DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Washington Trust Bancorp Inc | |
Entity Central Index Key | 737468 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 16,811,770 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and due from banks | $84,842 | $76,386 | ||
Short-term investments | 4,191 | 3,964 | ||
Mortgage loans held for sale, at fair value | 47,117 | 45,693 | ||
Securities: | ||||
Available for sale, at fair value | 340,942 | 357,662 | ||
Held to maturity, at cost | 24,025 | 25,222 | ||
Total securities | 364,967 | 382,884 | ||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||
Loans: | ||||
Commercial | 1,559,523 | 1,535,488 | ||
Residential real estate | 987,564 | 985,415 | ||
Consumer | 333,505 | 338,373 | ||
Total loans | 2,880,592 | [1] | 2,859,276 | [1] |
Less allowance for loan losses | 27,810 | 28,023 | ||
Net loans | 2,852,782 | 2,831,253 | ||
Premises and equipment, net | 27,839 | 27,495 | ||
Investment in bank-owned life insurance | 64,009 | 63,519 | ||
Goodwill | 58,114 | 58,114 | ||
Identifiable intangible assets, net | 4,694 | 4,849 | ||
Other assets | 56,229 | 54,987 | ||
Total assets | 3,602,514 | 3,586,874 | ||
Liabilities: | ||||
Demand deposits | 477,046 | 459,852 | ||
NOW accounts | 333,321 | 326,375 | ||
Money market accounts | 821,353 | 802,764 | ||
Savings accounts | 298,802 | 291,725 | ||
Time deposits | 852,621 | 874,102 | ||
Total deposits | 2,783,143 | 2,754,818 | ||
Federal Home Loan Bank advances | 385,992 | 406,297 | ||
Junior subordinated debentures | 22,681 | 22,681 | ||
Other liabilities | 56,819 | 56,799 | ||
Total liabilities | 3,248,635 | 3,240,595 | ||
Commitments and contingencies | ||||
Shareholders' Equity: | ||||
Common stock | 1,048 | 1,047 | ||
Paid-in capital | 102,587 | 101,204 | ||
Retained earnings | 258,069 | 252,837 | ||
Accumulated other comprehensive income (loss) | -7,825 | -8,809 | ||
Total shareholders' equity | 353,879 | 346,279 | ||
Total liabilities and shareholders’ equity | $3,602,514 | $3,586,874 | ||
[1] | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Mortgage loans held for sale | $36,672 | $30,321 |
Securities held to maturity, fair value | $24,834 | $26,008 |
Common stock, par value | $0.06 | $0.06 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 16,772,956 | 16,746,363 |
Common stock, shares outstanding | 16,772,956 | 16,746,363 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income: | ||
Interest and fees on loans | $28,353 | $25,589 |
Interest on securities: Taxable | 2,259 | 2,942 |
Interest on securities: Nontaxable | 435 | 582 |
Dividends on Federal Home Loan Bank stock | 165 | 142 |
Other interest income | 25 | 35 |
Total interest and dividend income | 31,237 | 29,290 |
Interest expense: | ||
Deposits | 3,389 | 2,969 |
Federal Home Loan Bank advances | 1,902 | 2,241 |
Junior subordinated debentures | 241 | 241 |
Other interest expense | 3 | 3 |
Total interest expense | 5,535 | 5,454 |
Net interest income | 25,702 | 23,836 |
Provision for loan losses | 0 | 300 |
Net interest income after provision for loan losses | 25,702 | 23,536 |
Noninterest income: | ||
Wealth management revenues | 8,435 | 8,065 |
Merchant processing fees | 0 | 1,291 |
Net gains on loan sales and commissions on loans originated for others | 2,585 | 1,239 |
Service charges on deposit accounts | 935 | 754 |
Card interchange fees | 714 | 681 |
Income from bank-owned life insurance | 490 | 445 |
Net gains on interest rate swap contracts | 645 | 260 |
Equity in earnings (losses) of unconsolidated subsidiaries | -86 | -43 |
Net gain on sale of business line | 0 | 6,265 |
Other income | 302 | 413 |
Total noninterest income | 14,020 | 19,370 |
Noninterest expense: | ||
Salaries and employee benefits | 15,494 | 14,558 |
Net occupancy | 1,886 | 1,640 |
Equipment | 1,340 | 1,236 |
Merchant processing costs | 0 | 1,050 |
Outsourced services | 1,247 | 1,044 |
Legal, audit and professional fees | 676 | 618 |
FDIC deposit insurance costs | 473 | 440 |
Advertising and promotion | 267 | 232 |
Amortization of intangibles | 155 | 164 |
Debt prepayment penalties | 0 | 6,294 |
Other expenses | 1,993 | 2,016 |
Total noninterest expense | 23,531 | 29,292 |
Income before income taxes | 16,191 | 13,614 |
Income tax expense | 5,181 | 4,316 |
Net income | $11,010 | $9,298 |
Weighted average common shares outstanding - basic | 16,759 | 16,626 |
Weighted average common shares outstanding - diluted | 16,939 | 16,800 |
Per share information: | ||
Basic earnings per common share | $0.65 | $0.56 |
Diluted earnings per common share | $0.65 | $0.55 |
Cash dividends declared per share | $0.34 | $0.29 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $11,010 | $9,298 | ||
Securities available for sale: | ||||
Net change in fair value of securities available for sale | 664 | 612 | ||
Cash flow hedges: | ||||
Change in fair value of cash flow hedges | -8 | -16 | ||
Net cash flow hedge losses reclassified into earnings | 93 | [1] | 92 | [1] |
Net change in fair value of cash flow hedges | 85 | 76 | ||
Defined benefit plan obligation adjustment | 235 | [2] | 88 | [2] |
Total other comprehensive (loss) income, net of tax | 984 | 776 | ||
Total comprehensive income | $11,994 | $10,074 | ||
[1] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||
[2] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | |||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2013 | $329,646 | $1,038 | $97,566 | $232,595 | ($1,553) |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2013 | 16,614,000 | ||||
Net income | 9,298 | 9,298 | |||
Total other comprehensive income, net of tax | 776 | 776 | |||
Cash dividends declared | -4,894 | -4,894 | |||
Share-based compensation | 491 | 491 | |||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 21,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 541 | 2 | 539 | ||
Shareholders' Equity, Ending Balance at Mar. 31, 2014 | 335,858 | 1,040 | 98,596 | 236,999 | -777 |
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2014 | 16,635,000 | ||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2014 | 346,279 | 1,047 | 101,204 | 252,837 | -8,809 |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2014 | 16,746,363 | 16,746,000 | |||
Net income | 11,010 | 11,010 | |||
Total other comprehensive income, net of tax | 984 | 984 | |||
Cash dividends declared | -5,778 | -5,778 | |||
Share-based compensation | 580 | 580 | |||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 27,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 804 | 1 | 803 | ||
Shareholders' Equity, Ending Balance at Mar. 31, 2015 | $353,879 | $1,048 | $102,587 | $258,069 | ($7,825) |
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2015 | 16,772,956 | 16,773,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $11,010 | $9,298 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 0 | 300 |
Depreciation of premises and equipment | 882 | 783 |
Net amortization of premium and discount | 358 | 219 |
Net amortization of intangibles | 155 | 164 |
Share-based compensation | 580 | 491 |
Income from bank-owned life insurance | -490 | -445 |
Net gain on sale of business line | 0 | -6,265 |
Net gains on loan sales and commissions on loans originated for others | -2,585 | -1,239 |
Net losses (gains) on interest rate swap contracts | -645 | -260 |
Equity in earnings (losses) of unconsolidated subsidiaries | 86 | 43 |
Proceeds from sales of loans | 117,571 | 48,296 |
Loans originated for sale | -116,502 | -46,159 |
Decrease (increase) in other assets | 814 | -81 |
Decrease in other liabilities | -1,936 | -3,723 |
Net cash provided by operating activities | 9,298 | 1,422 |
Cash flows from investing activities: | ||
Proceeds from sale of other investment securities available for sale | 0 | 547 |
Maturities and principal payments of mortgage-backed securities available for sale | 12,533 | 11,313 |
Maturities and principal payments of other investment securities available for sale | 4,986 | 20,844 |
Maturities and principal payments of mortgage-backed securities held to maturity | 1,137 | 960 |
Net proceeds from sale of business line | 0 | 7,205 |
Net increase in loans | -20,620 | -13,584 |
Purchases of loans, including purchased interest | -856 | -2,934 |
Proceeds from the sale of property acquired through foreclosure or repossession | 0 | 659 |
Purchases of premises and equipment | -1,226 | -1,291 |
Net cash (used in) provided by investing activities | -4,046 | 23,719 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 28,325 | 86,333 |
Net increase (decrease) in other borrowings | -12 | -11 |
Proceeds from Federal Home Loan Bank advances | 120,000 | 54,000 |
Repayment of Federal Home Loan Bank advances | -140,305 | -138,653 |
Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments | 698 | 496 |
Tax benefit from stock option exercises and issuance of other compensation-related equity instruments | 106 | 45 |
Cash dividends paid | -5,381 | -4,511 |
Net cash provided by (used in) financing activities | 3,431 | -2,301 |
Net increase in cash and cash equivalents | 8,683 | 22,840 |
Cash and cash equivalents at beginning of period | 80,350 | 85,317 |
Cash and cash equivalents at end of period | 89,033 | 108,157 |
Noncash Investing and Financing Activities: | ||
Loans charged off | 321 | 1,223 |
Loans transferred to property acquired through foreclosure or repossession | 230 | 421 |
Supplemental Disclosures: | ||
Interest payments | 5,459 | 5,175 |
Income tax payments | $310 | $265 |
General_Information
General Information | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information |
Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company and financial holding company. The Bancorp owns all of the outstanding common stock of The Washington Trust Company, of Westerly (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, the review of goodwill for impairment and the assessment of investment securities for impairment. | |
The unaudited consolidated financial statements of the Corporation presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
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, and interim periods within those annual periods, beginning after December 15, 2014. The Corporation elected the prospective transition method and the adoption of ASU 2014-04 did not have a material impact on the Corporation’s consolidated financial statements. | |
Revenue from Contracts with Customers - Topic 606 | |
Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), was issued in May 2014 and provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period with early adoption not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Corporation is currently evaluating the impact that ASU 2014-09 will have on the its consolidated financial statements and related disclosures. The Corporation has not yet selected a transition method nor has it determined the effect of ASU 2014-09 on its ongoing financial reporting. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 3 Months Ended |
Mar. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks |
The Bank maintains certain average reserve balances to meet the requirements of the Board of Governors of the Federal Reserve System (“FRB”). Some or all of these reserve requirements may be satisfied with vault cash. Reserve balances amounted to $10.1 million at March 31, 2015 and $8.0 million at December 31, 2014 and were included in cash and due from banks in the Consolidated Balance Sheets. | |
As of March 31, 2015 and December 31, 2014, cash and due from banks included interest-bearing deposits in other banks of $47.0 million and $42.7 million, respectively. |
Securities
Securities | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||
March 31, 2015 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,203 | $98 | $— | $31,301 | ||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 222,547 | 10,498 | — | 233,045 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 42,664 | 1,515 | — | 44,179 | ||||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | 30,762 | — | (4,475 | ) | 26,287 | |||||||||||||||||||||||||
Corporate bonds | 6,119 | 36 | (25 | ) | 6,130 | |||||||||||||||||||||||||
Total securities available for sale | $333,295 | $12,147 | ($4,500 | ) | $340,942 | |||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $24,025 | $809 | $— | $24,834 | ||||||||||||||||||||||||||
Total securities held to maturity | $24,025 | $809 | $— | $24,834 | ||||||||||||||||||||||||||
Total securities | $357,320 | $12,956 | ($4,500 | ) | $365,776 | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
December 31, 2014 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,205 | $21 | ($54 | ) | $31,172 | |||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 235,343 | 10,023 | — | 245,366 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 47,647 | 1,529 | — | 49,176 | ||||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | 30,753 | — | (4,979 | ) | 25,774 | |||||||||||||||||||||||||
Corporate bonds | 6,120 | 57 | (3 | ) | 6,174 | |||||||||||||||||||||||||
Total securities available for sale | $351,068 | $11,630 | ($5,036 | ) | $357,662 | |||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $25,222 | $786 | $— | $26,008 | ||||||||||||||||||||||||||
Total securities held to maturity | $25,222 | $786 | $— | $26,008 | ||||||||||||||||||||||||||
Total securities | $376,290 | $12,416 | ($5,036 | ) | $383,670 | |||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, securities available for sale and held to maturity with a fair value of $347.6 million and $350.5 million, respectively, were pledged as collateral for Federal Home Loan Bank of Boston (“FHLBB”) borrowings and letters of credit, potential borrowings with the FRB, certain public deposits and for other purposes. See Note 8 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. | ||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
March 31, 2015 | 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 | $— | $31,003 | $200 | $— | $31,203 | |||||||||||||||||||||||||
Weighted average yield | — | % | 1.72 | % | 2.32 | % | — | % | 1.73 | % | ||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||
Amortized cost | 37,723 | 100,409 | 57,461 | 26,954 | 222,547 | |||||||||||||||||||||||||
Weighted average yield | 3.71 | 3.3 | 2.81 | 1.76 | 3.06 | |||||||||||||||||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||||||||
Amortized cost | 3,601 | 24,267 | 14,796 | — | 42,664 | |||||||||||||||||||||||||
Weighted average yield | 3.78 | 3.94 | 3.99 | — | 3.95 | |||||||||||||||||||||||||
Individual name issuer trust preferred debt securities: | ||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 30,762 | 30,762 | |||||||||||||||||||||||||
Weighted average yield | — | — | — | 1.11 | 1.11 | |||||||||||||||||||||||||
Corporate bonds: | ||||||||||||||||||||||||||||||
Amortized cost | 5,713 | 203 | 203 | — | 6,119 | |||||||||||||||||||||||||
Weighted average yield | 2.84 | 1.62 | 3.21 | — | 2.81 | |||||||||||||||||||||||||
Total debt securities available for sale: | ||||||||||||||||||||||||||||||
Amortized cost | $47,037 | $155,882 | $72,660 | $57,716 | $333,295 | |||||||||||||||||||||||||
Weighted average yield | 3.61 | % | 3.09 | % | 3.05 | % | 1.42 | % | 2.86 | % | ||||||||||||||||||||
Fair value | $48,955 | $161,578 | $75,897 | $54,512 | $340,942 | |||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||
Amortized cost | $3,007 | $9,323 | $7,364 | $4,331 | $24,025 | |||||||||||||||||||||||||
Weighted average yield | 3.11 | % | 3.03 | % | 2.78 | % | 0.89 | % | 2.58 | % | ||||||||||||||||||||
Fair value | $3,108 | $9,637 | $7,612 | $4,477 | $24,834 | |||||||||||||||||||||||||
Included in the above table are debt securities with an amortized cost balance of $98.1 million and a fair value of $95.0 million at March 31, 2015 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 6 months to 22 years, with call features ranging from 1 month to 2 years. | ||||||||||||||||||||||||||||||
Other-Than-Temporary Impairment Assessment | ||||||||||||||||||||||||||||||
The Corporation assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other‑than‑temporary. | ||||||||||||||||||||||||||||||
The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||
March 31, 2015 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | — | $— | $— | 11 | $26,287 | ($4,475 | ) | 11 | $26,287 | ($4,475 | ) | |||||||||||||||||||
Corporate bonds | 1 | 1,975 | (25 | ) | — | — | — | 1 | 1,975 | (25 | ) | |||||||||||||||||||
Total temporarily impaired securities | 1 | $1,975 | ($25 | ) | 11 | $26,287 | ($4,475 | ) | 12 | $28,262 | ($4,500 | ) | ||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||
December 31, 2014 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 3 | $20,952 | ($54 | ) | — | $— | $— | 3 | $20,952 | ($54 | ) | |||||||||||||||||||
Individual name issuer trust preferred debt securities | — | — | — | 11 | 25,774 | (4,979 | ) | 11 | 25,774 | (4,979 | ) | |||||||||||||||||||
Corporate bonds | — | — | — | 1 | 199 | (3 | ) | 1 | 199 | (3 | ) | |||||||||||||||||||
Total temporarily impaired securities | 3 | $20,952 | ($54 | ) | 12 | $25,973 | ($4,982 | ) | 15 | $46,925 | ($5,036 | ) | ||||||||||||||||||
Further deterioration in credit quality of the underlying issuers of the securities, further deterioration in the condition of the financial services industry, a continuation or worsening of the current economic environment, or additional declines in real estate values, among other things, may further affect the fair value of these securities and increase the potential that certain unrealized losses be designated as other-than-temporary in future periods, and the Corporation may incur additional write-downs. | ||||||||||||||||||||||||||||||
Trust Preferred Debt Securities of Individual Name Issuers | ||||||||||||||||||||||||||||||
Included in debt securities in an unrealized loss position at March 31, 2015 were 11 trust preferred security holdings issued by 7 individual companies in the banking sector. Management believes the unrealized loss position in these holdings is attributable to the general widening of spreads for this category of debt securities issued by financial services companies since the time these securities were purchased. Based on the information available through the filing date of this report, all individual name issuer 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 March 31, 2015, individual name issuer trust preferred debt securities with an amortized cost of $11.9 million and unrealized losses of $2.0 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 March 31, 2015. |
Loans
Loans | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Loans | Loans | |||||||||||||||||||||||
The following is a summary of loans: | ||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $865,042 | 30 | % | $843,978 | 30 | % | ||||||||||||||||||
Construction & development (2) | 89,851 | 3 | 79,592 | 3 | ||||||||||||||||||||
Commercial & industrial (3) | 604,630 | 21 | 611,918 | 21 | ||||||||||||||||||||
Total commercial | 1,559,523 | 54 | 1,535,488 | 54 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 954,905 | 33 | 948,731 | 33 | ||||||||||||||||||||
Homeowner construction | 32,659 | 1 | 36,684 | 1 | ||||||||||||||||||||
Total residential real estate | 987,564 | 34 | 985,415 | 34 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 239,537 | 8 | 242,480 | 8 | ||||||||||||||||||||
Home equity loans | 46,727 | 2 | 46,967 | 2 | ||||||||||||||||||||
Other (4) | 47,241 | 2 | 48,926 | 2 | ||||||||||||||||||||
Total consumer | 333,505 | 12 | 338,373 | 12 | ||||||||||||||||||||
Total loans (5) | $2,880,592 | 100 | % | $2,859,276 | 100 | % | ||||||||||||||||||
-1 | Loans primarily secured by income producing property. | |||||||||||||||||||||||
-2 | Loans for construction of 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. | |||||||||||||||||||||||
-4 | Consumer installment loans and loans secured by general aviation aircraft and automobiles. | |||||||||||||||||||||||
-5 | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, there were $1.24 billion and $1.21 billion, respectively, of loans pledged as collateral to the FHLBB under a blanket pledge agreement and to the FRB for the discount window. See Note 8 for additional disclosure regarding borrowings. | ||||||||||||||||||||||||
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) | Mar 31, | Dec 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $5,115 | $5,315 | ||||||||||||||||||||||
Construction & development | — | — | ||||||||||||||||||||||
Commercial & industrial | 2,193 | 1,969 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 6,956 | 7,124 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1,051 | 1,217 | ||||||||||||||||||||||
Home equity loans | 511 | 317 | ||||||||||||||||||||||
Other | 39 | 3 | ||||||||||||||||||||||
Total nonaccrual loans | $15,865 | $15,945 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, nonaccrual loans of $3.6 million and $3.2 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
At March 31, 2015, there were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status. | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
March 31, 2015 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $497 | $61 | $5,115 | $5,673 | $859,369 | $865,042 | ||||||||||||||||||
Construction & development | — | — | — | — | 89,851 | 89,851 | ||||||||||||||||||
Commercial & industrial | 229 | 229 | 721 | 1,179 | 603,451 | 604,630 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,470 | 1,352 | 3,607 | 9,429 | 945,476 | 954,905 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 32,659 | 32,659 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1,244 | 429 | 463 | 2,136 | 237,401 | 239,537 | ||||||||||||||||||
Home equity loans | 213 | 111 | 255 | 579 | 46,148 | 46,727 | ||||||||||||||||||
Other | 55 | 25 | 5 | 85 | 47,156 | 47,241 | ||||||||||||||||||
Total loans | $6,708 | $2,207 | $10,166 | $19,081 | $2,861,511 | $2,880,592 | ||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
December 31, 2014 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $— | $5,315 | $5,315 | $838,663 | $843,978 | ||||||||||||||||||
Construction & development | — | — | — | — | 79,592 | 79,592 | ||||||||||||||||||
Commercial & industrial | 2,136 | 1,202 | 181 | 3,519 | 608,399 | 611,918 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2,943 | 821 | 3,284 | 7,048 | 941,683 | 948,731 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 36,684 | 36,684 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 570 | 100 | 841 | 1,511 | 240,969 | 242,480 | ||||||||||||||||||
Home equity loans | 349 | 240 | 56 | 645 | 46,322 | 46,967 | ||||||||||||||||||
Other | 35 | 5 | — | 40 | 48,886 | 48,926 | ||||||||||||||||||
Total loans | $6,033 | $2,368 | $9,677 | $18,078 | $2,841,198 | $2,859,276 | ||||||||||||||||||
Included in past due loans as of March 31, 2015 and December 31, 2014, were nonaccrual loans of $12.3 million and $12.7 million, respectively. All loans 90 days or more past due at March 31, 2015 and December 31, 2014 were classified as nonaccrual. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Impaired loans consist of nonaccrual commercial loans, troubled debt restructured loans and other loans classified as impaired that are individually evaluated for impairment. 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: | ||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment (1) | Unpaid Principal | Related Allowance | |||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $205 | $432 | $205 | $432 | $— | $— | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1,322 | 1,047 | 1,323 | 1,076 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,618 | 1,477 | 1,912 | 1,768 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | 3,145 | 2,956 | 3,440 | 3,276 | — | — | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $14,384 | $14,585 | $14,564 | $14,564 | $1,173 | $927 | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1,754 | 1,878 | 2,305 | 2,437 | 185 | 177 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,296 | 2,226 | 1,423 | 2,338 | 222 | 326 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 244 | 250 | 250 | 250 | 76 | 141 | ||||||||||||||||||
