||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | |||||||||||
Paid-in capital | 97,566 | 91,453 | |||||||||||
Retained earnings | 232,595 | 213,674 | |||||||||||
Accumulated other comprehensive loss | (1,553 | ) | (10,499 | ) | |||||||||
Total shareholders’ equity | 329,646 | 295,652 | |||||||||||
Total liabilities and shareholders’ equity | $358,137 | $334,470 | |||||||||||
Parent Company Only Income Statement | ' | ||||||||||||
Statements of Income | (Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $24,481 | $16,188 | $14,439 | ||||||||||
Other income | 20 | 3 | 2 | ||||||||||
Total income | 24,501 | 16,191 | 14,441 | ||||||||||
Expenses: | |||||||||||||
Interest on junior subordinated debentures | 1,484 | 1,570 | 1,568 | ||||||||||
Legal and professional fees | 145 | 127 | 118 | ||||||||||
Other | 279 | 279 | 257 | ||||||||||
Total expenses | 1,908 | 1,976 | 1,943 | ||||||||||
Income before income taxes | 22,593 | 14,215 | 12,498 | ||||||||||
Income tax benefit | 661 | 682 | 669 | ||||||||||
Income before equity in undistributed earnings of subsidiaries | 23,254 | 14,897 | 13,167 | ||||||||||
Equity in undistributed earnings of subsidiaries | 12,899 | 20,177 | 16,557 | ||||||||||
Net income | $36,153 | $35,074 | $29,724 | ||||||||||
Parent Company Only Cash Flow Statement | ' | ||||||||||||
Statements of Cash Flows | (Dollars in thousands) | ||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash flow from operating activities: | |||||||||||||
Net income | $36,153 | $35,074 | $29,724 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiary | (12,899 | ) | (20,177 | ) | (16,557 | ) | |||||||
Increase in dividend receivable | (408 | ) | (298 | ) | (660 | ) | |||||||
Decrease (increase) in other assets | 397 | 77 | (246 | ) | |||||||||
(Decrease) increase in accrued expenses and other liabilities | (621 | ) | (215 | ) | 281 | ||||||||
Other, net | (214 | ) | (237 | ) | (115 | ) | |||||||
Net cash provided by operating activities | 22,408 | 14,224 | 12,427 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Repayment of equity investment in capital trust | 310 | — | — | ||||||||||
Net cash used in investing activities | 310 | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Issuance of treasury stock, including net deferred compensation plan activity | 30 | — | — | ||||||||||
Proceeds from issuance of common stock under dividend reinvestment plan | — | — | 754 | ||||||||||
Proceeds from stock option exercises and issuance of other equity instruments | 3,651 | 1,257 | 885 | ||||||||||
Tax benefit from stock option exercises and other equity instrument issuances | 570 | 210 | 115 | ||||||||||
Repayment of junior subordinated debentures | (10,310 | ) | — | — | |||||||||
Cash dividends paid | (16,628 | ) | (15,133 | ) | (14,205 | ) | |||||||
Net cash used in financing activities | (22,687 | ) | (13,666 | ) | (12,451 | ) | |||||||
Net increase (decrease) in cash | 31 | 558 | (24 | ) | |||||||||
Cash at beginning of year | 3,664 | 3,106 | 3,130 | ||||||||||
Cash at end of year | $3,695 | $3,664 | $3,106 | ||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
low_income_housing_complex | |
equity_method_investment | |
Accounting Policies [Line Items] | ' |
Federal Home Loan Bank Stock, redemption period, years after membership termination | '5 years |
Troubled debt restructured loans, management determination of loans on nonaccrual status to return to accrual status, period | '6 months |
Number of equity method investments | 2 |
Number of low-income housing complexes included in equity method investments | 2 |
Equity Method Investee, One [Member] | ' |
Accounting Policies [Line Items] | ' |
Equity method investment, ownership percentage | 99.90% |
Equity Method Investee, Two [Member] | ' |
Accounting Policies [Line Items] | ' |
Equity method investment, ownership percentage | 99.90% |
Premises and Improvements [Member] | Minimum [Member] | ' |
Accounting Policies [Line Items] | ' |
Estimated useful life (in years) | '3 years |
Premises and Improvements [Member] | Maximum [Member] | ' |
Accounting Policies [Line Items] | ' |
Estimated useful life (in years) | '40 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ' |
Accounting Policies [Line Items] | ' |
Estimated useful life (in years) | '2 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ' |
Accounting Policies [Line Items] | ' |
Estimated useful life (in years) | '20 years |
Cash_and_Due_from_Banks_Narrat
Cash and Due from Banks (Narrative) (Details) (USD $) | Dec. 31, 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 | $6.70 | $5.50 |
Interest-bearing balances due from banks | $51.80 | $32.20 |
Securities_Narrative_Details
Securities (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
security | security | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' |
Number of securities in a continuous unrealized loss position total | 21 | 13 | ' |
Trust Preferred Securities Pooled Issuers on Nonaccrual Status Credit-related Impairment Losses First Security | $2,800,000 | ' | ' |
Trust Preferred Securities Pooled Issuers on Nonaccrual Status Credit-related Impairment Losses Second Security | 717,000 | ' | ' |
Securities available for sale and held to maturity pledged as collateral, fair value | 397,500,000 | 386,500,000 | ' |
Credit-related impairment losses recognized in earnings | 3,489,000 | 221,000 | 191,000 |
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | 11,900,000 | ' | ' |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 2,200,000 | ' | ' |
Amortized cost of callable debt securities | 106,800,000 | ' | ' |
Callable debt securities, fair value | 102,300,000 | ' | ' |
Available for sale securities | 392,903,000 | 375,498,000 | ' |
Minimum [Member] | ' | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' |
Callable debt securities, call feature period | '1 month | ' | ' |
Callable debt securities, maturity period | '21 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' |
Callable debt securities, call feature period | '3 years | ' | ' |
Callable debt securities, maturity period | '23 years | ' | ' |
Trust Preferred Securities Individual Name Issuers [Member] | ' | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' |
Number of securities in a continuous unrealized loss position total | 11 | 11 | ' |
Securities in continuous unrealized loss position, number of companies issuing securities | 7 | ' | ' |
Available for sale debt securities amortized cost | 30,715,000 | 30,677,000 | ' |
Available for sale securities | 24,684,000 | 24,751,000 | ' |
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' |
Number of securities in a continuous unrealized loss position total | ' | 2 | ' |
Available for sale debt securities amortized cost | 547,000 | 4,036,000 | ' |
Available for sale securities | $547,000 | $843,000 | ' |
Securities_Summary_of_Investme
Securities (Summary of Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities unrealized gains | $11,520 | $21,209 |
Available for sale securities unrealized losses | -6,527 | -9,119 |
Available for sale securities fair value | 392,903 | 375,498 |
Available for sale securities amortized cost | 387,910 | 363,408 |
Held to maturity securities amortized cost | 29,905 | 40,381 |
Held to maturity securities unrealized gains | 14 | 1,039 |
Held to Matruity securities unrealized losses | -54 | 0 |
Held to maturity securities fair value | 29,865 | 41,420 |
Total securities amortized cost | 417,815 | 403,789 |
Total securities unrealized gains | 11,534 | 22,248 |
Total securities unrealized losses | -6,581 | -9,119 |
Total securities fair value | 422,768 | 416,918 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 54,474 | 29,458 |
Available for sale securities unrealized gains | 720 | 2,212 |
Available for sale securities unrealized losses | -79 | 0 |
Available for sale securities fair value | 55,115 | 31,670 |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 230,387 | 217,136 |
Available for sale securities unrealized gains | 8,369 | 14,097 |
Available for sale securities unrealized losses | -401 | 0 |
Available for sale securities fair value | 238,355 | 231,233 |
Held to maturity securities amortized cost | 29,905 | 40,381 |
Held to maturity securities unrealized gains | 14 | 1,039 |
Held to Matruity securities unrealized losses | -54 | 0 |
Held to maturity securities fair value | 29,865 | 41,420 |
States and political subdivisions [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 60,659 | 68,196 |
Available for sale securities unrealized gains | 2,200 | 4,424 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale securities fair value | 62,859 | 72,620 |
Trust preferred securities: Individual name issuers [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 30,715 | 30,677 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | -6,031 | -5,926 |
Available for sale securities fair value | 24,684 | 24,751 |
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 547 | 4,036 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | 0 | -3,193 |
Available for sale securities fair value | 547 | 843 |
Corporate bonds [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale securities amortized cost | 11,128 | 13,905 |
Available for sale securities unrealized gains | 231 | 476 |
Available for sale securities unrealized losses | -16 | 0 |
Available for sale securities fair value | $11,343 | $14,381 |
Securities_Securities_by_Contr
Securities (Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale debt securities maturities wIthin 1 year amortized cost | $127,376 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 160,340 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 47,385 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 52,809 | ' |
Available for sale debt securities maturities total amortized cost | 387,910 | ' |
Available for sale debt securities maturities within 1 year fair value | 127,764 | ' |
Available for sale debt securities maturities 1-5 years fair value | 162,785 | ' |
Available for sale debt securities maturities 5-10 years fair value | 48,800 | ' |
Available for sale debt securities maturities after 10 years fair value | 53,554 | ' |
Available for sale debt securities fair value | 392,903 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 4.19% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.71% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.73% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 1.83% | ' |
Available for sale debt securities maturities totals weighted average yield | 3.49% | ' |
Held to maturity debt securities amortized cost totals | 29,905 | 40,381 |
Held to maturity debt securities maturities within 1 year fair value | 5,369 | ' |
Held to maturity debt securities maturities 1-5 years fair value | 13,873 | ' |
Held to maturity debt securities maturities 5-10 years fair value | 7,642 | ' |
Held to maturity debt securities maturities after 10 years fair value | 2,981 | ' |
Held to maturity securities fair value | 29,865 | 41,420 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale debt securities maturities wIthin 1 year amortized cost | 54,474 | ' |
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 | 54,474 | ' |
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 totals weighted average yield | 4.04% | ' |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale debt securities maturities wIthin 1 year amortized cost | 53,902 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 107,955 | ' |
Available for sale debt securities maturities 5-10 years amortized cost | 46,983 | ' |
Available for sale debt securities maturities after 10 years amortized cost | 21,547 | ' |
Available for sale debt securities maturities total amortized cost | 230,387 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 4.19% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.66% | ' |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.73% | ' |
Available for sale debt securities maturities after 10 years weighted average yield | 2.20% | ' |
Available for sale debt securities maturities totals weighted average yield | 3.46% | ' |
Held to maturity debt securities maturities within 1 year amortized cost | 5,376 | ' |
Held to maturity debt securities maturities 1-5 years amortized cost | 13,892 | ' |
Held to maturity debt securities maturities 5-10 years amortized cost | 7,652 | ' |
Held to maturity debt securities maturities after 10 years amortized cost | 2,985 | ' |
Held to maturity debt securities amortized cost totals | 29,905 | 40,381 |
Held to maturity debt securities maturities within 1 year weighted average yield | 2.85% | ' |
Held to maturity debt securities maturities 1-5 years weighted average yield | 2.75% | ' |
Held to maturity debt securities maturities 5-10 years weighted average yield | 2.56% | ' |
Held to maturity debt securities maturities after 10 years weighted average yield | 1.11% | ' |
Held to maturity debt securities weighted average yield totals | 2.56% | ' |
Held to maturity securities fair value | 29,865 | 41,420 |
States and political subdivisions [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale debt securities maturities wIthin 1 year amortized cost | 13,977 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 46,682 | ' |
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 | 60,659 | ' |
Available for sale debt securities maturities within 1 year weighted average yield | 3.84% | ' |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.92% | ' |
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 totals weighted average yield | 3.91% | ' |
Trust preferred securities [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity 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 | 31,262 | ' |
Available for sale debt securities maturities total amortized cost | 31,262 | ' |
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 | 1.57% | ' |
Available for sale debt securities maturities totals weighted average yield | 1.57% | ' |
Corporate bonds [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Available for sale debt securities maturities wIthin 1 year amortized cost | 5,023 | ' |
Available for sale debt securities maturities 1-5 years amortized cost | 5,703 | ' |
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 | $11,128 | ' |
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 totals weighted average yield | 4.53% | ' |