Home equity loans | 72 | 45 | 116 | 62 | 1 | 12 | ||||||||||||||||||
Other | 151 | 112 | 151 | 114 | — | — | ||||||||||||||||||
Subtotal | 17,901 | 19,096 | 18,809 | 19,765 | 1,657 | 1,583 | ||||||||||||||||||
Total impaired loans | $21,046 | $22,052 | $22,249 | $23,041 | $1,657 | $1,583 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $17,665 | $17,942 | $18,397 | $18,509 | $1,358 | $1,104 | ||||||||||||||||||
Residential real estate | 2,914 | 3,703 | 3,335 | 4,106 | 222 | 326 | ||||||||||||||||||
Consumer | 467 | 407 | 517 | 426 | 77 | 153 | ||||||||||||||||||
Total impaired loans | $21,046 | $22,052 | $22,249 | $23,041 | $1,657 | $1,583 | ||||||||||||||||||
-1 | The recorded investment in impaired loans consists of unpaid principal balance net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class: | ||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $14,942 | $28,340 | $79 | $165 | ||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||
Commercial & industrial | 3,036 | 2,366 | 19 | 23 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,457 | 3,744 | 16 | 14 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 247 | 134 | — | 1 | ||||||||||||||||||||
Home equity loans | 74 | 95 | — | 1 | ||||||||||||||||||||
Other | 146 | 125 | 3 | 2 | ||||||||||||||||||||
Totals | $21,902 | $34,804 | $117 | $206 | ||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
Loans are considered restructured in a troubled debt restructuring when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. | ||||||||||||||||||||||||
Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectibility of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. | ||||||||||||||||||||||||
Troubled debt restructurings are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below-market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. | ||||||||||||||||||||||||
Troubled debt restructurings are classified as impaired loans. The Corporation identifies loss allocations for impaired loans on an individual loan basis. The recorded investment in troubled debt restructurings was $17.7 million and $18.4 million, respectively, at March 31, 2015 and December 31, 2014. These amounts included accrued interest of $30 thousand and $33 thousand, respectively. The allowance for loan losses included specific reserves for these troubled debt restructurings of $1.5 million and $1.2 million, respectively, at March 31, 2015 and December 31, 2014. As of March 31, 2015, there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. | ||||||||||||||||||||||||
The following table presents loans modified as a troubled debt restructuring: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | — | — | $— | $— | $— | $— | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1 | — | 300 | — | 300 | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | 93 | 479 | 93 | 479 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | 1 | — | 35 | — | 35 | — | ||||||||||||||||||
Totals | 3 | 2 | $428 | $479 | $428 | $479 | ||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table provides information on how loans were modified as a troubled debt restructuring: | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||||||
Below-market interest rate concession | $335 | $— | ||||||||||||||||||||||
Payment deferral | 93 | 479 | ||||||||||||||||||||||
Maturity / amortization concession | — | — | ||||||||||||||||||||||
Interest only payments | — | — | ||||||||||||||||||||||
Combination (1) | — | — | ||||||||||||||||||||||
Total | $428 | $479 | ||||||||||||||||||||||
-1 | Loans included in this classification were modified with a combination of any two of the concessions listed 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: | ||||||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded Investment (1) | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | — | — | $— | $— | ||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||
Commercial & industrial | 2 | 6 | 11 | 1,191 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2 | — | 338 | — | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||
Totals | 4 | 6 | $349 | $1,191 | ||||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees and other credit quality characteristics. As of March 31, 2015 and December 31, 2014, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.68 and 4.67, 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, secondary sources of repayment, or performance inconsistency or may be in an industry or of a loan type known to have a higher degree of risk. | ||||||||||||||||||||||||
Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate and frequent delinquencies. | ||||||||||||||||||||||||
Classified - Loans identified as “substandard”, “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectibility. A “doubtful” loan is placed on non-accrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined. “Loss” is not intended to imply that the loan has no recovery value but rather it is not practical or desirable to continue to carry the asset. | ||||||||||||||||||||||||
The Corporation’s procedures call for loan ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. The criticized loan portfolio, which consists of commercial 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 | |||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Mortgages | $842,516 | $819,857 | $17,207 | $18,372 | $5,319 | $5,749 | ||||||||||||||||||
Construction & development | 89,851 | 79,592 | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 586,370 | 592,206 | 15,536 | 16,311 | 2,724 | 3,401 | ||||||||||||||||||
Total commercial loans | $1,518,737 | $1,491,655 | $32,743 | $34,683 | $8,043 | $9,150 | ||||||||||||||||||
Residential and Consumer | ||||||||||||||||||||||||
The residential and consumer portfolios are monitored on an ongoing basis by the Corporation using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed on an aggregate basis in these relatively homogeneous portfolios. For non-impaired loans, the Corporation assigns loss allocation factors to each respective loan type and delinquency status. See Note 6 for additional information. | ||||||||||||||||||||||||
Various other techniques are utilized to monitor indicators of credit deterioration in the portfolios of residential real estate mortgages and home equity lines and loans. Among these techniques is the periodic tracking of loans with an updated FICO score and an estimated loan to value (“LTV”) ratio. LTV is determined via statistical modeling analyses. The indicated LTV levels are estimated based on such factors as the location, the original LTV, and the date of origination of the loan and do not reflect actual appraisal amounts. The results of these analyses and other loan review procedures 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) | Current and Under 90 Days Past Due | Over 90 Days | ||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Accruing mortgages | $947,949 | $941,607 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 3,349 | 3,840 | 3,607 | 3,284 | ||||||||||||||||||||
Homeowner construction | 32,659 | 36,684 | — | — | ||||||||||||||||||||
Total residential loans | $983,957 | $982,131 | $3,607 | $3,284 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $239,074 | $241,639 | $463 | $841 | ||||||||||||||||||||
Home equity loans | 46,472 | 46,911 | 255 | 56 | ||||||||||||||||||||
Other | 47,236 | 48,926 | 5 | — | ||||||||||||||||||||
Total consumer loans | $332,782 | $337,476 | $723 | $897 | ||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses | |||||||||||||||||||||||||||||||
The allowance for loan losses is management’s best estimate of the 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) application of loss allocation factors for non-impaired loans based on credit grade, historical loss experience, estimated loss emergence period and delinquency status, with adjustments for various exposures not adequately presented in historical loss experience, and (3) an unallocated allowance maintained for measurement imprecision associated with impaired and nonaccrual loans. | ||||||||||||||||||||||||||||||||
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. For collateral dependent loans for which repayment is dependent on the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is dependent on the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also 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. | ||||||||||||||||||||||||||||||||
Individual commercial loans not deemed to be impaired are evaluated using an internal rating system and the application of loss allocation factors. The loan rating system is described under the caption “Credit Quality Indicators” in Note 5. 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, the adequacy of collateral and the adequacy of guarantees. We periodically reassess and revise the loss allocation factors used in the assignment of loss exposure to appropriately reflect our analysis of migrational loss experience. Revisions to loss allocation factors are not retroactively applied. We analyze historical loss experience over periods deemed to be relevant to the inherent risk of loss in the commercial loan portfolio and the related estimate of the loss emergence period as of the balance sheet date. We also adjust loss factor allocations for various exposures we believe are not adequately presented in historical loss experience, including our assessments of credit risk associated with certain industries, an ongoing trend toward larger credit relationships, recent changes in portfolio composition, conditions that may affect the ability of borrowers to meet debt service requirements, trends in rental rates on commercial real estate and conditions that may affect the collateral position, such as environmental matters. | ||||||||||||||||||||||||||||||||
Portfolios of more homogeneous populations of loans, including the various categories of residential mortgages and consumer loans, are analyzed as groups, with loss allocation factors assigned to each group based on account delinquency status. We periodically reassess and revise the loss allocation factors. Revisions to loss allocation factors are not retroactively applied. We analyze historical loss experience over periods deemed to be relevant to the inherent risk of loss in residential mortgage and consumer loan portfolios and the related estimate of the loss emergence period as of the balance sheet date. We also adjust loss factor allocations for various exposures we believe are not adequately presented in historical loss experience including trends in real estate values, consideration of general economic conditions, increases in delinquency levels and regulatory changes affecting the foreclosure process. These matters are also evaluated taking into account the geographic location of the underlying loans. | ||||||||||||||||||||||||||||||||
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 table presents the activity in the allowance for loan losses for three months ended March 31, 2015: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | |||||||||||||||||||||||||||||||
Mortgages | Construction | C&I (1) | Total Commercial | Residential | Consumer | Un-allocated | Total | |||||||||||||||||||||||||
Beginning Balance | $8,202 | $1,300 | $7,987 | $17,489 | $5,430 | $2,713 | $2,391 | $28,023 | ||||||||||||||||||||||||
Charge-offs | (200 | ) | — | (7 | ) | (207 | ) | (48 | ) | (66 | ) | — | (321 | ) | ||||||||||||||||||
Recoveries | 80 | — | 14 | 94 | 2 | 12 | — | 108 | ||||||||||||||||||||||||
Provision | 249 | (71 | ) | (191 | ) | (13 | ) | (29 | ) | 72 | (30 | ) | — | |||||||||||||||||||
Ending Balance | $8,331 | $1,229 | $7,803 | $17,363 | $5,355 | $2,731 | $2,361 | $27,810 | ||||||||||||||||||||||||
(1) Commercial & industrial loans. | ||||||||||||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses for three months ended March 31, 2014. Prior to December 31, 2014, the unallocated allowance included amounts for management’s qualitative and quantitative assessment of certain other loan portfolio risks not captured in other components of the allowance. The 2014 presentation of the allowance for loan losses by portfolio segment, set forth below, has been revised to conform to the December 31, 2014 presentation format. The reclassification resulted in a reduction of $5.3 million in the unallocated allowance previously reported as of March 31, 2014, with a corresponding increase to the allowance by portfolio segment. The reclassification resulted in no change in the total allowance. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | |||||||||||||||||||||||||||||||
Mortgages | Construction | C&I (1) | Total Commercial | Residential | Consumer | Un-allocated | Total | |||||||||||||||||||||||||
Beginning Balance | $8,022 | $383 | $7,835 | $16,240 | $6,450 | $2,511 | $2,685 | $27,886 | ||||||||||||||||||||||||
Charge-offs | (945 | ) | — | (196 | ) | (1,141 | ) | (42 | ) | (40 | ) | — | (1,223 | ) | ||||||||||||||||||
Recoveries | 6 | — | 26 | 32 | 35 | 13 | — | 80 | ||||||||||||||||||||||||
Provision | (536 | ) | (114 | ) | 805 | 155 | 705 | 93 | (653 | ) | 300 | |||||||||||||||||||||
Ending Balance | $6,547 | $269 | $8,470 | $15,286 | $7,148 | $2,577 | $2,032 | $27,043 | ||||||||||||||||||||||||
(1) Commercial & industrial loans. | ||||||||||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Loans | Related Allowance | Loans | Related Allowance | |||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $14,563 | $1,173 | $14,991 | $927 | ||||||||||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||||||||||
Commercial & industrial | 3,074 | 185 | 2,921 | 177 | ||||||||||||||||||||||||||||
Residential real estate | 2,912 | 222 | 3,698 | 326 | ||||||||||||||||||||||||||||
Consumer | 467 | 77 | 409 | 153 | ||||||||||||||||||||||||||||
Subtotal | $21,016 | $1,657 | $22,019 | $1,583 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $850,479 | $7,158 | $828,987 | $7,275 | ||||||||||||||||||||||||||||
Construction & development | 89,851 | 1,229 | 79,592 | 1,300 | ||||||||||||||||||||||||||||
Commercial & industrial | 601,556 | 7,618 | 608,997 | 7,810 | ||||||||||||||||||||||||||||
Residential real estate | 984,652 | 5,133 | 981,717 | 5,104 | ||||||||||||||||||||||||||||
Consumer | 333,038 | 2,654 | 337,964 | 2,560 | ||||||||||||||||||||||||||||
Subtotal | $2,859,576 | $23,792 | $2,837,257 | $24,049 | ||||||||||||||||||||||||||||
Unallocated | — | 2,361 | — | 2,391 | ||||||||||||||||||||||||||||
Total | $2,880,592 | $27,810 | $2,859,276 | $28,023 | ||||||||||||||||||||||||||||
Time_Certificates_of_Deposit
Time Certificates of Deposit | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deposits [Abstract] | |||||||
Time Certificates of Deposit | Time Certificates of Deposit | ||||||
The following table presents scheduled maturities of time certificates of deposit: | |||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | |||||
April 1, 2015 to December 31, 2015 | $296,731 | 0.67 | % | ||||
2016 | 177,667 | 1.02 | |||||
2017 | 152,730 | 1.11 | |||||
2018 | 77,579 | 1.35 | |||||
2019 | 122,693 | 1.76 | |||||
2020 and thereafter | 25,221 | 1.52 | |||||
Balance at March 31, 2015 | $852,621 | 1.07 | % | ||||
Borrowings
Borrowings | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Borrowings | Borrowings | ||||||
Federal Home Loan Bank Advances | |||||||
Advances payable to the FHLBB amounted to $386.0 million and $406.3 million, respectively, at March 31, 2015 and December 31, 2014. | |||||||
The following table presents maturities and weighted average interest rates on FHLBB advances outstanding as of March 31, 2015: | |||||||
(Dollars in thousands) | Total Outstanding | Weighted | |||||
Average Rate | |||||||
April 1, 2015 to December 31, 2015 | $160,520 | 0.49 | % | ||||
2016 | 31,792 | 0.6 | % | ||||
2017 | 30,075 | 5.44 | % | ||||
2018 | 58,634 | 1.56 | % | ||||
2019 | 42,661 | 4.4 | % | ||||
2020 and thereafter | 62,310 | 3.17 | % | ||||
Balance at March 31, 2015 | $385,992 | 1.91 | % | ||||
As of March 31, 2015 and December 31, 2014, the Bank also has access to an unused line of credit with the FHLBB amounting to $40.0 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 $613.7 million and $569.4 million, respectively, at March 31, 2015 and December 31, 2014. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Regulatory Capital Requirements | Shareholders’ Equity | |||||||||||||||||||
Regulatory Capital Requirements | ||||||||||||||||||||
The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum required capital ratios and minimum capital ratios required for the Bank to be “well capitalized” for purposes of the Federal Deposit Insurance Corporation’s (“FDIC”) prompt corrective action provisions: | ||||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be “Well Capitalized” Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $352,521 | 12.8 | % | $220,262 | 8 | % | N/A | N/A | ||||||||||||
Bank | 347,674 | 12.63 | 220,187 | 8 | 275,234 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 324,375 | 11.78 | 165,196 | 6 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 11.61 | 165,140 | 6 | 220,187 | 8 | ||||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets): (1) | ||||||||||||||||||||
Corporation | 302,376 | 10.98 | 123,897 | 4.5 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 11.61 | 123,855 | 4.5 | 178,902 | 6.5 | ||||||||||||||
Tier 1 Capital (to Average Assets): (2) | ||||||||||||||||||||
Corporation | 324,375 | 9.21 | 140,864 | 4 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 9.08 | 140,738 | 4 | 175,922 | 5 | ||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 343,934 | 12.56 | 219,149 | 8 | 273,936 | N/A | ||||||||||||||
Bank | 339,268 | 12.39 | 219,075 | 8 | 273,844 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 315,575 | 11.52 | 109,574 | 4 | 164,361 | N/A | ||||||||||||||
Bank | 310,909 | 11.35 | 109,537 | 4 | 164,306 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets): (2) | ||||||||||||||||||||
Corporation | 315,575 | 9.14 | 138,090 | 4 | 172,612 | N/A | ||||||||||||||
Bank | 310,909 | 9.01 | 137,964 | 4 | 172,454 | 5 | ||||||||||||||
-1 | New capital ratio effective January 1, 2015 under the Basel III capital requirements. See additional discussion of Basel III and the new regulatory capital requirements in the “Supervision and Regulation” section in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | |||||||||||||||||||
(2) Leverage ratio. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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 March 31, 2015 and December 31, 2014, the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $22.7 million of variable rate 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. As of March 31, 2015 and December 31, 2014, the Bancorp has pledged collateral to derivative counterparties in the form of cash totaling $800 thousand and $939 thousand, respectively. The Bancorp may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. | ||||||||||||||||||
Customer Related Derivative Contracts | ||||||||||||||||||
The Corporation has entered into interest rate swap contracts to help commercial loan borrowers manage their interest rate risk. The interest rate swap contracts with commercial loan borrowers allow them to convert floating-rate loan payments to fixed-rate loan payments. When we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter into a “mirror” swap contract with a third party. The third party exchanges the client’s fixed‑rate loan payments for floating-rate loan payments. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of March 31, 2015 and December 31, 2014, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $209.4 million and $165.8 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. | ||||||||||||||||||
Risk Participation Agreements | ||||||||||||||||||
In 2015, the Corporation entered into a risk participation agreement (“RPA”) with another bank participating in a commercial loan arrangement. The participating bank guarantees the performance on a borrower-related interest rate swap contract. The RPA represents a purchased guarantee that is recorded as an asset and under the RPA the Corporation participates out the risk associated with the interest rate swap position executed with the commercial borrower, for a net fee paid to the participating bank, classified in net gains on interest rate swap contracts. The RPA derivative asset is recorded at fair value and changes in the fair value of the derivative asset are recognized in earnings in the period of change. As of March 31, 2015, the notional amount of the RPA was $12.5 million. | ||||||||||||||||||
Loan Commitments | ||||||||||||||||||
Interest rate lock commitments are extended to borrowers and 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, forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell 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 certain 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: | ||||||||||||||||||
(Dollars in thousands) | Asset Derivatives | Liability Derivatives | ||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
Balance Sheet Location | Mar 31, 2015 | Dec 31, 2014 | Balance Sheet Location | Mar 31, 2015 | Dec 31, 2014 | |||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||
Interest rate swap contracts | Other assets | $— | $— | Other liabilities | $367 | $497 | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||
Interest rate lock commitments | Other assets | 1,769 | 1,212 | Other liabilities | 5 | 20 | ||||||||||||
Commitments to sell mortgage loans | Other assets | 14 | 13 | Other liabilities | 2,970 | 2,028 | ||||||||||||
Customer related derivative contracts: | ||||||||||||||||||
Interest rate swaps with customers | Other assets | 7,415 | 4,554 | Other liabilities | — | 23 | ||||||||||||
Mirror swaps with counterparties | Other assets | — | 28 | Other liabilities | 7,699 | 4,748 | ||||||||||||
Risk participation agreement | Other assets | 47 | — | Other liabilities | — | — | ||||||||||||
Total | $9,245 | $5,807 | $11,041 | $7,316 | ||||||||||||||
The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity: | ||||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income (Ineffective Portion) | |||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||
Interest rate swap contracts | $85 | $76 | Interest Expense | $— | $— | |||||||||||||
Total | $85 | $76 | $— | $— | ||||||||||||||
(Dollars in thousands) | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||||||||||
Three months ended March 31, | Statement of Income Location | 2015 | 2014 | |||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||
Interest rate lock commitments | Net gains on loan sales & commissions on loans originated for others | $572 | $277 | |||||||||||||||
Commitments to sell mortgage loans | Net gains on loan sales & commissions on loans originated for others | (941 | ) | (313 | ) | |||||||||||||
Customer related derivative contracts: | ||||||||||||||||||
Interest rate swaps with customers | Net gains on interest rate swap contracts | 3,633 | 1,030 | |||||||||||||||