Securities_Securities_in_a_Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | security | security |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 10 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $87,064 | $0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -550 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 11 | 13 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 24,684 | 25,594 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -6,031 | -9,119 |
Number of securities in a continuous unrealized loss position total | 21 | 13 |
Fair value of securities in a continuous unrealized loss position total | 111,748 | 25,594 |
Unrealized losses of securities in a continuous unrealized loss position total | -6,581 | -9,119 |
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 1 | ' |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 9,909 | ' |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -79 | ' |
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 | 1 | ' |
Fair value of securities in a continuous unrealized loss position total | 9,909 | ' |
Unrealized losses of securities in a continuous unrealized loss position total | -79 | ' |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | 7 | ' |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 76,748 | ' |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -455 | ' |
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 | 7 | ' |
Fair value of securities in a continuous unrealized loss position total | 76,748 | ' |
Unrealized losses of securities in a continuous unrealized loss position total | -455 | ' |
Trust preferred securities: Individual name issuers [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity 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 | 24,684 | 24,751 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -6,031 | -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 | 24,684 | 24,751 |
Unrealized losses of securities in a continuous unrealized loss position total | -6,031 | -5,926 |
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' |
Number of securities in a continuous unrealized loss position for less than 12 months | ' | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | ' | 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | ' | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | ' | 2 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | ' | 843 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | ' | -3,193 |
Number of securities in a continuous unrealized loss position total | ' | 2 |
Fair value of securities in a continuous unrealized loss position total | ' | 843 |
Unrealized losses of securities in a continuous unrealized loss position total | ' | -3,193 |
Corporate bonds [Member] | ' | ' |
Schedule of Available for Sale and Held to Maturity 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_Rollfoward_of_OTTI_
Securities (Rollfoward of OTTI Recognized in Other Comprehensive income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $3,325 | $3,104 | $2,913 |
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | 0 | 0 | 0 |
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | 3,489 | 221 | 191 |
Balance at end of period | $6,814 | $3,325 | $3,104 |
Securities_Summary_of_Amounts_
Securities (Summary of Amounts Relating to Sales of Securities) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' | |||
Proceeds from sales | $0 | [1] | $46,560 | [1] | $56,461 | [1] |
Gross realized gains | 0 | [1] | 1,224 | [1] | 919 | [1] |
Gross realized losses | 0 | -1 | -221 | |||
Net realized gains on securities | 0 | 1,223 | 698 | |||
Perpetual preferred stock [Member] | ' | ' | ' | |||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ' | ' | ' | |||
Other Noninterest Expense, Cost of Security Contributions | ' | ' | 990 | |||
Gross realized gains | ' | ' | $331 | |||
[1] | Includes a contribution of appreciated equity securities to the Corporation’s charitable foundation in 2011. The cost of the contribution, included in noninterest expenses, amounted to $990 thousand in 2011. This transaction resulted in a realized security gain of $331 thousand for the same period. |
Loans_Narrative_Details
Loans (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
rating | rating | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Recorded investment | $26,400,000 | $20,200,000 |
Accrued interest on accruing TDRs | 44,000 | 13,000 |
Weighted average risk rating, commercial loan portfolio | 4.64 | 4.77 |
Commercial Portfolio Segment [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Specific Reserves on Troubled Debt Restructurings | $556,000 | $898,000 |
Loans_Summary_of_Loans_Details
Loans (Summary of Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | $1,363,335,000 | $1,252,419,000 | ||
Residential real estate | 772,674,000 | 717,681,000 | ||
Consumer | 326,875,000 | 323,903,000 | ||
Total loans | 2,462,884,000 | [1] | 2,294,003,000 | [1] |
Percent of total loans | 100.00% | [1] | 100.00% | [1] |
Net unamortized loan origination costs | 879,000 | 39,000 | ||
Net unamortized premiums on purchased loans | 99,000 | 83,000 | ||
Commercial Mortgages [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 796,249,000 | [2] | 710,813,000 | [2] |
Total loans | 796,249,000 | 710,813,000 | ||
Percent of total loans | 32.00% | [2] | 31.00% | [2] |
Loans pledged as collateral, FHLBB and letters of credit | 190,700,000 | 238,600,000 | ||
Commercial Construction and Development [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 36,289,000 | [3] | 27,842,000 | [3] |
Total loans | 36,289,000 | 27,842,000 | ||
Percent of total loans | 1.00% | [3] | 1.00% | [3] |
Commercial Other [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 530,797,000 | [4] | 513,764,000 | [4] |
Total loans | 530,797,000 | 513,764,000 | ||
Percent of total loans | 22.00% | [4] | 23.00% | [4] |
Loans pledged as collateral, FHLBB and letters of credit | 44,100,000 | 51,800,000 | ||
Loans pledged as collateral, Federal Reserve Bank | 21,200,000 | 29,500,000 | ||
Commercial Portfolio Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Commercial | 1,363,335,000 | 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 | 749,163,000 | [5] | 692,798,000 | [5] |
Total loans | 749,163,000 | 692,798,000 | ||
Percent of total loans | 30.00% | [5] | 30.00% | [5] |
Loans pledged as collateral, FHLBB and letters of credit | 684,600,000 | 627,400,000 | ||
Homeowner Construction [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Residential real estate | 23,511,000 | 24,883,000 | ||
Total loans | 23,511,000 | 24,883,000 | ||
Percent of total loans | 1.00% | 1.00% | ||
Residential Portfolio Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Residential real estate | 772,674,000 | 717,681,000 | ||
Percent of total loans | 31.00% | 31.00% | ||
Home Equity Lines [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | 231,362,000 | [6] | 226,861,000 | [6] |
Total loans | 231,362,000 | 226,861,000 | ||
Percent of total loans | 9.00% | [6] | 10.00% | [6] |
Loans pledged as collateral, FHLBB and letters of credit | 195,300,000 | 189,400,000 | ||
Home Equity Loans [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | 40,212,000 | [6] | 39,329,000 | [6] |
Total loans | 40,212,000 | 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 | 55,301,000 | [7] | 57,713,000 | [7] |
Total loans | 55,301,000 | 57,713,000 | ||
Percent of total loans | 3.00% | [7] | 2.00% | [7] |
Consumer Portfolio Segment [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Consumer | $326,875,000 | $323,903,000 | ||
Percent of total loans | 14.00% | 14.00% | ||
[1] | Includes net unamortized loan origination costs of $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. | |||
[2] | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of December 31, 2013 and 2012, $190.7 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 December 31, 2013, $44.1 million and $21.2 million, respectively, were pledged as collateral for FHLBB borrowings and letters of credit and were collateralized for the discount window at the FRB. Comparable amounts for December 31, 2012 were $51.8 million and $29.5 million, respectively. | |||
[5] | As of December 31, 2013 and 2012, $684.6 million and $627.4 million, respectively were pledged as collateral for FHLBB borrowings and letters of credit. | |||
[6] | As of December 31, 2013 and 2012, $195.3 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 $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans | $18,302,000 | $22,543,000 | ' |
Accruing loans 90 days or more past due | 0 | 0 | ' |
Nonaccrual loans, interest income lost | 1,800,000 | 1,800,000 | 1,700,000 |
Nonaccrual loans, interest income recorded | 400,000 | 679,000 | 505,000 |
Current Payment Status [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans, current as to payment of principal and interest | 2,700,000 | 1,600,000 | ' |
Commercial Mortgages [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans | 7,492,000 | 10,681,000 | ' |
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 | 1,291,000 | 4,412,000 | ' |
Residential Mortgage [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans | 8,315,000 | 6,158,000 | ' |
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 | 469,000 | 840,000 | ' |
Home Equity Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans | 687,000 | 371,000 | ' |
Other Consumer [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Nonaccrual loans | $48,000 | $81,000 | ' |
Loans_Past_Due_Loans_Details
Loans (Past Due Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Nonaccrual loans, included in past due loans | $15,600,000 | $21,000,000 | ||
Loans 30 to 59 Days Past Due | 5,638,000 | 6,607,000 | ||
Loans 60 to 89 Days Past Due | 1,753,000 | 3,040,000 | ||
Loans Over 90 Days Past Due | 14,512,000 | 18,449,000 | ||
Total Loans Past Due | 21,903,000 | 28,096,000 | ||
Current Loans | 2,440,981,000 | 2,265,907,000 | ||
Total loans | 2,462,884,000 | [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 | 0 | 408,000 | ||
Loans Over 90 Days Past Due | 7,492,000 | 10,300,000 | ||
Total Loans Past Due | 7,492,000 | 11,081,000 | ||
Current Loans | 788,757,000 | 699,732,000 | ||
Total loans | 796,249,000 | 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 | 36,289,000 | 27,842,000 | ||
Total loans | 36,289,000 | 27,842,000 | ||
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 276,000 | 260,000 | ||
Loans 60 to 89 Days Past Due | 302,000 | 296,000 | ||
Loans Over 90 Days Past Due | 731,000 | 3,647,000 | ||
Total Loans Past Due | 1,309,000 | 4,203,000 | ||
Current Loans | 529,488,000 | 509,561,000 | ||
Total loans | 530,797,000 | 513,764,000 | ||
Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 4,040,000 | 4,840,000 | ||
Loans 60 to 89 Days Past Due | 1,285,000 | 1,951,000 | ||
Loans Over 90 Days Past Due | 5,633,000 | 3,658,000 | ||
Total Loans Past Due | 10,958,000 | 10,449,000 | ||
Current Loans | 738,205,000 | 682,349,000 | ||
Total loans | 749,163,000 | 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 | 23,511,000 | 24,883,000 | ||
Total loans | 23,511,000 | 24,883,000 | ||
Home Equity Lines [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 831,000 | 753,000 | ||
Loans 60 to 89 Days Past Due | 100,000 | 207,000 | ||
Loans Over 90 Days Past Due | 269,000 | 528,000 | ||
Total Loans Past Due | 1,200,000 | 1,488,000 | ||
Current Loans | 230,162,000 | 225,373,000 | ||
Total loans | 231,362,000 | 226,861,000 | ||
Home Equity Loans [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 448,000 | 252,000 | ||
Loans 60 to 89 Days Past Due | 66,000 | 114,000 | ||
Loans Over 90 Days Past Due | 349,000 | 250,000 | ||
Total Loans Past Due | 863,000 | 616,000 | ||
Current Loans | 39,349,000 | 38,713,000 | ||
Total loans | 40,212,000 | 39,329,000 | ||
Other Consumer [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Loans 30 to 59 Days Past Due | 43,000 | 129,000 | ||
Loans 60 to 89 Days Past Due | 0 | 64,000 | ||
Loans Over 90 Days Past Due | 38,000 | 66,000 | ||
Total Loans Past Due | 81,000 | 259,000 | ||
Current Loans | 55,220,000 | 57,454,000 | ||
Total loans | $55,301,000 | $57,713,000 | ||
[1] | Includes net unamortized loan origination costs of $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. |
Loans_Impaired_Loans_Details
Loans (Impaired Loans) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | $3,220,000 | [1] | $4,709,000 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 34,318,000 | [1] | 30,853,000 | [1] | ' |
Total Recorded Investment of Impaired Loans | 37,538,000 | [1] | 35,562,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 3,307,000 | 4,732,000 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 37,541,000 | 33,926,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Total Unpaid Principal of Impaired Loans | 40,848,000 | 38,658,000 | ' | ||
Related Allowance on Impaired Loans | 1,481,000 | 2,880,000 | ' | ||
Average Recorded Investment of Impaired Loans | 37,967,000 | 26,551,000 | 29,544,000 | ||
Interest Income Recognized on Impaired Loans | 967,000 | 679,000 | 1,152,000 | ||
Loans And Leases Receivable Commitment To Lend To Borrowers With Nonaccrual or TDR Loans | 0 | 0 | ' | ||
Commercial Mortgages [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 998,000 | [1] | 2,357,000 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 29,335,000 | [1] | 17,897,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 998,000 | 2,360,000 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 31,731,000 | 19,738,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 552,000 | 1,720,000 | ' | ||
Average Recorded Investment of Impaired Loans | 27,496,000 | 10,785,000 | 14,923,000 | ||
Interest Income Recognized on Impaired Loans | 630,000 | 273,000 | 539,000 | ||
Commercial Construction and Development [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | 0 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 0 | [1] | 0 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 0 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | ||
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | ||