Mirror swaps with counterparties | Net gains on interest rate swap contracts | (2,836 | ) | (770 | ) | |||||||||||||
Risk participation agreement | Net gains on interest rate swap contracts | (152 | ) | — | ||||||||||||||
Total | $276 | $224 | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, securities available for sale, certain 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, certain residential real estate mortgage loans held for sale 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. | |||||||||||||||||||
Fair Value Option Election | ||||||||||||||||||||
GAAP 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. The Corporation elected the fair value option for certain residential real estate mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them. | ||||||||||||||||||||
The aggregate principal amount of the residential real estate mortgage loans held for sale recorded at fair value was $35.6 million and $29.5 million, respectively, at March 31, 2015 and December 31, 2014. The aggregate fair value of these loans as of the same dates was $36.7 million and $30.3 million, respectively. As of March 31, 2015 and December 31, 2014, the aggregate fair value of residential real estate mortgage loans held for sale exceeded the aggregate principal amount by $1.1 million and $779 thousand, respectively. | ||||||||||||||||||||
There were no residential real estate mortgage loans held for sale 90 days or more past due as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
The following table presents the changes in fair value related to mortgage loans held for sale, interest rate lock commitments and commitments to sell residential real estate mortgage loans, for which the fair value option was elected. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||
Mortgage loans held for sale | $341 | $76 | ||||||||||||||||||
Interest rate lock commitments | 572 | 277 | ||||||||||||||||||
Commitments to sell mortgage loans | (941 | ) | (313 | ) | ||||||||||||||||
Total changes in fair value | ($28 | ) | $40 | |||||||||||||||||
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. There were no Level 1 securities held at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
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, obligations of states and political subdivisions, trust preferred debt securities and corporate bonds. | ||||||||||||||||||||
Securities not actively traded whose fair value is determined through the use of cash flows utilizing inputs that are unobservable are classified as Level 3. There were no Level 3 securities held at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
Mortgage Loans Held for Sale | ||||||||||||||||||||
The fair values of mortgage loans held for sale are generally estimated based on secondary market rates offered for loans with similar characteristics. When secondary market information exists, these loans are classified as Level 2. 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 changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between the loan closing date and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. There were no Level 3 mortgage loans held for sale at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
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. For purposes of potential valuation adjustments to its interest rate swap contracts and risk participation agreements, 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. | ||||||||||||||||||||
Level 2 fair value measurements of forward loan commitments (interest rate lock commitments and commitments to sell residential real estate mortgages) are estimated using the anticipated market price based on pricing indications provided by other financial institutions. 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. There were no Level 3 forward loan commitments held at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
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. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. For collateral dependent loans for which repayment is dependent on the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is dependent on the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. | ||||||||||||||||||||
Property Acquired Through Foreclosure or Repossession | ||||||||||||||||||||
Property acquired through foreclosure or repossession included in other assets in the Consolidated Balance Sheets is adjusted to fair value less costs to sell upon transfer out of loans through a charge to allowance for loan losses. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Such subsequent valuation charges are charged through earnings. Fair value is generally based upon appraised values of the collateral. Management 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 the property, and such property is categorized as Level 3. | ||||||||||||||||||||
Items Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||
The following tables present the balances of assets and liabilities reported at fair value on a recurring basis: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
March 31, 2015 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,301 | $— | $31,301 | $— | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 233,045 | — | 233,045 | — | ||||||||||||||||
Obligations of states and political subdivisions | 44,179 | — | 44,179 | — | ||||||||||||||||
Individual name issuer trust preferred debt securities | 26,287 | — | 26,287 | — | ||||||||||||||||
Corporate bonds | 6,130 | — | 6,130 | — | ||||||||||||||||
Mortgage loans held for sale | 36,672 | — | 36,672 | — | ||||||||||||||||
Derivative assets (1) | 9,245 | — | 9,245 | — | ||||||||||||||||
Total assets at fair value on a recurring basis | $386,859 | $— | $386,859 | $— | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (2) | $11,041 | $— | $11,041 | $— | ||||||||||||||||
Total liabilities at fair value on a recurring basis | $11,041 | $— | $11,041 | $— | ||||||||||||||||
-1 | Derivative assets include interest rate swaps contracts with customers, a risk participation agreement and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||||||||||||||||||
-2 | Derivative liabilities include mirror swaps with counterparties, interest rate risk management contracts and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | |||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,172 | $— | $31,172 | $— | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 245,366 | — | 245,366 | — | ||||||||||||||||
Obligations of states and political subdivisions | 49,176 | — | 49,176 | — | ||||||||||||||||
Individual name issuer trust preferred debt securities | 25,774 | — | 25,774 | — | ||||||||||||||||
Corporate bonds | 6,174 | — | 6,174 | — | ||||||||||||||||
Mortgage loans held for sale | 30,321 | — | 30,321 | — | ||||||||||||||||
Derivative assets (1) | 5,807 | — | 5,807 | — | ||||||||||||||||
Total assets at fair value on a recurring basis | $393,790 | $— | $393,790 | $— | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (2) | $7,316 | $— | $7,316 | $— | ||||||||||||||||
Total liabilities at fair value on a recurring basis | $7,316 | $— | $7,316 | $— | ||||||||||||||||
-1 | Derivative assets include interest rate swaps contracts with customers and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||||||||||||||||||
-2 | Derivative liabilities include mirror swaps with counterparties, interest rate risk management contracts and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | |||||||||||||||||||
It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. During the three months ended March 31, 2015 and 2014, there were no transfers in and/or out of Level 1, 2 or 3. | ||||||||||||||||||||
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 summarizes the carrying value of such assets held at March 31, 2015, which were written down to fair value during the three months ended March 31, 2015: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans | $3,962 | $— | $— | $3,962 | ||||||||||||||||
Property acquired through foreclosure or repossession | 318 | — | — | 318 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $4,280 | $— | $— | $4,280 | ||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $1.2 million at March 31, 2015. | ||||||||||||||||||||
The following table summarizes the carrying value of such assets held at December 31, 2014, which were written down to fair value during the year ended December 31, 2014: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans | $5,728 | $— | $— | $5,728 | ||||||||||||||||
Property acquired through foreclosure or repossession | 348 | — | — | 348 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $6,076 | $— | $— | $6,076 | ||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $1.3 million at December 31, 2014. | ||||||||||||||||||||
The following tables present valuation techniques and unobservable inputs for 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) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Collateral dependent impaired loans | $3,962 | Appraisals of collateral | Discount for costs to sell | 0% - 25% (10%) | ||||||||||||||||
Appraisal adjustments (1) | 0% - 15% (1%) | |||||||||||||||||||
Property acquired through foreclosure or repossession | $318 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (6%) | ||||||||||||||||
Appraisal adjustments (1) | 7% - 13% (10%) | |||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Collateral dependent impaired loans | $5,728 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (2%) | ||||||||||||||||
Appraisal adjustments (1) | 0% - 40% (3%) | |||||||||||||||||||
Property acquired through foreclosure or repossession | $348 | Appraisals of collateral | Discount for costs to sell | 6% - 10% (8%) | ||||||||||||||||
Appraisal adjustments (1) | 5% - 23% (14%) | |||||||||||||||||||
-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 the measurement date that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans on the secondary market. The fair value of floating rate commercial and consumer loans approximates carrying value. Fair value for impaired loans is estimated using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of the collateral. Loans are classified within Level 3 of the fair value hierarchy. | ||||||||||||||||||||
Time Deposits | ||||||||||||||||||||
The discounted values of cash flows using the rates currently offered for deposits of similar remaining maturities were used to estimate the fair value of time deposits. Time deposits are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Federal Home Loan Bank Advances | ||||||||||||||||||||
Rates currently available to the Corporation for advances with similar terms and remaining maturities are used to estimate fair value of existing advances. FHLBB advances are categorized as Level 2. | ||||||||||||||||||||
Junior Subordinated Debentures | ||||||||||||||||||||
The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. | ||||||||||||||||||||
The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments. 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 and accrued interest payable. | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
March 31, 2015 | Carrying Amount | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Securities held to maturity | $24,025 | $24,834 | $— | $24,834 | $— | |||||||||||||||
Loans, net of allowance for loan losses | 2,852,782 | 2,898,369 | — | — | 2,898,369 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Time deposits | $852,621 | $854,780 | $— | $854,780 | $— | |||||||||||||||
FHLBB advances | 385,992 | 400,770 | — | 400,770 | — | |||||||||||||||
Junior subordinated debentures | 22,681 | 16,974 | — | 16,974 | — | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2014 | Carrying Amount | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Securities held to maturity | $25,222 | $26,008 | $— | $26,008 | $— | |||||||||||||||
Loans, net of allowance for loan losses | 2,831,253 | 2,866,907 | — | — | 2,866,907 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Time deposits | $874,102 | $872,570 | $— | $872,570 | $— | |||||||||||||||
FHLBB advances | 406,297 | 418,005 | — | 418,005 | — | |||||||||||||||
Junior subordinated debentures | 22,681 | 17,201 | — | 17,201 | — | |||||||||||||||
Defined_Benefit_Pension_Plans
Defined Benefit Pension Plans | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Defined Benefit Pension Plans | Defined Benefit Pension Plans | |||||||||||||||
The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. Defined benefit pension plans were previously amended to freeze benefit accruals after a 10-year transition period ending in December 2023. | ||||||||||||||||
The composition of net periodic benefit cost was as follows: | ||||||||||||||||
(Dollars in thousands) | Qualified Pension Plan | Non-Qualified Retirement Plans | ||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||
Service cost | $615 | $538 | $20 | $12 | ||||||||||||
Interest cost | 732 | 723 | 122 | 120 | ||||||||||||
Expected return on plan assets | (1,129 | ) | (1,016 | ) | — | — | ||||||||||
Amortization of prior service (credit) cost | (6 | ) | (6 | ) | — | — | ||||||||||
Recognized net actuarial loss | 312 | 115 | 61 | 16 | ||||||||||||
Net periodic benefit cost | $524 | $354 | $203 | $148 | ||||||||||||
The pension plan is funded on a current basis, in compliance with the requirements of ERISA. |
ShareBased_Compensation_Arrang
Share-Based Compensation Arrangements | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements |
During the three months ended March 31, 2015, 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 the fair market value as of the award date, or $38.02, and will be earned over a 3-year performance 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. The current assumption based on the most recent peer group information available results in shares earned at 150% of the target, or 46,950 shares. |
Business_Segments
Business Segments | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
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 unit include activity not related to the segments. 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, 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 investment management; financial planning; personal trust services, including services as trustee, administrator, custodian and guardian; and estate settlement. Institutional trust services are also provided, including fiduciary 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, net gain on sale of business line as well as administrative and executive expenses not allocated to the operating segments and the residual impact of methodology allocations such as funds transfer pricing offsets. | ||||||||||||||||||||||||||||
The following table presents the statement of operations and total assets for Washington Trust’s reportable segments: | ||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Net interest income (expense) | $20,625 | $19,739 | ($14 | ) | ($4 | ) | $5,091 | $4,101 | $25,702 | $23,836 | ||||||||||||||||||
Provision for loan losses | — | 300 | — | — | — | — | — | 300 | ||||||||||||||||||||
Net interest income (expense) after provision for loan losses | 20,625 | 19,439 | (14 | ) | (4 | ) | 5,091 | 4,101 | 25,702 | 23,536 | ||||||||||||||||||
Noninterest income | 5,078 | 4,541 | 8,435 | 8,065 | 507 | 6,764 | 14,020 | 19,370 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 671 | 585 | 306 | 311 | 60 | 51 | 1,037 | 947 | ||||||||||||||||||||
Other noninterest expenses | 13,587 | 13,553 | 5,915 | 5,387 | 2,992 | 9,405 | 22,494 | 28,345 | ||||||||||||||||||||
Total noninterest expenses | 14,258 | 14,138 | 6,221 | 5,698 | 3,052 | 9,456 | 23,531 | 29,292 | ||||||||||||||||||||
Income before income taxes | 11,445 | 9,842 | 2,200 | 2,363 | 2,546 | 1,409 | 16,191 | 13,614 | ||||||||||||||||||||
Income tax expense | 3,730 | 3,261 | 844 | 876 | 607 | 179 | 5,181 | 4,316 | ||||||||||||||||||||
Net income | $7,715 | $6,581 | $1,356 | $1,487 | $1,939 | $1,230 | $11,010 | $9,298 | ||||||||||||||||||||
Total assets at period end | $3,015,691 | $2,577,350 | $52,568 | $52,475 | $534,255 | $564,321 | $3,602,514 | $3,194,146 | ||||||||||||||||||||
Expenditures for long-lived assets | 1,067 | 1,075 | 114 | 171 | 45 | 45 | 1,226 | 1,291 | ||||||||||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Other Comprehensive Income | Other Comprehensive Income | |||||||||||||||||||
The following table presents the activity in other comprehensive income: | ||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Net change in fair value of securities available for sale | 1,053 | 389 | 664 | 964 | 352 | 612 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (32 | ) | (24 | ) | (8 | ) | (43 | ) | (27 | ) | (16 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (1) | 145 | 52 | 93 | 145 | 53 | 92 | ||||||||||||||
Net change in fair value of cash flow hedges | 113 | 28 | 85 | 102 | 26 | 76 | ||||||||||||||
Defined benefit plan obligation adjustment (2) | 367 | 132 | 235 | 88 | — | 88 | ||||||||||||||
Total other comprehensive income | $1,533 | $549 | $984 | $1,154 | $378 | $776 | ||||||||||||||
-1 | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||||||||||||||||||
-2 | Included in salaries and employee benefits expense in the Consolidated Statements of Income. | |||||||||||||||||||
The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax: | ||||||||||||||||||||
(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, 2014 | $4,110 | $112 | ($287 | ) | ($12,744 | ) | ($8,809 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 664 | — | (8 | ) | — | 656 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 93 | 235 | 328 | |||||||||||||||
Net other comprehensive income | 664 | — | 85 | 235 | 984 | |||||||||||||||
Balance at March 31, 2015 | $4,774 | $112 | ($202 | ) | ($12,509 | ) | ($7,825 | ) | ||||||||||||
(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, 2013 | $3,089 | $112 | ($618 | ) | ($4,136 | ) | ($1,553 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 612 | — | (16 | ) | — | 596 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 92 | 88 | 180 | |||||||||||||||
Net other comprehensive income | 612 | — | 76 | 88 | 776 | |||||||||||||||
Balance at March 31, 2014 | $3,701 | $112 | ($542 | ) | ($4,048 | ) | ($777 | ) | ||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 following table presents the calculation of earnings per common share: | ||||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||
Three months ended March 31, | 2015 | 2014 | ||||||
Earnings per common share - basic: | ||||||||
Net income | $11,010 | $9,298 | ||||||
Less dividends and undistributed earnings allocated to participating securities | (39 | ) | (41 | ) | ||||
Net income applicable to common shareholders | $10,971 | $9,257 | ||||||
Weighted average common shares | 16,759 | 16,626 | ||||||
Earnings per common share - basic | $0.65 | $0.56 | ||||||
Earnings per common share - diluted: | ||||||||
Net income | $11,010 | $9,298 | ||||||
Less dividends and undistributed earnings allocated to participating securities | (39 | ) | (41 | ) | ||||
Net income applicable to common shareholders | $10,971 | $9,257 | ||||||
Weighted average common shares | 16,759 | 16,626 | ||||||
Dilutive effect of common stock equivalents | 180 | 174 | ||||||
Weighted average diluted common shares | 16,939 | 16,800 | ||||||
Earnings per common share - diluted | $0.65 | $0.55 | ||||||
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 77,450 and 54,600, respectively, for the three months ended March 31, 2015 and 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate swap agreements and interest rate lock commitments and commitments to sell residential real estate 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 following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk: | ||||||||
(Dollars in thousands) | Mar 31, | Dec 31, | ||||||
2015 | 2014 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $303,443 | $325,402 | ||||||
Home equity lines | 206,515 | 200,932 | ||||||
Other loans | 47,998 | 48,551 | ||||||
Standby letters of credit | 5,248 | 5,102 | ||||||
Financial instruments whose notional amounts exceed the amount of credit risk: | ||||||||
Forward loan commitments: | ||||||||
Interest rate lock commitments | 60,546 | 40,015 | ||||||
Commitments to sell mortgage loans | 106,457 | 84,808 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 209,416 | 165,795 | ||||||
Mirror swaps with counterparties | 209,416 | 165,795 | ||||||
Interest rate risk management contracts: | ||||||||
Interest rate swaps | 22,681 | 22,681 | ||||||
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, total commitment amounts do not necessarily represent future cash requirements. Each borrower’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained is based on management’s credit evaluation of the borrower. | ||||||||
Standby Letters of Credit | ||||||||
Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support the financing needs of the Bank’s commercial customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments is essentially the same as for other commitments. Most standby letters of credit extend for one year. As of March 31, 2015 and December 31, 2014, the maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered, totaled $5.2 million and $5.1 million, respectively. At March 31, 2015 and December 31, 2014, there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit was insignificant for the three months ended March 31, 2015 and 2014. | ||||||||
Forward Loan Commitments | ||||||||
Interest rate lock commitments are extended to borrowers and 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, forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell residential real estate mortgage loans are derivative financial instruments. | ||||||||
Leases | ||||||||
As of March 31, 2015 and December 31, 2014, the Corporation was obligated under various non-cancellable operating leases for properties used as banking offices and other office facilities. Lease expiration dates range from 4 months to 26 years, with renewal options on certain leases of 1 month to 25 years. Rental expense under the operating leases amounted to $790 thousand for the three months ended March 31, 2015, compared to $737 thousand for the same period in 2014. Rental expense is recorded as a component of net occupancy expense in the accompanying Consolidated Statements of Income. There have been no significant changes in the future minimum lease payments payable from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||
Sale_of_Business_Line
Sale of Business Line | 3 Months Ended |
Mar. 31, 2015 | |
Sale of Business Line [Abstract] | |
Sale of Business Line | Sale of Business Line |
On March 1, 2014, the Corporation sold its merchant processing service business line to a third party. The sale resulted in a net gain of $6.3 million; after-tax $4.0 million, or 24 cents per diluted share. In connection with the sale, Washington Trust incurred divestiture related costs of $355 thousand; after-tax $227 thousand, or 1 cent per diluted share, in the first quarter of 2014. The net proceeds received from the sale totaled $7.2 million, including $900 thousand of deferred revenue that can be earned over a 5-year period by providing business referrals to the buyer. As of March 31, 2015, $720 thousand of deferred revenue remained to be earned under this arrangement. |
General_Information_Policies
General Information (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. |
Use of Estimates Policy | The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses, the review of goodwill for impairment and the assessment of investment securities for impairment. |
Loans_Policies
Loans (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Nonaccrual Loan Status Policy | Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate 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 | Loans are considered restructured in a troubled debt restructuring when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. |
Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectibility of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. | |
Troubled debt restructurings are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below-market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. | |
Troubled debt restructurings are classified as impaired loans. The Corporation identifies loss allocations for impaired loans on an individual loan basis. | |
Commercial Loan Credit Quality Policy | Commercial |
The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees and other credit quality characteristics. As of March 31, 2015 and December 31, 2014, the weighted average risk rating of the Corporation’s commercial loan portfolio was 4.68 and 4.67, 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, secondary sources of repayment, or performance inconsistency or may be in an industry or of a loan type known to have a higher degree of risk. | |
Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate and frequent delinquencies. | |
Classified - Loans identified as “substandard”, “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectibility. A “doubtful” loan is placed on non-accrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined. “Loss” is not intended to imply that the loan has no recovery value but rather it is not practical or desirable to continue to carry the asset. | |
The Corporation’s procedures call for loan ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. The criticized loan portfolio, which consists of commercial 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 | The residential and consumer portfolios are monitored on an ongoing basis by the Corporation using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed on an aggregate basis in these relatively homogeneous portfolios. For non-impaired loans, the Corporation assigns loss allocation factors to each respective loan type and delinquency status. See Note 6 for additional information. |
Various other techniques are utilized to monitor indicators of credit deterioration in the portfolios of residential real estate mortgages and home equity lines and loans. Among these techniques is the periodic tracking of loans with an updated FICO score and an estimated loan to value (“LTV”) ratio. LTV is determined via statistical modeling analyses. The indicated LTV levels are estimated based on such factors as the location, the original LTV, and the date of origination of the loan and do not reflect actual appraisal amounts. The results of these analyses and other loan review procedures 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) | 3 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses Policy | The allowance for loan losses is management’s best estimate of the 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) application of loss allocation factors for non-impaired loans based on credit grade, historical loss experience, estimated loss emergence period and delinquency status, with adjustments for various exposures not adequately presented in historical loss experience, and (3) an unallocated allowance maintained for measurement imprecision associated with impaired and nonaccrual loans. |
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. For collateral dependent loans for which repayment is dependent on the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is dependent on the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also 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. | |
Individual commercial loans not deemed to be impaired are evaluated using an internal rating system and the application of loss allocation factors. The loan rating system is described under the caption “Credit Quality Indicators” in Note 5. 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, the adequacy of collateral and the adequacy of guarantees. We periodically reassess and revise the loss allocation factors used in the assignment of loss exposure to appropriately reflect our analysis of migrational loss experience. Revisions to loss allocation factors are not retroactively applied. We analyze historical loss experience over periods deemed to be relevant to the inherent risk of loss in the commercial loan portfolio and the related estimate of the loss emergence period as of the balance sheet date. We also adjust loss factor allocations for various exposures we believe are not adequately presented in historical loss experience, including our assessments of credit risk associated with certain industries, an ongoing trend toward larger credit relationships, recent changes in portfolio composition, conditions that may affect the ability of borrowers to meet debt service requirements, trends in rental rates on commercial real estate and conditions that may affect the collateral position, such as environmental matters. | |
Portfolios of more homogeneous populations of loans, including the various categories of residential mortgages and consumer loans, are analyzed as groups, with loss allocation factors assigned to each group based on account delinquency status. We periodically reassess and revise the loss allocation factors. Revisions to loss allocation factors are not retroactively applied. We analyze historical loss experience over periods deemed to be relevant to the inherent risk of loss in residential mortgage and consumer loan portfolios and the related estimate of the loss emergence period as of the balance sheet date. We also adjust loss factor allocations for various exposures we believe are not adequately presented in historical loss experience including trends in real estate values, consideration of general economic conditions, increases in delinquency levels and regulatory changes affecting the foreclosure process. These matters are also evaluated taking into account the geographic location of the underlying loans. | |
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) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Policy | Derivative Financial Instruments |
The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally to manage the Corporation’s interest rate risk. Additionally, the Corporation enters into interest rate derivatives to accommodate the business requirements of its customers. All derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. | |
Interest Rate Risk Management Agreements | |
Interest rate swaps are used from time to time as part of the Corporation’s interest rate risk management strategy. Swaps are agreements in which the Corporation and another party agree to exchange interest payments (e.g., fixed-rate for variable-rate payments) computed on a notional principal amount. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Corporation enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of the potential loss exposure. | |
Cash Flow Hedging Instruments | |
As of March 31, 2015 and December 31, 2014, the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate associated with $22.7 million of variable rate 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. As of March 31, 2015 and December 31, 2014, the Bancorp has pledged collateral to derivative counterparties in the form of cash totaling $800 thousand and $939 thousand, respectively. The Bancorp may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. | |
Customer Related Derivative Contracts | |
The Corporation has entered into interest rate swap contracts to help commercial loan borrowers manage their interest rate risk. The interest rate swap contracts with commercial loan borrowers allow them to convert floating-rate loan payments to fixed-rate loan payments. When we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter into a “mirror” swap contract with a third party. The third party exchanges the client’s fixed‑rate loan payments for floating-rate loan payments. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of March 31, 2015 and December 31, 2014, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $209.4 million and $165.8 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. | |
Risk Participation Agreements | |
In 2015, the Corporation entered into a risk participation agreement (“RPA”) with another bank participating in a commercial loan arrangement. The participating bank guarantees the performance on a borrower-related interest rate swap contract. The RPA represents a purchased guarantee that is recorded as an asset and under the RPA the Corporation participates out the risk associated with the interest rate swap position executed with the commercial borrower, for a net fee paid to the participating bank, classified in net gains on interest rate swap contracts. The RPA derivative asset is recorded at fair value and changes in the fair value of the derivative asset are recognized in earnings in the period of change. As of March 31, 2015, the notional amount of the RPA was $12.5 million. | |
Loan Commitments | |
Interest rate lock commitments are extended to borrowers and 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, forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell 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 certain 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) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Policy | 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. There were no Level 1 securities held at March 31, 2015 and December 31, 2014. | |
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, obligations of states and political subdivisions, trust preferred debt securities and corporate bonds. | |
Securities not actively traded whose fair value is determined through the use of cash flows utilizing inputs that are unobservable are classified as Level 3. There were no Level 3 securities held at March 31, 2015 and December 31, 2014. | |
Mortgage Loans Held for Sale | |
The fair values of mortgage loans held for sale are generally estimated based on secondary market rates offered for loans with similar characteristics. When secondary market information exists, these loans are classified as Level 2. 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 changes in the valuation of mortgage loans held for sale is based upon the change in market interest rates between the loan closing date and the measurement date and an immaterial portion attributable to changes in instrument-specific credit risk. There were no Level 3 mortgage loans held for sale at March 31, 2015 and December 31, 2014. | |
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. For purposes of potential valuation adjustments to its interest rate swap contracts and risk participation agreements, 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. | |
Level 2 fair value measurements of forward loan commitments (interest rate lock commitments and commitments to sell residential real estate mortgages) are estimated using the anticipated market price based on pricing indications provided by other financial institutions. 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. There were no Level 3 forward loan commitments held at March 31, 2015 and December 31, 2014. | |
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. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. For collateral dependent loans for which repayment is dependent on the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is dependent on the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. | |
Property Acquired Through Foreclosure or Repossession | |
Property acquired through foreclosure or repossession included in other assets in the Consolidated Balance Sheets is adjusted to fair value less costs to sell upon transfer out of loans through a charge to allowance for loan losses. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Such subsequent valuation charges are charged through earnings. Fair value is generally based upon appraised values of the collateral. Management 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 the property, and such property is categorized as Level 3. | |
Fair Value Transfer Policy | It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. During the three months ended March 31, 2015 and 2014, there were no transfers in and/or out of Level 1, 2 or 3. |
Fair Value of Financial Instruments Policy | Valuation of Other Financial Instruments |
The methodologies for estimating the fair value of financial instruments that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial instruments are discussed below. | |
Loans | |
Fair values are estimated for categories of loans with similar financial characteristics. Loans are segregated by type and are then further segmented into fixed-rate and adjustable-rate interest terms to determine their fair value. The fair value of fixed-rate commercial and consumer loans is calculated by discounting scheduled cash flows through the estimated maturity of the loan using interest rates offered at the measurement date that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans on the secondary market. The fair value of floating rate commercial and consumer loans approximates carrying value. Fair value for impaired loans is estimated using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of the collateral. Loans are classified within Level 3 of the fair value hierarchy. | |
Time Deposits | |
The discounted values of cash flows using the rates currently offered for deposits of similar remaining maturities were used to estimate the fair value of time deposits. Time deposits are classified within Level 2 of the fair value hierarchy. | |
Federal Home Loan Bank Advances | |
Rates currently available to the Corporation for advances with similar terms and remaining maturities are used to estimate fair value of existing advances. FHLBB advances are categorized as Level 2. | |
Junior Subordinated Debentures | |
The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. |
Defined_Benefit_Pension_Plans_
Defined Benefit Pension Plans (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Plans Policy | The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. Defined benefit pension plans were previously amended to freeze benefit accruals after a 10-year transition period ending in December 2023. |
Business_Segments_Policies
Business Segments (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 unit include activity not related to the segments. 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, 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 investment management; financial planning; personal trust services, including services as trustee, administrator, custodian and guardian; and estate settlement. Institutional trust services are also provided, including fiduciary 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, net gain on sale of business line as well as administrative and executive expenses not allocated to the operating segments and the residual impact of methodology allocations such as funds transfer pricing offsets. |
Earnings_Per_Common_Share_Poli
Earnings Per Common Share (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Policy | Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share-based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available. |
Commitments_and_Contingencies_
Commitments and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 interest rate lock commitments and commitments to sell residential real estate 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) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||||||
March 31, 2015 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,203 | $98 | $— | $31,301 | ||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 222,547 | 10,498 | — | 233,045 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 42,664 | 1,515 | — | 44,179 | ||||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | 30,762 | — | (4,475 | ) | 26,287 | |||||||||||||||||||||||||
Corporate bonds | 6,119 | 36 | (25 | ) | 6,130 | |||||||||||||||||||||||||
Total securities available for sale | $333,295 | $12,147 | ($4,500 | ) | $340,942 | |||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $24,025 | $809 | $— | $24,834 | ||||||||||||||||||||||||||
Total securities held to maturity | $24,025 | $809 | $— | $24,834 | ||||||||||||||||||||||||||
Total securities | $357,320 | $12,956 | ($4,500 | ) | $365,776 | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
December 31, 2014 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,205 | $21 | ($54 | ) | $31,172 | |||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 235,343 | 10,023 | — | 245,366 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 47,647 | 1,529 | — | 49,176 | ||||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | 30,753 | — | (4,979 | ) | 25,774 | |||||||||||||||||||||||||
Corporate bonds | 6,120 | 57 | (3 | ) | 6,174 | |||||||||||||||||||||||||
Total securities available for sale | $351,068 | $11,630 | ($5,036 | ) | $357,662 | |||||||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $25,222 | $786 | $— | $26,008 | ||||||||||||||||||||||||||
Total securities held to maturity | $25,222 | $786 | $— | $26,008 | ||||||||||||||||||||||||||
Total securities | $376,290 | $12,416 | ($5,036 | ) | $383,670 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
March 31, 2015 | 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 | $— | $31,003 | $200 | $— | $31,203 | |||||||||||||||||||||||||
Weighted average yield | — | % | 1.72 | % | 2.32 | % | — | % | 1.73 | % | ||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||
Amortized cost | 37,723 | 100,409 | 57,461 | 26,954 | 222,547 | |||||||||||||||||||||||||
Weighted average yield | 3.71 | 3.3 | 2.81 | 1.76 | 3.06 | |||||||||||||||||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||||||||
Amortized cost | 3,601 | 24,267 | 14,796 | — | 42,664 | |||||||||||||||||||||||||
Weighted average yield | 3.78 | 3.94 | 3.99 | — | 3.95 | |||||||||||||||||||||||||
Individual name issuer trust preferred debt securities: | ||||||||||||||||||||||||||||||
Amortized cost | — | — | — | 30,762 | 30,762 | |||||||||||||||||||||||||
Weighted average yield | — | — | — | 1.11 | 1.11 | |||||||||||||||||||||||||
Corporate bonds: | ||||||||||||||||||||||||||||||
Amortized cost | 5,713 | 203 | 203 | — | 6,119 | |||||||||||||||||||||||||
Weighted average yield | 2.84 | 1.62 | 3.21 | — | 2.81 | |||||||||||||||||||||||||
Total debt securities available for sale: | ||||||||||||||||||||||||||||||
Amortized cost | $47,037 | $155,882 | $72,660 | $57,716 | $333,295 | |||||||||||||||||||||||||
Weighted average yield | 3.61 | % | 3.09 | % | 3.05 | % | 1.42 | % | 2.86 | % | ||||||||||||||||||||
Fair value | $48,955 | $161,578 | $75,897 | $54,512 | $340,942 | |||||||||||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | ||||||||||||||||||||||||||||||
Amortized cost | $3,007 | $9,323 | $7,364 | $4,331 | $24,025 | |||||||||||||||||||||||||
Weighted average yield | 3.11 | % | 3.03 | % | 2.78 | % | 0.89 | % | 2.58 | % | ||||||||||||||||||||
Fair value | $3,108 | $9,637 | $7,612 | $4,477 | $24,834 | |||||||||||||||||||||||||
Included in the above table are debt securities with an amortized cost balance of $98.1 million and a fair value of $95.0 million at March 31, 2015 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 6 months to 22 years, with call features ranging from 1 month to 2 years. | ||||||||||||||||||||||||||||||
Securities in a Continuous Unrealized Loss Position | Other-Than-Temporary Impairment Assessment | |||||||||||||||||||||||||||||
The Corporation assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other‑than‑temporary. | ||||||||||||||||||||||||||||||
The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||
March 31, 2015 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||
Individual name issuer trust preferred debt securities | — | $— | $— | 11 | $26,287 | ($4,475 | ) | 11 | $26,287 | ($4,475 | ) | |||||||||||||||||||
Corporate bonds | 1 | 1,975 | (25 | ) | — | — | — | 1 | 1,975 | (25 | ) | |||||||||||||||||||
Total temporarily impaired securities | 1 | $1,975 | ($25 | ) | 11 | $26,287 | ($4,475 | ) | 12 | $28,262 | ($4,500 | ) | ||||||||||||||||||
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||
December 31, 2014 | # | Fair | Unrealized | # | Fair | Unrealized | # | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 3 | $20,952 | ($54 | ) | — | $— | $— | 3 | $20,952 | ($54 | ) | |||||||||||||||||||
Individual name issuer trust preferred debt securities | — | — | — | 11 | 25,774 | (4,979 | ) | 11 | 25,774 | (4,979 | ) | |||||||||||||||||||
Corporate bonds | — | — | — | 1 | 199 | (3 | ) | 1 | 199 | (3 | ) | |||||||||||||||||||
Total temporarily impaired securities | 3 | $20,952 | ($54 | ) | 12 | $25,973 | ($4,982 | ) | 15 | $46,925 | ($5,036 | ) | ||||||||||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Summary of Loans | The following is a summary of loans: | |||||||||||||||||||||||
(Dollars in thousands) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages (1) | $865,042 | 30 | % | $843,978 | 30 | % | ||||||||||||||||||
Construction & development (2) | 89,851 | 3 | 79,592 | 3 | ||||||||||||||||||||
Commercial & industrial (3) | 604,630 | 21 | 611,918 | 21 | ||||||||||||||||||||
Total commercial | 1,559,523 | 54 | 1,535,488 | 54 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 954,905 | 33 | 948,731 | 33 | ||||||||||||||||||||
Homeowner construction | 32,659 | 1 | 36,684 | 1 | ||||||||||||||||||||
Total residential real estate | 987,564 | 34 | 985,415 | 34 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 239,537 | 8 | 242,480 | 8 | ||||||||||||||||||||
Home equity loans | 46,727 | 2 | 46,967 | 2 | ||||||||||||||||||||
Other (4) | 47,241 | 2 | 48,926 | 2 | ||||||||||||||||||||
Total consumer | 333,505 | 12 | 338,373 | 12 | ||||||||||||||||||||
Total loans (5) | $2,880,592 | 100 | % | $2,859,276 | 100 | % | ||||||||||||||||||
-1 | Loans primarily secured by income producing property. | |||||||||||||||||||||||
-2 | Loans for construction of 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. | |||||||||||||||||||||||
-4 | Consumer installment loans and loans secured by general aviation aircraft and automobiles. | |||||||||||||||||||||||
-5 | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||
Nonaccrual Loans | The following is a summary of nonaccrual loans, segregated by class of loans: | |||||||||||||||||||||||
(Dollars in thousands) | Mar 31, | Dec 31, | ||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $5,115 | $5,315 | ||||||||||||||||||||||
Construction & development | — | — | ||||||||||||||||||||||
Commercial & industrial | 2,193 | 1,969 | ||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 6,956 | 7,124 | ||||||||||||||||||||||
Homeowner construction | — | — | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1,051 | 1,217 | ||||||||||||||||||||||
Home equity loans | 511 | 317 | ||||||||||||||||||||||
Other | 39 | 3 | ||||||||||||||||||||||
Total nonaccrual loans | $15,865 | $15,945 | ||||||||||||||||||||||
Accruing loans 90 days or more past due | $— | $— | ||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, nonaccrual loans of $3.6 million and $3.2 million, respectively, were current as to the payment of principal and interest. | ||||||||||||||||||||||||