Commercial Other [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 1,055,000 | [1] | 1,058,000 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 1,506,000 | [1] | 9,939,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,050,000 | 1,057,000 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 1,945,000 | 10,690,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 463,000 | 694,000 | ' | ||
Average Recorded Investment of Impaired Loans | 6,029,000 | 10,661,000 | 8,226,000 | ||
Interest Income Recognized on Impaired Loans | 190,000 | 297,000 | 388,000 | ||
Residential Mortgage [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 1,167,000 | [1] | 1,294,000 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 3,122,000 | [1] | 2,576,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,259,000 | 1,315,000 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 3,507,000 | 2,947,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 463,000 | 463,000 | ' | ||
Average Recorded Investment of Impaired Loans | 4,024,000 | 4,651,000 | 5,743,000 | ||
Interest Income Recognized on Impaired Loans | 125,000 | 88,000 | 188,000 | ||
Homeowner Construction [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | 0 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 0 | [1] | 0 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 0 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | ||
Interest Income Recognized on Impaired Loans | 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] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 173,000 | [1] | 187,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 174,000 | 255,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 1,000 | 1,000 | ' | ||
Average Recorded Investment of Impaired Loans | 200,000 | 172,000 | 127,000 | ||
Interest Income Recognized on Impaired Loans | 7,000 | 3,000 | 5,000 | ||
Home Equity Loans [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | 0 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 55,000 | [1] | 117,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 54,000 | 160,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Average Recorded Investment of Impaired Loans | 72,000 | 131,000 | 290,000 | ||
Interest Income Recognized on Impaired Loans | 6,000 | 7,000 | 17,000 | ||
Other Consumer [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Recorded Investment of Impaired Loans with No Related Allowance | 0 | [1] | 0 | [1] | ' |
Recorded Investment of Impaired Loans with Related Allowance | 127,000 | [1] | 137,000 | [1] | ' |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ' | ||
Unpaid Principal of Impaired Loans with Related Allowance | 130,000 | 136,000 | ' | ||
No Related Allowance on Impaired Loans | 0 | 0 | ' | ||
Related Allowance on Impaired Loans | 2,000 | 2,000 | ' | ||
Average Recorded Investment of Impaired Loans | 146,000 | 151,000 | 235,000 | ||
Interest Income Recognized on Impaired Loans | 9,000 | 11,000 | 15,000 | ||
Commercial Portfolio Segment [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Total Recorded Investment of Impaired Loans | 32,894,000 | [1] | 31,251,000 | [1] | ' |
Total Unpaid Principal of Impaired Loans | 35,724,000 | 33,845,000 | ' | ||
Related Allowance on Impaired Loans | 1,015,000 | 2,414,000 | ' | ||
Residential Portfolio Segment [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Total Recorded Investment of Impaired Loans | 4,289,000 | [1] | 3,870,000 | [1] | ' |
Total Unpaid Principal of Impaired Loans | 4,766,000 | 4,262,000 | ' | ||
Related Allowance on Impaired Loans | 463,000 | 463,000 | ' | ||
Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ||
Total Recorded Investment of Impaired Loans | 355,000 | [1] | 441,000 | [1] | ' |
Total Unpaid Principal of Impaired Loans | 358,000 | 551,000 | ' | ||
Related Allowance on Impaired Loans | $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 (those 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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
loan | loan | |||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 15 | 18 | ||
Pre-Modification Recorded Investment | $17,834 | [1] | $12,070 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 16,645 | [1] | 12,070 | [1] |
Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 6 | 6 | ||
Pre-Modification Recorded Investment | 15,974 | [1] | 9,525 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 14,785 | [1] | 9,525 | [1] |
Commercial Construction and Development [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 7 | 8 | ||
Pre-Modification Recorded Investment | 1,198 | [1] | 1,889 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,198 | [1] | 1,889 | [1] |
Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | ||
Pre-Modification Recorded Investment | 570 | [1] | 651 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 570 | [1] | 651 | [1] |
Homeowner Construction [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Home Equity Lines [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | ||
Pre-Modification Recorded Investment | 92 | [1] | 0 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 92 | [1] | 0 | [1] |
Home Equity Loans [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Other Consumer [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 2 | ||
Pre-Modification Recorded Investment | 0 | [1] | 5 | [1] |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $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 restructurings the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur1
Loans (Troubled Debt Restructurings Type of Modification) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Receivables [Abstract] | ' | ' | ||
Below market interest rate concession | $15,836 | $1,426 | ||
Payment deferral | 570 | 240 | ||
Maturity/amortization concession | 21 | 917 | ||
Interest only payments | 424 | 361 | ||
Combination | 983 | [1] | 9,126 | [1] |
Pre-Modification Recorded Investment | $17,834 | [2] | $12,070 | [2] |
[1] | Loans included in this classification had a combination of any two of the concessions included 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 restructurings the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur2
Loans (Troubled Debt Restructurings Subsequent Default) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
loan | loan | |||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 15 | 18 | ||
Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 6 | 6 | ||
Commercial Construction and Development [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 7 | 8 | ||
Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | ||
Homeowner Construction [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Home Equity Lines [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | ||
Home Equity Loans [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Other Consumer [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 2 | ||
Payment Default [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 4 | ||
Recorded Investment on Modifications with Subsequent Default | 1,071 | [1] | 1,061 | [1] |
Payment Default [Member] | Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 1 | ||
Recorded Investment on Modifications with Subsequent Default | 232 | [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 | ||
Recorded Investment on Modifications with Subsequent Default | 0 | [1] | 0 | [1] |
Payment Default [Member] | Commercial Other [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 3 | ||
Recorded Investment on Modifications with Subsequent Default | 839 | [1] | 866 | [1] |
Payment Default [Member] | Residential Mortgage [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Recorded Investment on Modifications with Subsequent Default | 0 | [1] | 0 | [1] |
Payment Default [Member] | Homeowner Construction [Member] | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Recorded Investment on Modifications with Subsequent Default | 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 | ||
Recorded Investment on Modifications with Subsequent Default | 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 | ||
Recorded Investment on Modifications with Subsequent Default | 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 | 0 | ||
Recorded Investment on Modifications with Subsequent Default | 0 | [1] | 0 | [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 restructurings the recorded investment also includes accrued interest. |
Loans_Credit_Quality_Indicator
Loans (Credit Quality Indicators - Commercial) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pass [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $1,301,089 | $1,180,433 |
Pass [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 756,838 | 669,220 |
Pass [Member] | Commercial Construction and Development [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 36,289 | 27,842 |
Pass [Member] | Commercial Other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 507,962 | 483,371 |
Special Mention [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 43,072 | 46,042 |
Special Mention [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 23,185 | 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 | 19,887 | 24,393 |
Classified [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 19,174 | 25,944 |
Classified [Member] | Commercial Mortgages [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 16,226 | 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 | $2,948 | $6,000 |
Loans_Credit_Quality_Indicator1
Loans (Credit Quality Indicators - Residential, Consumer) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Under 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $740,848 | $686,640 |
Under 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 2,682 | 2,500 |
Under 90 Days Past Due [Member] | Homeowner Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 23,511 | 24,883 |
Under 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 767,041 | 714,023 |
Under 90 Days Past Due [Member] | Home Equity Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 231,093 | 226,333 |
Under 90 Days Past Due [Member] | Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 39,864 | 39,078 |
Under 90 Days Past Due [Member] | Other Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 55,262 | 57,648 |
Under 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 326,219 | 323,059 |
Over 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 0 | 0 |
Over 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 5,633 | 3,658 |
Over 90 Days Past Due [Member] | Homeowner Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 0 | 0 |
Over 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 5,633 | 3,658 |
Over 90 Days Past Due [Member] | Home Equity Lines [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 269 | 528 |
Over 90 Days Past Due [Member] | Home Equity Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 348 | 251 |
Over 90 Days Past Due [Member] | Other Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | 39 | 65 |
Over 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans Receivable | $656 | $844 |
Loans_Analysis_of_Loan_Servici
Loans (Analysis of Loan Servicing Rights) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loan Servicing Rights [Roll Forward] | ' | ' | ' |
Beginning balance | $1,275 | $937 | $913 |
Loan servicing rights capitalized | 1,897 | 569 | 248 |
Amortization | -405 | -231 | -224 |
Ending balance | 2,767 | 1,275 | 937 |
Valuation Allowance [Roll Forward] | ' | ' | ' |
Beginning balance | -165 | -172 | -156 |
Decrease (increase) in impairment reserve | 96 | 7 | -16 |
Ending balance | -69 | -165 | -172 |
Total Loan Servicing Rights [Roll Forward] | ' | ' | ' |
Beginning Balance | 1,110 | 765 | 757 |
Loan servicing rights capitalized | 1,897 | 569 | 248 |
Amortization | -405 | -231 | -224 |
Decrase (increase) in impairment reserve | 96 | 7 | -16 |
Ending balance | $2,698 | $1,110 | $765 |
Loans_Estimated_Aggregate_Amor
Loans (Estimated Aggregate Amortization Expense) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ' | ' | ' | ' |
Amortization Expense, Next Twelve Months | $387 | ' | ' | ' |
Amortization Expense, Year Two | 328 | ' | ' | ' |
Amortization Expense, Year Three | 280 | ' | ' | ' |
Amortization Expense, Year Four | 240 | ' | ' | ' |
Amortization Expense, Year Five | 206 | ' | ' | ' |
Amortization Expense, Thereafter | 1,326 | ' | ' | ' |
Total estimated amortization expense | $2,767 | $1,275 | $937 | $913 |
Loans_Loans_Serviced_for_Other
Loans (Loans Serviced for Others, by Type of Loan) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Balance of loans being serviced | $380,225 | $204,804 |
Residential Mortgage [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Balance of loans being serviced | 310,699 | 144,360 |
Commercial Loan [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Balance of loans being serviced | $69,526 | $60,444 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | $30,873 | $29,802 | $28,583 |
Charge-offs | -6,022 | -2,335 | -3,834 |
Recoveries | 635 | 706 | 353 |
Provision | 2,400 | 2,700 | 4,700 |
Ending Balance | 27,886 | 30,873 | 29,802 |
Commercial Mortgages [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 9,407 | 8,195 | 7,330 |
Charge-offs | -5,213 | -485 | -960 |
Recoveries | 380 | 442 | 7 |
Provision | 2,395 | 1,255 | 1,818 |
Ending Balance | 6,969 | 9,407 | 8,195 |
Commercial Construction and Development [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 224 | 95 | 723 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision | 138 | 129 | -628 |
Ending Balance | 362 | 224 | 95 |
Commercial Other [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 5,996 | 6,200 | 6,495 |
Charge-offs | -358 | -1,179 | -1,685 |
Recoveries | 153 | 103 | 311 |
Provision | -358 | 872 | 1,079 |
Ending Balance | 5,433 | 5,996 | 6,200 |
Commercial Portfolio Segment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 15,627 | 14,490 | 14,548 |
Charge-offs | -5,571 | -1,664 | -2,645 |
Recoveries | 533 | 545 | 318 |
Provision | 2,175 | 2,256 | 2,269 |
Ending Balance | 12,764 | 15,627 | 14,490 |
Residential Portfolio Segment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 4,269 | 4,694 | 4,129 |
Charge-offs | -128 | -367 | -641 |
Recoveries | 3 | 110 | 4 |
Provision | 556 | -168 | 1,202 |
Ending Balance | 4,700 | 4,269 | 4,694 |
Consumer Portfolio Segment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 2,684 | 2,452 | 1,903 |
Charge-offs | -323 | -304 | -548 |
Recoveries | 99 | 51 | 31 |
Provision | 51 | 485 | 1,066 |
Ending Balance | 2,511 | 2,684 | 2,452 |
Unallocated [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 8,293 | 8,166 | 8,003 |
Charge-offs | ' | ' | ' |
Recoveries | ' | ' | ' |
Provision | -382 | 127 | 163 |
Ending Balance | $7,911 | $8,293 | $8,166 |
Allowance_for_Loan_Losses_Allo1
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | $37,493 | $35,547 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,481 | 2,880 | ||
Financing Receivable, Collectively Evaluated for Impairment | 2,425,391 | 2,258,456 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 18,494 | 19,700 | ||
Total loans | 2,462,884 | [1] | 2,294,003 | [1] |
Financing Receivable, Allowance for Credit Losses | 27,886 | 30,873 | ||
Commercial Mortgages [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 30,292 | 20,250 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 552 | 1,720 | ||
Financing Receivable, Collectively Evaluated for Impairment | 765,957 | 690,563 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 6,417 | 7,687 | ||
Total loans | 796,249 | 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 | 36,289 | 27,842 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 362 | 224 | ||
Total loans | 36,289 | 27,842 | ||
Commercial Other [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 2,556 | 10,989 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 463 | 694 | ||
Financing Receivable, Collectively Evaluated for Impairment | 528,241 | 502,775 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,970 | 5,302 | ||
Total loans | 530,797 | 513,764 | ||
Residential Portfolio Segment [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 4,290 | 3,868 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 463 | 463 | ||
Financing Receivable, Collectively Evaluated for Impairment | 768,384 | 713,813 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,237 | 3,806 | ||
Consumer Portfolio Segment [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Financing Receivable, Individually Evaluated for Impairment | 355 | 440 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 3 | 3 | ||
Financing Receivable, Collectively Evaluated for Impairment | 326,520 | 323,463 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,508 | 2,681 | ||
Unallocated [Member] | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total loans | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses | $7,911 | $8,293 | ||
[1] | Includes net unamortized loan origination costs of $879 thousand and $39 thousand, respectively, and net unamortized premiums on purchased loans of $99 thousand and $83 thousand, respectively, at December 31, 2013 and 2012. |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | $62,699,000 | $62,528,000 | ' |
Less accumulated depreciation | 37,297,000 | 35,296,000 | ' |
Total premises and equipment, net | 25,402,000 | 27,232,000 | ' |
Depreciation expense | 3,300,000 | 3,200,000 | 3,200,000 |
Land and Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 6,020,000 | 5,974,000 | ' |
Premises and Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 32,429,000 | 32,043,000 | ' |
Furniture, Fixtures and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | $24,250,000 | $24,511,000 | ' |
Goodwill_and_Other_Intangibles2
Goodwill and Other Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $58,114 | $58,114 | ' |
Amortization of intangibles | $680 | $728 | $951 |
Advisory Contracts [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible asset useful life (in years) | '20 years | ' | ' |
Goodwill_and_Other_Intangibles3
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $58,114 | $58,114 |
Commercial Banking [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 22,591 | 22,591 |
Wealth Management Service [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $35,523 | $35,523 |
Goodwill_and_Other_Intangibles4
Goodwill and Other Intangibles (Schedule of Components of Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | $13,657 | $13,657 |
Accumulated amortization | 8,164 | 7,484 |
Net amount | $5,493 | $6,173 |
Goodwill_and_Other_Intangibles5
Goodwill and Other Intangibles (Schedule of Amortization Annual Expense) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Amortization Expense, Next Twelve Months | $644 |
Amortization Expense, Year Two | 603 |
Amortization Expense, Year Three | 562 |
Amortization Expense, Year Four | 538 |
Amortization Expense, Year Five | 502 |
Amortization Expense, Thereafter | $2,644 |
Net_Deferred_Tax_Asset_and_Inc2
Net Deferred Tax Asset and Income Taxes (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits | $0 | $0 |
Net_Deferred_Tax_Asset_and_Inc3
Net Deferred Tax Asset and Income Taxes (Schedule of Components of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax expense: | ' | ' | ' |
Federal | $13,518 | $13,937 | $13,227 |
State | 742 | 533 | 558 |
Total current tax expense | 14,260 | 14,470 | 13,785 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | 2,300 | 1,310 | -789 |
State | -33 | 18 | -74 |
Total deferred tax expense (benefit) | 2,267 | 1,328 | -863 |
Total income tax expense | $16,527 | $15,798 | $12,922 |
Net_Deferred_Tax_Asset_and_Inc4
Net Deferred Tax Asset and Income Taxes (Schedule of Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' |
Tax expense at Federal statutory rate | $18,438 | $17,805 | $14,926 |
(Decrease) increase in taxes resulting from: | ' | ' | ' |
Tax-exempt income | -1,408 | -1,220 | -1,220 |
Dividends received deduction | 0 | -12 | -32 |
BOLI | -648 | -857 | -678 |
Federal tax credits | -364 | -364 | -364 |
State income tax expense, net of federal income tax benefit | 461 | 358 | 315 |
Other | 48 | 88 | -25 |
Total income tax expense | $16,527 | $15,798 | $12,922 |
Net_Deferred_Tax_Asset_and_Inc5
Net Deferred Tax Asset and Income Taxes (Schedule of Gross Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Gross deferred tax assets: | ' | ' |
Allowance for loan losses | $10,033 | $11,037 |
Defined benefit pension obligations | 3,544 | 11,462 |
Losses on write-downs of securities to fair value | 941 | 1,500 |
Deferred compensation | 2,545 | 2,174 |
Deferred loan origination fees | 1,593 | 1,432 |
Stock based compensation | 1,686 | 1,555 |
Other | 2,650 | 2,680 |
Gross deferred tax assets | 22,992 | 31,840 |
Gross deferred tax liabilities: | ' | ' |
Net unrealized gains on securities available for sale | -1,791 | -4,318 |
Amortization of intangibles | -1,977 | -2,207 |
Deferred loan origination costs | -3,697 | -3,176 |
Other | -2,776 | -2,255 |
Gross deferred tax liabilities | -10,241 | -11,956 |
Net deferred tax asset | $12,751 | $19,884 |
Time_Certificates_of_Deposit_S
Time Certificates of Deposit (Schedule of Time Certifcates of Deposit Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Time Deposits Scheduled Maturity, Next Twelve Months | $463,262 | ' |
Time Deposits Weighted Average Rate, Next Twelve Months | 0.78% | ' |
Time Deposits Scheduled Maturity, Year Two | 146,073 | ' |
Time Deposits Weighted Average Rate, Year Two | 1.79% | ' |
Time Deposits Scheduled Maturity, Year Three | 87,242 | ' |
Time Deposits Weighted Average Rate, Year Three | 1.56% | ' |
Time Deposits Scheduled Maturity, Year Four | 39,081 | ' |
Time Deposits Weighted Average Rate, Year Four | 1.57% | ' |
Time Deposits Scheduled Maturity, Year Five | 54,937 | ' |
Time Deposits Weighted Average Rate, Year Five | 1.37% | ' |
Time Deposits Scheduled Maturity, Thereafter | 167 | ' |
Time Deposits Weighted Average Rate, Thereafter | 1.44% | ' |
Time deposits | $790,762 | $870,232 |
Time_Certificates_of_Deposit_S1
Time Certificates of Deposit (Schedule of Time Certificates of Deposit $100 Thousand or More Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Time Deposits $100,000 or More Maturing in Three Months or Less | $171,066 | ' |
Time Deposits $100,000 or More Maturing in Three Months Through Six Months | 30,779 | ' |
Time Deposits $100,000 or More Maturing in Six Months Through Twelve Months | 55,420 | ' |
Time Deposits $100,000 or More Maturing After 12 Months | 112,954 | ' |
Time Deposits $100,000 or More Balance at Year End | $370,219 | $421,300 |
Borrowings_Narrative_Federal_H
Borrowings (Narrative - Federal Home Loan Bank Advances) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Federal Home Loan Bank advances | $288,082,000 | $361,172,000 |
Federal Home Loan Bank of Boston [Member] | ' | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Federal Home Loan Bank advances | 288,082,000 | 361,172,000 |
Unused line of credit with Federal Home Loan Bank | 8,000,000 | ' |
Line of Credit Facility, Remaining Borrowing Capacity | $564,100,000 | $536,200,000 |
Borrowings_Federal_Home_Loan_B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ' | ' | |
FHLB Advances | $288,082 | $361,172 | |
Federal Home Loan Bank of Boston [Member] | ' | ' | |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ' | ' | |
Scheduled Maturity, next 12 months | 2,519 | ' | |
Scheduled Maturity, year two | 1,569 | ' | |
Scheduled Maturity, year three | 85,066 | ' | |
Scheduled Maturity, year four | 70,875 | ' | |
Scheduled Maturity, year five | 77,303 | ' | |
Scheduled Maturity, thereafter | 50,750 | ' | |
FHLB Advances | 288,082 | 361,172 | |
Federal Home Loan Bank, Advances, Maturities Summary, Redeemed Call Date of Amounts Due [Abstract] [Abstract] | ' | ' | |
Redeemed at Call Date, next 12 months | 2,519 | [1] | ' |
Redeemed at Call Date, year two | 1,569 | [1] | ' |
Redeemed at Call Date, year three | 85,066 | [1] | ' |
Redeemed at Call Date, year four | 70,875 | [1] | ' |
Redeemed at Call Date, year five | 77,303 | [1] | ' |
Redeemed at Call Date, thereafter | 50,750 | [1] | ' |
Redeemed at Call Date, Total | $288,082 | [1] | ' |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ' | ' | |
Weighted Average Rate, next 12 months | 3.54% | [2] | ' |
Weighted Average Rate, year two | 4.89% | [2] | ' |
Weighted Average Rate, year three | 3.05% | [2] | ' |
Weighted Average Rate, year four | 3.04% | [2] | ' |
Weighted Average Rate, year five | 3.72% | [2] | ' |
Weighted Average Rate, thereafter | 4.13% | [2] | ' |
Weighted Average Rate, Total | 3.43% | [2] | ' |
[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. |
Borrowings_Certain_Information
Borrowings (Certain Information of Federal Home Loan Bank of Boston Advances) (Details) (Federal Home Loan Bank of Boston [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Federal Home Loan Bank of Boston [Member] | ' | ' | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' | ' |
Average amount outstanding during the period | $13,901 | $61,936 | $36,870 |
Amount outstanding at end of period | 0 | 40,500 | 102,500 |
Highest month end balance during period | $60,000 | $102,929 | $105,500 |
Weighted-average interest rate at end of period | 0.00% | 0.28% | 0.18% |
Weighted-average interest rate during the period | 0.30% | 0.27% | 0.23% |
Borrowings_Narrative_Junior_Su
Borrowings (Narrative - Junior Subordinated Debentures) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 15, 2010 | Aug. 29, 2005 | Dec. 31, 2013 | Sep. 15, 2010 | Aug. 29, 2005 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 23, 2010 | Aug. 29, 2005 | Dec. 31, 2013 | Nov. 23, 2010 | Aug. 29, 2005 | Dec. 31, 2013 | Apr. 07, 2008 |
Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | Trust Preferred Securities [Member] | |||
Trust I Capital Securities [Member] | Trust I Capital Securities [Member] | Trust I Capital Securities [Member] | Trust I Capital Securities [Member] | Trust I Debentures [Member] | Trust I Debentures [Member] | Trust I Debentures [Member] | Trust II Capital Securities [Member] | Trust II Capital Securities [Member] | Trust II Capital Securities [Member] | Trust II Capital Securities [Member] | Trust II Debentures [Member] | Trust II Debentures [Member] | Trust II Debentures [Member] | Capital Securities [Member] | Capital Securities [Member] | |||
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | ||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior subordinated debentures | $22,681,000 | $32,991,000 | ' | ' | ' | ' | ' | ' | $8,300,000 | ' | ' | ' | ' | ' | ' | $14,400,000 | ' | ' |
Amount of capital securities issued | ' | ' | ' | ' | ' | $8,300,000 | ' | ' | ' | ' | ' | ' | $14,400,000 | ' | ' | ' | ' | $10,000,000 |
Minimum redemption period | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption rate | ' | ' | ' | ' | 5.97% | ' | ' | 5.97% | ' | ' | ' | 5.96% | ' | ' | 5.96% | ' | 5.69% | ' |
Description of variable rate basis | ' | ' | ' | 'three-month LIBOR | ' | ' | 'three-month LIBOR | ' | ' | ' | 'three-month LIBOR | ' | ' | 'three-month LIBOR | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | 1.45% | ' | ' | 1.45% | ' | ' | ' | 1.45% | ' | ' | 1.45% | ' | ' | ' | ' |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 24, 2008 | Aug. 17, 2006 | Dec. 31, 2006 | Dec. 31, 2007 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | Amended and Restated Dividend Reinvestment and Stock Purchase Plan [Member] | 2006 Rights Agreement [Member] | 2006 Stock Repurchase Plan [Member] | 2006 Stock Repurchase Plan [Member] | 2006 Stock Repurchase Plan [Member] | |
right | ||||||
Stock Repurchase Program: | ' | ' | ' | ' | ' | ' |
Authorized amount (in shares) | ' | ' | ' | 400,000 | ' | ' |
Authorized amount as a percentage of total common stock | ' | ' | ' | 3.00% | ' | ' |
Cumulative amount of shares purchased | ' | ' | ' | ' | ' | 185,400 |
Shares repurchased, value | ' | ' | ' | ' | $4.80 | ' |
Shareholder Rights Plan: | ' | ' | ' | ' | ' | ' |
Number of rights per outstanding share of common stock | ' | ' | 1 | ' | ' | ' |
Number of securities called by rights | ' | ' | 1 | ' | ' | ' |
Exercise price of shares | ' | ' | 100 | ' | ' | ' |
Days after an acquiring person acquired beneficial ownership causing rights to become exercisable | ' | ' | '10 days | ' | ' | ' |
Percentage acquistion of company's common stock causing rights to become exercisable | ' | ' | 15.00% | ' | ' | ' |
Exercise price per right available to company prior to expiration | ' | ' | 0.01 | ' | ' | ' |
Exercise price percentage per right in event a party becomes an acquiring person | ' | ' | 200.00% | ' | ' | ' |
Exercise price percentage per right in event company is acquired | ' | ' | 200.00% | ' | ' | ' |