Past Due Loans | Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans: | |||||||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
March 31, 2015 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $497 | $61 | $5,115 | $5,673 | $859,369 | $865,042 | ||||||||||||||||||
Construction & development | — | — | — | — | 89,851 | 89,851 | ||||||||||||||||||
Commercial & industrial | 229 | 229 | 721 | 1,179 | 603,451 | 604,630 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 4,470 | 1,352 | 3,607 | 9,429 | 945,476 | 954,905 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 32,659 | 32,659 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 1,244 | 429 | 463 | 2,136 | 237,401 | 239,537 | ||||||||||||||||||
Home equity loans | 213 | 111 | 255 | 579 | 46,148 | 46,727 | ||||||||||||||||||
Other | 55 | 25 | 5 | 85 | 47,156 | 47,241 | ||||||||||||||||||
Total loans | $6,708 | $2,207 | $10,166 | $19,081 | $2,861,511 | $2,880,592 | ||||||||||||||||||
(Dollars in thousands) | Days Past Due | |||||||||||||||||||||||
December 31, 2014 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $— | $— | $5,315 | $5,315 | $838,663 | $843,978 | ||||||||||||||||||
Construction & development | — | — | — | — | 79,592 | 79,592 | ||||||||||||||||||
Commercial & industrial | 2,136 | 1,202 | 181 | 3,519 | 608,399 | 611,918 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2,943 | 821 | 3,284 | 7,048 | 941,683 | 948,731 | ||||||||||||||||||
Homeowner construction | — | — | — | — | 36,684 | 36,684 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 570 | 100 | 841 | 1,511 | 240,969 | 242,480 | ||||||||||||||||||
Home equity loans | 349 | 240 | 56 | 645 | 46,322 | 46,967 | ||||||||||||||||||
Other | 35 | 5 | — | 40 | 48,886 | 48,926 | ||||||||||||||||||
Total loans | $6,033 | $2,368 | $9,677 | $18,078 | $2,841,198 | $2,859,276 | ||||||||||||||||||
Included in past due loans as of March 31, 2015 and December 31, 2014, were nonaccrual loans of $12.3 million and $12.7 million, respectively. All loans 90 days or more past due at March 31, 2015 and December 31, 2014 were classified as nonaccrual. | ||||||||||||||||||||||||
Impaired Loans | The following is a summary of impaired loans: | |||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment (1) | Unpaid Principal | Related Allowance | |||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
No Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $205 | $432 | $205 | $432 | $— | $— | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1,322 | 1,047 | 1,323 | 1,076 | — | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,618 | 1,477 | 1,912 | 1,768 | — | — | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | 3,145 | 2,956 | 3,440 | 3,276 | — | — | ||||||||||||||||||
With Related Allowance Recorded: | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $14,384 | $14,585 | $14,564 | $14,564 | $1,173 | $927 | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1,754 | 1,878 | 2,305 | 2,437 | 185 | 177 | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1,296 | 2,226 | 1,423 | 2,338 | 222 | 326 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 244 | 250 | 250 | 250 | 76 | 141 | ||||||||||||||||||
Home equity loans | 72 | 45 | 116 | 62 | 1 | 12 | ||||||||||||||||||
Other | 151 | 112 | 151 | 114 | — | — | ||||||||||||||||||
Subtotal | 17,901 | 19,096 | 18,809 | 19,765 | 1,657 | 1,583 | ||||||||||||||||||
Total impaired loans | $21,046 | $22,052 | $22,249 | $23,041 | $1,657 | $1,583 | ||||||||||||||||||
Total: | ||||||||||||||||||||||||
Commercial | $17,665 | $17,942 | $18,397 | $18,509 | $1,358 | $1,104 | ||||||||||||||||||
Residential real estate | 2,914 | 3,703 | 3,335 | 4,106 | 222 | 326 | ||||||||||||||||||
Consumer | 467 | 407 | 517 | 426 | 77 | 153 | ||||||||||||||||||
Total impaired loans | $21,046 | $22,052 | $22,249 | $23,041 | $1,657 | $1,583 | ||||||||||||||||||
-1 | The recorded investment in impaired loans consists of unpaid principal balance net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | |||||||||||||||||||||||
The following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class: | ||||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | $14,942 | $28,340 | $79 | $165 | ||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||
Commercial & industrial | 3,036 | 2,366 | 19 | 23 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 3,457 | 3,744 | 16 | 14 | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | 247 | 134 | — | 1 | ||||||||||||||||||||
Home equity loans | 74 | 95 | — | 1 | ||||||||||||||||||||
Other | 146 | 125 | 3 | 2 | ||||||||||||||||||||
Totals | $21,902 | $34,804 | $117 | $206 | ||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
The following table presents loans modified as a troubled debt restructuring: | ||||||||||||||||||||||||
(Dollars in thousands) | Outstanding Recorded Investment (1) | |||||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | — | — | $— | $— | $— | $— | ||||||||||||||||||
Construction & development | — | — | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 1 | — | 300 | — | 300 | — | ||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 1 | 2 | 93 | 479 | 93 | 479 | ||||||||||||||||||
Homeowner construction | — | — | — | — | — | — | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | ||||||||||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||||||||
Other | 1 | — | 35 | — | 35 | — | ||||||||||||||||||
Totals | 3 | 2 | $428 | $479 | $428 | $479 | ||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Troubled Debt Restructurings Type of Modification | The following table provides information on how loans were modified as a troubled debt restructuring: | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||||||
Below-market interest rate concession | $335 | $— | ||||||||||||||||||||||
Payment deferral | 93 | 479 | ||||||||||||||||||||||
Maturity / amortization concession | — | — | ||||||||||||||||||||||
Interest only payments | — | — | ||||||||||||||||||||||
Combination (1) | — | — | ||||||||||||||||||||||
Total | $428 | $479 | ||||||||||||||||||||||
-1 | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. | |||||||||||||||||||||||
Troubled Debt Restructurings Subsequent Default | ||||||||||||||||||||||||
The following table presents loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default: | ||||||||||||||||||||||||
(Dollars in thousands) | # of Loans | Recorded Investment (1) | ||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Mortgages | — | — | $— | $— | ||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||
Commercial & industrial | 2 | 6 | 11 | 1,191 | ||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Mortgages | 2 | — | 338 | — | ||||||||||||||||||||
Homeowner construction | — | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | — | — | — | — | ||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | ||||||||||||||||||||
Totals | 4 | 6 | $349 | $1,191 | ||||||||||||||||||||
-1 | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||||||||||||||||||||||
Credit Quality Indicators - Commercial | The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: | |||||||||||||||||||||||
(Dollars in thousands) | Pass | Special Mention | Classified | |||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Mortgages | $842,516 | $819,857 | $17,207 | $18,372 | $5,319 | $5,749 | ||||||||||||||||||
Construction & development | 89,851 | 79,592 | — | — | — | — | ||||||||||||||||||
Commercial & industrial | 586,370 | 592,206 | 15,536 | 16,311 | 2,724 | 3,401 | ||||||||||||||||||
Total commercial loans | $1,518,737 | $1,491,655 | $32,743 | $34,683 | $8,043 | $9,150 | ||||||||||||||||||
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) | Current and Under 90 Days Past Due | Over 90 Days | ||||||||||||||||||||||
Past Due | ||||||||||||||||||||||||
Mar 31, | Dec 31, | Mar 31, | Dec 31, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Accruing mortgages | $947,949 | $941,607 | $— | $— | ||||||||||||||||||||
Nonaccrual mortgages | 3,349 | 3,840 | 3,607 | 3,284 | ||||||||||||||||||||
Homeowner construction | 32,659 | 36,684 | — | — | ||||||||||||||||||||
Total residential loans | $983,957 | $982,131 | $3,607 | $3,284 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines | $239,074 | $241,639 | $463 | $841 | ||||||||||||||||||||
Home equity loans | 46,472 | 46,911 | 255 | 56 | ||||||||||||||||||||
Other | 47,236 | 48,926 | 5 | — | ||||||||||||||||||||
Total consumer loans | $332,782 | $337,476 | $723 | $897 | ||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Allowance for Loan Losses Rollforward Analysis | ||||||||||||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses for three months ended March 31, 2015: | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | |||||||||||||||||||||||||||||||
Mortgages | Construction | C&I (1) | Total Commercial | Residential | Consumer | Un-allocated | Total | |||||||||||||||||||||||||
Beginning Balance | $8,202 | $1,300 | $7,987 | $17,489 | $5,430 | $2,713 | $2,391 | $28,023 | ||||||||||||||||||||||||
Charge-offs | (200 | ) | — | (7 | ) | (207 | ) | (48 | ) | (66 | ) | — | (321 | ) | ||||||||||||||||||
Recoveries | 80 | — | 14 | 94 | 2 | 12 | — | 108 | ||||||||||||||||||||||||
Provision | 249 | (71 | ) | (191 | ) | (13 | ) | (29 | ) | 72 | (30 | ) | — | |||||||||||||||||||
Ending Balance | $8,331 | $1,229 | $7,803 | $17,363 | $5,355 | $2,731 | $2,361 | $27,810 | ||||||||||||||||||||||||
(1) Commercial & industrial loans. | ||||||||||||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses for three months ended March 31, 2014. Prior to December 31, 2014, the unallocated allowance included amounts for management’s qualitative and quantitative assessment of certain other loan portfolio risks not captured in other components of the allowance. The 2014 presentation of the allowance for loan losses by portfolio segment, set forth below, has been revised to conform to the December 31, 2014 presentation format. The reclassification resulted in a reduction of $5.3 million in the unallocated allowance previously reported as of March 31, 2014, with a corresponding increase to the allowance by portfolio segment. The reclassification resulted in no change in the total allowance. | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | |||||||||||||||||||||||||||||||
Mortgages | Construction | C&I (1) | Total Commercial | Residential | Consumer | Un-allocated | Total | |||||||||||||||||||||||||
Beginning Balance | $8,022 | $383 | $7,835 | $16,240 | $6,450 | $2,511 | $2,685 | $27,886 | ||||||||||||||||||||||||
Charge-offs | (945 | ) | — | (196 | ) | (1,141 | ) | (42 | ) | (40 | ) | — | (1,223 | ) | ||||||||||||||||||
Recoveries | 6 | — | 26 | 32 | 35 | 13 | — | 80 | ||||||||||||||||||||||||
Provision | (536 | ) | (114 | ) | 805 | 155 | 705 | 93 | (653 | ) | 300 | |||||||||||||||||||||
Ending Balance | $6,547 | $269 | $8,470 | $15,286 | $7,148 | $2,577 | $2,032 | $27,043 | ||||||||||||||||||||||||
(1) Commercial & industrial loans. | ||||||||||||||||||||||||||||||||
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology: | |||||||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
Loans | Related Allowance | Loans | Related Allowance | |||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $14,563 | $1,173 | $14,991 | $927 | ||||||||||||||||||||||||||||
Construction & development | — | — | — | — | ||||||||||||||||||||||||||||
Commercial & industrial | 3,074 | 185 | 2,921 | 177 | ||||||||||||||||||||||||||||
Residential real estate | 2,912 | 222 | 3,698 | 326 | ||||||||||||||||||||||||||||
Consumer | 467 | 77 | 409 | 153 | ||||||||||||||||||||||||||||
Subtotal | $21,016 | $1,657 | $22,019 | $1,583 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated for Impairment: | ||||||||||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Mortgages | $850,479 | $7,158 | $828,987 | $7,275 | ||||||||||||||||||||||||||||
Construction & development | 89,851 | 1,229 | 79,592 | 1,300 | ||||||||||||||||||||||||||||
Commercial & industrial | 601,556 | 7,618 | 608,997 | 7,810 | ||||||||||||||||||||||||||||
Residential real estate | 984,652 | 5,133 | 981,717 | 5,104 | ||||||||||||||||||||||||||||
Consumer | 333,038 | 2,654 | 337,964 | 2,560 | ||||||||||||||||||||||||||||
Subtotal | $2,859,576 | $23,792 | $2,837,257 | $24,049 | ||||||||||||||||||||||||||||
Unallocated | — | 2,361 | — | 2,391 | ||||||||||||||||||||||||||||
Total | $2,880,592 | $27,810 | $2,859,276 | $28,023 | ||||||||||||||||||||||||||||
Time_Certificates_of_Deposit_T
Time Certificates of Deposit (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deposits [Abstract] | |||||||
Schedule of Time Certificates of Deposit Maturities | The following table presents scheduled maturities of time certificates of deposit: | ||||||
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | |||||
April 1, 2015 to December 31, 2015 | $296,731 | 0.67 | % | ||||
2016 | 177,667 | 1.02 | |||||
2017 | 152,730 | 1.11 | |||||
2018 | 77,579 | 1.35 | |||||
2019 | 122,693 | 1.76 | |||||
2020 and thereafter | 25,221 | 1.52 | |||||
Balance at March 31, 2015 | $852,621 | 1.07 | % | ||||
Schedule of Time Certificates of Deposit $100 Thousand or More Maturities | |||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Federal Home Loan Bank Advances Maturities | The following table presents maturities and weighted average interest rates on FHLBB advances outstanding as of March 31, 2015: | ||||||
(Dollars in thousands) | Total Outstanding | Weighted | |||||
Average Rate | |||||||
April 1, 2015 to December 31, 2015 | $160,520 | 0.49 | % | ||||
2016 | 31,792 | 0.6 | % | ||||
2017 | 30,075 | 5.44 | % | ||||
2018 | 58,634 | 1.56 | % | ||||
2019 | 42,661 | 4.4 | % | ||||
2020 and thereafter | 62,310 | 3.17 | % | ||||
Balance at March 31, 2015 | $385,992 | 1.91 | % | ||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||
Regulatory Capital Requirements | The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum required capital ratios and minimum capital ratios required for the Bank to be “well capitalized” for purposes of the Federal Deposit Insurance Corporation’s (“FDIC”) prompt corrective action provisions: | |||||||||||||||||||
(Dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be “Well Capitalized” Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $352,521 | 12.8 | % | $220,262 | 8 | % | N/A | N/A | ||||||||||||
Bank | 347,674 | 12.63 | 220,187 | 8 | 275,234 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 324,375 | 11.78 | 165,196 | 6 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 11.61 | 165,140 | 6 | 220,187 | 8 | ||||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets): (1) | ||||||||||||||||||||
Corporation | 302,376 | 10.98 | 123,897 | 4.5 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 11.61 | 123,855 | 4.5 | 178,902 | 6.5 | ||||||||||||||
Tier 1 Capital (to Average Assets): (2) | ||||||||||||||||||||
Corporation | 324,375 | 9.21 | 140,864 | 4 | N/A | N/A | ||||||||||||||
Bank | 319,528 | 9.08 | 140,738 | 4 | 175,922 | 5 | ||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 343,934 | 12.56 | 219,149 | 8 | 273,936 | N/A | ||||||||||||||
Bank | 339,268 | 12.39 | 219,075 | 8 | 273,844 | 10 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 315,575 | 11.52 | 109,574 | 4 | 164,361 | N/A | ||||||||||||||
Bank | 310,909 | 11.35 | 109,537 | 4 | 164,306 | 6 | ||||||||||||||
Tier 1 Capital (to Average Assets): (2) | ||||||||||||||||||||
Corporation | 315,575 | 9.14 | 138,090 | 4 | 172,612 | N/A | ||||||||||||||
Bank | 310,909 | 9.01 | 137,964 | 4 | 172,454 | 5 | ||||||||||||||
-1 | New capital ratio effective January 1, 2015 under the Basel III capital requirements. See additional discussion of Basel III and the new regulatory capital requirements in the “Supervision and Regulation” section in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | |||||||||||||||||||
(2) Leverage ratio. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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: | |||||||||||||||||
(Dollars in thousands) | Asset Derivatives | Liability Derivatives | ||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||
Balance Sheet Location | Mar 31, 2015 | Dec 31, 2014 | Balance Sheet Location | Mar 31, 2015 | Dec 31, 2014 | |||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||
Interest rate swap contracts | Other assets | $— | $— | Other liabilities | $367 | $497 | ||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||
Interest rate lock commitments | Other assets | 1,769 | 1,212 | Other liabilities | 5 | 20 | ||||||||||||
Commitments to sell mortgage loans | Other assets | 14 | 13 | Other liabilities | 2,970 | 2,028 | ||||||||||||
Customer related derivative contracts: | ||||||||||||||||||
Interest rate swaps with customers | Other assets | 7,415 | 4,554 | Other liabilities | — | 23 | ||||||||||||
Mirror swaps with counterparties | Other assets | — | 28 | Other liabilities | 7,699 | 4,748 | ||||||||||||
Risk participation agreement | Other assets | 47 | — | Other liabilities | — | — | ||||||||||||
Total | $9,245 | $5,807 | $11,041 | $7,316 | ||||||||||||||
Derivative Instruments Effect in Statements of Income and Changes in Shareholders' Equity | The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity: | |||||||||||||||||
(Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income (Ineffective Portion) | |||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | ||||||||||||||||||
Interest rate risk management contracts: | ||||||||||||||||||
Interest rate swap contracts | $85 | $76 | Interest Expense | $— | $— | |||||||||||||
Total | $85 | $76 | $— | $— | ||||||||||||||
(Dollars in thousands) | Amount of Gain (Loss) Recognized in Income on Derivative | |||||||||||||||||
Three months ended March 31, | Statement of Income Location | 2015 | 2014 | |||||||||||||||
Derivatives not Designated as Hedging Instruments: | ||||||||||||||||||
Forward loan commitments: | ||||||||||||||||||
Interest rate lock commitments | Net gains on loan sales & commissions on loans originated for others | $572 | $277 | |||||||||||||||
Commitments to sell mortgage loans | Net gains on loan sales & commissions on loans originated for others | (941 | ) | (313 | ) | |||||||||||||
Customer related derivative contracts: | ||||||||||||||||||
Interest rate swaps with customers | Net gains on interest rate swap contracts | 3,633 | 1,030 | |||||||||||||||
Mirror swaps with counterparties | Net gains on interest rate swap contracts | (2,836 | ) | (770 | ) | |||||||||||||
Risk participation agreement | Net gains on interest rate swap contracts | (152 | ) | — | ||||||||||||||
Total | $276 | $224 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Change in Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments and Commitments to Sell Disclosures | The following table presents the changes in fair value related to mortgage loans held for sale, interest rate lock commitments and commitments to sell residential real estate mortgage loans, for which the fair value option was elected. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||
Mortgage loans held for sale | $341 | $76 | ||||||||||||||||||
Interest rate lock commitments | 572 | 277 | ||||||||||||||||||
Commitments to sell mortgage loans | (941 | ) | (313 | ) | ||||||||||||||||
Total changes in fair value | ($28 | ) | $40 | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Items Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||
The following tables present the balances of assets and liabilities reported at fair value on a recurring basis: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
March 31, 2015 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,301 | $— | $31,301 | $— | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 233,045 | — | 233,045 | — | ||||||||||||||||
Obligations of states and political subdivisions | 44,179 | — | 44,179 | — | ||||||||||||||||
Individual name issuer trust preferred debt securities | 26,287 | — | 26,287 | — | ||||||||||||||||
Corporate bonds | 6,130 | — | 6,130 | — | ||||||||||||||||
Mortgage loans held for sale | 36,672 | — | 36,672 | — | ||||||||||||||||
Derivative assets (1) | 9,245 | — | 9,245 | — | ||||||||||||||||
Total assets at fair value on a recurring basis | $386,859 | $— | $386,859 | $— | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (2) | $11,041 | $— | $11,041 | $— | ||||||||||||||||
Total liabilities at fair value on a recurring basis | $11,041 | $— | $11,041 | $— | ||||||||||||||||
-1 | Derivative assets include interest rate swaps contracts with customers, a risk participation agreement and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||||||||||||||||||
-2 | Derivative liabilities include mirror swaps with counterparties, interest rate risk management contracts and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | |||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Assets: | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,172 | $— | $31,172 | $— | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 245,366 | — | 245,366 | — | ||||||||||||||||
Obligations of states and political subdivisions | 49,176 | — | 49,176 | — | ||||||||||||||||
Individual name issuer trust preferred debt securities | 25,774 | — | 25,774 | — | ||||||||||||||||
Corporate bonds | 6,174 | — | 6,174 | — | ||||||||||||||||
Mortgage loans held for sale | 30,321 | — | 30,321 | — | ||||||||||||||||
Derivative assets (1) | 5,807 | — | 5,807 | — | ||||||||||||||||
Total assets at fair value on a recurring basis | $393,790 | $— | $393,790 | $— | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (2) | $7,316 | $— | $7,316 | $— | ||||||||||||||||
Total liabilities at fair value on a recurring basis | $7,316 | $— | $7,316 | $— | ||||||||||||||||
-1 | Derivative assets include interest rate swaps contracts with customers and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||||||||||||||||||
-2 | Derivative liabilities include mirror swaps with counterparties, interest rate risk management contracts and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheet | |||||||||||||||||||
Schedule of Changes in Level Three Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Items Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets. The valuation methodologies used to measure these fair value adjustments are described above. | ||||||||||||||||||||
The following table summarizes the carrying value of such assets held at March 31, 2015, which were written down to fair value during the three months ended March 31, 2015: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans | $3,962 | $— | $— | $3,962 | ||||||||||||||||
Property acquired through foreclosure or repossession | 318 | — | — | 318 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $4,280 | $— | $— | $4,280 | ||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $1.2 million at March 31, 2015. | ||||||||||||||||||||
The following table summarizes the carrying value of such assets held at December 31, 2014, which were written down to fair value during the year ended December 31, 2014: | ||||||||||||||||||||
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral dependent impaired loans | $5,728 | $— | $— | $5,728 | ||||||||||||||||
Property acquired through foreclosure or repossession | 348 | — | — | 348 | ||||||||||||||||
Total assets at fair value on a nonrecurring basis | $6,076 | $— | $— | $6,076 | ||||||||||||||||
The allowance for loan losses on collateral dependent impaired loans amounted to $1.3 million at December 31, 2014. | ||||||||||||||||||||
Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present valuation techniques and unobservable inputs for 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) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Collateral dependent impaired loans | $3,962 | Appraisals of collateral | Discount for costs to sell | 0% - 25% (10%) | ||||||||||||||||