Dividends: | ' | ' | ' | ' | ' | ' |
Amount of additional dividends the bank could have declared | $162.60 | ' | ' | ' | ' | ' |
Reserved Shares: | ' | ' | ' | ' | ' | ' |
Reserved shares available for grant | 2,831,379 | 607,500 | ' | ' | ' | ' |
Shareholders_Equity_Regulatory
Shareholders' Equity (Regulatory Captial Requirements) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Corporation [Member] | ' | ' | ||
Total Capital (to Risk-Weighted Assets): | ' | ' | ||
Total Capital | $319,486 | $304,716 | ||
Total Capital to Risk-Weighted Assets | 13.29% | 13.26% | ||
Total Capital for Capital Adequacy Purposes | 192,306 | 183,876 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 240,382 | 229,845 | ||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||
Tier 1 Capital (to Risk-Weighted Assets): | ' | ' | ||
Tier 1 Capital | 291,292 | 275,956 | ||
Tier 1 Capital to Risk Weighted-Assets | 12.12% | 12.01% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 96,153 | 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 | 144,229 | 137,907 | ||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||
Tier 1 Capital (to Average Assets): | ' | ' | ||
Tier 1 Leverage Capital | 291,292 | [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 | 123,785 | [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 | 154,732 | [1] | 148,417 | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] |
Bank [Member] | ' | ' | ||
Total Capital (to Risk-Weighted Assets): | ' | ' | ||
Total Capital | 314,458 | 299,503 | ||
Total Capital to Risk-Weighted Assets | 13.09% | 13.05% | ||
Total Capital for Capital Adequacy Purposes | 192,147 | 183,651 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 240,184 | 229,564 | ||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||
Tier 1 Capital (to Risk-Weighted Assets): | ' | ' | ||
Tier 1 Capital | 286,264 | 270,778 | ||
Tier 1 Capital to Risk Weighted-Assets | 11.92% | 11.80% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 96,074 | 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 | 144,111 | 137,738 | ||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||
Tier 1 Capital (to Average Assets): | ' | ' | ||
Tier 1 Leverage Capital | 286,264 | [1] | 270,778 | [1] |
Tier 1 Leverage Capital to Average Assets | 9.26% | [1] | 9.14% | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 123,633 | [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 | $154,541 | [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 $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | derivative_instrument | derivative_instrument |
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Number of derivative instruments held | 2 | 3 |
Derivative asset notional amount | $23 | $33 |
Pledged collateral to derivative counterparties | 1.6 | 2 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset notional amount | 105.6 | 70.5 |
Interest rate swaps with customers [Member] | Mirror swaps with counterparties [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset notional amount | $105.60 | $70.50 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $3,135 | $6,364 |
Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 4,298 | 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 | 1,012 | 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 | 392 | 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 | 10 | 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 | 583 | 4,191 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 297 | 0 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 2,403 | 3,851 |
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 330 | 0 |
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | $2,406 | $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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $388 | $121 | ($456) |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 |
Interest rate swap contracts [Member] | Interest Expense [Member] | Cash Flow Hedge [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Interest rate swap contracts [Member] | Cash Flow Hedge [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $388 | $121 | ($456) |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | $0 | $0 | $0 |
Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | 2,448 | -707 | -1,145 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Net gains on loan sales & commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | -2,121 | 649 | 1,968 |
Commitments to sell fixed rate mortgage loans [Member] | Net gains on loan sales & commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | 3,618 | -1,611 | -3,119 |
Interest rate swaps with customers [Member] | Net (losses) gains on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | 396 | 1,147 | 2,658 |
Mirror swaps with counterparties [Member] | Net (losses) gains on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivative | $555 | ($892) | ($2,652) |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Mortgage loans held for sale, amortized cost | $11,500,000 | $48,400,000 |
Mortgage loans held for sale, fair value | 11,636,000 | 50,056,000 |
Mortgage loans held for sale difference between fair value and principal amount | 181,000 | 1,700,000 |
Nonrecurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | 11,177,000 | 9,550,000 |
Nonrecurring [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Collateral dependent impaired loans | 11,177,000 | 9,550,000 |
Allowance for loan loss on collateral dependent impaired loans | $453,000 | $2,000,000 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Commitments to Originate And Commitments to Sell Changes in Fair Value Disclosures) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Disclosures [Abstract] | ' | ' | ' |
Mortgage loans held for sale | ($1,505) | $970 | $716 |
Commitments to originate | -2,121 | 649 | 1,968 |
Commitments to sell | 3,618 | -1,611 | -3,119 |
Total change in fair value | ($8) | $8 | ($435) |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | $392,903 | $375,498 | ||
Obligations of U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 55,115 | 31,670 | ||
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 238,355 | 231,233 | ||
States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 62,859 | 72,620 | ||
Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 24,684 | 24,751 | ||
Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 547 | 843 | ||
Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 11,343 | 14,381 | ||
Recurring [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Mortgage loans held for sale | 11,636 | 50,056 | ||
Total assets at fair value on a recurring basis | 407,674 | 431,918 | ||
Total liabilities at fair value on a recurring basis | 4,298 | 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 | 2,733 | [1] | 3,851 | [1] |
Derivative liabilities | 2,703 | [1] | 3,952 | [1] |
Recurring [Member] | Forward Loan Commitments, Assets [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Asset Derivatives | 402 | [1] | 2,513 | [1] |
Recurring [Member] | Interest rate swap contracts [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 1,012 | [1] | 1,619 | [1] |
Recurring [Member] | Forward Loan Commitments, Liabilities [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Derivative liabilities | 583 | [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] | ' | ' | ||
Available for sale securities | 55,115 | 31,670 | ||
Recurring [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 238,355 | 231,233 | ||
Recurring [Member] | States and political subdivisions [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 62,859 | 72,620 | ||
Recurring [Member] | Trust preferred securities: Individual name issuers [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 24,684 | 24,751 | ||
Recurring [Member] | Trust preferred securities: Collateralized debt obligations [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 547 | 843 | ||
Recurring [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 11,343 | 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] | 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] | 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, 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] | ' | ' | ||
Available for sale securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 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 | 11,636 | 40,243 | ||
Total assets at fair value on a recurring basis | 407,674 | 421,218 | ||
Total liabilities at fair value on a recurring basis | 4,298 | 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 | 2,733 | [1] | 3,851 | [1] |
Derivative liabilities | 2,703 | [1] | 3,952 | [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 | 402 | [1] | 2,469 | [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 | 1,012 | [1] | 1,619 | [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 | 583 | [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] | ' | ' | ||
Available for sale securities | 55,115 | 31,670 | ||
Recurring [Member] | Level 2 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 238,355 | 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] | ' | ' | ||
Available for sale securities | 62,859 | 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] | ' | ' | ||
Available for sale securities | 24,684 | 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] | ' | ' | ||
Available for sale securities | 547 | 0 | ||
Recurring [Member] | Level 2 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 11,343 | 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 | 0 | 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] | 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] | 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, 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] | ' | ' | ||
Available for sale securities | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 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] | ' | ' | ||
Available for sale securities | 0 | 843 | ||
Recurring [Member] | Level 3 [Member] | Corporate bonds [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Available for sale securities | $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) (Recurring [Member], Level 3 [Member], USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] [Roll Forward] | ' | ' | ||
Balance at beginning of period | $10,514 | $887 | ||
Gains and losses (realized and unrealized): included in earnings | -3,497 | -221 | ||
Gains and losses (realized and unrealized): Included in other comprehensive income | 3,326 | 177 | ||
Purchases | 0 | 0 | ||
Issuances | 12,692 | 9,671 | ||
Sales | -22,355 | 0 | ||
Settlements | -133 | 0 | ||
Transfers into level 3 | 0 | 0 | ||
Transfers out of Level 3 | 547 | 0 | ||
Balance at end of period | 0 | 10,514 | ||
Securities Available for Sale [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Balance at beginning of period | 843 | [1] | 887 | [1] |
Gains and losses (realized and unrealized): Included in earnings | -3,489 | [1],[2] | -221 | [1],[2] |
Gains and losses (realized and unrealized): Included in other comprehensive income | 3,326 | [1] | 177 | [1] |
Purchases | 0 | [1] | 0 | [1] |
Issuances | 0 | [1] | 0 | [1] |
Sales | 0 | [1] | 0 | [1] |
Settlements | -133 | [1] | 0 | [1] |
Transfers into level 3 | 0 | [1] | 0 | [1] |
Transfers out of Level 3 | 547 | [1] | 0 | [1] |
Balance at end of period | 0 | [1] | 843 | [1] |
Mortgage Loans Held for Sale [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Balance at beginning of period | 9,813 | [3] | 0 | [3] |
Gains and losses (realized and unrealized): Included in earnings | -150 | [2],[3] | 0 | [2],[3] |
Gains and losses (realized and unrealized): Included in other comprehensive income | 0 | [3] | 0 | [3] |
Purchases | 0 | [3] | 0 | [3] |
Issuances | 12,692 | [3] | 9,813 | [3] |
Sales | -22,355 | [3] | 0 | [3] |
Settlements | 0 | [3] | 0 | [3] |
Transfers into level 3 | 0 | [3] | 0 | [3] |
Transfers out of Level 3 | 0 | [3] | 0 | [3] |
Balance at end of period | 0 | [3] | 9,813 | [3] |
Derivative Assets / (Liabilities) [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] [Roll Forward] | ' | ' | ||
Balance at beginning of period | -142 | [4] | 0 | [4] |
Gains and losses (realized and unrealized): included in earnings | 142 | [2],[4] | 0 | [2],[4] |
Gains and losses (realized and unrealized): Included in other comprehensive income | 0 | [4] | 0 | [4] |
Purchases | 0 | [4] | 0 | [4] |
Issuances | 0 | [4] | -142 | [4] |
Sales | 0 | [4] | 0 | [4] |
Settlements | 0 | [4] | 0 | [4] |
Transfers into level 3 | 0 | [4] | 0 | [4] |
Transfers out of Level 3 | 0 | [4] | 0 | [4] |
Balance at end of period | $0 | [4] | ($142) | [4] |
[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] | Losses included in earnings for Level 3 securities available for sale were included in net impairment losses recognized in earnings in the Consolidated Statements of Income. 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. | |||
[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 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 $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | ||
Level 3 [Member] | Level 3 [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] | |||||
Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | |||||||
Forward Loan Commitments, Liabilities [Member] | Forward Loan Commitments, Liabilities [Member] | Forward Loan Commitments, Liabilities [Member] | Forward Loan Commitments, Liabilities [Member] | Trust preferred securities: Collateralized debt obligations [Member] | Trust preferred securities: Collateralized debt obligations [Member] | Trust preferred securities: Collateralized debt obligations [Member] | Trust preferred securities: Collateralized debt obligations [Member] | Mortgage loans held for sale [Member] | Mortgage loans held for sale [Member] | Mortgage loans held for sale [Member] | Mortgage loans held for sale [Member] | Forward Loan Commitments, Assets [Member] | Forward Loan Commitments, Assets [Member] | Forward Loan Commitments, Assets [Member] | Forward Loan Commitments, Assets [Member] | |||||||