Appraisal adjustments (1) | 0% - 15% (1%) | |||||||||||||||||||
Property acquired through foreclosure or repossession | $318 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (6%) | ||||||||||||||||
Appraisal adjustments (1) | 7% - 13% (10%) | |||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Collateral dependent impaired loans | $5,728 | Appraisals of collateral | Discount for costs to sell | 0% - 10% (2%) | ||||||||||||||||
Appraisal adjustments (1) | 0% - 40% (3%) | |||||||||||||||||||
Property acquired through foreclosure or repossession | $348 | Appraisals of collateral | Discount for costs to sell | 6% - 10% (8%) | ||||||||||||||||
Appraisal adjustments (1) | 5% - 23% (14%) | |||||||||||||||||||
-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. 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 and accrued interest payable. | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
March 31, 2015 | Carrying Amount | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Securities held to maturity | $24,025 | $24,834 | $— | $24,834 | $— | |||||||||||||||
Loans, net of allowance for loan losses | 2,852,782 | 2,898,369 | — | — | 2,898,369 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Time deposits | $852,621 | $854,780 | $— | $854,780 | $— | |||||||||||||||
FHLBB advances | 385,992 | 400,770 | — | 400,770 | — | |||||||||||||||
Junior subordinated debentures | 22,681 | 16,974 | — | 16,974 | — | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
December 31, 2014 | Carrying Amount | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Securities held to maturity | $25,222 | $26,008 | $— | $26,008 | $— | |||||||||||||||
Loans, net of allowance for loan losses | 2,831,253 | 2,866,907 | — | — | 2,866,907 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Time deposits | $874,102 | $872,570 | $— | $872,570 | $— | |||||||||||||||
FHLBB advances | 406,297 | 418,005 | — | 418,005 | — | |||||||||||||||
Junior subordinated debentures | 22,681 | 17,201 | — | 17,201 | — | |||||||||||||||
Defined_Benefit_Pension_Plans_1
Defined Benefit Pension Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Components of Net Periodic Benefit Cost | The composition of net periodic benefit cost was as follows: | |||||||||||||||
(Dollars in thousands) | Qualified Pension Plan | Non-Qualified Retirement Plans | ||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||||
Service cost | $615 | $538 | $20 | $12 | ||||||||||||
Interest cost | 732 | 723 | 122 | 120 | ||||||||||||
Expected return on plan assets | (1,129 | ) | (1,016 | ) | — | — | ||||||||||
Amortization of prior service (credit) cost | (6 | ) | (6 | ) | — | — | ||||||||||
Recognized net actuarial loss | 312 | 115 | 61 | 16 | ||||||||||||
Net periodic benefit cost | $524 | $354 | $203 | $148 | ||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Statement of Operations and Total Assets by Reportable Segment | The following table presents the statement of operations and total assets for Washington Trust’s reportable segments: | |||||||||||||||||||||||||||
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | ||||||||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Net interest income (expense) | $20,625 | $19,739 | ($14 | ) | ($4 | ) | $5,091 | $4,101 | $25,702 | $23,836 | ||||||||||||||||||
Provision for loan losses | — | 300 | — | — | — | — | — | 300 | ||||||||||||||||||||
Net interest income (expense) after provision for loan losses | 20,625 | 19,439 | (14 | ) | (4 | ) | 5,091 | 4,101 | 25,702 | 23,536 | ||||||||||||||||||
Noninterest income | 5,078 | 4,541 | 8,435 | 8,065 | 507 | 6,764 | 14,020 | 19,370 | ||||||||||||||||||||
Noninterest expenses: | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 671 | 585 | 306 | 311 | 60 | 51 | 1,037 | 947 | ||||||||||||||||||||
Other noninterest expenses | 13,587 | 13,553 | 5,915 | 5,387 | 2,992 | 9,405 | 22,494 | 28,345 | ||||||||||||||||||||
Total noninterest expenses | 14,258 | 14,138 | 6,221 | 5,698 | 3,052 | 9,456 | 23,531 | 29,292 | ||||||||||||||||||||
Income before income taxes | 11,445 | 9,842 | 2,200 | 2,363 | 2,546 | 1,409 | 16,191 | 13,614 | ||||||||||||||||||||
Income tax expense | 3,730 | 3,261 | 844 | 876 | 607 | 179 | 5,181 | 4,316 | ||||||||||||||||||||
Net income | $7,715 | $6,581 | $1,356 | $1,487 | $1,939 | $1,230 | $11,010 | $9,298 | ||||||||||||||||||||
Total assets at period end | $3,015,691 | $2,577,350 | $52,568 | $52,475 | $534,255 | $564,321 | $3,602,514 | $3,194,146 | ||||||||||||||||||||
Expenditures for long-lived assets | 1,067 | 1,075 | 114 | 171 | 45 | 45 | 1,226 | 1,291 | ||||||||||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Activity in Other Comprehensive Income | The following table presents the activity in other comprehensive income: | |||||||||||||||||||
Three months ended March 31, | 2015 | 2014 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Net change in fair value of securities available for sale | 1,053 | 389 | 664 | 964 | 352 | 612 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Change in fair value of cash flow hedges | (32 | ) | (24 | ) | (8 | ) | (43 | ) | (27 | ) | (16 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings (1) | 145 | 52 | 93 | 145 | 53 | 92 | ||||||||||||||
Net change in fair value of cash flow hedges | 113 | 28 | 85 | 102 | 26 | 76 | ||||||||||||||
Defined benefit plan obligation adjustment (2) | 367 | 132 | 235 | 88 | — | 88 | ||||||||||||||
Total other comprehensive income | $1,533 | $549 | $984 | $1,154 | $378 | $776 | ||||||||||||||
-1 | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||||||||||||||||||
-2 | Included in salaries and employee benefits expense in the Consolidated Statements of Income. | |||||||||||||||||||
Components of Accumulated Other Comprehensive Income | The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax: | |||||||||||||||||||
(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, 2014 | $4,110 | $112 | ($287 | ) | ($12,744 | ) | ($8,809 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 664 | — | (8 | ) | — | 656 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 93 | 235 | 328 | |||||||||||||||
Net other comprehensive income | 664 | — | 85 | 235 | 984 | |||||||||||||||
Balance at March 31, 2015 | $4,774 | $112 | ($202 | ) | ($12,509 | ) | ($7,825 | ) | ||||||||||||
(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, 2013 | $3,089 | $112 | ($618 | ) | ($4,136 | ) | ($1,553 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | 612 | — | (16 | ) | — | 596 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 92 | 88 | 180 | |||||||||||||||
Net other comprehensive income | 612 | — | 76 | 88 | 776 | |||||||||||||||
Balance at March 31, 2014 | $3,701 | $112 | ($542 | ) | ($4,048 | ) | ($777 | ) | ||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Calculation of Earnings Per Share | The following table presents the calculation of earnings per common share: | |||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||
Three months ended March 31, | 2015 | 2014 | ||||||
Earnings per common share - basic: | ||||||||
Net income | $11,010 | $9,298 | ||||||
Less dividends and undistributed earnings allocated to participating securities | (39 | ) | (41 | ) | ||||
Net income applicable to common shareholders | $10,971 | $9,257 | ||||||
Weighted average common shares | 16,759 | 16,626 | ||||||
Earnings per common share - basic | $0.65 | $0.56 | ||||||
Earnings per common share - diluted: | ||||||||
Net income | $11,010 | $9,298 | ||||||
Less dividends and undistributed earnings allocated to participating securities | (39 | ) | (41 | ) | ||||
Net income applicable to common shareholders | $10,971 | $9,257 | ||||||
Weighted average common shares | 16,759 | 16,626 | ||||||
Dilutive effect of common stock equivalents | 180 | 174 | ||||||
Weighted average diluted common shares | 16,939 | 16,800 | ||||||
Earnings per common share - diluted | $0.65 | $0.55 | ||||||
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 77,450 and 54,600, respectively, for the three months ended March 31, 2015 and 2014. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Financial Instruments with Off Balance Sheet Risk | ||||||||
(Dollars in thousands) | Mar 31, | Dec 31, | ||||||
2015 | 2014 | |||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $303,443 | $325,402 | ||||||
Home equity lines | 206,515 | 200,932 | ||||||
Other loans | 47,998 | 48,551 | ||||||
Standby letters of credit | 5,248 | 5,102 | ||||||
Financial instruments whose notional amounts exceed the amount of credit risk: | ||||||||
Forward loan commitments: | ||||||||
Interest rate lock commitments | 60,546 | 40,015 | ||||||
Commitments to sell mortgage loans | 106,457 | 84,808 | ||||||
Customer related derivative contracts: | ||||||||
Interest rate swaps with customers | 209,416 | 165,795 | ||||||
Mirror swaps with counterparties | 209,416 | 165,795 | ||||||
Interest rate risk management contracts: | ||||||||
Interest rate swaps | 22,681 | 22,681 | ||||||
Cash_and_Due_from_Banks_Narrat
Cash and Due from Banks (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $10.10 | $8 |
Interest-bearing deposits in other banks | $47 | $42.70 |
Securities_Narrative_Details
Securities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Fair Value of Available for Sale and Held to Maturity securities pledged as collateral | 347.6 | $350.50 |
Amortized cost of callable debt securities | 98.1 | |
Fair value of callable debt securities | 95 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total, Number | 12 | |
Securities in unrealized loss position, number of companies issuing securities | 7 | |
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | 11.9 | |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 2 | |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Total, Number | 11 | 11 |
Minimum [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Callable Debt Securities, Maturity Period | 6 months | |
Callable Debt Securities, Call Feature, Period | 1 month | |
Maximum [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Callable Debt Securities, Maturity Period | 22 years | |
Callable Debt Securities, Call Feature, Period | 2 years |
Securities_Summary_of_Investme
Securities (Summary of Investments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | $333,295 | $351,068 |
Available for sale securities unrealized gains | 12,147 | 11,630 |
Available for sale securities unrealized losses | -4,500 | -5,036 |
Available for sale, at fair value | 340,942 | 357,662 |
Held to maturity securities | 24,025 | 25,222 |
Held to maturity securities unrealized gains | 809 | 786 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 24,834 | 26,008 |
Total available for sale and held to maturity securities amortized cost | 357,320 | 376,290 |
Total available for sale and held to maturity securities unrealized gains | 12,956 | 12,416 |
Total available for sale and held to maturity securities unrealized losses | -4,500 | -5,036 |
Total available for sale and held to maturity securities fair value | 365,776 | 383,670 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 31,203 | 31,205 |
Available for sale securities unrealized gains | 98 | 21 |
Available for sale securities unrealized losses | 0 | -54 |
Available for sale, at fair value | 31,301 | 31,172 |
Mortgage-backed securities issued by US Government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 222,547 | 235,343 |
Available for sale securities unrealized gains | 10,498 | 10,023 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale, at fair value | 233,045 | 245,366 |
Held to maturity securities | 24,025 | 25,222 |
Held to maturity securities unrealized gains | 809 | 786 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 24,834 | 26,008 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 42,664 | 47,647 |
Available for sale securities unrealized gains | 1,515 | 1,529 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale, at fair value | 44,179 | 49,176 |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 30,762 | 30,753 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | -4,475 | -4,979 |
Available for sale, at fair value | 26,287 | 25,774 |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 6,119 | 6,120 |
Available for sale securities unrealized gains | 36 | 57 |
Available for sale securities unrealized losses | -25 | -3 |
Available for sale, at fair value | $6,130 | $6,174 |
Securities_Securities_by_Contr
Securities (Securities by Contractual Maturity) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | $47,037 | |
Available for sale debt securities maturities 1-5 years amortized cost | 155,882 | |
Available for sale debt securities maturities 5-10 years amortized cost | 72,660 | |
Available for sale debt securities maturities after 10 years amortized cost | 57,716 | |
Available for sale debt securities maturities total amortized cost | 333,295 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.61% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.09% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 3.05% | |
Available for sale debt securities maturities after 10 years weighted average yield | 1.42% | |
Available for sale debt securities maturities total weighted average yield | 2.86% | |
Available for sale debt securities maturities within 1 year fair value | 48,955 | |
Available for sale debt securities maturities 1-5 years fair value | 161,578 | |
Available for sale debt securities maturities 5-10 years fair value | 75,897 | |
Available for sale debt securities maturities after 10 years fair value | 54,512 | |
Available for sale debt securities fair value | 340,942 | |
Held to maturity securities | 24,025 | 25,222 |
Held to maturity debt securities maturities within 1 year fair value | 3,108 | |
Held to maturity debt securities maturities 1-5 years fair value | 9,637 | |
Held to maturity debt securities maturities 5-10 years fair value | 7,612 | |
Held to maturity debt securities maturities after 10 years fair value | 4,477 | |
Held to maturity securities fair value | 24,834 | 26,008 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | 0 | |
Available for sale debt securities maturities 1-5 years amortized cost | 31,003 | |
Available for sale debt securities maturities 5-10 years amortized cost | 200 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale debt securities maturities total amortized cost | 31,203 | |
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 | 1.72% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.32% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities total weighted average yield | 1.73% | |
Mortgage-backed securities issued by US Government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | 37,723 | |
Available for sale debt securities maturities 1-5 years amortized cost | 100,409 | |
Available for sale debt securities maturities 5-10 years amortized cost | 57,461 | |
Available for sale debt securities maturities after 10 years amortized cost | 26,954 | |
Available for sale debt securities maturities total amortized cost | 222,547 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.71% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.30% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.81% | |
Available for sale debt securities maturities after 10 years weighted average yield | 1.76% | |
Available for sale debt securities maturities total weighted average yield | 3.06% | |
Held to maturity debt securities maturities within 1 year amortized cost | 3,007 | |
Held to maturity debt securities maturities 1-5 years amortized cost | 9,323 | |
Held to maturity debt securities maturities 5-10 years amortized cost | 7,364 | |
Held to maturity debt securities maturities after 10 years amortized cost | 4,331 | |
Held to maturity securities | 24,025 | 25,222 |
Held to maturity debt securities maturities within 1 year weighted average yield | 3.11% | |
Held to maturity debt securities maturities 1-5 years weighted average yield | 3.03% | |
Held to maturity debt securities maturities 5-10 years weighted average yield | 2.78% | |
Held to maturity debt securities maturities after 10 years weighted average yield | 0.89% | |
Held to maturity debt securities maturities total weighted average yield | 2.58% | |
Held to maturity securities fair value | 24,834 | 26,008 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | 3,601 | |
Available for sale debt securities maturities 1-5 years amortized cost | 24,267 | |
Available for sale debt securities maturities 5-10 years amortized cost | 14,796 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale debt securities maturities total amortized cost | 42,664 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.78% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.94% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 3.99% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities total weighted average yield | 3.95% | |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty 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 | 30,762 | |
Available for sale debt securities maturities total amortized cost | 30,762 | |
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 | 1.11% | |
Available for sale debt securities maturities total weighted average yield | 1.11% | |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | 5,713 | |
Available for sale debt securities maturities 1-5 years amortized cost | 203 | |
Available for sale debt securities maturities 5-10 years amortized cost | 203 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale debt securities maturities total amortized cost | $6,119 | |
Available for sale debt securities maturities within 1 year weighted average yield | 2.84% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 1.62% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 3.21% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities total weighted average yield | 2.81% |
Securities_Securities_in_a_Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | security | security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | 1 | |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $1,975 | |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -25 | |
Number of securities in a continuous unrealized loss position for 12 months or longer | 11 | |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 26,287 | |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -4,475 | |
Number of securities in a continuous unrealized loss position total | 12 | |
Fair value of securities in a continuous unrealized loss position total | 28,262 | |
Unrealized losses of securities in a continuous unrealized loss position total | -4,500 | |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | 3 | |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 20,952 | |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -54 | |
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 | 3 | |
Fair value of securities in a continuous unrealized loss position total | 20,952 | |
Unrealized losses of securities in a continuous unrealized loss position total | -54 | |
Individual name issuer trust preferred debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | 0 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 11 | 11 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 26,287 | 25,774 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | -4,475 | -4,979 |
Number of securities in a continuous unrealized loss position total | 11 | 11 |
Fair value of securities in a continuous unrealized loss position total | 26,287 | 25,774 |
Unrealized losses of securities in a continuous unrealized loss position total | -4,475 | -4,979 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | 1 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | 1,975 | 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | -25 | 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | 0 | 1 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | 0 | 199 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | 0 | -3 |
Number of securities in a continuous unrealized loss position total | 1 | 1 |
Fair value of securities in a continuous unrealized loss position total | 1,975 | 199 |
Unrealized losses of securities in a continuous unrealized loss position total | ($25) | ($3) |
Loans_Narrative_Details
Loans (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Loans Receivable Net Deferred Cost Originated | $2,200,000 | $2,100,000 |
Loans Receivable Net Deferred Premium on Purchased Loans | 92,000 | 94,000 |
Loans Pledged as Collateral | 1,240,000,000 | 1,210,000,000 |
Past Due Loans on Nonaccrual | $12,300,000 | $12,700,000 |
Loans_Narrative_Troubled_Debt_
Loans (Narrative - Troubled Debt Restructurings) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Recorded investment in troubled debt restructurings | $17,700,000 | $18,400,000 |
Interest Receivable | 30,000 | 33,000 |
Specific Reserves on Troubled Debt Restructurings | $1,500,000 | $1,200,000 |
Loans_Narrative_Credit_Quality
Loans (Narrative - Credit Quality Indicators) (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
rating | rating | |
Receivables [Abstract] | ||
Weighted Average Risk Rating, Commercial Loans | 4.68 | 4.67 |
Loans_Summary_of_Loans_Details
Loans (Summary of Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial | $1,559,523 | $1,535,488 | ||
Residential real estate | 987,564 | 985,415 | ||
Consumer | 333,505 | 338,373 | ||
Total loans | 2,880,592 | [1] | 2,859,276 | [1] |
Percent of Total Loans | 100.00% | [1] | 100.00% | [1] |
Commercial Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial | 865,042 | [2] | 843,978 | [2] |
Total loans | 865,042 | 843,978 | ||
Percent of Total Loans | 30.00% | [2] | 30.00% | [2] |
Commercial Construction & Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial | 89,851 | [3] | 79,592 | [3] |
Total loans | 89,851 | 79,592 | ||
Percent of Total Loans | 3.00% | [3] | 3.00% | [3] |
Commercial & Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial | 604,630 | [4] | 611,918 | [4] |
Total loans | 604,630 | 611,918 | ||
Percent of Total Loans | 21.00% | [4] | 21.00% | [4] |
Commercial Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial | 1,559,523 | 1,535,488 | ||
Percent of Total Loans | 54.00% | 54.00% | ||
Residential Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential real estate | 954,905 | 948,731 | ||
Total loans | 954,905 | 948,731 | ||
Percent of Total Loans | 33.00% | 33.00% | ||
Homeowner Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential real estate | 32,659 | 36,684 | ||
Total loans | 32,659 | 36,684 | ||
Percent of Total Loans | 1.00% | 1.00% | ||
Residential Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Residential real estate | 987,564 | 985,415 | ||
Percent of Total Loans | 34.00% | 34.00% | ||
Home Equity Lines [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer | 239,537 | 242,480 | ||
Total loans | 239,537 | 242,480 | ||
Percent of Total Loans | 8.00% | 8.00% | ||
Home Equity Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer | 46,727 | 46,967 | ||
Total loans | 46,727 | 46,967 | ||
Percent of Total Loans | 2.00% | 2.00% | ||
Other Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer | 47,241 | [5] | 48,926 | [5] |
Total loans | 47,241 | 48,926 | ||
Percent of Total Loans | 2.00% | [5] | 2.00% | [5] |
Consumer Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer | $333,505 | $338,373 | ||
Percent of Total Loans | 12.00% | 12.00% | ||
[1] | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. | |||
[2] | Loans primarily secured by income producing property. | |||
[3] | Loans for construction of 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. | |||
[5] | Consumer installment loans and loans secured by general aviation aircraft and automobiles. |
Loans_Nonaccrual_Loans_Details
Loans (Nonaccrual Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $15,865,000 | $15,945,000 |
Accruing loans 90 days or more past due | 0 | 0 |
Current Payment Status [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable, Nonaccrual of Interest, Current | 3,600,000 | 3,200,000 |
Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 5,115,000 | 5,315,000 |
Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 2,193,000 | 1,969,000 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 6,956,000 | 7,124,000 |
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 | 1,051,000 | 1,217,000 |
Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 511,000 | 317,000 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $39,000 | $3,000 |
Loans_Past_Due_Loans_Details
Loans (Past Due Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | $6,708 | $6,033 | ||
Loans 60 to 89 Days Past Due | 2,207 | 2,368 | ||
Loans Over 90 Days Past Due | 10,166 | 9,677 | ||
Total Loans Past Due | 19,081 | 18,078 | ||
Current Loans | 2,861,511 | 2,841,198 | ||
Total loans | 2,880,592 | [1] | 2,859,276 | [1] |
Commercial Mortgages [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 497 | 0 | ||
Loans 60 to 89 Days Past Due | 61 | 0 | ||
Loans Over 90 Days Past Due | 5,115 | 5,315 | ||
Total Loans Past Due | 5,673 | 5,315 | ||
Current Loans | 859,369 | 838,663 | ||
Total loans | 865,042 | 843,978 | ||
Commercial Construction & 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 | 89,851 | 79,592 | ||
Total loans | 89,851 | 79,592 | ||
Commercial & Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 229 | 2,136 | ||
Loans 60 to 89 Days Past Due | 229 | 1,202 | ||
Loans Over 90 Days Past Due | 721 | 181 | ||
Total Loans Past Due | 1,179 | 3,519 | ||
Current Loans | 603,451 | 608,399 | ||
Total loans | 604,630 | 611,918 | ||
Residential Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 4,470 | 2,943 | ||
Loans 60 to 89 Days Past Due | 1,352 | 821 | ||
Loans Over 90 Days Past Due | 3,607 | 3,284 | ||
Total Loans Past Due | 9,429 | 7,048 | ||
Current Loans | 945,476 | 941,683 | ||
Total loans | 954,905 | 948,731 | ||
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 | 32,659 | 36,684 | ||
Total loans | 32,659 | 36,684 | ||
Home Equity Lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 1,244 | 570 | ||
Loans 60 to 89 Days Past Due | 429 | 100 | ||
Loans Over 90 Days Past Due | 463 | 841 | ||
Total Loans Past Due | 2,136 | 1,511 | ||
Current Loans | 237,401 | 240,969 | ||
Total loans | 239,537 | 242,480 | ||
Home Equity Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 213 | 349 | ||
Loans 60 to 89 Days Past Due | 111 | 240 | ||
Loans Over 90 Days Past Due | 255 | 56 | ||
Total Loans Past Due | 579 | 645 | ||
Current Loans | 46,148 | 46,322 | ||
Total loans | 46,727 | 46,967 | ||
Other Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans 30 to 59 Days Past Due | 55 | 35 | ||
Loans 60 to 89 Days Past Due | 25 | 5 | ||
Loans Over 90 Days Past Due | 5 | 0 | ||
Total Loans Past Due | 85 | 40 | ||
Current Loans | 47,156 | 48,886 | ||
Total loans | $47,241 | $48,926 | ||
[1] | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. |
Loans_Impaired_Loans_Details
Loans (Impaired Loans) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | $3,145 | [1] | $2,956 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 17,901 | [1] | 19,096 | [1] |
Total Recorded Investment of Impaired Loans | 21,046 | [1] | 22,052 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 3,440 | 3,276 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 18,809 | 19,765 | ||
Total Unpaid Principal of Impaired Loans | 22,249 | 23,041 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 1,657 | 1,583 | ||
Commercial Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | 205 | [1] | 432 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 14,384 | [1] | 14,585 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 205 | 432 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 14,564 | 14,564 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 1,173 | 927 | ||
Commercial Construction & 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 | ||
Commercial & Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | 1,322 | [1] | 1,047 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 1,754 | [1] | 1,878 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,323 | 1,076 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 2,305 | 2,437 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 185 | 177 | ||
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | 1,618 | [1] | 1,477 | [1] |
Recorded Investment of Impaired Loans with Related Allowance | 1,296 | [1] | 2,226 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,912 | 1,768 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 1,423 | 2,338 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 222 | 326 | ||
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 | ||
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 | 244 | [1] | 250 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 250 | 250 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 76 | 141 | ||
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 | 72 | [1] | 45 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 116 | 62 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 1 | 12 | ||
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 | 151 | [1] | 112 | [1] |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 151 | 114 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 0 | 0 | ||
Commercial Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | 17,665 | [1] | 17,942 | [1] |
Total Unpaid Principal of Impaired Loans | 18,397 | 18,509 | ||
Related Allowance on Impaired Loans | 1,358 | 1,104 | ||
Residential Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | 2,914 | [1] | 3,703 | [1] |
Total Unpaid Principal of Impaired Loans | 3,335 | 4,106 | ||
Related Allowance on Impaired Loans | 222 | 326 | ||
Consumer Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | 467 | [1] | 407 | [1] |
Total Unpaid Principal of Impaired Loans | 517 | 426 | ||
Related Allowance on Impaired Loans | $77 | $153 | ||
[1] | The recorded investment in impaired loans consists of unpaid principal balance net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. |
Loans_Impaired_Loans_Interest_
Loans (Impaired Loans Interest Income Recognized) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | $21,902 | $34,804 |
Interest Income Recognized on Impaired Loans | 117 | 206 |
Commercial Mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 14,942 | 28,340 |
Interest Income Recognized on Impaired Loans | 79 | 165 |
Commercial Construction & Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 0 | 0 |
Interest Income Recognized on Impaired Loans | 0 | 0 |
Commercial & Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 3,036 | 2,366 |
Interest Income Recognized on Impaired Loans | 19 | 23 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 3,457 | 3,744 |
Interest Income Recognized on Impaired Loans | 16 | 14 |
Homeowner Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 0 | 0 |
Interest Income Recognized on Impaired Loans | 0 | 0 |
Home Equity Lines [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 247 | 134 |
Interest Income Recognized on Impaired Loans | 0 | 1 |
Home Equity Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 74 | 95 |
Interest Income Recognized on Impaired Loans | 0 | 1 |
Other Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 146 | 125 |
Interest Income Recognized on Impaired Loans | $3 | $2 |
Loans_Troubled_Debt_Restructur
Loans (Troubled Debt Restructurings) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
loan | loan | |||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 2 | ||
Pre-Modification Recorded Investment | $428 | [1] | $479 | [1] |
Post-Modification Recorded Investment | 428 | [1] | 479 | [1] |
Commercial Mortgages [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] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Commercial Construction & 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] |
Post-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Commercial & Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | ||
Pre-Modification Recorded Investment | 300 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 300 | [1] | 0 | [1] |
Residential Mortgage [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | ||
Pre-Modification Recorded Investment | 93 | [1] | 479 | [1] |
Post-Modification Recorded Investment | 93 | [1] | 479 | [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] |
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 | 0 | 0 | ||
Pre-Modification Recorded Investment | 0 | [1] | 0 | [1] |
Post-Modification Recorded Investment | 0 | [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] |
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 | 1 | 0 | ||
Pre-Modification Recorded Investment | 35 | [1] | 0 | [1] |
Post-Modification Recorded Investment | $35 | [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, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. |
Loans_Troubled_Debt_Restructur1
Loans (Troubled Debt Restructurings Type of Modification) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | $428 | [1] | $479 | [1] |
Below market interest rate concession [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | 335 | 0 | ||
Payment deferral [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | 93 | 479 | ||
Maturity / amortization concession [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | 0 | 0 | ||
Interest only payments [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | 0 | 0 | ||
Combination of concessions [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Investment | $0 | [2] | $0 | [2] |
[1] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | |||
[2] | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. |
Loans_Troubled_Debt_Restructur2
Loans (Troubled Debt Restructurings Subsequent Default) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
loan | loan | |||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 2 | ||
Commercial Mortgages [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Commercial Construction & Development [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Commercial & Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | ||
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 | 0 | 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 | 1 | 0 | ||
Payment Default [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 4 | 6 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 349 | [1] | 1,191 | [1] |
Payment Default [Member] | Commercial Mortgages [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] |
Payment Default [Member] | Commercial Construction & Development [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | [1] | 0 | [1] |
Payment Default [Member] | Commercial & Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 6 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 11 | [1] | 1,191 | [1] |
Payment Default [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 0 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 338 | [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 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 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 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 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 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 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 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 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 restructured loans, the recorded investment also includes accrued interest. |
Loans_Credit_Quality_Indicator
Loans (Credit Quality Indicators - Commercial) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $1,518,737 | $1,491,655 |
Pass [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 842,516 | 819,857 |
Pass [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 89,851 | 79,592 |
Pass [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 586,370 | 592,206 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 32,743 | 34,683 |
Special Mention [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 17,207 | 18,372 |
Special Mention [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 0 |
Special Mention [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 15,536 | 16,311 |
Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 8,043 | 9,150 |
Classified [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 5,319 | 5,749 |
Classified [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 0 |
Classified [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $2,724 | $3,401 |
Loans_Credit_Quality_Indicator1
Loans (Credit Quality Indicators - Residential, Consumer) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Under 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $947,949 | $941,607 |
Under 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 3,349 | 3,840 |
Under 90 Days Past Due [Member] | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 32,659 | 36,684 |
Under 90 Days Past Due [Member] | Residential Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 983,957 | 982,131 |
Under 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 239,074 | 241,639 |
Under 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 46,472 | 46,911 |
Under 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 47,236 | 48,926 |
Under 90 Days Past Due [Member] | Consumer Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 332,782 | 337,476 |
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 | 3,607 | 3,284 |
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 Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 3,607 | 3,284 |
Over 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 463 | 841 |
Over 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 255 | 56 |
Over 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 5 | 0 |
Over 90 Days Past Due [Member] | Consumer Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $723 | $897 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | $28,023 | $27,886 |
Charge-offs | -321 | -1,223 |
Recoveries | 108 | 80 |
Provision | 0 | 300 |
Allowance, Ending Balance | 27,810 | 27,043 |
Reclassification of unallocated allowance [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Ending Balance | 5,300 | |
Commercial Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 8,202 | 8,022 |
Charge-offs | -200 | -945 |
Recoveries | 80 | 6 |
Provision | 249 | -536 |
Allowance, Ending Balance | 8,331 | 6,547 |
Commercial Construction & Development [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 1,300 | 383 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | -71 | -114 |
Allowance, Ending Balance | 1,229 | 269 |
Commercial & Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 7,987 | 7,835 |
Charge-offs | -7 | -196 |
Recoveries | 14 | 26 |
Provision | -191 | 805 |
Allowance, Ending Balance | 7,803 | 8,470 |
Commercial Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 17,489 | 16,240 |
Charge-offs | -207 | -1,141 |
Recoveries | 94 | 32 |
Provision | -13 | 155 |
Allowance, Ending Balance | 17,363 | 15,286 |
Residential Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 5,430 | 6,450 |
Charge-offs | -48 | -42 |
Recoveries | 2 | 35 |
Provision | -29 | 705 |
Allowance, Ending Balance | 5,355 | 7,148 |
Consumer Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 2,713 | 2,511 |
Charge-offs | -66 | -40 |
Recoveries | 12 | 13 |
Provision | 72 | 93 |
Allowance, Ending Balance | 2,731 | 2,577 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Allowance, Beginning Balance | 2,391 | 2,685 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | -30 | -653 |
Allowance, Ending Balance | $2,361 | $2,032 |
Allowance_for_Loan_Losses_Allo1
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | $21,016 | $22,019 | ||
Loans related allowance individually evaluated for impairment | 1,657 | 1,583 | ||
Loans collectively evaluated for impairment | 2,859,576 | 2,837,257 | ||
Loans related allowance collectively evaluated for impairment | 23,792 | 24,049 | ||
Total loans | 2,880,592 | [1] | 2,859,276 | [1] |
Allowance | 27,810 | 28,023 | ||
Commercial Mortgages [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 14,563 | 14,991 | ||
Loans related allowance individually evaluated for impairment | 1,173 | 927 | ||
Loans collectively evaluated for impairment | 850,479 | 828,987 | ||
Loans related allowance collectively evaluated for impairment | 7,158 | 7,275 | ||
Total loans | 865,042 | 843,978 | ||
Commercial Construction & Development [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 0 | 0 | ||
Loans related allowance individually evaluated for impairment | 0 | 0 | ||
Loans collectively evaluated for impairment | 89,851 | 79,592 | ||
Loans related allowance collectively evaluated for impairment | 1,229 | 1,300 | ||
Total loans | 89,851 | 79,592 | ||
Commercial & Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 3,074 | 2,921 | ||
Loans related allowance individually evaluated for impairment | 185 | 177 | ||
Loans collectively evaluated for impairment | 601,556 | 608,997 | ||
Loans related allowance collectively evaluated for impairment | 7,618 | 7,810 | ||
Total loans | 604,630 | 611,918 | ||
Residential Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 2,912 | 3,698 | ||
Loans related allowance individually evaluated for impairment | 222 | 326 | ||
Loans collectively evaluated for impairment | 984,652 | 981,717 | ||
Loans related allowance collectively evaluated for impairment | 5,133 | 5,104 | ||
Consumer Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 467 | 409 | ||
Loans related allowance individually evaluated for impairment | 77 | 153 | ||
Loans collectively evaluated for impairment | 333,038 | 337,964 | ||
Loans related allowance collectively evaluated for impairment | 2,654 | 2,560 | ||
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total loans | 0 | 0 | ||
Allowance | $2,361 | $2,391 | ||
[1] | Includes net unamortized loan origination costs of $2.2 million and $2.1 million, respectively, and net unamortized premiums on purchased loans of $92 thousand and $94 thousand, respectively, at March 31, 2015 and December 31, 2014. |
Time_Certificates_of_Deposit_S
Time Certificates of Deposit (Schedule of Time Certifcates of Deposit Maturities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Time deposits amounts scheduled to mature through the end of the current year | $296,731 | |
Time deposits weighted average rate for maturities through the end of the current year | 0.67% | |
Time deposits amounts scheduled to mature in year two | 177,667 | |
Time deposits weighted average rate for maturities in year two | 1.02% | |
Time deposits amounts scheduled to mature in year three | 152,730 | |
Time deposits weighted average rate for maturities in year three | 1.11% | |
Time deposits amounts scheduled to mature in year four | 77,579 | |
Time deposits weighted average rate for maturities in year four | 1.35% | |
Time deposits amounts scheduled to mature in year five | 122,693 | |
Time deposits weighted average rate for maturities in year five | 1.76% | |
Time deposits amounts schedule to mature after year five | 25,221 | |
Time deposits weighted average rate for maturities after year five | 1.52% | |
Time deposits | $852,621 | $874,102 |
Time deposits weighted average rate | 1.07% |
Borrowings_Narrative_Federal_H
Borrowings (Narrative Federal Home Loan Bank Advances) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $385,992,000 | $406,297,000 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | 385,992,000 | 406,300,000 |
Unused line of credit with FHLB | 40,000,000 | 40,000,000 |
Unused line of credit with FHLB | $613,700,000 | $569,400,000 |
Borrowings_Federal_Home_Loan_B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $385,992 | $406,297 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Scheduled maturity through the end of the current year | 160,520 | |
Weighted average rate for scheduled maturity through the end of the current year | 0.49% | |
Scheduled maturity in year two | 31,792 | |
Weighted average rate for scheduled maturity in year two | 0.60% | |
Scheduled maturity in year three | 30,075 | |
Weighted average rate for scheduled maturity in year three | 5.44% | |
Scheduled maturity in year four | 58,634 | |
Weighted average rate for scheduled maturity in year four | 1.56% | |
Scheduled maturity in year five | 42,661 | |
Weighted average rate for scheduled maturity in year five | 4.40% | |
Scheduled maturity after year five | 62,310 | |
Weighted average rate for scheduled maturity after year five | 3.17% | |
Federal Home Loan Bank advances | $385,992 | $406,300 |
Total weighted average rate | 1.91% |
Shareholders_Equity_Regulatory
Shareholders' Equity (Regulatory Captial Requirements) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Corporation [Member] | ||||
Total Capital (to Risk-Weighted Assets): | ||||
Total Capital | $352,521 | $343,934 | ||
Total Capital to Risk-Weighted Assets | 12.80% | 12.56% | ||
Total Capital for Capital Adequacy Purposes | 220,262 | 219,149 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 273,936 | |||
Tier 1 Capital (to Risk-Weighted Assets): | ||||
Tier 1 Capital | 324,375 | 315,575 | ||
Tier 1 Capital to Risk Weighted-Assets | 11.78% | 11.52% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 165,196 | 109,574 | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 4.00% | ||
Tier 1 Capital Required To Be Well Capitalized | 164,361 | |||
Tier 1 Capital (to Average Assets): | ||||
Tier 1 Leverage Capital | 324,375 | [1] | 315,575 | [1] |
Tier 1 Leverage Capital to Average Assets | 9.21% | [1] | 9.14% | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 140,864 | [1] | 138,090 | [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 | 172,612 | [1] | ||
Common Equity Tier 1 Capital [Abstract] | ||||
Common Equity Tier 1 Capital | 302,376 | [2] | ||
Common Equity Tier 1 Capital to Risk Weighted Assets | 10.98% | [2] | ||
Common Equity Tier 1 Capital Required for Capital Adequacy | 123,897 | [2] | ||
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | [2] | ||
Bank [Member] | ||||
Total Capital (to Risk-Weighted Assets): | ||||
Total Capital | 347,674 | 339,268 | ||
Total Capital to Risk-Weighted Assets | 12.63% | 12.39% | ||
Total Capital for Capital Adequacy Purposes | 220,187 | 219,075 | ||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||
Total Capital To Be Well Capitalized | 275,234 | 273,844 | ||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||
Tier 1 Capital (to Risk-Weighted Assets): | ||||
Tier 1 Capital | 319,528 | 310,909 | ||
Tier 1 Capital to Risk Weighted-Assets | 11.61% | 11.35% | ||
Tier 1 Capital Required For Capital Adequacy Purposes | 165,140 | 109,537 | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 4.00% | ||
Tier 1 Capital Required To Be Well Capitalized | 220,187 | 164,306 | ||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 8.00% | 6.00% | ||
Tier 1 Capital (to Average Assets): | ||||
Tier 1 Leverage Capital | 319,528 | [1] | 310,909 | [1] |
Tier 1 Leverage Capital to Average Assets | 9.08% | [1] | 9.01% | [1] |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 140,738 | [1] | 137,964 | [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 | 175,922 | [1] | 172,454 | [1] |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] |