Minimum [Member] | Maximum [Member] | Weighted Average [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | |||||||||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available for sale securities | $392,903 | $375,498 | ' | ' | ' | ' | ' | ' | ' | ' | $843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans held for sale | ' | ' | 11,636 | 50,056 | 0 | 9,813 | ' | ' | ' | ' | ' | ' | ' | ' | 9,813 | ' | ' | ' | ' | ' | ' | ' |
Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.75% | 16.75% | 16.75% | ' | ' | ' | ' | ' | ' | ' | ' |
Cummulative Default Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% | 100.00% | 25.70% | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Given Default Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 100.00% | 90.90% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.88% | 3.69% | ' | ' | ' | ' | ' | 2.88% | 4.95% | 3.71% | ' | 3.25% | 3.88% | 3.56% |
Credit Risk Adjustment | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.25% | 0.25% | ' | ' | ' | ' | ' | 0.25% | 0.25% | 0.25% | ' | 0.25% | 0.25% | 0.25% |
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44 | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ($186) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) (Nonrecurring [Member], USD $) | Dec. 31, 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 | $11,177 | $9,550 |
Property acquired through foreclosure or repossession | 435 | 1,073 |
Total assets at fair value on a nonrecurring basis | 11,612 | 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 assets 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 assets 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 | 11,177 | 9,550 |
Property acquired through foreclosure or repossession | 435 | 1,073 |
Total assets at fair value on a nonrecurring basis | $11,612 | $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 $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 11,177 | 9,550 | ||
Property acquired through foreclosure or repossession | 435 | 1,073 | ||
Level 3 [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Collateral dependent impaired loans | 11,177 | 9,550 | ||
Property acquired through foreclosure or repossession | 435 | 1,073 | ||
Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Minimum [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] |
Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Maximum [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 45.00% | 50.00% | ||
Appraisal Adjustments | 50.00% | [1] | 27.00% | [1] |
Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Weighted Average [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 11.00% | 11.00% | ||
Appraisal Adjustments | 2.00% | [1] | 18.00% | [1] |
Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Minimum [Member] | ' | ' | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ||
Discount For Costs To Sell | 2.00% | 0.00% | ||
Appraisal Adjustments | 0.00% | [1] | 15.00% | [1] |
Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Maximum [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] |
Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Weighted Average [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 $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Held to maturity securities | $29,905 | $40,381 | ' | ' | ||
Loans, net of allowance of loan losses | 2,434,998 | 2,263,130 | ' | ' | ||
Loan servicing rights | 2,698 | 1,110 | 765 | 757 | ||
Time deposits | 790,762 | 870,232 | ' | ' | ||
FHLBB advances | 288,082 | 361,172 | ' | ' | ||
Junior subordinated debentures | 22,681 | 32,991 | ' | ' | ||
Loan servicing rights reserve | 69 | 165 | ' | ' | ||
Carrying Amount [Member] | ' | ' | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ||
Held to maturity securities | 29,905 | 40,381 | ' | ' | ||
Loans, net of allowance of loan losses | 2,434,998 | 2,263,130 | ' | ' | ||
Loan servicing rights | 2,698 | [1] | 1,110 | [2] | ' | ' |
Time deposits | 790,762 | 870,232 | ' | ' | ||
FHLBB advances | 288,082 | 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 | 29,865 | 41,420 | ' | ' | ||
Loans, net of allowance of loan losses | 2,479,527 | 2,350,153 | ' | ' | ||
Loan servicing rights | 2,767 | [1] | 1,275 | [2] | ' | ' |
Time deposits | 797,748 | 879,705 | ' | ' | ||
FHLBB advances | 308,317 | 392,805 | ' | ' | ||
Junior subordinated debentures | 16,282 | 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 | ' | ' | ||
FHLBB 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 | 29,865 | 41,420 | ' | ' | ||
Loans, net of allowance of loan losses | 0 | 0 | ' | ' | ||
Loan servicing rights | 0 | [1] | 0 | [2] | ' | ' |
Time deposits | 797,748 | 879,705 | ' | ' | ||
FHLBB advances | 308,317 | 392,805 | ' | ' | ||
Junior subordinated debentures | 16,282 | 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 | 2,479,527 | 2,350,153 | ' | ' | ||
Loan servicing rights | 2,767 | [1] | 1,275 | [2] | ' | ' |
Time deposits | 0 | 0 | ' | ' | ||
FHLBB advances | 0 | 0 | ' | ' | ||
Junior subordinated debentures | $0 | $0 | ' | ' | ||
[1] | The carrying value of loan servicing rights is net of $69 thousand in reserves as of December 31, 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. |
Employee_Benefits_Narrative_De
Employee Benefits (Narrative) (Details) (USD $) | 12 Months Ended | 120 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Transition Period Pension Plan Amendment | ' | ' | ' | '10 years |
Defined contribution plan, employer matching contribution, percent of employee gross pay | 4.00% | ' | ' | ' |
Defined contribution plan, employer matching contributions | $1,600,000 | $1,400,000 | $1,200,000 | ' |
Other incentive-based compensation expense | 13,400,000 | 13,500,000 | 10,700,000 | ' |
Deferred compensation plan, accrued liability | 7,100,000 | 6,200,000 | ' | ' |
Qualified Pension Plan and Non-Qualified Retirement Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Curtailment | -4,400,000 | ' | ' | ' |
Qualified Pension Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Curtailment | 4,061,000 | 0 | ' | ' |
Accumulated benefit obligation | 53,100,000 | 55,800,000 | ' | ' |
Estimated amortization of prior service cost (credit) from accumulated other comprehensive loss into net period benefit cost, next year | -23,000 | ' | ' | ' |
Estimated amortization of (gain) loss from accumulated other comprehensive loss into net period benefit cost, next year | ' | -461,000 | ' | ' |
Expected long-term return on plan assets | 7.25% | 7.75% | 8.00% | ' |
Actual asset allocations | 100.00% | 100.00% | ' | ' |
Fair value of equity securities, maximum percentage held by a single issuer | 10.00% | ' | ' | ' |
Estimated future employer contributions in next fiscal year | 3,000,000 | ' | ' | ' |
Qualified Pension Plan [Member] | Equity Securities [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, minimum | 50.00% | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 70.00% | ' | ' | ' |
Actual asset allocations | 63.80% | 55.00% | ' | ' |
Qualified Pension Plan [Member] | Small-Cap Equity Securities [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 20.00% | ' | ' | ' |
Qualified Pension Plan [Member] | Mid-Cap Equity Securities [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 20.00% | ' | ' | ' |
Qualified Pension Plan [Member] | International Equity Securities [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 30.00% | ' | ' | ' |
Qualified Pension Plan [Member] | Fixed Securities [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, minimum | 30.00% | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 50.00% | ' | ' | ' |
Actual asset allocations | 32.60% | 30.90% | ' | ' |
Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, minimum | 0.00% | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 10.00% | ' | ' | ' |
Actual asset allocations | 3.60% | 14.10% | ' | ' |
Qualified Pension Plan [Member] | High Yield Bond [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Target plan asset allocation, investment ranges, maximum | 10.00% | ' | ' | ' |
Non-Qualified Retirement Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Curtailment | 360,000 | 0 | ' | ' |
Available-for-sale securities and other short-term investments, rabbi trusts | 7,500,000 | 8,300,000 | ' | ' |
Accumulated benefit obligation | 10,400,000 | 11,300,000 | ' | ' |
Estimated amortization of prior service cost (credit) from accumulated other comprehensive loss into net period benefit cost, next year | -1,000 | ' | ' | ' |
Estimated amortization of (gain) loss from accumulated other comprehensive loss into net period benefit cost, next year | ' | -71,000 | ' | ' |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% | ' |
Estimated future employer contributions in next fiscal year | $751,000 | ' | ' | ' |
Employee_Benefits_Schedule_of_
Employee Benefits (Schedule of Net Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Qualified Pension Plan [Member] | ' | ' | ' |
Change in Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of period | $70,615 | $57,257 | ' |
Service cost | 2,720 | 2,574 | 2,314 |
Interest cost | 2,883 | 2,823 | 2,578 |
Actuarial (gain) loss | -8,809 | 9,535 | ' |
Benefits paid | -2,004 | -1,440 | ' |
Administrative expenses | -182 | -134 | ' |
Curtailments | -4,061 | 0 | ' |
Benefit obligation at end of period | 61,162 | 70,615 | 57,257 |
Change in Plan Assets: | ' | ' | ' |
Fair value of plan assets at beginning of period | 51,078 | 38,330 | ' |
Actual return on plan assets | 8,168 | 4,322 | ' |
Employer contributions | 5,000 | 10,000 | ' |
Benefits paid | -2,004 | -1,440 | ' |
Administrative expenses | -182 | -134 | ' |
Fair value of plan assets at end of period | 62,060 | 51,078 | 38,330 |
Funded (unfunded) status at end of period | 898 | -19,537 | ' |
Non-Qualified Retirement Plans [Member] | ' | ' | ' |
Change in Benefit Obligation: | ' | ' | ' |
Benefit obligation at beginning of period | 12,569 | 11,321 | ' |
Service cost | 181 | 150 | 71 |
Interest cost | 462 | 503 | 495 |
Actuarial (gain) loss | -1,332 | 1,315 | ' |
Benefits paid | -736 | -720 | ' |
Administrative expenses | 0 | 0 | ' |
Curtailments | -360 | 0 | ' |
Benefit obligation at end of period | 10,784 | 12,569 | 11,321 |
Change in Plan Assets: | ' | ' | ' |
Fair value of plan assets at beginning of period | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Employer contributions | 736 | 720 | ' |
Benefits paid | -736 | -720 | ' |
Administrative expenses | 0 | 0 | ' |
Fair value of plan assets at end of period | 0 | 0 | 0 |
Funded (unfunded) status at end of period | ($10,784) | ($12,569) | ' |
Employee_Benefits_Components_o
Employee Benefits (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Qualified Pension Plan [Member] | ' | ' |
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' |
Net actuarial loss | $4,510 | $23,144 |
Prior service credit | -130 | -221 |
Total pre-tax amounts recognized in accumulated other comprehensive income | 4,380 | 22,923 |
Non-Qualified Retirement Plans [Member] | ' | ' |
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' |
Net actuarial loss | 2,071 | 3,938 |
Prior service credit | -3 | -5 |
Total pre-tax amounts recognized in accumulated other comprehensive income | $2,068 | $3,933 |
Employee_Benefits_Components_o1
Employee Benefits (Components of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): | ' | ' | ' | |||
Recognized in other comprehensive income | ($20,406) | [1] | $8,445 | [1] | $10,502 | [1] |
Qualified Pension Plan [Member] | ' | ' | ' | |||
Net Periodic Benefit Cost: | ' | ' | ' | |||
Service cost | 2,720 | 2,574 | 2,314 | |||
Interest cost | 2,883 | 2,823 | 2,578 | |||
Expected return on plan assets | -3,725 | -2,985 | -2,794 | |||
Amortization of prior service (credit) cost | -30 | -33 | -33 | |||
Recognized net actuarial loss | 1,321 | 982 | 392 | |||
Curtailments | -61 | 0 | 0 | |||
Net periodic benefit cost | 3,108 | 3,361 | 2,457 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): | ' | ' | ' | |||
Net loss (gain) | -14,572 | 7,216 | 8,951 | |||
Prior service cost (credit) | 30 | 33 | 33 | |||
Curtailment | -4,000 | 0 | 0 | |||
Recognized in other comprehensive income | -18,542 | 7,249 | 8,984 | |||
Total recognized in net periodic benefit cost and other comprehensive income | -15,434 | 10,610 | 11,441 | |||
Non-Qualified Retirement Plans [Member] | ' | ' | ' | |||
Net Periodic Benefit Cost: | ' | ' | ' | |||
Service cost | 181 | 150 | 71 | |||
Interest cost | 462 | 503 | 495 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Amortization of prior service (credit) cost | -1 | -1 | -1 | |||
Recognized net actuarial loss | 175 | 119 | 16 | |||
Curtailments | -1 | 0 | 0 | |||
Net periodic benefit cost | 816 | 771 | 581 | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): | ' | ' | ' | |||
Net loss (gain) | -1,506 | 1,195 | 1,517 | |||
Prior service cost (credit) | 1 | 1 | 1 | |||
Curtailment | -359 | 0 | 0 | |||
Recognized in other comprehensive income | -1,864 | 1,196 | 1,518 | |||
Total recognized in net periodic benefit cost and other comprehensive income | ($1,048) | $1,967 | $2,099 | |||
[1] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Employee_Benefits_WeightedAver
Employee Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Qualified Pension Plan [Member] | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 4.88% | 4.13% | ' |
Rate of compensation increase | 3.75% | 3.75% | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Discount rate | 4.13% | 5.00% | 5.63% |
Expected long-term return on plan assets | 7.25% | 7.75% | 8.00% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Non-Qualified Retirement Plans [Member] | ' | ' | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ' | ' | ' |
Discount rate | 4.60% | 3.75% | ' |
Rate of compensation increase | 3.75% | 3.75% | ' |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Discount rate | 3.80% | 4.63% | 5.13% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Employee_Benefits_Schedule_of_1
Employee Benefits (Schedule of Fair Value of Qualified Pension Plan Assets) (Details) (Qualified Pension Plan [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | $62,060 | $51,078 | $38,330 |
Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 46,748 | 37,916 | ' |
Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 15,312 | 13,655 | ' |
Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 62,060 | 51,571 | ' |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,236 | 7,274 | ' |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Cash and Cash Equivalents [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,236 | 7,274 | ' |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,025 | 1,059 | ' |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,025 | 1,059 | ' |
States and Political Subdivisions [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
States and Political Subdivisions [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,218 | 2,218 | ' |
States and Political Subdivisions [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
States and Political Subdivisions [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 2,218 | 2,218 | ' |
Corporate bonds [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Corporate bonds [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 11,069 | 10,378 | ' |
Corporate bonds [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Corporate bonds [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 11,069 | 10,378 | ' |
Common Stocks [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 24,406 | 15,892 | ' |
Common Stocks [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Common Stocks [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Common Stocks [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 24,406 | 15,892 | ' |
Mutual Funds [Member] | Level 1 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 20,106 | 14,750 | ' |
Mutual Funds [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Mutual Funds [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 0 | 0 | ' |
Mutual Funds [Member] | Assets at Fair Value | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | $20,106 | $14,750 | ' |
Employee_Benefits_Estimated_Fu
Employee Benefits (Estimated Future Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Qualified Pension Plan [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
Expected Future Payments, Next Twelve Months | $3,832 |
Expected Future Payments, Year Two | 3,276 |
Expected Future Payments, Year Three | 3,550 |
Expected Future Payments, Year Four | 3,029 |
Expected Future Payments, Year Five | 3,077 |
Expected Future Payments, Thereafter | 18,244 |
Non-Qualified Retirement Plans [Member] | ' |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' |
Expected Future Payments, Next Twelve Months | 751 |
Expected Future Payments, Year Two | 770 |
Expected Future Payments, Year Three | 770 |
Expected Future Payments, Year Four | 764 |
Expected Future Payments, Year Five | 757 |
Expected Future Payments, Thereafter | $3,801 |
ShareBased_Compensation_Arrang3
Share-Based Compensation Arrangements (Narrative) (Details) (USD $) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 23, 2013 | Apr. 22, 2003 | Apr. 22, 2003 | Apr. 28, 2009 | Apr. 28, 2009 | |
Share Options [Member] | Share Options [Member] | Share Options [Member] | Time Based Nonvested Shares [Member] | Time Based Nonvested Shares [Member] | Time Based Nonvested Shares [Member] | Performance Based Nonvested Shares [Member] | Performance Based Nonvested Shares [Member] | Performance Based Nonvested Shares [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | 2013 Stock Option and Incentive Plan [Member] | Two Thousand Three Stock Incentive Plan [Member] | Two Thousand Three Stock Incentive Plan [Member] | Amended and Restated Two Thousand Three Stock Incentive Plan [Member] | Amended and Restated Two Thousand Three Stock Incentive Plan [Member] | ||
Share Options [Member] | Time Based Nonvested Shares [Member] | Time Based Nonvested Shares [Member] | Performance Based Nonvested Shares [Member] | Share Options [Member] | Time Based Nonvested Shares [Member] | Time Based Nonvested Shares [Member] | Performance Based Nonvested Shares [Member] | Stock Options and Stock Appreciation Rights [Member] | Stock Options and Stock Appreciation Rights [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,748,250 | 600,000 | 200,000 | 1,200,000 | 400,000 |
Expiration period | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options minimum shares earned to target percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options maximum shares earned to target percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' |
Options granted | ' | 54,600 | 106,775 | 57,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | '3 years | ' | '3 years | ' | ' | '3 years | '3 years | '3 years | '3 years | '3 years | '3 years | '3 years | ' | '5 years | '5 years | '5 years | ' | ' | ' | ' | ' | ' |
Share options exercised total intrinsic value | ' | $1,700,000 | $812,000 | $493,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options granted | ' | ' | ' | ' | 24,400 | 29,725 | 31,950 | 49,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options granted, grant date fair value | ' | ' | ' | ' | ' | ' | ' | $26.05 | $23.65 | $21.62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options, shares vesting percentages | ' | ' | ' | ' | ' | ' | ' | 150.00% | 154.00% | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity instruments other than options, shares vesting | ' | ' | ' | ' | ' | ' | ' | 45,225 | 38,654 | 40,238 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average recognition period (in years) | '2 years 1 month | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Arrang4
Share-Based Compensation Arrangements (Compensation Cost for Share-based Compensation Arrangements) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Share-based compensation expense | $1,876 | $1,962 | $1,394 |
Related income tax benefit | $673 | $700 | $497 |
ShareBased_Compensation_Arrang5
Share-Based Compensation Arrangements (Share Options Fair Value Assumptions) (Details) (Share Options [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (years) | '8 years | '9 years | '9 years |
Expected dividend yield | 3.77% | 3.45% | 3.33% |
Weighted average expected volatility | 42.85% | 42.97% | 41.90% |
Weighted average risk-free interest rate | 2.46% | 1.53% | 3.05% |
Weighted average grant date fair value | $10.35 | $7.46 | $7.46 |
ShareBased_Compensation_Arrang6
Share-Based Compensation Arrangements (Share Options Activity) (Details) (Share Options [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Options [Member] | ' | ' | ' |
Number of Share Options: | ' | ' | ' |
Beginning of period | 645,797 | ' | ' |
Granted | 54,600 | 106,775 | 57,450 |
Exercised | -258,351 | ' | ' |
Forfeited or expired | -13,658 | ' | ' |
End of period | 428,388 | 645,797 | ' |
Options exercisable | 206,938 | ' | ' |
Options expected to vest in future periods | 221,450 | ' | ' |
Weighted Average Exercise Price (in dollars per share): | ' | ' | ' |
Beginning of period | $23.58 | ' | ' |
Granted | $32.77 | ' | ' |
Exercised | $23.97 | ' | ' |
Forfeited or expired | $24.46 | ' | ' |
End of period | $24.50 | $23.58 | ' |
Options exercisable | $24.20 | ' | ' |
Options expected to vest in future periods | $24.77 | ' | ' |
Outstanding Weighted Average Remaining Contractual Term | '5 years 11 months | ' | ' |
Exercisable Weighted Average Remaining Contractual Term | '3 years 4 months 20 days | ' | ' |
Expected to Vest Weighted Average Remaining Contractual Term | '8 years 3 months 23 days | ' | ' |
Outstanding Aggregate Intrinsic Value | $5,451 | ' | ' |
Exercisable Aggregate Intrinsic Value | 2,694 | ' | ' |
Expected to Vest Aggregate Intrinsic Value | $2,757 | ' | ' |
ShareBased_Compensation_Arrang7
Share-Based Compensation Arrangements (Stock Options Outstanding and Options Exercisable) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number of Shares | 428,388 |
Options Outstanding, Weighted Average Remaining Life (Years) | '5 years 11 months |
Options Outstanding, Weighted Average Exercise Price | $24.50 |
Options Exercisable, Number | 206,938 |
Options Exercisable, Weighted Average Exercise Price | $25.20 |
$16.39 to $19.66 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Ranges, Lower Range Limit | $16.36 |
Exercise Price Ranges, Upper Range Limit | $19.66 |
Options Outstanding, Number of Shares | 65,282 |
Options Outstanding, Weighted Average Remaining Life (Years) | '6 years |
Options Outstanding, Weighted Average Exercise Price | $17.59 |
Options Exercisable, Number | 44,282 |
Options Exercisable, Weighted Average Exercise Price | $17.44 |
$19.67 to $22.94 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Ranges, Lower Range Limit | $19.67 |
Exercise Price Ranges, Upper Range Limit | $22.94 |
Options Outstanding, Number of Shares | 55,700 |
Options Outstanding, Weighted Average Remaining Life (Years) | '7 years 3 months 22 days |
Options Outstanding, Weighted Average Exercise Price | $21.71 |
Options Exercisable, Number | 1,500 |
Options Exercisable, Weighted Average Exercise Price | $21.71 |
$22.95 to $26.22 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Ranges, Lower Range Limit | $22.95 |
Exercise Price Ranges, Upper Range Limit | $26.22 |
Options Outstanding, Number of Shares | 159,192 |
Options Outstanding, Weighted Average Remaining Life (Years) | '6 years 7 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $23.70 |
Options Exercisable, Number | 67,542 |
Options Exercisable, Weighted Average Exercise Price | $24.12 |
$26.23 to $29.49 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Ranges, Lower Range Limit | $26.23 |
Exercise Price Ranges, Upper Range Limit | $29.49 |
Options Outstanding, Number of Shares | 93,614 |
Options Outstanding, Weighted Average Remaining Life (Years) | '1 year 7 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $27.50 |
Options Exercisable, Number | 93,614 |
Options Exercisable, Weighted Average Exercise Price | $27.50 |
$29.50 to $32.77 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price Ranges, Lower Range Limit | $29.50 |
Exercise Price Ranges, Upper Range Limit | $32.77 |
Options Outstanding, Number of Shares | 54,600 |
Options Outstanding, Weighted Average Remaining Life (Years) | '9 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $32.77 |
Options Exercisable, Number | 0 |
Options Exercisable, Weighted Average Exercise Price | $0 |
ShareBased_Compensation_Arrang8
Share-Based Compensation Arrangements (Nonvested Share Units Activity) (Details) (Time Based Nonvested Shares [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Time Based Nonvested Shares [Member] | ' | ' | ' |
Number of Shares: | ' | ' | ' |
Beginning of period | 108,775 | ' | ' |
Granted | 24,400 | 29,725 | 31,950 |
Vested | -40,089 | ' | ' |
Forfeited | -2,561 | ' | ' |
End of period | 90,525 | 108,775 | ' |
Weighted Average Grant Date Fair Value (in dollars per share): | ' | ' | ' |
Beginning of period | $20.82 | ' | ' |
Granted | $29.90 | ' | ' |
Vested | $18.30 | ' | ' |
Forfeited | $22.14 | ' | ' |
End of period | $24.34 | $20.82 | ' |
ShareBased_Compensation_Arrang9
Share-Based Compensation Arrangements (Nonvested Performance Shares Activity) (Details) (Performance Based Nonvested Shares [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Performance Based Nonvested Shares [Member] | ' |
Number of Shares: | ' |
Beginning of period | 119,020 |
Granted | 49,138 |
Vested | -17,975 |
Forfeited | -26,066 |
End of period | 124,117 |
Weighted Average Grant Date Fair Value (in dollars per share): | ' |
Beginning of period | $21.45 |
Granted | $26.37 |
Vested | $15.11 |
Forfeited | $23.59 |
End of period | $23.87 |
Business_Segments_Statement_of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net interest income | $91,785 | $90,696 | $84,955 |
Noninterest income | 62,080 | 65,214 | 52,764 |
Total income | 153,865 | 155,910 | 137,719 |
Provision for loan losses | 2,400 | 2,700 | 4,700 |
Depreciation and amortization expense | 3,963 | 3,941 | 4,125 |
Other noninterest expenses | 94,822 | 98,397 | 86,248 |
Total noninterest expense | 98,785 | 102,338 | 90,373 |
Income before income taxes | 52,680 | 50,872 | 42,646 |
Income tax expense (benefit) | 16,527 | 15,798 | 12,922 |
Net income | 36,153 | 35,074 | 29,724 |
Total assets at period end | 3,188,867 | 3,071,884 | 3,064,098 |
Expenditures for long-lived assets | 1,491 | 5,110 | 3,644 |
Commercial Banking [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net interest income | 79,633 | 79,505 | 75,967 |
Noninterest income | 30,769 | 31,727 | 21,806 |
Total income | 110,402 | 111,232 | 97,773 |
Provision for loan losses | 2,400 | 2,700 | 4,700 |
Depreciation and amortization expense | 2,473 | 2,384 | 2,512 |
Other noninterest expenses | 61,976 | 62,963 | 55,543 |
Total noninterest expense | 64,449 | 65,347 | 58,055 |
Income before income taxes | 43,553 | 43,185 | 35,018 |
Income tax expense (benefit) | 14,598 | 14,670 | 11,781 |
Net income | 28,955 | 28,515 | 23,237 |
Total assets at period end | 2,517,059 | 2,436,280 | 2,257,326 |
Expenditures for long-lived assets | 1,286 | 4,082 | 2,982 |
Wealth Management Service [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net interest income | 7 | 17 | -1 |
Noninterest income | 31,825 | 29,640 | 28,306 |
Total income | 31,832 | 29,657 | 28,305 |
Provision for loan losses | 0 | 0 | 0 |
Depreciation and amortization expense | 1,277 | 1,272 | 1,330 |
Other noninterest expenses | 20,494 | 19,584 | 19,041 |
Total noninterest expense | 21,771 | 20,856 | 20,371 |
Income before income taxes | 10,061 | 8,801 | 7,934 |
Income tax expense (benefit) | 3,724 | 3,296 | 2,957 |
Net income | 6,337 | 5,505 | 4,977 |
Total assets at period end | 50,297 | 51,730 | 51,104 |
Expenditures for long-lived assets | 112 | 877 | 493 |
Corporate Segment [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net interest income | 12,145 | 11,174 | 8,989 |
Noninterest income | -514 | 3,847 | 2,652 |
Total income | 11,631 | 15,021 | 11,641 |
Provision for loan losses | 0 | 0 | 0 |
Depreciation and amortization expense | 213 | 285 | 283 |
Other noninterest expenses | 12,352 | 15,850 | 11,664 |
Total noninterest expense | 12,565 | 16,135 | 11,947 |
Income before income taxes | -934 | -1,114 | -306 |
Income tax expense (benefit) | -1,795 | -2,168 | -1,816 |
Net income | 861 | 1,054 | 1,510 |
Total assets at period end | 621,511 | 583,874 | 755,668 |
Expenditures for long-lived assets | $93 | $151 | $169 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' | |||
Change in fair value of securities available for sale, before tax | ($10,586) | ($4,125) | $2,620 | |||
Change in fair value of securities available for sale, tax | -3,778 | -1,459 | 998 | |||
Change is fair value of securities available for sale | -6,808 | -2,666 | 1,622 | |||
Net (gains) losses on securities classified into earnings, before tax | 294 | [1] | -1,195 | [1] | -644 | [1] |
Net (gains) losses on securities classified into earnings, tax | 106 | [1] | -427 | [1] | -229 | [1] |
Net (gains) losses on securities classified into earnings | 188 | [1] | -768 | [1] | -415 | [1] |
Net change in fair value of securities available for sale, before tax | -10,292 | -5,320 | 1,976 | |||
Net change in fair value of securities available for sale, tax | -3,672 | -1,886 | 769 | |||
Net change in fair value of securities available for sale | -6,620 | -3,434 | 1,207 | |||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings, before tax | 3,195 | [2] | 193 | [2] | 137 | [2] |
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings, tax | 1,146 | [2] | 68 | [2] | 49 | [2] |
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 2,049 | [2] | 125 | [2] | 88 | [2] |
Change in fair value of cash flow hedges, before tax | -58 | -521 | -1,464 | |||
Change in fair value of cash flow hedges, tax | -23 | -188 | -522 | |||
Change in fair value of cash flow hedges | -35 | -333 | -942 | |||
Net cash flow hedge losses reclassified into earnings, before tax | 657 | [3] | 706 | [3] | 755 | [3] |
Net cash flow hedge losses reclassified into earnings, tax | 234 | [3] | 252 | [3] | 269 | [3] |
Net cash flow hedge losses reclassified into earnings | 423 | [3] | 454 | [3] | 486 | [3] |
Change in fair value of cash flow hedges, before tax | 599 | 185 | -709 | |||
Change in fair value of cash flow hedges, tax | 211 | 64 | -253 | |||
Net change in fair value of cash flow hedges | 388 | 121 | -456 | |||
Defined benefit plan obligation adjustment, before tax | 20,406 | [4] | -8,445 | [4] | -10,502 | [4] |
Defined benefit plan obligation adjustment, tax | 7,277 | [4] | -3,029 | [4] | -3,743 | [4] |
Defined benefit plan obligation adjustment | 13,129 | [4] | -5,416 | [4] | -6,759 | [4] |
Total other comprehensive income (loss), before tax | 13,908 | -13,387 | -9,098 | |||
Total other comprehensive income (loss), tax | 4,962 | -4,783 | -3,178 | |||
Total other comprehensive income (loss), net of tax | $8,946 | ($8,604) | ($5,920) | |||
[1] | Reported as total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. | |||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. | |||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income, beginning balance | ($10,499) | ($1,895) | $4,025 |
Other comprehensive income before reclassifcations | -6,843 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 15,789 | ' | ' |
Period change, net of tax | 8,946 | -8,604 | -5,920 |
Accumulated other comprehensive income, ending balance | -1,553 | -10,499 | -1,895 |
Net Unrealized Gains on AFS Securities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income, beginning balance | 9,709 | 13,143 | 11,936 |
Other comprehensive income before reclassifcations | -6,808 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 188 | ' | ' |
Period change, net of tax | -6,620 | -3,434 | 1,207 |
Accumulated other comprehensive income, ending balance | 3,089 | 9,709 | 13,143 |
Noncredit-related Impairment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income, beginning balance | -1,937 | -2,062 | -2,150 |
Other comprehensive income before reclassifcations | 0 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 2,049 | ' | ' |
Period change, net of tax | 2,049 | 125 | 88 |
Accumulated other comprehensive income, ending balance | 112 | -1,937 | -2,062 |
Net Unrealized Losses on Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income, beginning balance | -1,006 | -1,127 | -671 |
Other comprehensive income before reclassifcations | -35 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 423 | ' | ' |
Period change, net of tax | 388 | 121 | -456 |
Accumulated other comprehensive income, ending balance | -618 | -1,006 | -1,127 |
Pension Benefit Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income, beginning balance | -17,265 | -11,849 | -5,090 |
Other comprehensive income before reclassifcations | 0 | ' | ' |
Amounts reclassified from accumulated other comprehensive income | 13,129 | ' | ' |
Period change, net of tax | 13,129 | -5,416 | -6,759 |
Accumulated other comprehensive income, ending balance | ($4,136) | ($17,265) | ($11,849) |
Earnings_Per_Common_Share_Calc
Earnings Per Common Share (Calculation of Earnings Per Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net income | $36,153 | $35,074 | $29,724 |
Dividends and undistributed earnings allocated to participating securities | -155 | -160 | -112 |
Net income applicable to common shareholders | $35,998 | $34,914 | $29,612 |
Weighted average common shares outstanding - basic (in shares) | 16,506 | 16,358 | 16,254 |
Dilutive effect of common stock equivalents (in shares) | 158 | 43 | 30 |
Weighted average common shares outstanding - diluted (in shares) | 16,664 | 16,401 | 16,284 |
Basic earnings per common share (in dollars per share) | $2.18 | $2.13 | $1.82 |
Diluted earnings per common share (in dollars per share) | $2.16 | $2.13 | $1.82 |
Antidilutive common stock equivalents | 23 | 357 | 371 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Fee income on standby letters of credit | $23,000 | $94,000 | $153,000 |
Operating leases rental expense | 2,800,000 | 2,800,000 | 1,900,000 |
Unpaid principal balance of loans repurchased | 682,000 | 843,000 | ' |
Reserve for loans repurchases | $275,000 | $250,000 | ' |
Minimum [Member] | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Lease expiration period | '5 months | ' | ' |
Lease expiration period, renewal option | '6 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Lease expiration period | '25 years | ' | ' |
Lease expiration period, renewal option | '25 years | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) (USD $) | Dec. 31, 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 | $17,910 | $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 | 29,364 | 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 | 105,582 | 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 | 105,582 | 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 | 259,061 | 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 | 198,432 | 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 | 35,175 | 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 | $1,363 | $1,039 |
Commitments_and_Contingencies_4
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
Future Minimum Payments, Next Twelve Months | $2,542 |
Future Minimum Payments, Year Two | 1,944 |
Future Minimum Payments, Year Three | 1,604 |
Future Minimum Payments, Year Four | 1,462 |
Future Minimum Payments, Year Five | 1,143 |
Future Minimum Payments, Thereafter | 13,490 |
Total minimum lease payments | $22,185 |
Parent_Company_Financial_State2
Parent Company Financial Statements (Balance Sheet) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, except Share data, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Interest-bearing balances due from banks | $51,800 | $32,200 | ' | ' |
Other assets | 50,696 | 63,409 | ' | ' |
Total assets | 3,188,867 | 3,071,884 | 3,064,098 | ' |
Liabilities: | ' | ' | ' | ' |
Junior subordinated debentures | 22,681 | 32,991 | ' | ' |
Other liabilities | 42,959 | 68,226 | ' | ' |
Total liabilities | 2,859,221 | 2,776,232 | ' | ' |
Shareholders’ Equity: | ' | ' | ' | ' |
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | ' | ' |
Paid-in capital | 97,566 | 91,453 | ' | ' |
Retained earnings | 232,595 | 213,674 | ' | ' |
Accumulated other comprehensive loss | -1,553 | -10,499 | -1,895 | 4,025 |
Total shareholders’ equity | 329,646 | 295,652 | 281,351 | 268,864 |
Total liabilities and shareholders’ equity | 3,188,867 | 3,071,884 | ' | ' |
Common stock, par value (in dollars per share) | $0.06 | $0.06 | ' | ' |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | ' | ' |
Common stock, shares issued (in shares) | 16,613,561 | 16,379,771 | ' | ' |
Common stock, shares outstanding (in shares) | 16,613,561 | 16,379,771 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash on deposit with bank subsidiary | 2,126 | 1,694 | ' | ' |
Interest-bearing balances due from banks | 1,569 | 1,970 | ' | ' |
Investment in subsidiaries at equity value | 349,342 | 325,717 | ' | ' |
Dividends receivable from subsidiaries | 4,606 | 4,198 | ' | ' |
Other assets | 494 | 891 | ' | ' |
Total assets | 358,137 | 334,470 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Junior subordinated debentures | 22,681 | 32,991 | ' | ' |
Dividends payable | 4,756 | 4,152 | ' | ' |
Other liabilities | 1,054 | 1,675 | ' | ' |
Total liabilities | 28,491 | 38,818 | ' | ' |
Shareholders’ Equity: | ' | ' | ' | ' |
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | ' | ' |
Paid-in capital | 97,566 | 91,453 | ' | ' |
Retained earnings | 232,595 | 213,674 | ' | ' |
Accumulated other comprehensive loss | -1,553 | -10,499 | ' | ' |
Total shareholders’ equity | 329,646 | 295,652 | ' | ' |
Total liabilities and shareholders’ equity | $358,137 | $334,470 | ' | ' |
Common stock, par value (in dollars per share) | $0.06 | $0.06 | ' | ' |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | ' | ' |
Common stock, shares issued (in shares) | 16,613,561 | 16,379,771 | ' | ' |
Common stock, shares outstanding (in shares) | 16,613,561 | 16,379,771 | ' | ' |
Parent_Company_Financial_State3
Parent Company Financial Statements (Statement of Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income: | ' | ' | ' |
Total income | $153,865 | $155,910 | $137,719 |
Expenses: | ' | ' | ' |
Interest on junior subordinated debentures | 1,484 | 1,570 | 1,568 |
Legal and professional fees | 2,330 | 2,240 | 1,927 |
Income before income taxes | 52,680 | 50,872 | 42,646 |
Income tax benefit | -16,527 | -15,798 | -12,922 |
Net income | 36,153 | 35,074 | 29,724 |
Parent Company [Member] | ' | ' | ' |
Income: | ' | ' | ' |
Dividends from subsidiaries | 24,481 | 16,188 | 14,439 |
Other income | 20 | 3 | 2 |
Total income | 24,501 | 16,191 | 14,441 |
Expenses: | ' | ' | ' |
Interest on junior subordinated debentures | 1,484 | 1,570 | 1,568 |
Legal and professional fees | 145 | 127 | 118 |
Other | 279 | 279 | 257 |
Total expenses | 1,908 | 1,976 | 1,943 |
Income before income taxes | 22,593 | 14,215 | 12,498 |
Income tax benefit | 661 | 682 | 669 |
Income before equity in undistributed earnings of subsidiaries | 23,254 | 14,897 | 13,167 |
Equity in undistributed earnings of subsidiaries | 12,899 | 20,177 | 16,557 |
Net income | $36,153 | $35,074 | $29,724 |
Parent_Company_Financial_State4
Parent Company Financial Statements (Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $36,153 | $35,074 | $29,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Decrease (increase) in other assets | 2,589 | -7,987 | -2,804 |
Net cash provided by operating activities | 80,850 | 5,467 | 37,199 |
Cash flows from investing activities: | ' | ' | ' |
Repayment of investment in capital trust | 310 | 0 | 0 |
Net cash (used in) provided by investing activities | -184,062 | 25,337 | -158,576 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock under dividend reinvestment plan | 0 | 0 | 754 |
Proceeds from stock option exercises and issuance of other equity instruments | 3,681 | 1,257 | 885 |
Tax benefit from stock option exercises and other equity instruments | 570 | 210 | 115 |
Redemption of junior subordinated debentures | -10,310 | 0 | 0 |
Cash dividends paid | -16,628 | -15,133 | -14,205 |
Net cash provided by (used in) financing activities | 95,879 | -25,174 | 115,661 |
Net (decrease) increase in cash and cash equivalents | -7,333 | 5,630 | -5,716 |
Cash and cash equivalents at beginning of year | 92,650 | 87,020 | 92,736 |
Cash and cash equivalents at end of year | 85,317 | 92,650 | 87,020 |
Parent Company [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income | 36,153 | 35,074 | 29,724 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in undistributed earnings of subsidiaries | -12,899 | -20,177 | -16,557 |
Increase in dividend receivable | -408 | -298 | -660 |
Decrease (increase) in other assets | 397 | 77 | -246 |
(Decrease) increase in accrued expenses and other liabilities | -621 | -215 | 281 |
Other, net | -214 | -237 | -115 |
Net cash provided by operating activities | 22,408 | 14,224 | 12,427 |
Cash flows from investing activities: | ' | ' | ' |
Repayment of investment in capital trust | 310 | 0 | 0 |
Net cash (used in) provided by investing activities | 310 | 0 | 0 |
Cash flows from financing activities: | ' | ' | ' |
Issuance of treasury stock, including net deferred compensation plan activity | 30 | 0 | 0 |
Proceeds from issuance of common stock under dividend reinvestment plan | 0 | 0 | 754 |
Proceeds from stock option exercises and issuance of other equity instruments | 3,651 | 1,257 | 885 |
Tax benefit from stock option exercises and other equity instruments | 570 | 210 | 115 |
Redemption of junior subordinated debentures | -10,310 | 0 | 0 |
Cash dividends paid | -16,628 | -15,133 | -14,205 |
Net cash provided by (used in) financing activities | -22,687 | -13,666 | -12,451 |
Net (decrease) increase in cash and cash equivalents | 31 | 558 | -24 |
Cash and cash equivalents at beginning of year | 3,664 | 3,106 | 3,130 |
Cash and cash equivalents at end of year | $3,695 | $3,664 | $3,106 |
Subsequent_Event_Narrative_Det
Subsequent Event (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 03, 2014 | |
Subsequent Event [Line Items] | ' | ' |
Gain on Sale of Business Line Before Tax | $6,300,000 | ' |
Gain on Sale of Business Line, After-Tax | 4,000,000 | ' |
Gain on Sale of Business Line, Earnings Per Share | ' | 0.24 |
Divestiture Related Costs | 359,000 | ' |
Divestiture Related Costs, After Tax | 230,000 | ' |
Earnings Per Share, Divestiture Costs | 0.01 | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances Prepaid | ' | 99,300,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Prepayment Penalty Charge | 6,300,000 | ' |
FHLB advances, prepayment penalty charge, After-tax | 4,000,000 | ' |
Earnings Per Share, Prepayment Penalty Charges | $0.24 | ' |
FHLBAdvancesPrepaidWeightedAverageRate | 3.01% | ' |
FHLB Advances Prepaid Remaining Months | '36 months | ' |