Common Equity Tier 1 Capital [Abstract] | ||||
Common Equity Tier 1 Capital | 319,528 | [2] | ||
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.61% | [2] | ||
Common Equity Tier 1 Capital Required for Capital Adequacy | 123,855 | [2] | ||
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | [2] | ||
Common Equity Tier 1 Capital Required to be Well Capitalized | $178,902 | [2] | ||
Common Equity Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | [2] | ||
[1] | Leverage ratio. | |||
[2] | (1)New capital ratio effective January 1, 2015 under the Basel III capital requirements. See additional discussion of Basel III and the new regulatory capital requirements in the “Supervision and Regulation†section in the Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Interest Rate Swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $22,681 | $22,681 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,416 | 165,795 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,416 | 165,795 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of Instruments Held | 2 | 2 |
Notional Amount | 22,681 | 22,681 |
Pledged collateral to derivative counterparties | 800 | 939 |
Derivatives not Designated as Hedging Instruments [Member] | Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,400 | 165,800 |
Derivatives not Designated as Hedging Instruments [Member] | Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,416 | 165,795 |
Derivatives not Designated as Hedging Instruments [Member] | Risk participation agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $12,500 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | $9,245 | $5,807 |
Total derivative liabilities | 11,041 | 7,316 |
Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 9,245 | 5,807 |
Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative liabilities | 11,041 | 7,316 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset designated as a cash flow hedge | 0 | 0 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability designated as a cash flow hedge | 367 | 497 |
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Commitments [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset not designated | 1,769 | 1,212 |
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Commitments [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability not designated | 5 | 20 |
Derivatives not Designated as Hedging Instruments [Member] | Commitments to sell mortgage loans [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset not designated | 14 | 13 |
Derivatives not Designated as Hedging Instruments [Member] | Commitments to sell mortgage loans [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability not designated | 2,970 | 2,028 |
Derivatives not Designated as Hedging Instruments [Member] | Interest rate swaps with customers [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset not designated | 7,415 | 4,554 |
Derivatives not Designated as Hedging Instruments [Member] | Interest rate swaps with customers [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability not designated | 0 | 23 |
Derivatives not Designated as Hedging Instruments [Member] | Mirror swaps with counterparties [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset not designated | 0 | 28 |
Derivatives not Designated as Hedging Instruments [Member] | Mirror swaps with counterparties [Member] | Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability not designated | 7,699 | 4,748 |
Derivatives not Designated as Hedging Instruments [Member] | Risk participation agreement [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset not designated | $47 | $0 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships, Effect in Statements of Income and Changes in Shareholders' Equity) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income (Ineffective Portion) | $0 | $0 |
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 85 | 76 |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $85 | $76 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $0 | $0 |
Interest Rate Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 572 | 277 |
Commitments to sell mortgage loans [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | -941 | -313 |
Derivatives not Designated as Hedging Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 276 | 224 |
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Commitments [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 572 | 277 |
Derivatives not Designated as Hedging Instruments [Member] | Commitments to sell mortgage loans [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | -941 | -313 |
Derivatives not Designated as Hedging Instruments [Member] | Interest rate swaps with customers [Member] | Net gains (losses) on interest rate swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 3,633 | 1,030 |
Derivatives not Designated as Hedging Instruments [Member] | Mirror swaps with counterparties [Member] | Net gains (losses) on interest rate swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | -2,836 | -770 |
Derivatives not Designated as Hedging Instruments [Member] | Risk participation agreement [Member] | Net gains (losses) on interest rate swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | ($152) | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (Nonrecurring [Member], Level 3 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Allowance For Loan Loss Allocation on Collateral Dependent Impaired Loans | $1.20 | $1.30 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale Disclosures) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Mortgage loans held for sale, amortized cost | $35,600,000 | $29,500,000 |
Mortgage loans held for sale, at fair value | 47,117,000 | 45,693,000 |
Mortgage Loans Held for Sale Difference between Fair Value and Principal Amount | $1,100,000 | $779,000 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Commitments to Originate And Commitments to Sell Changes in Fair Value Disclosures) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on mortgage loans held for sale | $341 | $76 |
Gain (Loss) Recognized in Income | 0 | 0 |
Total change in fair value | -28 | 40 |
Interest Rate Commitments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 572 | 277 |
Commitments to sell mortgage loans [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | ($941) | ($313) |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $340,942 | $357,662 |
Mortgage loans held for sale | 36,672 | 30,321 |
Derivative assets | 9,245 | 5,807 |
Derivative liabilities | 11,041 | 7,316 |
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 | 31,301 | 31,172 |
Mortgage-backed securities issued by US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 233,045 | 245,366 |
Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 44,179 | 49,176 |
Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,287 | 25,774 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,130 | 6,174 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 9,245 | 5,807 |
Derivative liabilities | 11,041 | 7,316 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 36,672 | 30,321 |
Total assets at fair value on a recurring basis | 386,859 | 393,790 |
Total liabilities at fair value on a recurring basis | 11,041 | 7,316 |
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 | 31,301 | 31,172 |
Recurring [Member] | Mortgage-backed securities issued by US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 233,045 | 245,366 |
Recurring [Member] | Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 44,179 | 49,176 |
Recurring [Member] | Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,287 | 25,774 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,130 | 6,174 |
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] | 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 US 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] | Obligations of 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] | Individual name issuer trust preferred debt securities | ||
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 | 36,672 | 30,321 |
Total assets at fair value on a recurring basis | 386,859 | 393,790 |
Total liabilities at fair value on a recurring basis | 11,041 | 7,316 |
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 | 31,301 | 31,172 |
Recurring [Member] | Level 2 [Member] | Mortgage-backed securities issued by US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 233,045 | 245,366 |
Recurring [Member] | Level 2 [Member] | Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 44,179 | 49,176 |
Recurring [Member] | Level 2 [Member] | Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,287 | 25,774 |
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 | 6,130 | 6,174 |
Recurring [Member] | Level 3 [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 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 US 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] | Obligations of 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] | Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
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 |
Fair_Value_Measurements_Asset_
Fair Value Measurements (Asset and Liabilities Measured on a Nonrecurring Basis) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | $17,901 | [1] | $19,096 | [1] |
Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 3,962 | 5,728 | ||
Property acquired through foreclosure or repossession | 318 | 348 | ||
Total assets at fair value on a nonrecurring basis | 4,280 | 6,076 | ||
Nonrecurring [Member] | Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 0 | 0 | ||
Property acquired through foreclosure or repossession | 0 | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | 0 | ||
Nonrecurring [Member] | Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 0 | 0 | ||
Property acquired through foreclosure or repossession | 0 | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | 0 | ||
Nonrecurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired Loans | 3,962 | 5,728 | ||
Property acquired through foreclosure or repossession | 318 | 348 | ||
Total assets at fair value on a nonrecurring basis | $4,280 | $6,076 | ||
[1] | The recorded investment in impaired loans consists of unpaid principal balance net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. |
Fair_Value_Measurements_Qualit
Fair Value Measurements (Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Impaired Loans | 17,901 | [1] | $19,096 | [1] | ||
Nonrecurring [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Impaired Loans | 3,962 | 5,728 | ||||
Property acquired through foreclosure or repossession | 318 | 348 | ||||
Nonrecurring [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Impaired Loans | 3,962 | 5,728 | ||||
Property acquired through foreclosure or repossession | 318 | $348 | ||||
Nonrecurring [Member] | Minimum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 0.00% | 0.00% | ||||
Appraisal Adjustments | 0.00% | [2] | 0.00% | [2] | ||
Nonrecurring [Member] | Minimum [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 0.00% | 6.00% | ||||
Appraisal Adjustments | 7.00% | [2] | 5.00% | [2] | ||
Nonrecurring [Member] | Maximum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 25.00% | 10.00% | ||||
Appraisal Adjustments | 15.00% | [2] | 40.00% | [2] | ||
Nonrecurring [Member] | Maximum [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 10.00% | 10.00% | ||||
Appraisal Adjustments | 13.00% | [2] | 23.00% | [2] | ||
Nonrecurring [Member] | Weighted Average [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 10.00% | 2.00% | ||||
Appraisal Adjustments | 1.00% | [2] | 3.00% | [2] | ||
Nonrecurring [Member] | Weighted Average [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discount For Costs To Sell | 6.00% | 8.00% | ||||
Appraisal Adjustments | 10.00% | [2] | 14.00% | [2] | ||
[1] | The recorded investment in impaired loans consists of unpaid principal balance net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | |||||
[2] | 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | $24,025 | $25,222 |
Loans, net of allowance of loan losses | 2,852,782 | 2,831,253 |
Time deposits | 852,621 | 874,102 |
Federal Home Loan Bank advances | 385,992 | 406,297 |
Junior subordinated debentures | 22,681 | 22,681 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 24,025 | 25,222 |
Loans, net of allowance of loan losses | 2,852,782 | 2,831,253 |
Time deposits | 852,621 | 874,102 |
Federal Home Loan Bank advances | 385,992 | 406,297 |
Junior subordinated debentures | 22,681 | 22,681 |
Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 24,834 | 26,008 |
Loans, net of allowance of loan losses | 2,898,369 | 2,866,907 |
Time deposits | 854,780 | 872,570 |
Federal Home Loan Bank advances | 400,770 | 418,005 |
Junior subordinated debentures | 16,974 | 17,201 |
Fair Value Measurement [Member] | Level 1 [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 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 24,834 | 26,008 |
Loans, net of allowance of loan losses | 0 | 0 |
Time deposits | 854,780 | 872,570 |
Federal Home Loan Bank advances | 400,770 | 418,005 |
Junior subordinated debentures | 16,974 | 17,201 |
Fair Value Measurement [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 0 | 0 |
Loans, net of allowance of loan losses | 2,898,369 | 2,866,907 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | $0 | $0 |
Defined_Benefit_Pension_Plans_2
Defined Benefit Pension Plans (Components of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 120 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 30, 2023 |
Qualified Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $615 | $538 | |
Interest Cost | 732 | 723 | |
Expected Return on Plan Assets | -1,129 | -1,016 | |
Amortization of Prior Service Cost | -6 | -6 | |
Recognized Net Actuarial Loss | 312 | 115 | |
Net Periodic Benefit Cost | 524 | 354 | |
Non-Qualified Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 20 | 12 | |
Interest Cost | 122 | 120 | |
Expected Return on Plan Assets | 0 | 0 | |
Amortization of Prior Service Cost | 0 | 0 | |
Recognized Net Actuarial Loss | 61 | 16 | |
Net Periodic Benefit Cost | $203 | $148 | |
Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Transition Period Pension Plan Amendment | 10 years |
ShareBased_Compensation_Arrang1
Share-Based Compensation Arrangements (Nonvested Performance Shares) (Details) (Performance Based Nonvested Shares [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Performance Based Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value | $38.02 |
Award Vesting Period | 3 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% |
Performance share awards, shares vesting percentage | 150.00% |
Performance share awards, shares vesting | 46,950 |
Business_Segments_Statement_of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Net interest income | $25,702 | $23,836 | |
Provision for loan losses | 0 | 300 | |
Net interest income after provision for loan losses | 25,702 | 23,536 | |
Noninterest income | 14,020 | 19,370 | |
Depreciation and amortization expense | 1,037 | 947 | |
Other noninterest expenses related to segments | 22,494 | 28,345 | |
Total noninterest expense | 23,531 | 29,292 | |
Income before income taxes | 16,191 | 13,614 | |
Income tax expense | 5,181 | 4,316 | |
Net income | 11,010 | 9,298 | |
Total assets | 3,602,514 | 3,194,146 | 3,586,874 |
Expenditures for long-lived assets | 1,226 | 1,291 | |
Commercial Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 20,625 | 19,739 | |
Provision for loan losses | 0 | 300 | |
Net interest income after provision for loan losses | 20,625 | 19,439 | |
Noninterest income | 5,078 | 4,541 | |
Depreciation and amortization expense | 671 | 585 | |
Other noninterest expenses related to segments | 13,587 | 13,553 | |
Total noninterest expense | 14,258 | 14,138 | |
Income before income taxes | 11,445 | 9,842 | |
Income tax expense | 3,730 | 3,261 | |
Net income | 7,715 | 6,581 | |
Total assets | 3,015,691 | 2,577,350 | |
Expenditures for long-lived assets | 1,067 | 1,075 | |
Wealth Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income | -14 | -4 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | -14 | -4 | |
Noninterest income | 8,435 | 8,065 | |
Depreciation and amortization expense | 306 | 311 | |
Other noninterest expenses related to segments | 5,915 | 5,387 | |
Total noninterest expense | 6,221 | 5,698 | |
Income before income taxes | 2,200 | 2,363 | |
Income tax expense | 844 | 876 | |
Net income | 1,356 | 1,487 | |
Total assets | 52,568 | 52,475 | |
Expenditures for long-lived assets | 114 | 171 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 5,091 | 4,101 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 5,091 | 4,101 | |
Noninterest income | 507 | 6,764 | |
Depreciation and amortization expense | 60 | 51 | |
Other noninterest expenses related to segments | 2,992 | 9,405 | |
Total noninterest expense | 3,052 | 9,456 | |
Income before income taxes | 2,546 | 1,409 | |
Income tax expense | 607 | 179 | |
Net income | 1,939 | 1,230 | |
Total assets | 534,255 | 564,321 | |
Expenditures for long-lived assets | $45 | $45 |
Other_Comprehensive_Income_Act
Other Comprehensive Income (Activity in Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Net change in fair value of securities available for sale, before tax | $1,053 | $964 | ||
Net change in fair value of securities available for sale, tax | 389 | 352 | ||
Net change in fair value of securities available for sale | 664 | 612 | ||
Change in fair value of cash flow hedges, before tax | -32 | -43 | ||
Change in fair value of cash flow hedges, tax | -24 | -27 | ||
Change in fair value of cash flow hedges | -8 | -16 | ||
Net cash flow hedge losses reclassified into earnings, before tax | 145 | [1] | 145 | [1] |
Net cash flow hedge losses reclassified into earnings, tax | 52 | [1] | 53 | [1] |
Net cash flow hedge losses reclassified into earnings | 93 | [1] | 92 | [1] |
Net change in fair value of cash flow hedges, before tax | 113 | 102 | ||
Net change in fair value of cash flow hedges, tax | 28 | 26 | ||
Net change in fair value of cash flow hedges | 85 | 76 | ||
Defined benefit plan obligation adjustment, before tax | 367 | [2] | 88 | [2] |
Defined benefit plan obligation adjustment, tax | 132 | [2] | 0 | [2] |
Defined benefit plan obligation adjustment, net of tax | 235 | [2] | 88 | [2] |
Total other comprehensive (loss) income, before tax | 1,533 | 1,154 | ||
Total other comprehensive (loss) income, tax | 549 | 378 | ||
Total other comprehensive (loss) income, net of tax | $984 | $776 | ||
[1] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | |||
[2] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Other_Comprehensive_Income_Com
Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated other comprehensive income (loss), beginning balance | ($8,809) | ($1,553) |
Other Comprehensive Income Before Reclassifcations | 656 | 596 |
Amounts reclassed from accumulated other comprehensive income | 328 | 180 |
Total other comprehensive income, net of tax | 984 | 776 |
Accumulated other comprehensive income (loss), ending balance | -7,825 | -777 |
Net Unrealized Gains on AFS Securities [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | 4,110 | 3,089 |
Other Comprehensive Income Before Reclassifcations | 664 | 612 |
Amounts reclassed from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income, net of tax | 664 | 612 |
Accumulated other comprehensive income (loss), ending balance | 4,774 | 3,701 |
Noncredit-related Impairment [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | 112 | 112 |
Other Comprehensive Income Before Reclassifcations | 0 | 0 |
Amounts reclassed from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income, net of tax | 0 | 0 |
Accumulated other comprehensive income (loss), ending balance | 112 | 112 |
Net Unrealized Losses on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | -287 | -618 |
Other Comprehensive Income Before Reclassifcations | -8 | -16 |
Amounts reclassed from accumulated other comprehensive income | 93 | 92 |
Total other comprehensive income, net of tax | 85 | 76 |
Accumulated other comprehensive income (loss), ending balance | -202 | -542 |
Pension Benefit Adjustment [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | -12,744 | -4,136 |
Other Comprehensive Income Before Reclassifcations | 0 | 0 |
Amounts reclassed from accumulated other comprehensive income | 235 | 88 |
Total other comprehensive income, net of tax | 235 | 88 |
Accumulated other comprehensive income (loss), ending balance | ($12,509) | ($4,048) |
Earnings_Per_Common_Share_Calc
Earnings Per Common Share (Calculation of Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $11,010 | $9,298 |
Less dividends and undistributed earnings allocated to participating securities | -39 | -41 |
Net income applicable to common shareholders | 10,971 | 9,257 |
Weighted average common shares outstanding - basic | 16,759,000 | 16,626,000 |
Basic earnings per common share | $0.65 | $0.56 |
Less dividends and undistributed earnings allocated to participating securities | -39 | -41 |
Net Income (Loss) Available to Common Stockholders, Diluted | $10,971 | $9,257 |
Dilutive effect of common stock equivalents | 180,000 | 174,000 |
Weighted average common shares outstanding - diluted | 16,939,000 | 16,800,000 |
Diluted earnings per common share | $0.65 | $0.55 |
Antidilutive common stock equivalents | 77,450 | 54,600 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Line Items] | |||
Operating leases rental expense | $790 | $737 | |
Minimum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease Expiration Period | 4 months | ||
Lease Expiration Period, Renewal Option | 1 month | ||
Maximum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease Expiration Period | 26 years | ||
Lease Expiration Period, Renewal Option | 25 years | ||
Commitments to extend credit on standby letters of credit [Member] | Commitments to Extend Credit [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contract amount | $5,248 | $5,102 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Interest Rate Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $60,546 | $40,015 |
Commitments to sell mortgage loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 106,457 | 84,808 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,416 | 165,795 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 209,416 | 165,795 |
Interest Rate Swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 22,681 | 22,681 |
Commitments to extend credit on commerical loans [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 303,443 | 325,402 |
Commitments to extend credit on home equity lines [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 206,515 | 200,932 |
Commitments to extend credit on other loans [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 47,998 | 48,551 |
Commitments to extend credit on standby letters of credit [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | $5,248 | $5,102 |
Sale_of_Business_Line_Details
Sale of Business Line (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Sale of Business Line [Abstract] | ||
Gain on sale of business line | $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 | 355,000 | |
Divestiture Related Costs, After Tax | 227,000 | |
Earnings Per Share, Divestiture Costs | $0.01 | |
Net proceeds from sale of business line | 0 | 7,205,000 |
Increase Decrease In Deferred Revenue From Sale Of Business Line | 900,000 | |
Deferred Merchant Referral Revenue remaining | $720,000 |